Item 4DITEM 4D
M E M O R A N D U M
November 22, 2019
TO: Shana K. Yelverton, City Manager
FROM: Stacey Black, Director of Human Resources
SUBJECT: Resolution No. 19-043, Amending the City of Southlake Personnel Policy
714 – Tuition Reimbursement and providing an effective date.
Action
Requested: City Council approval of Resolution No. 19-043 to amend the City of
Southlake Personnel Policy 714 – Tuition Reimbursement and providing
an effective date.
Background
Information: The City’s Employee Handbook contains all personnel policies 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 implications,
provided City Council is notified of all such changes.
This request is to specifically revise Policy 714 – Tuition Reimbursement
to include an annual $5,000 per employee reimbursement maximum.
City Council approved the proposed FY 2020 budget on September 17,
2019. As part of the annual budget process, staff analyzed the
comprehensive benefits package offered to employees in an attempt to
balance employee needs and manage financial sustainability. Part of
that analysis included a review of the results of the biennial Employee
Benefits Survey. On the survey, tuition reimbursement ranked 16th on a
list of 23 employee benefits and 47% of respondents indicated the
benefit was very important to them.
In FY 2019, 15 employees received tuition reimbursement with an
average per employee tuition reimbursement of $4,165. Four employees
received reimbursement in excess of $5,000.
Tuition reimbursement is a valuable benefit that helps attract and retain
talent; however, given the low participation, it makes sense to review the
policy for possible modification. The policy currently provides for
unlimited reimbursement and all of the City’s market cities, except one,
include an annual reimbursement limit per employee. As such, staff
recommends modifying the Tuition Reimbursement Policy to limit the
Shana K. Yelverton, City Manager ITEM 4D
November 22, 2019
Page 2
annual reimbursement.
The proposed revisions to the Tuition Reimbursement policy are
summarized below:
• Amend the policy to clarify that employees must complete one
year of continuous full-time service to be eligible to apply for
tuition reimbursement.
• Amend the policy to limit reimbursement to $5,000 per employee
per fiscal year.
All other provisions of the policy remain unchanged. A redlined copy of
the current policy and a copy of the proposed policy are attached.
Amending the Tuition Reimbursement policy maintains a desired benefit
for current and future employees while balancing financial sustainability.
The proposed policy is competitive with other municipal tuition
reimbursement policies and aligns with the City’s strategies to attract,
develop and retain a skilled workforce and to be an employer of choice.
Financial
Considerations: FY 2020 tuition reimbursement cost is estimated to be approximately
$54,000 and is included in the FY 2020 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 Tuition
Reimbursement policy.
Alternatives: Changes as may be desired by the City Council.
Deny the request and maintain the currently approved policy.
Supporting
Documents:
Attachment A: Proposed Policy 714 – Tuition Reimbursement
Attachment B: Redlined Policy 714 – Tuition Reimbursement
Resolution No. 19-043
Shana K. Yelverton, City Manager ITEM 4D
November 22, 2019
Page 3
Staff
Recommendation: City Council approval of Resolution No. 19-043, amending the City of
Southlake Personnel Policy 714 – Tuition Reimbursement and providing
an effective date.
Attachment A: Proposed Policy Page 1
714: Tuition Reimbursement
714.01 General. The Tuition Reimbursement Program provides an opportunity and an incentive for
employees to increase their individual level of education and expertise in their related job
duties, thereby enhancing their job skills and degree of professionalism and subsequently
improving the ability for staff to provide continued quality service to the community.
714.02 Eligibility. Regular full-time employees who have completed one year of continuous full-time
service with the City of Southlake shall be eligible to apply for tuition reimbursement.
Tuition reimbursement is offered to employees for both undergraduate and graduate courses
(excluding doctoral studies) that are directly related to their job and/or in the best interest of
the city. Individual courses outside of the degree plan, but which are directly related to the
employee’s current position with the city, may be considered for tuition reimbursement on a
case-by-case basis, with the final determination of approval made by the department director
and Director of Human Resources.
714.03 Eligible Colleges and Universities. All coursework must be completed at a fully accredited
college, community college or university recognized as accredited by the Council for Higher
Education Accreditation (www.chea.org).
714.04 Reimbursement Rate. The average cost for in-state tuition at a Texas public college or
university shall be established each year as part of the normal budget process and shall be
based on state schools within in the region as determined by Human Resources. The
employee shall be responsible for any difference in tuition cost between the average rate and
the actual tuition cost.
714.05 Available Funding. Participation in the Tuition Reimbursement Program is subject to
availability of funds in the city’s Annual Operating Budget and prior approval. The Tuition
Reimbursement program may be suspended at any time with or without notice by the City
Manager or City Council.
