On the FCC website there is a section of Interception and Divulgence of Radio Communications. The section says that
What kinds of interception and divulgence of radio transmissions are legal?
The FCC and the Communications Act do not forbid certain types of interception and disclosure of radio communications, including:
• Mere interception of radio communications, such as overhearing your neighbor’s conversation over a cordless telephone, or listening to emergency service reports on a radio scanner (which the City of Auburn has violated by going encrypted in June of this year)
(although intercepting and/or recording telephone-related radio communications may be a violation of other federal or state laws).
• Divulgence of certain radio communications that were transmitted for use by the general public (such as over-the-air radio and television broadcasts).
• Divulgence of broadcasts related to ships, aircraft, vehicles or persons in distress.
• Divulgence of transmissions by amateur radio or citizen band radio operators
I would file a complaint with the FCC so that Auburn can reverse their decision going encrypted.