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Background: <br /> <br /> UTILIZATION OF CITY VEHICLES <br />By: Sandra Ashley Helling, Finance Officer <br /> <br />Case <br /> <br />Members of ~he !Budget Committee have asked Staff to determine when City vehicles are used <br />for transport~tior~ to and from work by an employee and if employees also use City vehicles <br />for personal i(noi business related) travel. In addition, Staff has been asked to recommend a <br />policy as to ~ucf! use, <br /> <br />Currently, th.~ status is: <br /> Positlc~n <br /> Police[De;ective ' ' ' <br /> Police iOffi~cers - when <br /> sche~ule~l off at 11:00 p.m. <br /> back '~wt 6;30 a.m. <br /> PubliC. oiks Supervisor <br /> City Er~gineer <br /> <br />V¢hi¢lq <br /> <br />Unmarked <br /> <br />Authorized Use <br /> <br />To and from work <br /> <br />Squad <br />Pick-up <br />V#706 <br /> <br />To and from work <br />To and from work <br />To and from work and <br />personal (see below) <br /> <br />Attached is ~a rflemo from our Police Chief which discusses past practice on use of squad <br />cars. Our P ',u~lic~Works Supervisor advises he is authorized to take a City pick-up as he is on <br />24 hour call.~. In [addition he advises that back in 1976, when Ramsey purchased its first pick- <br /> there wa~ n(i safe place to store it. He stores it in his garage for evenings and week-ends. <br />up, <br /> r <br /> <br />During emPlCym~nt negotiations with our City Engineer, the former Council offered him the <br />use of a Citt,/ ve~hicle for personal and business travel. Our former City Administrator stated, <br />in the lette/' of employment offer, that it included use of a City owned vehicle. Mr. <br /> ir[I hi~ acceptance letter, stated the following' "...we agreed that I would have <br />Jankowski, <br /> use <br />of a City ve~iclei for travel to and from work, exclusive of long distance travel." <br /> r <br />Observations:~ <br /> <br />Authorized Use~of a City vehicle for travel to and from work effectively limits vehicle <br /> oiher Staff members. This limitation could result in the need for additional <br />availability <br /> for <br />City vehiclesi I,h addition, the IRS defines the use of a City vehicle for travel to and from <br />work as a t~axal~le fringe benefit. Due to this, the City not only incurs the cost of fuel, <br />maintenance,!~nSr)Jrance, etc. for these miles, but pays employer taxes on the fringe benefit. <br />Due to the ~pe~ific employment agreement with Mr. Jankowski wherein personal use was <br />identified, th(~ Fi~lance Office has determined and reported to the IRS a taxable fringe benefit <br />to him for {he fyear of 1991 in the amount of $1,901.00. Although there are specific <br />exclusions to!th~ IRS Taxable Benefit Rule, it is possible a taxable fringe benefit should have <br />been report~.,~d for the other authorized users. The Finance Office will research the IRS <br />regulations a~d apply as necessary for 1992. <br /> <br /> <br />