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AUDITOR-CONTROLLER - Auditor Controller Krista Peterson
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Requested Action(s)
recommendation
a) INFORMATIONAL PRESENTATION - Regarding the sick leave payout for Elected Officials
b) Discussion and possible direction on possible solutions regarding sick leave payouts for Elected Officials
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Financial Impact:
There is a financial impact for paying out sick leave, regardless of bargaining unit, contract, or elected upon retirement. For General Fund and Public Safety Departments, the retirement payouts are budgeted for in Contingency.
Cost within the past 4 years for Elected Officials was $71,086 (including FICA).
Cost going forward is dependent on when Official retires.
Background Information:
Sick leave is paid out for employees in all MOU’s and Contract Employees.
There is evidence as far back as 1978 (46 years) that Elected Officials maintained their sick leave balances and were paid out upon retirement.
There is a long-standing practice of freezing leave banks and paying them out at retirement as stated in MOU’s in which the leave was originally earned.
Absent readily available written policy or MOU language specific to Elected Officials, there was an apparent policy interpretation that determined the sick leave payout entitlement continued when transitioning to an Elected Official position.
Elected Official receive Health Insurance, Pension benefits and Deferred Compensation “without” written policy specific to Elected Officials. Sick Leave payout should be no different.