ACTION REQUESTED:
Title
Communication from the City Manager with a Request to APPROVE the Recommended 2020 - 2021 BUDGET RESTRUCTURING as a Result of the COVID-19 Pandemic.
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BACKGROUND: On April 14th, the City Manager presented to Council the projected revenue impact of the COVID-19 pandemic. At that time, $54.6 million was anticipated to be lost due to the pandemic - $1.5 million in less property taxes, $25.2 million in less local taxes, $14.3 million in state taxes, and $15.2 million in bond proceeds. By May 12th, the revenue situation had become clearer, with state and local revenues improving by $5.0 million. The proposed restructuring plan included balancing near-term and long-term needs, redeployment funds for recovery, reduction of capital programs, debt restructuring and various operating reductions. The Council provided direction to reduce capital programs by $26.7 million and to restructure January 1, 2021 debt payments of approximately $10 million. At the May 12th Council meeting, the City Council directed the City Manager to come back with a recommended $10 million in operational cuts.
On May 26th, the City Manager presented recommendations to reduce staff by 94 positions and contractual and supply reductions of $3.3 million. Council directed the City Manager to reduce 33 non-public safety positions in City Hall, Community Development, Public Works and Police, and to reduce 5 vacant fire fighter positions and 7 police officer positions.
To reduce the number of employees laid off, a resolution adopting an Early Retirement Incentive (ERI) for eligible members of the Illinois Municipal Retirement Fund (IMRF) was approved by Council on June 23, 2020. The ERI will be available for the period August 1, 2020 through July 31, 2021. As a result, it is anticipated that some layoffs may be avoided. Three (3) positions slated for layoff will take the ERI. Several other individuals slated for layoff have taken other positions within the City o...
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