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Perry council approves limited vacation buyback for long‑tenured staff
Summary
The Perry City Council approved an amendment allowing eligible employees to sell up to 40 hours of accrued vacation time (cap remains 200 hours). Staff estimated roughly 14 employees could be eligible and said the program will be budgeted into payroll; council members debated recruitment benefits vs. whether it encourages skipped leave.
The Perry City Council voted to amend Chapter 4, Section 2 of the city personnel manual to permit a vacation buyback for employees who have accrued at least 200 hours, allowing a sale of up to 40 hours per year.
City Manager Nate framed the change as a retention and recruitment tool, saying the buyback is intended as a “reward for those who aren’t taking their vacation leave and putting more time in at the city.” Staff explained accrual rates vary by longevity and that department heads and long‑tenured employees are most likely to hit the 200‑hour cap.
Russ, the city’s finance lead, presented cost estimates used in the discussion and said staff’s initial run of the numbers showed the program “was gonna be a little over $40,000 of cost,” but that a more realistic recurring budget impact could be closer to $15,000 per year depending on how many employees actually elect the buyback. Council and staff agreed that the buyback would be built into the payroll schedule as an operating cost if approved.
During deliberations, some members voiced concern about signing a policy that might incentivize staff to skip time off. One councilmember asked whether the buyback would effectively reward employees who do not take vacation; others replied that employees still would be able to take vacations and that the program targets those who regularly approach accrual caps.
Council discussion also included operational details clarified by staff: accrual rates (3.34 hours per pay period in early years; higher rates after five and 15 years), the 200‑hour cap, and that employees who sell hours would still be able to take remaining leave. Staff estimated about 14 employees across the city and public works authority might be eligible in the near term and that the program could be budgeted accordingly.
The motion to approve the amendment passed on a roll‑call vote. Council directed staff to implement the buyback beginning in December of the following year and to account for the cost in operating budgets.
