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HomeMy WebLinkAbout5.E.3. Temporary Reduction to Tuition Reimbursement Benefit 6. E. 3~ CITY OF SHAKOPEE Memorandum co; ~.I.., S;' '" ..rm., ~.':.'.'~' T' T\j tMl: TO: Mayor and City Council Pamela Punt, Councilor-Elect Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrato~0 SUBJECT: Temporary Reduction to Tuition Reimbursement Benefit DATE: November 23,2009 Introduction The Council is asked to consider a temporary, cost-saving modification to the Tuition Reimbursement Benefit. Background One of the employee benefits provided for in the City's Personnel Handbook is a Tuition Reimbursement policy (see attached). In order to balance the need to save money with the desire to continue at least some support for employees wanting to further their education, staff is recommending that the maximum benefit amount be temporarily reduced from $3,000 to $1,500 per person per calendar year for 2010. (On average only 5 - 10 employees utilize the tuition reimbursement benefit at anyone time.) The benefit level and ability to continue funding this program will then be re-evaluated during preparation for the 2011 budget. The one exception to this would be for the 5 supervisory employees that currently have written agreements with the City requiring them to obtain a specified degree within in a certain time frame of their recent promotion. Employees entered into these agreements with the understanding that the City's Tuition Reimbursement policy would be available to them. Therefore, the recommendation is that those employees should still be eligible for up to $3,000 in reimbursement in calendar year 2010 for coursework necessary to obtain the specified degree. Relationship to Vision This item is one small step toward Goal E - Financially Strong. Requested Action If the Council concurs, it should offer a motion to temporarily reduce the maximum tuition reimbursement benefit for eligible employees from $3,000 to $1,500 per person per calendar year, beginning January 1, 2010, and to exclude those employees currently obligated to obtain a degree in connection with their position from this reduction. G. Continuing Education/Tuition Reimbursement. 1. Eligibility. All full-time employees and benefits-eligible part-time employees may apply for continuing education benefits under this section. 2. Employee Tuition Policy. The City may reimburse an employee for tuition expenses and course fees under certain circumstances. There shall be no reimbursement for mileage/parking expense. Required books, student activity fees, and material costs will not be reimbursed. Tuition reimbursement is available for a course occurring in non-continuous classes over a period of time. 3. Pre-Approval. Prior to starting a class or classes, the employee must obtain approval from the employee's department head and the City Administrator that the class, certificate, degree or overall achievement is job related and that the request is worthy and would fill a need within the City or Department. The department head should verify that the department budget could cover this expense. Approval of enrollment in a multiple-year course of study is no guarantee that funding will be available in subsequent years. 4. Satisfactory Completion. The employee shall provide the department head with proof of satisfactory completion (i.e., a grade of C or above in technical school or undergraduate college; a grade of B or above in graduate school) of any course requested for reimbursement, prior to reimbursement 5. Time Off. If classes are during the regular workday, a non-exempt employee must take that time as compensatory time, vacation time, or leave of absence without pay, or the employee can seek a flexible scheduling arrangement approved by the department head. Police officers also have the option of utilizing holiday time in cases where classes require time away from work. Classes or course work taken by the employee must not disrupt or interfere with normal departmental operations. 6. Continued Employment. The employee must remain with the City of Shakopee for two years following completion of the course, or reimburse the City for the expense. 7. Funding Procedure. The City may reimburse an employee 100 percent for the first $1,000 of the cost of tuition per calendar year. After that, the reimbursement may be 50 percent. Total reimbursement may not exceed $3,000 per person per calendar year. The scope, terms and conditions of this reimbursement shall be defined and interpreted by the City Administrator. Employees must submit valid receipts in order to be eligible for reimbursement. Reimbursement is limited based on availability of budgeted funds.