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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.