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To request that the Chief Administrative Officer amend Administrative Regulation 4.8, concerning the City’s leave policy, to modify the maximum carryforward policy and procedures for paying out vacation leave balances for unclassified employees as a one-time occurrence during the transition to implement a maximum carryforward procedure and to request that the Chief Administrative Officer submit a written report of the operational and fiscal impacts of implementing such amendments and any additional proposed amendments no later than June 30, 2026.
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WHEREAS, City of Richmond Administrative Regulation 4.8 is the City’s leave policy and establishes the policies for vacation leave and other forms of leave; and
WHEREAS, the City’s leave policy includes a maximum carryforward amount of the number of vacation leave hours (by years of service) that employees may “carry forward” from one fiscal year to the next; and
WHEREAS, the maximum carryforward amount serves as the maximum number of hours that an employee can receive as a lump sum payment upon separation from city service; and
WHEREAS, prior to Administration Regulation 4.8, unclassified employees were allowed to carryforward an unlimited number of vacation leave hours; and
WHEREAS, effective July 1, 2023, unclassified employees were given a five-year window (until July 1, 2028) to use or donate their excess vacation leave hours and unused hours above the maximum carryforward number would be forfeited; and
WHEREAS, as of the midpoint of this five-year window, a significant number of employees still hold a vacation leave balance above their respective maximum carryforward limit; and
WHEREAS, according to data shared by the City’s Human Resources Department, as of December 31, 2025, 110 unclassified employees have vacation leave balances in excess of their respective maximum carryforward limits; and
WHEREAS, some employees may face operational constraints that limit their ability to reduce leave balances during the transition period; and
WHEREAS, the City’s leave policy is set by Administrative Regulation - not City Code - and therefore the Council is unable to directly amend the policy via ordinance; and
WHEREAS, any amendments to Administrative Regulation 4.8 may have operational and fiscal impacts, and the Chief Administrative Officer should review such impacts prior to implementation;
NOW, THEREFORE,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF RICHMOND:
That the Council requests that the Chief Administrative Officer amend Administrative Regulation 4.8, concerning the City’s leave policy, to allow for full or partial payment of vacation leave balances prior to separation from City service following a review and analysis of the operational and fiscal impacts of such amendments.
BE IT FURTHER RESOLVED:
That the Chief Administrative Officer is hereby requested to submit a written report of the operational and fiscal impacts of implementing such amendment and any additional proposed amendments to the Finance and Economic Development Standing Committee no later than June 30, 2026.
DATE: January 30, 2026
TO: The Honorable Members of City Council
THROUGH: RJ Warren, Council Chief of Staff
THROUGH: Will Perkins, Senior Legislative Services Manager
FROM: The Honorable Ellen Robertson
RE: To request that the Chief Administrative Officer amend Administrative Regulation 4.8, the City’s leave policy, including the maximum carryforward policy and procedures for paying out vacation leave balances for unclassified employees as a one-time aspect of the transition to implementing a maximum carryforward, and share a written report of the current policy and any proposed changes no later than June 30, 2026.
CNL-2025-0009
PURPOSE: Patron requests a resolution be drafted requesting the administration revise Administrative Regulation 4.8 (“A.R.4.8”), the City’s leave policy, to allow for payment of vacation leave balances prior to separation from city service. Further, patron requests that the Chief Administrative Officer submit a written report of the operational and fiscal impacts of said amendment to the City Council’s Standing Committee on Finance and Economic Development no later than June 30, 2026.
BACKGROUND: Patron feels strongly that all City employees should be paid for benefits they have earned. It is therefore problematic that employees stand to lose potentially thousands of dollars' worth of accrued vacation leave if they are unable to use their full balance prior to July 1, 2028, when they are set to expire for unclassified and executive employees hired before July 1, 2023. This is the City’s current maximum carryforward policy as detailed in A.R.4.8 (see III.A.2 on page 4 of attached “Administrative Regulations Leave Policy”). This policy, effective July 1, 2023, established a five-year time limit for long-term unclassified and executive employees to use or donate vacation leave hours above a newly established maximum carryforward limit (320 hours if five up to ten years of service or 400 hours for ten or more years of service.
Prior to July 1, 2023, there was no limit on the maximum accumulation of vacation leave accruals, and many employees developed substantial vacation leave balances. There was, however, a maximum payout amount upon termination (e.g. a 10+ year employee could only be paid for a maximum of 400 hours, even if her vacation leave balance exceeded 400 hours). The new policy aligned the maximum carryforward and maximum payout amounts and established a five-year window (through July 1, 2028) during which long-time unclassified employees were expected to use or donate their excess vacation leave.
Unfortunately, as the July 1, 2028, due date approaches there are still a substantial number of employees with excess leave balances. According to data shared by the City’s Human Resources Department as of December 31, 2025, 110 unclassified employees have vacation leave balances in excess of their respective maximum carryforward amount. Further, many of these employees have reportedly been unable or not allowed to take vacation leave due to circumstances in their departments including substantial vacancies. The Human Resources Department does not track agency leave denial practices and shared that “agency heads may restrict vacation during critical operational periods.” Patron believes it is in the City’s best interest to amend A.R.4.8. to promote retention of all employees who may choose to separate from city service before the July 1, 2028, deadline rather than lose their earned benefits.
Patron appreciates that there may be unforeseen complications with amending A.R.4.8 to allow for vacation leave payouts prior to separation from city service. She therefore requests that the CAO prepare a written report of the operational and fiscal impacts of amending this policy and to share that analysis with the City Council prior to implementing said change.
COMMUNITY ENGAGEMENT: Long-time City employees have reached out to Councilmember Robertson requesting that she help change this policy. Some employees with large vacation leave balances (more than the current maximum carryforward policy) have reported being unable to take leave due to circumstances in their departments including excess vacancies.
STRATEGIC INITIATIVES: A thriving City Hall
FISCAL IMPACT: Council staff estimate that resources are sufficient in the Fiscal Year 2026 budget for the CAO to review A.R.4.8 and produce a written report by June 30, 2026.
DESIRED EFFECTIVE DATE: Upon adoption
REQUESTED INTRODUCTION DATE: March 10, 2026
CITY COUNCIL PUBLIC HEARING DATE: March 23, 2026
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Finance & Economic Development
AFFECTED AGENCIES: Human Resources, Department of Budget and Strategic Planning.
RELATIONSHIP TO EXISTING ORD. OR RES.: N/A
ATTACHMENTS: “Administrative Regulations Leave Policy”
STAFF: Will Perkins, Senior Legislative Services Manager (804)-646-5975