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Item Number: H.5. CITY COUNCIL REPORT SUBJECT: City of Tolleson Employee Handbook Amendment - Credit for Prior Public-Sector Service MEETING DATE: October 27, 2026 TO: Mayor and Council FROM: Wendy Jackson, Deputy City Manager/Employee Resources Director REVIEWED: Reyes Medrano, Jr., City Manager PURPOSE: To enhance the City's recruitment and retention efforts by recognizing employees' prior public-sector experience when determining vacation leave accrual rates. BACKGROUND: Currently, vacation leave accrual rates are determined by an employee's years of service with the City of Tolleson. Employees with previous government experience generally begin at the initial vacation accrual rate, regardless of their prior public-sector service. The proposed amendment would allow eligible full-time, regularly employed classified and unclassified employees to receive credit for verified prior public-sector service when determining their vacation accrual rate. Qualifying service includes employment with governmental entities participating in recognized public-sector retirement systems, including ASRS, PSPRS, and other qualifying governmental retirement or pension systems throughout the United States. Employees will be responsible for providing documentation verifying their prior service. Any adjustment will apply prospectively following approval by Employee Resources, with no retroactive accruals granted. The amendment applies exclusively to vacation leave accrual rates and does not affect an employee's City service date, retirement eligibility, seniority, longevity, or other employment-related benefits. DISCUSSION: The proposed amendment to Section 610.3.4 establishes a consistent process for recognizing qualifying prior public-sector service when determining vacation leave accrual rates. Eligible employees may receive credit for verified years of government service, including service under ASRS, PSPRS, and other qualifying public-sector retirement systems. Employees must provide documentation of their prior service, and all adjustments will be subject to verification and approval by Employee Resources. Vacation accrual adjustments will apply prospectively, with no retroactive accruals granted. The amendment will not change an employee's City service date or affect retirement eligibility, seniority, longevity, or other employment-related benefits. BUDGET IMPACT: The proposed amendment may result in an increase in accrued vacation leave liability for eligible employees who qualify for higher accrual rates. The actual fiscal impact will depend on employee participation and verified years of qualifying public-sector service. No retroactive vacation accruals will be granted. RECOMMENDATION: Staff recommends that the Mayor and City Council approve the proposed amendment to Section 610.3.4 of the City of Tolleson Employee Policy Manual, allowing qualifying prior public-sector service to be recognized for vacation leave accrual purposes. ATTACHMENTS: 1. Vacation Policy