Washington’s City Council, deciding to see how other municipalities address transportation, including car allowances, for department heads, postponed taking action on two recommendations offered by Pete Connet, interim city manager.
The postponement came during a discussion about car allowances and travel bonuses for city department heads during the council’s meeting Monday. Currently, eight department heads receive a monthly car allowance of $350.
Councilman Doug Mercer has suggested doing away with those car allowances, instead paying all department heads the going IRS mileage rate, which is 51 cents per mile (but is expected to increase to 55.5 cents per mile as of Friday). At the council’s June 13 meeting, Mercer said the method is a more-equitable way to compensate department heads who use their personal vehicles to conduct city business.
“Since this auto allowance has become and is budgeted as part of their annual salary, I would recommend that the total salary amount not change, and that the current method of mileage reimbursement continue, with some clarification in the personnel policy similar to the City Manager language contained in the present Policy,” Connet wrote in a memorandum to the mayor and council.
The policy reads: “With the exclusion of department heads for whom the City provides a City-owned vehicle the City Council may provide a monthly flat amount of car allowance for the Department Heads in lieu of providing a city-owned vehicle to conduct city business. The allocated car allowance cover all mileage expenses for City business within a 150-mile radius (300 miles round trip) of the City. Travel beyond the 150-mile radius will be reimbursed in accordance with the City’s travel policy. This allowance will be reported on the Department Head’s W-2 form.”
Connet offered another option.
“The  Department Heads, listed above, shall not have their current compensation package (base salary plus monthly auto allowance) reduced as of July 1, 2011, but will begin being reimbursed for actual miles traveled on City business at the then current IRS mileage rate. Said request for reimbursement shall be on a monthly basis and shall be submitted to the Finance Department on a signed and dated monthly mileage log for payment,” Connet wrote.
Mercer suggested the city determine “what some of the other nearby communities are doing in regard to travel allowances for department heads.” Mercer suggested the council instruct the city clerk to determine how other cities and towns handle car/travel allowances and related matters.
Responding to a query by Mayor Archie Jennings, Connet said it’s rare for department heads to travel past the 150-mile radius on city business, but it does occur from time to time.
“Perhaps one consideration would be leaving the travel allowance in place and not having any mileage reimbursement because we’re rarely outside the radius anyway,” Jennings said.
The mayor noted that some department heads have come to count on their car allowances ($4,200 in a year’s time) are part of their annual compensation.