714.06 Continued Employment. In exchange for the city’s commitment toward tuition
reimbursement, the city requires the participating employee’s commitment of continued
employment. An employee seeking tuition reimbursement to attend an institution of higher
learning shall commit to continued employment of two (2) years following the completion of
the most recent course for which reimbursement was received by the employee.
An employee who voluntarily leaves employment with the city before two (2) years shall
reimburse the city for tuition reimbursement received. Reimbursement to the city shall be
based on the following schedule:
i. Employment separation 0-12 months following completion of the most recent
course for which reimbursement was received: 100% of tuition reimbursement
received during the previous two (2) years shall be repaid to the city.
Attachment A: Proposed Policy Page 2
ii. Employment separation 13-24 months following completion of the most recent
course for which reimbursement was received: 50% of tuition reimbursement
received during the previous two (2) years shall be repaid to the city.
An employee who involuntarily leaves employment shall not be required to reimburse any
monies received.
714.07 Reimbursement Levels. Tuition, lab fees and other mandatory fees shall be considered for
reimbursement up to a maximum of $5,000 per employee per fiscal year. Reimbursement
shall be based on the employee’s official school receipts, transcript, or report card and shall
be paid as follows:
i. 100% of the average cost for tuition, laboratory, and registration fees for in-state
tuition at a Texas public college or university and 50% of the cost of required
textbooks for receiving a grade of “C” or higher.
ii. No reimbursement shall be paid for a grade lower than a “C.”
Supplies, parking, meals, extra-curricular activities, graduation fees, and any course where
credit shall be given for work experience or for work history shall not be reimbursed. Similarly,
costs for testing or placing out of actual course work shall not be reimbursed.
The city offers tuition reimbursement assistance under the guidelines of Section 127 of the
Internal Revenue Code (IRC 127) which covers employer-provided educational programs.
Under Section 127, an employer may exclude educational expenses from an employee’s gross
income up to a maximum amount in a calendar year. The city will issue the appropriate tax
documents to employees participating in the Tuition Reimbursement Program.
714.08 Application Procedure. The employee shall apply for Tuition Reimbursement during the
normal budget process for the next fiscal year. The employee shall complete the appropriate
tuition reimbursement request forms and receive approval prior to course registration. Upon
approval and budget funding, the employee shall pay the initial tuition and related costs in
advance and shall be granted reimbursement only after the grades have been received. After
completion of the course, the employee shall submit the appropriate Tuition Reimbursement
Request form, receipts, and grade documentation to Human Resources for final approval.
714.09 Termination Prior to Course Completion. Employees who cease employment with the city
prior to completion of the course are ineligible for the tuition reimbursement benefit.
714.10 Course and Study Time. Time expended by an employee involved in a course approved under
this plan shall not be considered as “on-duty” time. Expenses related to travel, meals, or
lodging shall be the cost of the employee and shall not be considered for reimbursement
under this plan.
Attachment A: Proposed Policy Page 3
714.11 City Sponsored Training. This plan is not related to courses, seminars, conferences, and
similar training sessions that are required, offered, or paid by the city. It is also not related to
certification programs or classes.
714.12 Approval and Effective Date. This policy was approved by City Council on December 3, 2019
by Resolution No. 19-043 and is effective October 1, 2020. It supersedes all previous policies.
Attachment B: Tuition Reimbursement Policy ‐ Redined Page 1
714: Tuition Reimbursement
714.01 General. The Tuition Reimbursement Program provides an opportunity and an incentive for
employees to increase their individual level of education and expertise in their related job
duties, thereby enhancing their job skills and degree of professionalism and subsequently
improving the ability for staff to provide continued quality service to the community.
714.02 Eligibility. Regular full‐time employees who have completed one year of continuous full‐time
service with the City of Southlake shall be eligible to apply for tuition reimbursement.
Tuition reimbursement is offered to employees for both undergraduate and graduate courses
(excluding doctoral studies) that are directly related to their job and/or in the best interest of
the city. Individual courses outside of the degree plan, but which are directly related to the
employee’s current position with the city, may be considered for tuition reimbursement on a
case‐by‐case basis, with the final determination of approval made by the department director
and Director of Human Resources.
714.03 Eligible Colleges and Universities. All coursework must be completed at a fully accredited
college, community college or university recognized as accredited by the Council for Higher
Education Accreditation (www.chea.org).
714.04 Reimbursement Rate. The average cost for in‐state tuition at a Texas public college or
university shall be established each year as part of the normal budget process and shall be
based on state schools within in the region as determined by Human Resources. The
employee shall be responsible for any difference in tuition cost between the average rate and
the actual tuition cost.
