HomeMy WebLinkAboutPO 6002: TRAVEL EXPENSESMemo
To: Steve Fitzgibbons, City Man r
From: Rebecca Underhill, CPA, Assi t City Manager / Director of
Finance
Date: April 17, 2009
Re: Proposed Ordinance 6002
On the April 7, 2009 agenda, the City Council adopted Ordinance 09-28
which made changes to the travel policy. PO 6002 clarifies those
changes, makes additional changes to reimbursement levels, and
delineates administrative measures to help administer the policy.
A summary of the changes proposed in this ordinance is as follows:
• Section 78-269 (a) (5) clarifies the procedure for travel advances
for employees. Travel advances are for overnight travel only, and
will not be issued for `day' trips.
• Section 78-269 (a) (6) (b) pertains to the per diem allowance for
employees. Ordinance 09-28 changed the rate from a flat $38 per
day to the GSA rate (federal government allowance) for overnight
travel. The section also provided for a meal and incidental expense
allowance for employees on `day trips'. This proposed ordinance
makes the new provision clear. For trips of more than 12 hours and
less than 24 hours, the employee will receive a per diem of 75°s of
the GSA rate. Actual costs will be paid for day trips less than 12
hours; the expense must be reasonable and documented.
• Section 78-269 (b) (1) pertains to notice for trips by the mayor
and members of council. This proposed ordinance eliminates the
requirement for three days' notice. Advance notice will be
sufficient.
• Section 78-269 (b) (3) pertains to the expense packets. The
ordinance, as currently in place, requires expense packets for
members of council and the mayor to be submitted to the City
Secretary. This proposed ordinance requires the Mayor's secretary
to prepare the Mayor's report, with the City Secretary continuing
to prepare the reports for the council members.
Section 78-269 (b) (9) pertains to the expense reimbursement rates
for the Council. The current ordinance provides for a per diem
rate of $75 per day. This rate exceeds the GSA allowed rate.
Under IRS regulations, unless these expenses are substantiated with
receipts, the City will be required to impute income to those
receiving the per diem for the amount in excess of the GSA rate.
For example, if a councilmember traveled to Dallas on Tuesday and
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returned on Wednesday, under the current ordinance, they would
receive $150 in per diem. The GSA per diem would be 75% of $59 for
each day, $89. The City will have to impute income of the
difference ($61) to the Councilmember for this trip. This amount
would be added to taxable earnings, and FICA and withholding would
be applied.
Section (b), concerning tips was removed. The current section is
vague and does not require receipts. Tips could be covered in the
per diem. If this section is left in, additional tips without
receipts would be treated as taxable income and the tax
consequences will be reflected on the payroll.
• Section 78-269 (b) (8) - the inserted clause was inadvertently
deleted from ordinance 09-28.
The proposed changes in the ordinance are for housekeeping,
clarification, and to insure compliance with the policy.
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P. O. No. 6002
4/17/09 ru
ORDINANCE NO.
AN ORDINANCE AMENDING SECTION 78-269 OF THE CODE OF
ORDINANCES AS IT PERTAINS TO TRAVEL EXPENSES
WHEREAS, the Code of Ordinances establishes limits for travel
expenses; and
WHEREAS, the City Council amended Section 78-269 at the April 7,
2009 meeting; and
WHEREAS, the City Council desires to make miscellaneous changes to
Section 78-269 of the Code of Ordinances.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR:
Section 1. That the facts and opinions in the preamble are
true and correct.
Section 2. That Section 78-269 is herein amended as follows:
"Sec. 78-269. Travel expenses.
(a) With the exception of the mayor and council members, the city
attorney, city secretary and the municipal court judge, all persons will
present expense accounts to the city manager for approval.
(1) Overnight travel must be authorized in advance by the city
manager or his designee. Expense accounts for all travel,
overnight or single day trips will be approved by the city
manager.
(2) All expense accounts shall be approved by the department head
prior to submission to the accounting division for audit
within seven days after the trip is complete. After audit, the
expense account shall be submitted to the city manager or his
designee for approval.
(3) Should the expense account not be returned in a timely manner,
the department head will be notified, and travel advances to
the employee suspended. If the expense report remains
outstanding, travel advances to the department will be
suspended.
(9) A receipt for any charge incurred that may be paid in advance
by the city, such as airline tickets, registration, etc., is
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to accompany the expense account in order that the entire cost
of the trip may be reflected in the expense package.
(5) Travel advances for overnight travel must be approved by the
department head and the city manager and will not exceed $100
per day. Advances will not be issued for same day trips.
(6) Allowable reimbursements:
a. Auto expense. Reimbursement for the use of a private
automobile shall be at the IRS standard mileage rate to
the employee furnishing the automobile. Employees
receiving au*_omobile allowances shall be reimbursed at a
rate equivalent to $0.10 per mile less than the IRS
standard mileage rate for authorized travel outside the
city limits. When more than one employee travels by car
to the same conference/meeting, etc., pooling is to be
utilized to the fullest extent possible.
b. Per diem allowance. A per diem allowance will be
determined as delineated in the GSA Meals and Incidental
Expenses (M & IE) Rate Schedule for travel outside the
City. This allowance is intended to cover all meals and
incidental expenses. Employees are only eligible for 75$
of the total M6IE rate for the location to which they are
traveling on the first and last day of travel. The GSA
provides a breakdown of the components of the maximum per
diem rate. Should a meal be provided by the City or the
conference attended, that component amount should be
deducted from the per diem. (The city manager may
authorize actual expenses with receipts for travel to
Internal Revenue Code designated "high cost" cities. This
option must be requested by the employee and department
head on the request for authorization for overnight
travel.) The employee must document the days eligible for
the allowance on the expense report. When trips are less
than 12 hours, meals and incidental expenses will be
reimbursed at actual cost foz necessary and reasonable
expense. When trips are more than 12 hours and less than
24 hours, the employee will receive a per diem of ~t
c3~ccev 750 of the GSA Per Diem Rate (75a of M & IE).
c. Out-of-town transportation. When auto expenses are not
claimed on the expense account, the use of out-of-town
transportation will be an eligible expense. The business
necessity for any charge for taxi, bus, car rental or
other transportation, while out-of-town, must be
explained in writing and attached to the expense account
form, and a receipt for each charge must be submitted
with the expense report.
