Resolution 5543 - Sick Leave Incentive ProgramA RESOLUTION ESTABLISHING AN INCENTIVE PROGRAM FOR EMPLOYEES OF
CITY OF KALISPELL TO ENCOURAGE EMPLOYEES TO PRESERVE THEIR STAT11
MANDATED THROUGH USE OF EMPLOYE
r
CONTRIBUTION TO THE EMPLOYEE'S UNUSED AND ACCRUED SICK LEAVI
BENEFITS THAT ARE DIRECTED TO A VOLUNTARY EMPLOYEES' BENEFICIAR
ASSOCIATION
WHEREAS, pursuant to the authorization provided by Section 501(c)(9) of the Internal Revenue
Code and by Resolution No. 5539 the Kalispell City Council on December 5, 2011,
created a Voluntary Employees' Beneficiary Association [VEBA] which is a tax-exempt
health and welfare trust and such trust is authorized to provide benefits to members
including a self -insured medical reimbursement plan as authorized in Internal Revenue
Section 105; and
WHEREAS, pursuant to state law, an employee of the City receives 25% of the total unused and
accrued sick leave earned during the term of employment upon leaving the employment
of the City; and
WHEREAS, it is the experience of the City that this statutory structure of sick leave benefit tends to
encourage the liberal use of sick leave by its employees; and
WHEREAS, although the employees of the City may now elect and receive the tax benefits of a
VEBA upon leaving the employment of the City, thereby encouraging the employees to
preserve their sick leave benefits, the benefit may be greatly enhanced through an
additional matching contribution to the VEBA by the City; and
WHEREAS, the City benefits as an employer whenever the rate of absenteeism of the employees is
reduced and dollars spent are tax free.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL
AS FOLLOWS:
SECTION I. Effective January 1, 2012, the City of Kalispell, Montana shall pay to its
employees, upon voluntary termination, an amount that is equal to the statutory
amount otherwise received by the employee as earned and accrued sick leave
with the following conditions:
a) The employee must have a minimum of ten years of service with the City of
Kalispell as of the date of termination from service; and
b) The employee must provide the Department of Human Resources for the
City of Kalispell six months advance notice prior to termination; and
c) The Department of Finance for the City of Kalispell must be notified of the
employee's election to have the City's matching contribution also placed
into the VEBA account.
SECTION 11. The proper officers of the City of Kalispell, Montana are authorized and directed
to take such actions as are necessary to effectuate this resolution.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL, THIS 19TH DAY OF DECEMBER, 2011.
Tammi Fisher
ATTEST: Mayor
Theresa White
City Clerk