12 Car AllowancesCITY OF PARIS, TEXAS
CITY COUNCIL AGENDA REQUEST
, MEETING DATE: January 28, 2008
~Action ❑ Discussion ❑information ❑Refer to:
SUBMITTED BY:
Kevin Carruth, City Manager
DESCRIPTION:
Provision of vehicles allowances for certain employees
BACKGROUND INFORMATION:
Governmental and non-governmental organizations realize the need for certain
staff to travel outside the office on a regular basis in the performance of their
duties. Organizations typically provide this transportation through (1) a pool
vehicle for multiple employees to use, (2) providing a vehicle for the employee's
exclusive use, (3) reimbursement for mileage actually driven, and (4) a flat monthly
allowance paid regardless of actual miles driven. Vehicle allowances were
eliminated in the FY '06-'O7 budget (except for the City Manager, Police Chief, Fire
Chief, and EMS Director). During the FY'O7-`08 budget process Councit budgeted
for vehicle allowances for certain employees but instructed the City Mana er not to
implement them for at least 90 days while the merits of vehicle allowances were
studied. In evaluating the appropriateness of Paris' vehicle allowances, three
questions were examined:
1. Was a vehicle allowance or vehicle part of the employee's original job
offer?
A job offer is a promise or agreement, regardless if it is actually reduced to
a written contract. The City has a duty to honor such agreements in order
to maintain its integrity and credibility. Prior to the FY '06-'O7 fiscal year, 10
employees (all department heads except for one) received vehicle
allowances or a vehicle. Of these, a vehicle allowance or vehicle was part
of the employee's initial job offer for seven of those positions.
2. Are current and proposed vehicle allowances internally equitable?
The duties of various positions require different levels of travel and should
be compensated accordingly. Although the only way to verify actual
mileage driven is for the employee to maintain a mileage log for at least 12
months, on their face the differences in vehicle allowances appear to be
equitable.
3. Are current and proposed vehicle allowances externally competitive?
A survey of the 10 peer cities Paris has traditionally used for comparisons
was conducted to see if the proposed vehicle allowances are competitive
and customary. Of the nine positions previously receiving allowances and
in the survey, the proposed allowances for four of them are below the
survey average and five are above.
CITY OF PARIS, TEXAS
CITY COUNCIL AGENDA REQUEST
FISCAL AUTHORITY:
Included in FY 2007-2008 budget. Proposed amount is $2,100 (4%) less than
budgeted.
LEGAL REVIEW:
MANAGER'S RECOMMENDATION:
Approval of proposed allowances for City employees as detailed on accompanying
survey. The proposed allowances (1) reflect no changes for the seven positions that
had allowances in their original job offers, (2) reduces the City Attorney and City
Clerk's allowances from what their predecessors had been receiving.
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