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d. Air fare. Reimbursement for air fare shall be a coach
class rate. Any expense exceeding coach class shall not
be eligible expense except in the case of documented
emergency travel where coach class is not available.
e. Spouse attendance. Spouses travel at their own expense.
The difference between the single and double rate is
reimbursable to the city. No travel costs for spouses,
whether for transportation, lodging, meals or cost of
attendance to events are reimbursable by, or chargeable
to, the city.
f. Entertainment. Entertainment expenses are not eligible
expenses.
g. Miscellaneous. All other miscellaneous business expenses
are reimbursable when they are reasonable, ordinary and
necessary for the completion of city business and
supported by receipt.
(b) Expenses of mayor and city council members. Prior notice and
travel expenses advance; expense report.
(1) Before any overnight out-of-town business trip is made by the
mayor or council members, advance written
notification should be given to the council. Flaweeer, €sr--an
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(2) Travel advances must have a reasonable relation to estimated
travel costs, and are limited to a maximum of $150.00 per day.
Travel advances will not be given if there are any monies due
and owing for previous travel.
(3) Expense packets, consisting of detailed expense statements,
receipts, airline bills, hotel bills, registration receipts of
attended meetings and the city receipts for refund of
advances, shall be submitted to the city secretary within 15
days after the return from an out-of-town business trip. The
Mayor will submit his/her expense packet to the Mayor's
secretary. A receipt (or copy thereof) for any charge incurred
that may be paid in advance by the city, such as registration,
airline tickets, etc., is to accompany the expense account in
order that the entire charge for the trip may be reflected in
one expense package. The city secretary, or Mayor's secretary
as appropriate, shall then check the packet for duplication
and mathematical corrections.
a. If errors are found, the submitter is notified.
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b. The city secretary or Mayor's secretary shall then submit
those completed expense packets to the council for their
consideration.
(4) Exclusions and limitations on certain charges and
requirements of receipts.
a. Air fares on all trips shall be by coach class.
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b. ~ Receipts are required on all charges for meals, when the
total cost exceeds $75 per day, for mayor and city
council members.
c. d: When trips are less than 24 hours, meals and tips cannot
exceed $35.
d. e- Entertainment expenses are not eligible expenses.
Examples: golf, sporting events, theatres or shows.
e. ~ Business relations: Limited to $25 maximum per day.
Receipts are required.
(5) Automobile expenses:
a. Said officers will be paid at the rate authorized by the
Internal Revenue Service per mile for the use of their
personal automobile for business trips that exceed 30
miles round trip from the point of origin to a location
outside of the city.
b. Said officers will be paid at the rate authorized by the
Internal Revenue Service per mile for the use of their
personal automobile for business trips within the city,
except for those officers who receive a monthly
automobile allowance. The mileage used will be based on
estimated mileage.
(6) Exclusion of expenses for spouses. Expenses for or on behalf
of spouses are not eligible expenses and shall not be paid, or
reimbursed by the city.
(7) If there are any travel expenses that have not been reimbursed
or reconciled within 30 days of the trip, the city secretary
shall notify the city manager, mayor, the director of finance,
and city council.
(8) If a councilmember desires .to drive to a location wherein air
travel was available, the city councilmember will be limited
in obtaining reimbursement to the cost of the roundtrip
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airfare ticket, as well as additional costs of renting a car
at the actual location and the per diem that would have been
normally associated with air travel. This subsection will not
apply to cases wherein due to security concerns, vehicle
travel is more prudent.
(c) Allowable reimbursements for city manager, city attorney,
city secretary and municipal court judge:
(1) Before any overnight out-of-town business trip is made by
city manager, city attorney, city secretary, municipal
court judge or any department head not under the control
of the city manager, three days' prior written
notification should be given to the council. However, for
an emergency trip, prior notice shall be sufficient.
(2) The city manager, city attorney, city secretary,
municipal court judge, and all department heads not under
the control of the city manager will submit completed
expense reports to the city council for consideration and
approval.
(3) Said officers will be reimbursed in accordance with
subsection (a) of this section with the limitations of
other city employees."
Section 3. That a copy of the caption of this Ordinance be
spread upon the Minutes of the City Council.
Section 4. That this being an Ordinance amending an Ordinance
which does not carry a penalty, and does not require publication, it
shall take effect immediately from and after its passage.
READ, ADOPTED AND APPROVED on this day of A. D.,
2009, at a Council Meeting of the City Council of the City of Port
Arthur, Texas, by the following vote:
AYES: Mayor
City Council
NOES:
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NLAYOR
ATTEST:
CITY SECRETARY
APPROVED AS TO FORM:
CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
CITY MANAGER
ASST. CITY MANAGER/FINANCE DIRECTOR
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