Jim Donchess
Mayor « City of Nashua
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To: Board of Aldermen
From: Mayor Jim Donchess A)
Date: 12/18/18
Tam vetoing R-18-066, because it is an unwise expenditure of $175,000 in City funds and
because it is unfair to retired City employees. R-18-066 nearly doubles to an estimated $366,000
the City’s obligation to make. cash payouts for unused sick leave to | | employees.
R-18-066 grants an estimated $175, 000 i in additional payouts for unused sick time to 11 City
employees. This $175, 000 i in extra payouts would be on top of the estimated $191,000 in unused
sick time payouts the 1 | affected employees will already receive under.current law. The total
unused sick time: payouts would become an estimated $366,000. The affected people are non-
union mostly managemen| mployees who ¢ eam between $70, 000 and $105, 000 per year,
In Nashua we have man eeds including schools, police and firea and other services and
improved infrastructure. | In addition, we warit to keep our tax rate as low as possible. Given
these considerations, | do not believe that the expanded severance plan is a good expenditure of
$175,000.
In 2001 the Board of Aldermen, in n order to save costs, ainended the formula for the payout of
unused sick timeupon the retirement or resignation of employees hired in 1995 or thereafter.
The 11 employees granted additional sick time payouts by R-18- 066 were ‘hired i in the period of
1995 to 2001. a
Before 2001 the City made payouts at retirement or resignation for 100% of unused sick time up
to a maximum of 720 hours (or 90 days). In 2001 the formula was changed so that the City
would make payouts for 20% of unused sick time with no maximum accrual. R-18-066 goes
back 17 years and restores the 100% payout formula for the 1] remaining employees hired
between 1995 and 2001.
As originally proposed R-18-066 provided the 11 employees payouts for all unused sick time
accrued up to 2001 (arguably sick time payouts that had already been earned) and thereafter
provides them payouts for 20% of the unused sick time accrued after 2001. This was the
compromise reached after discussions between me and members of the Board of Aldermen
before R-18-066 was introduced.
However, as amended by the Personnel Committee, R-18-066 allows each employee to elect
whether to receive the lower or the higher sick leave payout. All indications are that all