714.05 Available Funding. Participation in the Tuition Reimbursement Program is subject to
availability of funds in the city’s Annual Operating Budget and prior approval. The Tuition
Reimbursement program may be suspended at any time with or without notice by the City
Manager or City Council.
714.06 Continued Employment. In exchange for the city’s commitment toward tuition
reimbursement, the city requires the participating employee’s commitment of continued
employment. An employee seeking tuition reimbursement to attend an institution of higher
learning shall commit to continued employment of two (2) years following the completion of
the most recent course for which reimbursement was received by the employee.
An employee who voluntarily leaves employment with the city before two (2) years shall
reimburse the city for tuition reimbursement received. Reimbursement to the city shall be
based on the following schedule:
i. Employment separation 0‐12 months following completion of the most recent
course for which reimbursement was received: 100% of tuition reimbursement
received during the previous two (2) years shall be repaid to the city.
Attachment B: Tuition Reimbursement Policy ‐ Redined Page 2
ii. Employment separation 13‐24 months following completion of the most recent
course for which reimbursement was received: 50% of tuition reimbursement
received during the previous two (2) years shall be repaid to the city.
An employee who involuntarily leaves employment shall not be required to reimburse any
monies received.
714.07 Reimbursement Levels. Tuition, lab fees and other mandatory fees shall be considered for
reimbursement up to a maximum of $5,000 per employee per fiscal year. Reimbursement
shall be based on the employee’s official school receipts, transcript, or report card and shall
be paid as follows:
i. 100% of the average cost for tuition, laboratory, and registration fees for in‐state
tuition at a Texas public college or university and 50% of the cost of required
textbooks for receiving a grade of “C” or higher.
ii. No reimbursement shall be paid for a grade lower than a “C.”
Supplies, parking, meals, extra‐curricular activities, graduation fees, and any course where
credit shall be given for work experience or for work history shall not be reimbursed. Similarly,
costs for testing or placing out of actual course work shall not be reimbursed.
The city offers tuition reimbursement assistance under the guidelines of Section 127 of the
Internal Revenue Code (IRC 127) which covers employer‐provided educational programs.
Under Section 127, an employer may exclude educational expenses from an employee’s gross
income up to a maximum amount in a calendar year. The city will issue the appropriate tax
documents to employees participating in the Tuition Reimbursement Program.
714.08 Application Procedure. The employee shall apply for Tuition Reimbursement during the
normal budget process for the next fiscal year. The employee shall complete the appropriate
tuition reimbursement request forms and receive approval prior to course registration. Upon
approval and budget funding, the employee shall pay the initial tuition and related costs in
advance and shall be granted reimbursement only after the grades have been received. After
completion of the course, the employee shall submit the appropriate Tuition Reimbursement
Request form, receipts, and grade documentation to Human Resources for final approval.
714.09 Termination Prior to Course Completion. Employees who cease employment with the city
prior to completion of the course are ineligible for the tuition reimbursement benefit.
714.10 Course and Study Time. Time expended by an employee involved in a course approved under
this plan shall not be considered as “on‐duty” time. Expenses related to travel, meals, or
lodging shall be the cost of the employee and shall not be considered for reimbursement
under this plan.
Attachment B: Tuition Reimbursement Policy ‐ Redined Page 3
714.11 City Sponsored Training. This plan is not related to courses, seminars, conferences, and
similar training sessions that are required, offered, or paid by the city. It is also not related to
certification programs or classes.
714.12 Approval and Effective Date. This policy was approved by City Council on December 3, 2019
by Resolution No. 19‐043 and is effective October 1, 2020. It supersedes all previous
policies.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
RESOLUTION NO. 19-043
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, AMENDING CITY OF SOUTHLAKE
PERSONNEL POLICY 714 – TUITION REIMBURSEMENT
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 714 – Tuition
Reimbursement 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 effective as of October 1, 2020, a copy of which is attached as
Exhibit “A” and will be incorporated into the Employee Handbook as of October 1, 2020:
Policy 714 – Tuition Reimbursement
Section2. That this resolution is in effect upon passage and adoption by the City
Council.
PASSED AND APPROVED THIS THE ____ DAY OF
________________________, 2019.
_____________________________________
Laura K. Hill, Mayor
ATTEST:
__________________________________
Amy Shelley, City Secretary
Resolution No. 19-043: Exhibit A Page 1
714: Tuition Reimbursement
714.01 General. The Tuition Reimbursement Program provides an opportunity and an incentive for
employees to increase their individual level of education and expertise in their related job
duties, thereby enhancing their job skills and degree of professionalism and subsequently
improving the ability for staff to provide continued quality service to the community.
714.02 Eligibility. Regular full-time employees who have completed one year of continuous full-time
service with the City of Southlake shall be eligible to apply for tuition reimbursement.
Tuition reimbursement is offered to employees for both undergraduate and graduate courses
(excluding doctoral studies) that are directly related to their job and/or in the best interest of
the city. Individual courses outside of the degree plan, but which are directly related to the
employee’s current position with the city, may be considered for tuition reimbursement on a
case-by-case basis, with the final determination of approval made by the department director
and Director of Human Resources.
714.03 Eligible Colleges and Universities. All coursework must be completed at a fully accredited
college, community college or university recognized as accredited by the Council for Higher
Education Accreditation (www.chea.org).
714.04 Reimbursement Rate. The average cost for in-state tuition at a Texas public college or
university shall be established each year as part of the normal budget process and shall be
based on state schools within in the region as determined by Human Resources. The
employee shall be responsible for any difference in tuition cost between the average rate and
the actual tuition cost.
714.05 Available Funding. Participation in the Tuition Reimbursement Program is subject to
availability of funds in the city’s Annual Operating Budget and prior approval. The Tuition
Reimbursement program may be suspended at any time with or without notice by the City
Manager or City Council.
714.06 Continued Employment. In exchange for the city’s commitment toward tuition
reimbursement, the city requires the participating employee’s commitment of continued
employment. An employee seeking tuition reimbursement to attend an institution of higher
learning shall commit to continued employment of two (2) years following the completion of
the most recent course for which reimbursement was received by the employee.
An employee who voluntarily leaves employment with the city before two (2) years shall
reimburse the city for tuition reimbursement received. Reimbursement to the city shall be
based on the following schedule:
i. Employment separation 0-12 months following completion of the most recent
course for which reimbursement was received: 100% of tuition reimbursement
received during the previous two (2) years shall be repaid to the city.
Resolution No. 19-043: Exhibit A Page 2
ii. Employment separation 13-24 months following completion of the most recent
course for which reimbursement was received: 50% of tuition reimbursement
received during the previous two (2) years shall be repaid to the city.
An employee who involuntarily leaves employment shall not be required to reimburse any
monies received.
714.07 Reimbursement Levels. Tuition, lab fees and other mandatory fees shall be considered for
reimbursement up to a maximum of $5,000 per employee per fiscal year. Reimbursement
shall be based on the employee’s official school receipts, transcript, or report card and shall
be paid as follows:
i. 100% of the average cost for tuition, laboratory, and registration fees for in-state
tuition at a Texas public college or university and 50% of the cost of required
textbooks for receiving a grade of “C” or higher.
ii. No reimbursement shall be paid for a grade lower than a “C.”
Supplies, parking, meals, extra-curricular activities, graduation fees, and any course where
credit shall be given for work experience or for work history shall not be reimbursed. Similarly,
costs for testing or placing out of actual course work shall not be reimbursed.
The city offers tuition reimbursement assistance under the guidelines of Section 127 of the
Internal Revenue Code (IRC 127) which covers employer-provided educational programs.
Under Section 127, an employer may exclude educational expenses from an employee’s gross
income up to a maximum amount in a calendar year. The city will issue the appropriate tax
documents to employees participating in the Tuition Reimbursement Program.
714.08 Application Procedure. The employee shall apply for Tuition Reimbursement during the
normal budget process for the next fiscal year. The employee shall complete the appropriate
tuition reimbursement request forms and receive approval prior to course registration. Upon
approval and budget funding, the employee shall pay the initial tuition and related costs in
advance and shall be granted reimbursement only after the grades have been received. After
completion of the course, the employee shall submit the appropriate Tuition Reimbursement
Request form, receipts, and grade documentation to Human Resources for final approval.
714.09 Termination Prior to Course Completion. Employees who cease employment with the city
prior to completion of the course are ineligible for the tuition reimbursement benefit.
714.10 Course and Study Time. Time expended by an employee involved in a course approved under
this plan shall not be considered as “on-duty” time. Expenses related to travel, meals, or
lodging shall be the cost of the employee and shall not be considered for reimbursement
under this plan.
Resolution No. 19-043: Exhibit A Page 3
714.11 City Sponsored Training. This plan is not related to courses, seminars, conferences, and
similar training sessions that are required, offered, or paid by the city. It is also not related to
certification programs or classes.
714.12 Approval and Effective Date. This policy was approved by City Council on December 3, 2019
by Resolution No. 19-043 and is effective October 1, 2020. It supersedes all previous policies.