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Home My WebLink About1996-086 Vehicle allowance / city manager • ORDINANCE NO. 96- 86 AN ORDINANCE: relating to city administration; amending the vehicle allowance for the city manager. WHEREAS, Yakima Municipal Code Section 2.20.097 provides a vehicle allowance for the city manager; and WHEREAS, the City Council has determined that this allowance has not been adjusted since 1979 and should be adjusted effective January 1, 1997; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: Section 1. Section 2.20.097 of the City of Yakima Municipal Code is hereby amended to read as follows: "The city manager shall be paid the amount of one hundred ten two hundred Fifty dollars each month as a vehicle allowance, in addition to the salary specified in the compensation plan for city employees." Section 2 This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter PASSED BY THE CITY COUNCIL, signed and approved this 17t day of December , 1996. ynn Buchanan, Mayor ATTEST ' kw-La-v._ ) City Clerk Publication Date: 12/20/96 Effective Date: 01/19/97 r (klw)ord/rp /vehicle allowance for city manager/YMC 2.20.097 12/11/96 15.34 ORDINANCE AMENDING YMC 2.20.097 1997 MAJOR POLICY ISSUES / SUPPLEMENTAL BUDGET REQUESTS DEPARTMENT: City Manager's Office POLICY ISSUE TITLE: City Manager's Vehicle Allowance Adjustment -- Budgeted 1. Proposal -- It is proposed that the City Manager's vehicle allowance for City busi- ness transportation be increased from $110 per month to $250 per month, effec- tive January 1997. Rationale -- The City Manager's vehicle allowance was approved by the City Council in January 1980 and set at $110 per month for reimbursement of City business transportation expenses using a personal vehicle. This amount has not been changed in nearly 17 years. The allowance was authorized in -lieu of pro- viding a car for the City Manager and helping to save the City the cost of purchas- ing, maintaining, operating and replacing a vehicle for the Manager In the years since the allowance was approved the City has realized a significant savings in not purchasing or maintaining a City vehicle for the Manager's business travel, as well as maintaining the fixed monthly reimbursement at the same rate According to the City Equipment Rental Division estimates, the current cost of purchasing a new staff sedan is $20,000 Additionally, based upon average an- nual use for business transportation, and assuming 10 year service life, the main- tenance, operation and replacement cost per month of a vehicle would equal $300 -- or $3,600 per year, and $43,200 over 10 years (excluding any increases in M &O expenses) The Manager's monthly allowance was intended to cover the maintenance, op- eration, insurance, and depreciation cost of the in and out of town City business use of a personal vehicle for the Manager Over the years, the average annual business use of the Manager's personal vehicle has equaled 60% or approxi- mately 5,300 miles annually Initially, the vehicle allowance was adequate to cover these costs, but over time the fixed reimbursement has failed to keep pace with increased costs and the Manager has been subsidizing these expenses. Based upon the Manager's IRS records for the past seven years, the allowance is cover- ing only 44% of these expenses today The Manager does not claim a separate mileage reimbursement for this use, since the allowance was approved for this purpose. The Manager maintains a record of business use of his personal vehicle in and out of town for IRS reporting purposes and audit requirements. The City al- lowance is reported to the IRS, together with the maintenance, operation and depreciation cost of the business use mileage annually The unreimbursed por- tion of business use not covered by the allowance is credited as an employee business deduction on the Manager's annual IRS tax return. There has been a growing trend in executive compensation packages for City Administrators to eliminate City -owned vehicles and to offer a vehicle al- P1-1997 City Mgnt 1 - 10/29/96 lowance instead. By way of comparison, following is a summary of vehicle al- lowances for the City Administrators and Managers in several comparable cities in Washington State. Admin. /Managers City 1996 Motor Vehicle (30,000 to 80,000 pop.) Population 1996 Allowance Everett 81,810 $325 Federal Way 75,240 $300 Kennewick 48,010 $345 Kirkland 43,160 $325 Richland 35,000 $250 Longview 33,480 $300 Average 52,783 $308 Yakima 63,000 $110 Variance from Average -- (64 %) $ Variance from Average -- ($198) Clearly the vehicle allowances paid by these cities are more in line with current vehicle operating costs, as estimated by the City's Equipment Rental Division for maintaining, operating and replacing a vehicle. Based upon the above, a $300 per month vehicle allowance would be justified. , However, the Manager is proposing a $250 per month amount based upon actual records of business use of a personal vehicle over the past several years. 2. a. Fiscal Impact -- The annual fiscal impact of the proposed vehicle allowance adjustment is $1,680 This proposal has been budgeted in the City Manager's transportation budget for 1997 b. Proposed Funding Source -- Fund source for this proposal is the General Fund. (The current allowance of $110 is paid from the Manager's transporta- tion budget.) c. Public Impact -- N/A d. Personnel Impact -- N/A e. Required Changes in City Regulations or Policies -- The vehicle allowance for the Manager is set by an ordinance approved by the City Council Accordingly, if the proposed increase is accepted, legislation will need to be submitted for formal Council action to approve this adjustment. f. Legal Constraints, if applicable -- None. g. Viable Alternatives -- N/A 3. Conclusion and/or Staff Recommendation -- Accordingly, based upon the above it is respectfully recommended that the City Manager's monthly vehicle allowance be increased from $110 per month to $250 per month, effective January 1997 This adjustment has been budgeted for 1997 P1 -1997 City Mgmt 2 -- 10/29/96 .. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON • AGENDA STATEMENT Item No. 0 E For Meeting of 12/17/96 ITEM TITLE Consideration of an Ordinance Amending the Vehicle Allowance for the City Manager SUBMITTED BY. Dick Zais, City Manage CONTACT PERSON/TELEPHONE Dick Zais /575 -6040 SUMMARY EXPLANATION At the Budget Wrap -up meeting on 12/3/96, the City Council approved a budget policy issue providing for an increase in the City Manager's vehicle allowance from $110 per month to $250 per month, effective January 1997 This is the first adjustment in the allowance since January 1980 The attached ordinance formally authorizes this change and the increase is included in the 1997 Budget A copy of the policy issue proposal is also included for your reference X Resolution Ordinance Contract Other (Misc. Information) Funding Source c APPROVED FOR SUBMITTAL Manager STAFF RECOMMENDATION The City Manager respectfully recommends passage of the ordinance Thank you BOARD /COMMISSION RECOMMENDATION COUNCIL ACTION •