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Item 4B Item 4B – Resolution No. 17-043, Amending the Longevity Pay Policy October 17, 2017 Madame Mayor and members of the City Council. This is Human Resources Director Stacey Black and I will be presenting Item 4B. This item requests City Council amend the Longevity Pay personnel policy for the City of Southlake. 1 City of Southlake Strategy Map The City of Southlake provides municipal services that support the highest quality of life for our residents, businesses, and visitors. We do this by being an exemplary model of balancing efficiency, fiscal responsibility, transparency, and sustainability. C1 Achieve the highest standards of safety & security C2 Provide travel convenience within City & region C3 Provide attractive & unique spaces for enjoyment of personal interests C4 Attract & keep top-tier businesses to drive a dynamic & sustainable economic environment C5 Promote opportunities for partnerships & volunteer involvement Serve our Customers Manage the Business B1 Achieve best-in-class status in all City disciplines B2 Collaborate with select partners to implement service solutions B3 Enhance resident quality of life & business vitality through tourism B4 Provide high quality services through sustainable business practices B5 Enhance service delivery through continual process improvement B6 Optimize use of technology Provide Financial Stewardship Promote Learning and Growth F1 Adhere to financial management principles & budget F2 Invest to provide & maintain high quality public assets F3 Achieve fiscal wellness standards F4 Establish & maintain effective internal controls L1 Ensure our people understand the strategy & how they contribute to it L2 Enhance leadership capabilities to deliver results L3 Attract, develop & retain a skilled workforce L4 Recognize & reward high performers L5 Empower informed decision-making at all levels in the organization C6 Enhance the sense of community by providing excellent customer service and citizen engagement opportunities L6 Foster positive employee engagement Deliver on Our Focus Areas This item supports the City’s strategic direction through Performance Management and Service Delivery and through our desire to attract, develop and retain a skilled workforce. It also supports the City’s goal to be an employer of choice. 2 City Charter Provisions Section 4.14 of the City of Southlake City Charter establishes the approval requirements for personnel policies. It requires [CLICK] City Council approval for all personnel policies that have financial implications. The Charter grants the [CLICK] City Manager with the authority to approve personnel policies that do not have financial implications, provided the City Council is notified of such changes. The Longevity Pay policy does provide a benefit to City employees that has financial implications, and therefore, requires City Council approval. 4.14. (a). (10) “Prepare personnel rules subject to the approval of the Council, if a rule or policy has financial implications for the City, and provide notice of all revisions to the City Council.” 3 Background Workforce Investments Longevity Retention Pay As you may recall, the FY 2018 budget includes several strategic workforce investments, all of which were discussed with Council during the back of napkin meetings and during work session at the September 19 City Council Meeting. One of those investments is an enhancement to the City’s Longevity retention pay program. Longevity pay is a lump sum payment provided to full-time employees once per year, generally in December. The amount awarded to an employee is based upon their months of service. It is one way the City is able to acknowledge and show appreciation for continued employment and loyalty to the City. Enhancing the benefit is also a way that may help differentiate the City from competitor employers and may encourage employees to continue their career with the City of Southlake instead of leaving for another city. 4 Proposed Revisions CURRENT POLICY PROPOSED POLICY Before we talk about the proposed revisions, let’s take a look at the current policy. Currently, full-time employees are awarded $4 for each month of service, which is paid in a lump sum in December. Employees must have worked for the City for 12 or more months to be eligible. The maximum payment is capped at 25 years, or $1,200. The proposed policy takes a tiered approach. It awards a higher monthly amount to employees the longer they work for the City. Employees with 1-4 years of service would receive $5 per month of service, those with 5 -14 years of service would receive $6 per month of service, and those with 15 or more years would receive $7 per month of service. Similar to the current policy, you must have worked for the City for 12 months before you are eligible. Also, the payment is capped at 25 years or $2,100. All other provisions of the policy remain unchanged. A copy of both the current and the proposed policy are included in your packet. It’s important to note that with this enhancement the City’s benefit costs as a percentage of payroll is projected to be 30.38%. This is right in line with our goal of maintaining the ratio of around 30%. 5 Financial Considerations $79,003 Included in FY18 Budget The proposed revisions have a budget impact of $79,003 across all funds. Funding is included in the approved FY 2018 budget. 6 Recommendation Staff Recommends Council Approve Resolution No. 17-043 Amending the City of Southlake Personnel Policy 713 – Longevity Pay. Staff Recommends Council Approve Resolution No. 16-011 Amending the City of Southlake Personnel Policies 7 Questions? Stacey Black 817-748-8063 8 Thank you for your time and attention on this item. If you have any questions, please feel free to contact me at 817-748-8063.