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Item 4G - MemoITEM 4G M E M O R A N D U M October 27, 2025 TO: Alison Ortowski, City Manager FROM: Stacey Black, Assistant City Manager / Sr. Director of Human Resources SUBJECT: Resolution No. 25-045, amending Section 703 – “Holidays” of the City of Southlake Employee Handbook and providing an effective date. Action Requested: The purpose of this item is to seek City Council approval of Resolution No. 25-045, Section 703 – “Holidays” of the City of Southlake Employee Handbook, to include the addition of a second paid personal day off for full-time employees. Background Information: The City’s Employee Handbook contains all personnel policies approved by both the City Council and the City Manager. In accordance with Section 4.14 of the City Charter, the City Council must approve any personnel policies that carry financial implications. The City Manager retains the authority to approve administrative updates or policies without financial impact, provided that City Council is notified of such changes. This item specifically proposes a revision to Section 703 – Holidays, which establishes eligibility for paid holidays, designates official City holidays, and outlines employee entitlements related to personal days. The most recent Council-approved policy revision occurred on October 1, 2021, amending Section 704 – Vacation Leave. A comprehensive review of all personnel policies was previously conducted in 2016, with updates effective April 15, 2016. As part of the City’s ongoing Employer of Choice strategy, staff regularly evaluates personnel policies and benefits programs to ensure they remain competitive, sustainable, and aligned with organizational priorities that support engagement, retention, and employee well-being. This strategy reflects the City’s belief that exceptional public service begins with an exceptional employee experience, one grounded in a workplace culture of trust, respect, and genuine care for one another. Results from the 2025 Employee Benefits Survey reaffirmed employees’ strong appreciation for the City’s comprehensive benefits program while highlighting a desire for additional flexibility and time to manage personal and family needs. Adding an additional personal day directly responds to that feedback by offering employees greater control over their Alison Ortowski, City Manager ITEM 4G October 27, 2025 Page 2 schedules and more opportunities to rest, recharge, and attend to life’s demands outside of work. During the 2025 City Council Summer Workshop, staff presented a series of workforce investment opportunities with minimal financial impact but meaningful organizational benefit. Following that discussion, Council voiced support for targeted enhancements to the City’s benefits program that reinforce its standing as an Employer of Choice and advance a workplace culture focused on balance, engagement, and long-term retention. The proposed revisions to Section 703 – Holidays are summarized below: • Amend the policy to provide two (2) personal days for regular, full-time employees per calendar year, increasing from the current one (1) personal day. • Allow employees to take personal days on a workday of their choice, subject to supervisor approval and operational needs. • Specify that personal days must be used within the calendar year and may not be carried over, banked, or paid out upon separation of employment. • Retain all other provisions of the policy as currently written. This policy revision demonstrates the City’s continued investment in a workplace where care and concern for one another are integral to how we serve, lead, and collaborate. By enhancing flexibility and honoring the feedback of our employees, the City strengthens its identity as an Employer of Choice—a high-performing organization that values its people, supports their well-being, and cultivates a culture of excellence in service to the Southlake community. If approved, the revised policy will take effect January 1, 2026. It will be published in the City’s Employee Handbook and communicated to all employees. Financial Considerations: The addition of one personal day has no direct financial impact. It will be absorbed within existing departmental budgets and managed through regular scheduling and operational planning. Strategic Link: • Focus Area: Performance Management and Service Delivery • Corporate Objectives: Alison Ortowski, City Manager ITEM 4G October 27, 2025 Page 3 ­ L1: Defining and managing a professional workplace culture that supports City values and promotes a positive employee experience. ­ L3: Attracting, developing & retaining a talented and motivated workforce for lasting world-class performance. Citizen Input/ Board Review: N/A Legal Review: The City Attorney has reviewed the proposed revisions to the Holiday policy. Alternatives: Make changes as desired by City Council. Deny the request and maintain the current approved policy. Supporting Documents: Attachment A: Resolution No. 25-045 Attachment B: Redlined Policy No. 703 – Holidays Staff Recommendation: Staff recommends City Council approval of Resolution No. 25-045, amending Section 703 – “Holidays” of the City of Southlake Employee Handbook and providing an effective date. RESOLUTION NO. 25-045 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, AMENDING SECTION 703 – “HOLIDAYS” OF THE CITY OF SOUTHLAKE EMPLOYEE HANDBOOK AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Southlake (the "City") previously adopted an Employee Handbook; and WHEREAS, the City wishes to revise Section 703 – “Holidays” to replace Section 703 of the previously adopted Employee Handbook; 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 703 – “Holidays” Section2. That this resolution is in effect upon passage and adoption by the City Council effective January 1, 2026. PASSED AND APPROVED THIS THE ____ DAY OF ________________________, 2025. _____________________________________ Shawn McCaskill, Mayor ATTEST: __________________________________ Amy Shelley, City Secretary RESOLUTION NO. 25-045: EXHIBIT A Policy No. 703: Holidays Page 1 703: Holidays 703.01 Eligibility. Paid holidays are extended to all regular, full-time employees. There is no waiting period for employees to receive holiday pay. Part-time, temporary or seasonal employees are not eligible for paid holiday leave. Holiday pay is subject to funding in the annual budget. 703.02 Official City Holidays. The following holidays will be observed by the city: New Year’s Day (January 1); Martin Luther King, Jr. Day (third Monday in January); Good Friday (Friday before Easter); Memorial Day (last Monday in May); Independence Day (July 4); Labor Day / September 11 (first Monday in September); Thanksgiving Day (fourth Thursday in November); Day after Thanksgiving (fourth Friday in November); Christmas Eve (December 24); Christmas Day (December 25); and Two (2) Personal Days. 703.03 Personal Day. Employees are afforded two (2) personal days per calendar year. The personal day may be taken on a workday of the employee’s choice, subject to supervisor approval and operational needs. Personal days: i. Shall not count as hours worked for the purposes of overtime eligibility. ii. Must be used within the calendar year they are awarded. iii. Cannot be carried over at the end of the calendar year, banked or paid out upon separation of employment. iv. Will be forfeited if not used on or before December 31 of each calendar year. 703.04 Holidays on Weekends. When an official holiday falls on a weekend, the following alternative schedule applies: i. A holiday which falls on a Saturday shall be taken on the Friday before the holiday. ii. A holiday which falls on a Sunday shall be taken on the Monday after the holiday. 703.05 Holiday Pay. 703.05.01 Regular full-time employees shall receive holiday pay equivalent to a standard eight (8) hour workday unless the employee is on a reduced work schedule as provided for in the Reduced Work Schedule policy, in which case, the Reduced Work Schedule policy applies. Eight hours of pay for regular employees is equal to 12 hours of pay for firefighters on the fire shift schedule. Refer to Section 4, Policy 406 – Reduced Work Schedule for more information. 703.05.02 An employee shall not receive pay for a holiday if he or she: RESOLUTION NO. 25-045: EXHIBIT A Policy No. 703: Holidays Page 2 i. Is absent without approved leave either the day before or the day following an official holiday; or ii. Is absent without approved leave on a holiday on which the employee is scheduled to work. 703.05.03 An official holiday occurring while vacation, sick, or FMLA leave is being taken will be reflected as a holiday on the payroll, and no deduction from the vacation or sick leave balance will be made for the holiday. 703.05.04 In the event an official city holiday conflicts with a city-sponsored event, the City Manager may designate an alternate holiday for employees designated as essential personnel on the normally scheduled holiday. 703.05.05 Employees may request an approved absence to celebrate a religious holiday that is not a scheduled city holiday. If approved, the employee must use a personal day, vacation, compensatory time, or an excused absence without pay. 703.05.06 No holiday occurring after the date of separation of employment of an employee will be included in the final paycheck. 703.05.07 Employees who designate their last day of employment on an official city holiday shall not receive holiday pay for that holiday. An unused personal day will not be paid to an employee in the event of a separation of employment. 703.06 Approval and Effective Date. This policy was approved by the City Council on November 4, 2025, by Resolution No. 25-045 and is effective January 1, 2026. It supersedes all previous holiday policies. -- DRAFT | REDLINED -- Policy No. 703: Holidays Page 1 703: Holidays 703.01 Eligibility. Paid holidays are extended to all regular, full-time employees. Every other employee is extended the official holiday, without pay. There is no waiting period for employees to receive holiday pay. Part-time, temporary or seasonal employees are not eligible for paid holiday leave. Holiday pay is subject to funding in the annual budget. 703.02 Official City Holidays. The following holidays will be observed by the city:. New Year’s Day (January 1); Martin Luther King, Jr. Day (third Monday in January); Good Friday (Friday before Easter); Memorial Day (last Monday in May); Independence Day (July 4); Labor Day / September 11 (first Monday in September); Thanksgiving Day (fourth Thursday in November); Day after Thanksgiving (fourth Friday in November); Christmas Eve (December 24); Christmas Day (December 25); and Two (2) Personal Days. 703.03 Personal Day. Employees are afforded one two (2) personal days per calendar year. The personal day may be taken on a work dayworkday of the employee’s choice, subject to their supervisor’s approval and operational needs. The personal day shall not count as hours worked toward overtime eligibility. The personal day may not be carried over at the end of the calendar year. If it is not used on or before December 31st of each calendar year, it will be lost. Personal days: i. Shall not count as hours worked for the purposes of overtime eligibility. ii. Must be used within the calendar year they are awarded. iii. Cannot be carried over at the end of the calendar year, banked or paid out upon separation of employment. iv. Will be forfeited if not used on or before December 31 of each calendar year. 703.04 Holidays on Weekends. When an official holiday falls on a weekend, the following alternative schedule applies: i. A holiday which falls on a Saturday shall be taken on the Friday before the holiday. ii. A holiday which falls on a Sunday shall be taken on the Monday after the holiday. 703.05 Holiday Pay. 703.05.01 Regular full-time employees shall receive holiday pay equivalent to a standard eight (8) hour workday unless the employee is on a reduced work schedule as -- DRAFT | REDLINED -- Policy No. 703: Holidays Page 2 provided for in the Reduced Work Schedule policy, in which case, the Reduced Work Schedule policy applies. Eight hours of pay for regular employees is equal to 12 hours of pay for firefighters on the 24-hour fire shift schedule. Refer to Section 4, Policy 406 – Reduced Work Schedule for more information. 703.05.02 An employee shall not receive pay for a holiday if he or she: i. Is absent without approved leave either the day before or the day following an official holiday; or ii. Is absent without approved leave on a holiday on which the employee is scheduled to work. 703.05.03 An official holiday occurring while vacation, sick or FMLA leave is being taken will be reflected as a holiday on the payroll and no deduction from the vacation or sick leave balance will be made for the holiday. 703.05.04 In the event an official city holiday conflicts with a city- sponsored event, the City Manager may designate an alternate holiday for employees designated as essential personnel on the normally scheduled holiday. 703.05.05 Employees may request an approved absence to celebrate a religious holiday that is not a scheduled city holiday. If approved, the employee must use a personal day, vacation, compensatory time, or an excused absence without pay. 703.05.06 No holiday occurring after the date of separation of employment of an employee will be included in the final paycheck. 703.05.07 Employees who designate their last day of employment on an official city holiday shall not receive holiday pay for that holiday. An unused personal day will not be paid to an employee in the event of a separation of employment. 703.06 Approval and Effective Date. This policy was approved by the City Council on November 6, 2018November 4, 2025 by Resolution No. 18-04725-045 and is effective January 1, 2019January 1, 2026. It supersedes all previous holiday policies.