Loading...
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