Cave Creek council approves separate sick‑and‑vacation leave structure, preserves PTO option for long‑tenured staff

The Town Council approved revisions to the employee leave policy that separate vacation and sick‑leave accruals, retain a modified PTO option for employees with 10 or more years of service, and set revised accrual and payout rules.

Administrative Services Director Carla Reese presented the rationale: the town’s existing single PTO bank left some employees without sufficient paid time for extended protected leaves (for example, a 12‑week FML absence). The proposed structure establishes a distinct sick‑leave accrual (four hours per pay period; ~104 hours annually) and vacation accruals graduated by tenure. Employees hired after the policy effective date would automatically be placed in the vacation/sick structure.

To reduce transition hardship for long‑tenured staff, the policy offers a one‑time irrevocable choice for employees with 10 or more years of continuous service to remain in a revised PTO system with a cap (320 hours) instead of moving to separate banks. Staff described administrative details: sick leave would be payable on retirement only if the employee has at least five years of service and meets ASRS retirement requirements (payout of 50% of unused sick leave); vacation remains payable at separation subject to policy caps.

Council discussed concerns about potential sick‑leave misuse, attendance management, supervisor training and payroll system changes. Reese said the town will use attendance management practices, track scheduled versus unscheduled sick leave, and provide communication and supervisor training during the transition.

Council passed the motion to adopt the new leave policies and authorized staff to implement administrative procedures; one council member voiced an objection during the vote call but the motion carried as recorded. Council asked staff to provide FAQs and transition guidance for employees and to return with any implementation issues identified through payroll and HRIS adjustments.

What’s next: the policy is effective July 1, 2026; staff will implement system changes, provide employee communications, and return with implementation updates and any required policy clarifications.