7.6. SR 06-09-2003MEMORANDUM
TO:
Mayor and City Council
FROM:
DATE:
Pat Klaers, City Administrat~
June 9, 2003
SUBJECT: Consider 2003-04 Voluntary Leave Program
Item
Over the past few months there has been numerous discussions held with department heads and
the finance director regarding a Voluntary Leave Program. The purpose of this program is to
create a "win-win" situation whereby the city can save some money during a time of budget
constraints and an employee can take some additional time off without pay but without loss of
any benefits. The city already has in its personnel policy manual a provision for a "general leave"
whereby an employee can seek time off without pay. However, this time off is without accruing
vacation or sick time, without holiday pay, and without the city contributing to insurance
premiums.
This proposed Voluntary Leave Program is temporary and the amount of time off allowed is
limited. All leaves are subject to department head approval. Use of this program is anticipated to
be somewhat limited and there are some departments where use of this program will not be
appropriate. However, there are also some departments where the workload goes in cycles and in
such departments as the street/park or the building/environmental, there may be times whereby
some additional time off can be beneficial for both the employee and the city.
In review of the proposed attached policy, the department heads requested that it be kept simple
and brief with discretion placed in their hands. It was also discussed that the non-department
head exempt employees could have their wages converted to an hourly rate and get approval for
time off under this Voluntary Leave Program. In this regard, recent information from the
League of Minnesota Cities suggests that leaves for these types of positions only be granted in
eight hour blocks of time.
The city is establishing a new policy with this proposal and most everyone believes that it is
worth a try in order to help us through the immediate short-term budget challenges. If problems
arise with the policy, it ~vill be brought back to the City Council for review and reconsideration.
Recommendation
It is recommended that the City Council adopt the attached Voluntary Leave Policy ~vith the
understanding that this is a temporary program that runs through 2004.
S:\ CO UNCIL\ Pat~2003 \VoluntaryLeave.doc
VOLUNTARY LEAVE PROGRAM
PURPOSE
Allow some city employees to take some time off without pay and without any loss of
benefits (such as the employer share of insurance and accumulation of sick or vacation time).
This program allows the city to save funds during a period of budget shortfalls and
reductions in state aids. For the employee that desires additional time off and for the city to
save money, this program can create a "win-win" situation.
DURATION
This program is temporary and is to run through 2004. An extension of this program is
possible.
TIME-OFF ALLOWED
As part of this program, employees will be allowed to take a maximum of 13 days off in
2003 and 26 days off in 2004.
ELIGIBILITY
All leaves are subject to approval by the department head.
EFFECTIVE DATE
This program will go into effect upon City Council approval.
S:~ADMIN\PA-1~2OO3\VOLUNTARY LEAVE PROGRAM.doc