Council debates cash‑in‑lieu leave policy; postpones vote to seek attorney opinion

Hot Springs — The Hot Springs City Council spent more than an hour debating proposed changes to the city personnel policy that would allow employees to cash out accrued leave in emergency circumstances. After discussion about budget exposure, authority and whether sick leave should be eligible, the council voted to postpone action and asked municipal legal counsel to provide an opinion.

The proposal before the council sought to add language to sections 7.2 (vacation leave) and 7.3 (sick leave) to permit cash in lieu of leave one time during employment in the case of an emergency if approved by the mayor. Councilmembers and staff recounted a history: the mayor had previously approved cash‑outs in 2022 and again recently, but the council had removed the mayor’s authority in an earlier action. Finance staff warned of unplanned budgetary expense and potential statutory issues.

Key debate points: Several councilmembers expressed sympathy and a desire to help employees facing emergencies; others warned the policy could be abused and stressed that cash payouts create liabilities outside regular payroll budgets. Some members proposed restricting payouts to vacation leave only; others wanted a second reviewer to approve decisions — for example, mayor plus finance officer or mayor plus department head or council president. Finance officer Misty Summers Walton stressed that large accumulated leave balances exist for some long‑time employees and that payout could create a significant unbudgeted liability.

Action and next steps: Councilmember JR Huddleston moved to obtain the city attorney’s written opinion and hold the matter for a future vote; the motion was seconded and approved by the council. The council did not adopt the proposed policy change at this meeting. Staff was directed to provide the attorney’s guidance and additional budgetary detail before the item returns for a vote.