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HomeMy WebLinkAboutORD2025-012 Paid Parental LeaveSponsored by: Warner Introduction Date: August 11, 2025 Public Hearing Date: August 25, 2025 Enactment Date: August 25, 2025 CITY OF SEWARD, ALASKA ORDINANCE 2025-012 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SEWARD CITY CODE, TITLE 3 PERSONNEL, CHAPTER 3.45 ANNUAL LEAVE, TO INCLUDE A PAID PARENTAL LEAVE POLICY WHEREAS, the City of Seward recognizes the importance of supporting families through proactive workforce policies that contribute to the health, stability, and economic security of the community; and WHEREAS, paid parental leave is a proven strategy to improve retention, productivity, and morale among employees, and contributes to cost savings by reducing turnover and recruitment costs; and WHEREAS, research from the Prenatal-to-3 Policy Impact Center indicates that paid family leave increases the likelihood that new parents will take time to bond with their child, reduces post neonatal infant mortality by up to 13%, and improves maternal mental health and breastfeeding rates; and WHEREAS, according to the Paid Family and Medical Leave (PFML) Policy Brief, local governments that adopt paid family and medical leave policies see positive outcomes in workforce equity, particularly for women and people of color, who disproportionately take on caregiving roles and are less likely to have access to paid leave through the private sector; and WHEREAS, on March 7, 2023, the Anchorage Assembly unanimously approved a paid parental leave benefit for municipal employees, offering four weeks of leave within 12 months of a qualifying event, including the arrival of biological and adoptive children as well as the placement of foster children. This policy allows leave to be taken in one -week intervals and adjusts eligibility requirements to provide immediate access upon hire starting January 1, 2024; and WHEREAS, implementing paid parental leave aligns with the City of Seward's goals of supporting a year-round economy and creating a family -friendly workplace culture that attracts and retains qualified employees; and WHEREAS, no liability will be accrued for paid parental leave following GASB 101. Instead, the expense and associated payroll liability will be recognized at the time the leave is taken and paid, consistent with the accrual basis of accounting used in proprietary and internal service funds. CITY OF SEWARD, ALASKA ORDINANCE 2025-012 Page 2 of 2 NOW, THEREFORE, THE CITY OF SEWARD ORDAINS: Section 1. Seward City Code Title 3 is hereby amended to read as follows (new language is in bolded italics and underlined and deleted language is stricken): Amendment of Chapter 3.45. of the Seward City Code of Ordinances is hereby amended to add Section 3.45.090 and read as follows: 3.45.090 Parental Leave The City Manager is authorized to develop and implement a paid parental leave program, providing paid leave for an employee who is eligible under the Family Medical Leave Act (FMLA) upon the qualifying birth, adoption, foster care, or legal guardianship of a child. Section 2. This ordinance shall take effect ten days after enactment. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA this 25th day of August 2025. THE CITY OF SEWARD, ALASKA Sue McClure, Mayor AYES: Crites, Warner, Osenga, Wells, Barnwell, McClure NOES: None ABSENT: Finch ABSTAIN: None Kris Peck City Clerk 1 1 City Council Agenda Statement Meeting Date: August 11, 2025 To: City Council Through: City Council Member Casie Warner Subject: Ordinance 2025-012: Amending Seward City Code, Title 3 Personnel, Chapter 3.45 Annual Leave, to Include a Paid Parental Leave Policy Background and justification: This ordinance directs the City Manager to develop and implement a Paid Parental Leave Policy for all eligible City of Seward employees. Paid family leave is a proven tool for improving maternal and infant health outcomes, reducing employee turnover, and supporting workplace equity — particularly for women and people of color who are less likely to have access to paid leave benefits in the private sector. The policy will improve recruitment, retention, and morale across city departments, ensuring that Seward continues to attract and retain a strong municipal workforce. By implementing paid parental leave, the City demonstrates a commitment to policies that support Seward's year-round workforce and strengthen the overall economy. Families are more likely to remain in the community and contribute to its long-term stability when supported by employment benefits that prioritize health, caregiving, and economic resilience. This ordinance aligns with Seward's broader goals to foster a family -friendly community and a thriving, sustainable local economy. The parental leave is to be granted to eligible employees in the event of a qualifying life event, such as the birth, adoption, or placement of a child. Leave is granted only upon a qualifying event. It is not earned through service or accrued over time. It cannot be carried forward or paid out upon separation. It is not available unless and until the qualifying event occurs. While GASB 101 requires the accrual of compensated absences that are earned and accumulated, our parental leave policy is event -based and does not meet the criteria for accrual. Therefore, costs will be budgeted in the fiscal year when leave is anticipated to be used, based on historical usage trends. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Goal 2.1: Encourage development that supports families and sustains a year- round community. Goal 6.4: Promote the health and well-being of all Seward residents. Parental leave supports early bonding, reduces maternal stress, and improves family health outcomes. Strategic Plan: Other: Goal 9.3: Support employment growth through public policy and long-term workforce investments. Objective 1.3: Invest in and retain a qualified, resilient workforce. Objective 2.2: Support community members in achieving economic and social stability. Objective 3.1: Promote policies that sustain a diverse, year-round economy. Certification of Funds Total amount of funds listed in this legislation: $ 0 This legislation (✓): Creates revenue in the amount of: Creates expenditure in amount of: Creates a savings in the amount of: Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted Not applicable $ $ $ Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance SMIC Parking Other Electric Water $ Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: 'el- 2"t.' Attorney Review X Yes Attorney Signature: Not applicable Comments: Administration Recommendation X Enact Ordinance Other: