Exh 4BAgenda Item:
Date: -~ -00
CITY OF ATLANTIC BEACH
CITY COMMISSIONER MEETING
. STAFF REPORT
ITEM: ~ Leave Sell Back Policy
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SUBMTiTED BY; George Foster, Human Resource Manager
DATE• April 18, 2000
BACKGROUND: The City's current leave program allows an employee to retain up
to 960 hours, or sell back, Personal Leave that exceeds 120 hours
during June and December of each year.
Both the City auditors and a tax attorney have advised that this
. policy could result in constructive receipt of taxable income with
employees taxed on.all leave that exceeds 120 hours even if they
retain the hours. Then, when the employee takes the leave, they
would not be taxed, or taxed only on the difference in the leave
value from the date previously taxed versus the value on the date
they actually took the leave. To monitor this would bean
administratively difficult, if not impossible, task.
PROPOSED POLICY: In order to provide employees with several options, continue to
allow employees to sell back leave that exceeds 120 hours, continue
. twice a year sell back, and retain the current maximum of 960
hours, staff proposes a Personal Leave policy as follows:
Employees may select a maximum limit of 120, 240, 480 or 960
hours. Personal Leave that exceeds the maximum established by
the employee will be automatically cashed in during June and
December of each year. Once selected, the employee's maximum
limit cannot be changed
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FiTNDING: Funding for leave sell back is currently within the budget.
REQUESTED ACTION: None. Proposed policy must be negotiated with Police and Public
Works unions. A final policy will be sent to CiTy Commission for
approval after union input/negotiations.
CITY MANAGER: