Exh 8BAgenda #8B
October 23, 2000
CITY OF ATLANTIC BEACH
CITY COMMISSIONER MEETING
STAFF REPORT
ITEM: Leave Sell Back Policy
SUBMITTED BY: George Foster, Human Resource Manager
DATE: October 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 yeaz.
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 be an
administratively difficult, if not impossible, task.
The unions were advised of the proposed policy in May 2000;
however, official responses have not been received.
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 maXimurn 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 yeaz. Once selected, the employee's maximum
limit cannot be changed.
FUNDING: Funding for "optional" leave sell back is currently within the
budget; however, as this is a new program, additional funds or
realignment of funds may be required.
REQUESTED ACTION: That City Cornn>ission approve implementation ofproposed policy
effective December
CITY MANAGER: