Item 4B ITEM 4B
CITY OF
SOUTHLAKI
MEMORANDUM
October 10, 2017
TO: Shana K. Yelverton, City Manager
FROM: Stacey Black, Director of Human Resources
SUBJECT: Resolution No. 17-043, Amending the City of Southlake Personnel Policy
713 — Longevity Pay
Action
Requested: City Council approval of Resolution No. 17-043 to amend the City of
Southlake Personnel Policy 713 — Longevity Pay and providing an
effective date.
Background
Information: The City's Employee Handbook contains all personnel polices
approved by both the City Council and the City Manager. Section 4.14
of the City Charter requires City Council approval for all personnel
policies that have financial implications. The City Manager has the
authority to approve personnel policies that do not have financial
implication, provided City Council is notified of all such changes.
The last revision to the Employee Handbook, effective April 15, 2016,
was a comprehensive review of all policies. This request is to
specifically revise Policy 713 — Longevity Pay.
City Council approved the proposed FY 2018 budget on September
19, 2017. The budget included several strategic workforce
investments, including an enhancement to the longevity retention pay
benefit provided to full-time employees. Staff discussed the proposed
changes with City Council during the back-of-napkin budget meetings
and during work session at the August 15, 2017 City Council meeting.
The proposed revisions mirror the enhancements included in the FY
2018 budget and are summarized below:
Provision Current Proposed
Eligibility: Full-time Employees Full-time Employees
Longevity Pay $4.00 Tiered:
Amount: . 1 - 4 years: $5.00
(per month of service) . 5 - 14 years: $6.00
• 15+ years: $7.00
Maximum Payment: 25 Years: $1 ,200 25 Years: $2,100
Shana K. Yelverton, City Manager ITEM 4B
October 10, 2017
Page 2
All other provisions of the policy remain unchanged. A copy of both
the draft policy and the current policy are attached.
One of the ways the City measures both the competitiveness and fiscal
responsibility of the comprehensive benefits program is to monitor the
City's benefit costs as a percentage of total payroll. The City strives to
maintain a benefits percentage of around 30%. With this enhancement,
the FY 2018 ratio is predicted to be approximately 30.38%.
Enhancing the employee longevity pay program provides a mechanism
to reward service of City employees to the City at an escalating rate. It
aligns with the City's strategies to attract, develop and retain a skilled
workforce and to be an employer of choice. This enhanced benefit
was designed to acknowledge, show appreciation for, and reward
continued service to the City.
Financial
Considerations: The proposed change has a budget impact of $79,003 across all
funds. Funding is included in the FY 2018 budget.
Strategic Link:
• Focus Area: Performance Management and Service Delivery
• Corporate Objective: L3 Attract, develop and retain a skilled
workforce
• Employer of Choice
Citizen Input/
Board Review: N/A
Legal Review: The City Attorney has reviewed the proposed revisions to the
Longevity Pay policy.
Alternatives: Changes as may be desired by the City Council.
Deny the request and maintain currently approved policy.
Supporting
Documents:
Attachment A: Draft Policy 713 — Longevity Pay
Attachment B: Approved Policy 713 — Longevity Pay
Resolution No. 17-043
Staff
Recommendation: City Council approval of Resolution No. 17-043, Amending the City of
Southlake Personnel Policy 713 — Longevity Pay and providing an
effective date.
Attachment A: Proposed Policy ITEM 4B
713 LONGEVITY PAY
713.01 General.The city awards longevity pay to all full-time employees who meet the guidelines
outlined below. Longevity pay is to acknowledge and reward long service of employees.
713.02 Eligibility. Regular full-time employees who have been employed with the city for twelve
(12) consecutive months as of December 31 each year are eligible to receive longevity pay.
Employees must be employed by the city at the time longevity pay is awarded to be eligible.
713.03 Conversion from Temporary,Seasonal, or Part-time Status to Regular Full-time Status. An
employee who began his or her employment with the city as a temporary, seasonal or part-
time employee but is currently in a regular full-time position,the longevity calculation shall
be based on the date the employee moved into a regular,full-time position.
713.04 Calculation and Payment of Longevity Pay. Longevity pay will be paid to each eligible
employee for each full month of full-time service employed through December 31 each
year. Employees with 12-59 months of service will receive$5 per month of service;
employees with 60-179 months of service will receive$6 per month of service; and
employees with 180 or more months of service will receive$7 per month of service.
Longevity pay will be paid in the first paycheck in December, unless otherwise authorized by
the City Manager.Time worked for the city that is not consecutive will not be included in the
calculation.
713.04.01 Example: Dan started working for the city on February 10, 2014. On his first
paycheck in December 2016 he will receive longevity pay in the amount of
$170.00 (10 months in 2014 (March to December), 12 months in 2015, and 12
months in 2016 equal to 34 months. 34 months X$5 =$170).
713.04.02 Example: Sally started working for the city on February 10, 2010. On her first
paycheck in December 2016 she will receive longevity pay in the amount of
$574(10 months in 2010, 12 months in 2011, 2012, 2013, 2014, 2015, and 2016
for a total of equal to 82 months. 82 months X$7 =$574).
713.05 Retirement. Longevity pay will be extended on a pro-rated basis to employees who retire
from city employment under the city sponsored program (Texas Municipal Retirement
System) and who immediately begins to receive retirement payments and is otherwise
eligible for longevity pay, but retires prior to the annual payment of the benefit.
