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MAYOR AND CITY COUNCIL <br />PAGE TWO <br />JANUARY 20, 1989 <br />In addition, Fridley implemented a short term disability. <br />insurance program for all cmployees funding it from the <br />savings they experience from the change in their leave <br />policy. <br />The leave program for the City of Fridley is as follows: <br />2. Annual leave will be earned at the rate of, <br />1 - 7 Years 18 days <br />8 - 15 Years 24 ddys <br />After 15th Year 26 days <br />2. Employees are allowed to maintain a balance of no <br />more than 30 days in their leave account. <br />3. After 7 years employees will be able to cash in 3 <br />days of leave per year and 5 days after 15 years. <br />4. Upon separation from employment, the employee will <br />be able to cash in all of their unused leave. <br />5. The City provides each employee with a short term <br />disability (90 days) insurance policy at no cost to <br />the employee after their probationary period. <br />Fridley also developed a rathar rnMpI4r,tei -eructura for <br />their employees to use in switching over to the new system <br />and each employee had the choice of doing so or remaining <br />with the old system. Besides the reasons previously listed <br />in this memorandum, Fridley elected to make this change <br />because their reserves for leaves were becoming a <br />substantial financial commitment which they were having <br />difficulty maintaining. <br />The City of Mounds View, as you may know, maintains a <br />substantial reserve account for unpaid vacation and sick <br />leave accrued by our employees. A change in our policy <br />substantially reduce these reserves allowing cash to be used <br />for other purposes such as reserves that are currently not <br />adequately funded or funding non -recurring expenses such as <br />capital purchase. Also, the current system the City of <br />Mounds View has in place does not necessarily discourage <br />abuse of sick leave and vacation rllowances and does not <br />provide any incentive for employees not to abuse the <br />vacation and sick leave. Employees frequently are of the <br />opinion that they might es well use it, otherise, they may <br />loose it. In the recent past we have had some employees who <br />have abused their sick leave and after counseling by their <br />Department Heads have rectified that situation. Other <br />