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The Educational Reimbursement benefit is an important incentive for employee growth and <br />development as well as employee retention. With the rising cost of tuition in recent years, the <br />current reimbursement policy has not kept up with inflation. Based on a survey of local higher- <br />education institutions, the cost for 4-credit courses range from $1,644 to $3,844. The current <br />annual maximum reimbursement of $3,500 may not provide enough for one course per year. <br />Staff looked at five other cities education reimbursement policies (Arden Hills, New Brighton, <br />St. Anthony, White Bear Lake & White Bear Township), and four of them include a one to two <br />year time period that the employee must remain employed with the city or the tuition is required <br />to be repaid to the City. None of the cities will pay the tuition upfront for the employee; all of <br />them require the class be completed and then will reimburse the cost. <br />Based on past utilization by other employees, taking two classes per year has been a common <br />approach. Staff is recommending we increase the maximum tuition reimbursement allowance <br />to $4,500 per calendar year. During the initial review of this policy earlier this year, Council <br />Member Fischer suggested the additional language in the first paragraph and #4, as shown <br />below. Staff recommends that we modify the program to state: Should the employee leave the <br />City, any amounts owing would become immediately due and payable and be withheld from <br />any final payroll/severance amounts owing. Finally, should the employee leave the City’s <br />employment within two years of completing a class, the employee will be responsible for the <br />full reimbursement of the City’s expended funds. <br />Educational Reimbursements Policy Proposed Amendments <br />In order to develop further skills and self-improvement, the City will provide financial assistance <br />to all regular full-time employees who continue formal study in areas of study consistent with a <br />career path in local government directly related to their present position. This includes high <br />school and accredited college diplomas. <br />4.Unless otherwise approved, course must be taken other than during normal working <br />hours. <br />5.An annual maximum tuition reimbursement of $3,500 $4,500 per employee, subject to <br />budgetary limitations. <br />7.Should the employee leave the City’s employment within two years of completing a <br />class, the employee will be responsible for the full reimbursement of the City’s expended <br />funds towards tuition during the previous 12 months. <br />8.Should the employee leave the City, any amounts owing would become immediately due <br />and payable and be withheld from any final payroll/severance amounts owing. <br />STAFF RECOMMENDATION: <br />Staff recommends the Council approve the Education Reimbursement Policy amendments as <br />proposed.