713.06 Maximum Payment.The maximum amount of longevity payment shall not exceed $2,100 or
three hundred (300) months (25 years x 12 months) of service.
713.07 Approval and Effective Date.This policy was approved by City Council on October 17, 2017
by Resolution No. 17-043 and is effective November 1, 2017. It supersedes all previous
policies.
Page 1 of 1
Attachment B: Current Policy ITEM 4B
713 LONGEVITY PAY
713.01 General.The city awards longevity pay to all full-time employees who meet the guidelines
outlined below. Longevity pay is to acknowledge and reward long service of employees.
713.02 Eligibility. Regular full-time employees who have been employed with the city for twelve
(12) consecutive months as of December 31 each year are eligible to receive longevity pay.
Employees must be employed by the city at the time longevity pay is awarded to be eligible.
713.03 Conversion from Temporary,Seasonal, or Part-time Status to Regular Full-time Status.An
employee who began his or her employment with the city as a temporary, seasonal or part-
time employee but is currently in a regular full-time position,the longevity calculation shall
be based on the date the employee moved into a regular,full-time position.
713.04 Calculation and Payment of Longevity Pay. $4.00 per month will be paid to each eligible
employee for each full month employed through December 31 each year. Longevity pay will
be paid in the first paycheck in December, unless otherwise authorized by the City Manager.
Time worked for the city that is not consecutive will not be included in the calculation.
713.04.01 Example: Dan started working for the city on February 10, 2004. On his first
paycheck in December 2006 he will receive longevity pay in the amount of
$136.00 (10 months in 2004- March to December- 12 months in 2005 and 12
months in 2006 equal to 34 months. 34 months X$4=$136).
713.05 Retirement. Longevity pay will be extended on a pro-rated basis to employees who retire
from city employment under the city sponsored program and is immediately eligible to
receive retirement payments and is otherwise eligible for longevity pay, but retire prior to
the annual payment of the benefit.
713.06 Maximum Payment.The maximum amount of longevity payment shall not exceed $1,200 or
three hundred (300) months (25 years x 12 months) of service.
713.07 Approval and Effective Date.This policy was approved by City Council on April 5, 2016 by
Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies.
Page 1 of 1
RESOLUTION NO. 17-043
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SOUTHLAKE, TEXAS, AMENDING CITY OF
SOUTHLAKE PERSONNEL POLICY 713 — LONGEVITY
PAY AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Southlake (the "City") previously adopted personnel
policies; and
WHEREAS, the City wishes to revise Personnel Policy 713 — Longevity Pay to
replace the previously adopted personnel policy; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, THAT:
Section 1. The City of Southlake hereby approves and adopts the following policy
that has financial implications, a copy of which is attached as Exhibit "A" and is
incorporated into the Employee Handbook:
Policy 713 — Longevity Pay
Section2. That this resolution is in effect upon passage and adoption by the City
Council effective November 1 , 2017.
PASSED AND APPROVED THIS THE DAY OF
2017.
Laura K. Hill, Mayor
ATTEST:
Carol Ann Borges, City Secretary
Page 1
Resolution No. 17-043: Attachment A
713 LONGEVITY PAY
713.01 General.The city awards longevity pay to all full-time employees who meet the guidelines
outlined below. Longevity pay is to acknowledge and reward long service of employees.
713.02 Eligibility. Regular full-time employees who have been employed with the city for twelve
(12) consecutive months as of December 31 each year are eligible to receive longevity pay.
Employees must be employed by the city at the time longevity pay is awarded to be eligible.
713.03 Conversion from Temporary,Seasonal, or Part-time Status to Regular Full-time Status. An
employee who began his or her employment with the city as a temporary, seasonal or part-
time employee but is currently in a regular full-time position,the longevity calculation shall
be based on the date the employee moved into a regular,full-time position.
713.04 Calculation and Payment of Longevity Pay. Longevity pay will be paid to each eligible
employee for each full month of full-time service employed through December 31 each
year. Employees with 12-59 months of service will receive$5 per month of service;
employees with 60-179 months of service will receive$6 per month of service; and
employees with 180 or more months of service will receive$7 per month of service.
Longevity pay will be paid in the first paycheck in December, unless otherwise authorized by
the City Manager.Time worked for the city that is not consecutive will not be included in the
calculation.
713.04.01 Example: Dan started working for the city on February 10, 2014. On his first
paycheck in December 2016 he will receive longevity pay in the amount of
$170.00 (10 months in 2014 (March to December), 12 months in 2015, and 12
months in 2016 equal to 34 months. 34 months X$5 =$170).
713.04.02 Example: Sally started working for the city on February 10, 2010. On her first
paycheck in December 2016 she will receive longevity pay in the amount of
$574(10 months in 2010, 12 months in 2011, 2012, 2013, 2014, 2015, and 2016
for a total of equal to 82 months. 82 months X$7 =$574).
713.05 Retirement. Longevity pay will be extended on a pro-rated basis to employees who retire
from city employment under the city sponsored program (Texas Municipal Retirement
System) and who immediately begins to receive retirement payments and is otherwise
eligible for longevity pay, but retires prior to the annual payment of the benefit.
713.06 Maximum Payment.The maximum amount of longevity payment shall not exceed $2,100 or
three hundred (300) months (25 years x 12 months) of service.
713.07 Approval and Effective Date.This policy was approved by City Council on October 17, 2017
by Resolution No. 17-043 and is effective November 1, 2017. It supersedes all previous
policies.
Page 1 of 1