Authorizes the city of Glen Cove to amortize the cost of payments to employees upon separation of service from the city.
Ayes (8): Martins, Ball, Little, McDonald, Ritchie, Stewart-Cousins, Oppenheimer, Klein
Ayes (55): Addabbo, Avella, Ball, Bonacic, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Duane, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Johnson, Kennedy, Klein, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Montgomery, Nozzolio, Oppenheimer, Parker, Peralta, Ranzenhofer, Ritchie, Rivera, Robach, Saland, Sampson, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Storobin, Valesky, Young, Zeldin
Nays (1): Krueger
Excused (6): Adams, Alesi, Espaillat, Huntley, O'Mara, Perkins
TITLE OF BILL: An act to amend the local finance law, in relation to authorizing the city of Glen Cove, county of Nassau to amortize the cost of payments to employees upon separation of service from the city
PURPOSE: This legislation would allow the City of Glen Cove to amortize the cost of payments to employees upon separation of service from the city.
SUMMARY OF PROVISIONS: Section 1 of this bill amends paragraph a of section 11.00 of local finance law by adding a new subdivision 106 that empowers the City of Glen Cove to amortize accrued and accumulated but unused and unpaid sick leave, personal leave, holiday leave, vacation time, time allowances granted in lieu of overtime compensation and any other forms of payment for time earned by employees of the City of Glen Cove and payable to such employees upon separation of service from the city. The bill permits the city to amortize any such separation payments made by the city on or after January 1, 2012.
Section 2 authorizes this act shall take effect immediately.
JUSTIFICATION: The City of Glen Cove is currently faced with cumulative deficits of $4.7 million in its operating funds. In addition, the City of Glen Cove is experiencing unexpected and unplanned retirements in the city's police department which could result in a turnover rate of between 20 to 40 percent, based on the number of officers that actually retire.
Many of the retirees are senior and high ranking members of the police department of the city who have earned significant amounts of accrued and accumulated but unused and unpaid sick leave, personal leave, holiday leave, vacation time, time allowances granted in lieu of overtime compensation and any other forms of payment for time.
This phenomenon will create an unusual unbudgeted expense for the city and would impose an additional significant financial hardship if the separation payments are required to be paid during the current fiscal year.
This legislation would allow the City of Glen Cove to spread the impact of the separation payments over several years, not increase its cumulative deficit in its general fund and provide the city with the ability to operate within the State's imposed tax cap.
The City of Glen Cove also expects to realize budgetary savings in the future as a result of the reduction in salaries attributable to the retirees and the replacement of such retirees with lower paid employees.
LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: None to the State.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ S. 7454 A. 10299 S E N A T E - A S S E M B L Y May 21, 2012 ___________IN SENATE -- Introduced by Sen. MARCELLINO -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government IN ASSEMBLY -- Introduced by M. of A. LAVINE -- read once and referred to the Committee on Governmental Employees AN ACT to amend the local finance law, in relation to authorizing the city of Glen Cove, county of Nassau to amortize the cost of payments to employees upon separation of service from the city THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph a of section 11.00 of the local finance law is amended by adding a new subdivision 106 to read as follows: 106. ANY PAYMENTS BY THE CITY OF GLEN COVE MADE AFTER JANUARY FIRST, TWO THOUSAND TWELVE TO EMPLOYEES UPON SEPARATION FROM EMPLOYMENT, AS MAY BE APPROVED BY THE CITY AND INCLUDING, BUT NOT LIMITED TO, CASH PAYMENT FOR SEPARATION INCENTIVES AND/OR PAYMENT OF THE MONETARY VALUE OF ACCRUED AND ACCUMULATED BUT UNUSED AND UNPAID SICK LEAVE, PERSONAL LEAVE, HOLIDAY LEAVE, VACATION TIME, TIME ALLOWANCES GRANTED IN LIEU OF OVERTIME COMPENSATION AND ANY OTHER FORMS OF PAYMENT REQUIRED TO BE PAID TO SUCH EMPLOYEES UPON SEPARATION FROM EMPLOYMENT, TEN YEARS. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15880-01-2