Mayor and Council



   For the meeting on:

  November 5, 2012
   Department:   Human Resources
   Division:  Human Resources
   Responsible staff:  Colette Anthony, Acting Human Resources Officer
  phone: (240) 314 - 8473
  CAnthony@rockvillemd.gov


Subject
Second Annual Leave Buyback

Recommendation
Staff recommends that the Mayor and Council discuss and provide direction as needed. Staff does not recommend a second annual leave buyback in FY 2013 due to funding constraints.

Discussion
One of the benefits that the City offers to all regular employees is the ability to buy up to 5 days of annual leave each year. In accordance with City Policy #120-20, all regular employees may elect to convert a maximum of five days of annual leave for taxable cash or deferred compensation at their current rate of pay on or about the last week in December of each year. Employees must retain a minimum annual leave balance equivalent to five days (see attached chart).

The City's next buyback election will occur in December 2012. If a second annual buyback is approved by the Mayor and Council, it would take place in June 2013. A second buyback would cost the City between $250,000 and $280,000 depending on the number of employees that elect to participate and the number that actually qualify. The City had 201 employees qualify in the December 2011 buyback, which cost the City approximately $267,000.

The last time that the City offered two annual buybacks was in FY 2003. After FY 2003 the second buyback was suspended due to budgetary constraints. For FY 2013 there is limited funding available for leave buyback. Due to the City's constrained budget, only the December 2012 buyback can be fully funded. If the Mayor and Council would like to proceed with the June 2013 buyback, other expenditure sources would need to be identified and reduced by the cost of the buyback. Staff does not recommend a second buyback due to the funding constraints.

Mayor and Council History
This is the first time this item has been brought before the Mayor and Council.

Fiscal Impact
Each buyback costs the City between $250,000 and $280,000 depending on the number of employees that elect to participate and the number of employees that actually qualify. For FY 2013, funding is available for the December 2012 buyback only. If the Mayor and Council would like to proceed with the June 2013 buyback, other expenditure sources would need to be identified and reduced by the cost of the buyback.

Attachments
Annual Leave Conversion 2012.pdfAnnual Leave Conversion 2012.pdf

Department Head:



Colette Anthony, Acting Human Resources Officer
Approved on: 10/31/2012

City Manager:

Barbara B. Matthews, City Manager
Approved on: 11/01/2012