HomeMy WebLinkAbout2005-01-24 05-73 ORDERItem no 95-13
Date Jamar, 24.2005
Rem/SUDjM: ORDER, Amending Section 9.5.3 of the Revised! Personnel Rules and Regulations,
Personal Vehicle Use
Responsible Department: Executive
This Order would increase the mileage reimbursement rate for employees who use their personal vehicles
on City business to 40.5 cents per mile, the recently updated IRS approved! rate. Currently the
reimbursement rate is 33.5 cents per mile, which became effective in April 2002. The Order would also
establish the City reimbursement rate at the IRS rate for succeeding years. The IRS rate is set each
January 1f°.
—. The intent of -this action.isto insure that employeesare fairly reimbursed for using their -vehicles foray
business. The benefit W the City is that providing mileage reimbursement is considerably less expensive
than providing Clly vehicles. In general, approximately 70 employees received mileage reimbursement in
the last fiscal year. The proposed rate increase would cost approximately $5,000 - $6,000 if roughly the
same number of miles is driven on a year to year basis. For comparison purposes, six of the tap ten
largest communtles In Maine fallow the IRS rate.
This item was reviewed and recommended for approval by the Government Operations Cammittee at its
January 11, 2005 meeting.
Department: Head
Recommend apiamalaodw6vunwa..y Oe"a L}t �1pr/
City Manageerr'Y]�
Associated Information: Two Memorandums, mileage reimbursement survey
LcLL
Hnance Director
x Passage
_ First Reading Page 10 5
Referral
Asdgnedto Councilor D'Eaxca aznaary 24, 2005
CITY OF BANGOR
(M E.) ORDER, Amending Section 9.5.3 of the Revised Personnel Rules and Regulations,
Personal Vehicle Use
THAT Section 9.5.3 of the Revised Personnel Rules and Regulations is hereby
amended as follows:
9.5.3 EffecOve February 1, 2005, if an employee is authorized to use his/her
personal vehicle on City business, reimbursement shall be made for any tolls plus thirty-
three and are half forty and one-half cents ($0.405) per mile
Effective January 1 2006 andfor subsequent ea will use the IntgUagi
Revenue Service Rate established each January 1° as its established reimbursement
rate
Note: Deletions are stocker, additions are underlined.
IN CITY COUNCIL
January 26, 2005
Notion Made and seconded
for Passage
Motion Daunted
Vote: g sea, I No
Councilors voting Fes: Ceshvell,
D'Errlco. Farrington, Grateick,
Greene, Heves, Stone, Tremble
Councilor voting no: Allen
x
oRDDg
VIILEe Assuming Section 9,5.3 of the
e'rona
aPPerLisonal venule Use e
Au�SaM b CsuaAm� rlA�
05-73
To: Government Operations Committee
From: Robert W. Farrar, Assistant City Manager/Human Resources Director
Subject: Additional Information— Mileage Reimbursement -
Date: January 6, 2005
At the last Committee meeting, staff was asked to provide further information
regarding the amount of mileage reimbursement received by City employees, and
the estimated impact of the proposed Increase.
For fecal year 2004, General Fund reimbursements approximated $22,260 while
non -General Fund (Grant Programs, Enterprise Funds) reimbursements were
approbmataly $6,325. Total City-wide mileage reimbursements totaled $28,585.
Based upon FY04 mileage reimbursements, it is estimated that an increase from
33.5 qents/mile to 40.5 cents/mile would cost approximately $5,600 assuming that
the approximate mileage traveled from year to year is roughly the same. This
increase would be spread among same 14 General Fund departments and 5
Enterprise Funds and Grant Programs.
As noted at the last meeting, there IS benefit to the City by paying mileage versus
having to provide vehicles to employees for required travel. Over the years, the
City has attempted to have a fair mileage reimbursement rate in place so that
employees are notpenalized for their willingness to use their own vehicles for City
business.
Finally, as requested the attached chart provides information relative to other public
sector reimbursement rates. Six of the top ten largest communities in the State
follow the IRS rate while others have adopted a somewhat lower rate, Including the
State and the University of Maine.
RWF/jdr-t - -
Attachment
05-737
11120109
CURRENT
CHANGING
EFFECTIVE -
MILEAGE RATE
MILEAGE RATE
DATE OF CHANGE
PORTLAND
0.370
0.905
111/05
LEWISTON
0.330
BANGOR
0.335
SO PORTLAND
0.375
0405
1/1/05
AUBURN
0.300
SANFORD
0.375
O.d05
1/1/05
BIDDEFORD
0280
AUGUSTA
0.375
0A05
1/1N5
SCARBOROUGH
0.375
0.405
1/1105
WATERVILLE
0.375
FollomIRS,wfln0for
COurcIIA;Fm
STATE OF MAINE
0.320
0,340
1 1/1Po5
UNIVERSITY OF MAINE
0.320
0,340
1/12005
(Anne Merle 501-2382
'5,
MEMO
To:
Government Operations Committee
From:
Robert W. Farrar, Assistant City Manager/Human Resources
Director
Subject:
Mileage Reimbursement: Rate .
Date:
December 6, 2004 _
Periodically, staff recommends adjustments to the CiNs mileage reimbursement
rate which is paid to employees who use their personal vehicles for official City
business. The current rate is 33.5 cents per mile, which was last changed and
effective April 2002.
The updated Internal Revenue Service (IRS) approved rate effective January 1,
2005 has now been determined and will be 40.5 cents per mile. This rate is
commonly used by marry private and public sector organizations. We are -
recommending that the City Personnel Rules and Regulations be amended to
reflect this new rate effective January 1, 2005.
Additionally, we would recommend that the City adopt language that specifies
that our rate be set automatically each year In accordance with the approved IRS
rate. This would eliminate the on-going need to have to amend the Personnel
Rules and Regulations each time the IRS adjusts the mileage reimbursement
rate, and would keep City Policy current with the accepted IRS rate,
This increase is not a significant expense on a City-wide basis, and it does reflect
that the City is willing to reimburse employees a fair rate when they are required
to use their own vehicles. Your approval is recommended.
RWF/jdr-t
IL