POLICY
Authorized Expenses
City funds, equipment, supplies (including letterhead), titles,
and staff time must only be used for authorized City business. Expenses incurred in connection with the
following types of activities generally constitute authorized expenses, as long
as the other requirements of this policy are met:
1. Communicating
with representatives of regional, state, and national government on City adopted policy positions;
2. Attending
educational seminars designed to improve officials’ skill and information
levels;
3. Participating
in regional, state, and national organizations whose activities affect the City’s interests;
4. Recognizing
service to the City (for
example, thanking a longtime employee with a retirement gift or celebration of
nominal value and cost);
5.
6. Implementing
a City-approved strategy for
attracting or retaining businesses to the City, which will typically involve at least one staff member.
All
other expenditures require prior approval by City Council.
Examples
of personal expenses the City will
not reimburse include, but are not limited to, the following:
1. The
personal portion of any trip;
2. Political
or charitable contributions or events;
3. Family
expenses, including partner’s expenses when accompanying official on City-related
business, as well as children or pet-related expenses;
4. Entertainment expenses, including
theater, movies (either in-room or at theater), sporting events (including gym,
massage, and/or golf related expenses), or other cultural events;
5. Non-mileage personal automobile
expenses, including repairs, traffic citations, insurance, or gasoline; and
6. Personal losses incurred while on
City business.
Any
questions regarding the propriety of a particular type of expense should be
resolved by the approving authority before the expense is incurred.
Cost Control
To
conserve City resources
and keep expenses within community standards for public officials, expenditures
should adhere to the guidelines set forth in this policy. In the event expenses
are incurred which exceed these guidelines, the cost borne or reimbursed by the
City will be limited to
costs that fall within the guidelines.
Transportation
The
most economical mode and class of transportation reasonably consistent with
scheduling needs and cargo space requirements must be used, using the most
direct and time-efficient route. Charges for rental vehicles may be reimbursed
under this provision when it is determined that a rental vehicle is more
economical than other forms of transportation. In making such determination,
the cost of the rental vehicle, parking, and gasoline will be compared to the
combined cost of such other forms of transportation. Government and group rates
must be used when available.
Airfare
Airfares
that are equal to or less than those available through the Enhanced Local
Government Airfare Program offered through the League of California Cities, the
California State Association of Counties, and the State of
Automobile
Automobile
mileage is reimbursed at Internal Revenue Service (IRS) rates presently in
effect. For 2006, the rate was 44.5 cents per mile, and may be adjusted
thereafter by the IRS. These rates are designed to compensate the driver for
gasoline, insurance, maintenance, and other expenses associated with operating
the vehicle. This amount does not include bridge and road tolls, which are also
reimbursable. IRS rates will not be paid for rental vehicles; only receipted
fuel expenses will be reimbursed.
Car Rental
Rental
rates that are equal to or less than those available through the State of
Taxis/Shuttles
Taxi
or shuttle fares may be reimbursed, including a fifteen percent (15%) gratuity
per fare, when the cost of such fares is equal or less than the cost of car
rentals, gasoline, and parking combined, or when such transportation is
necessary for time-efficiency.
Lodging
Lodging
expenses will be reimbursed or paid for when travel on official City business reasonably
requires an overnight stay.
Conferences / Meetings
If
such lodging is in connection with a conference, lodging expenses must not
exceed the group rate published by the conference sponsor for the meeting in
question if such rates are available at the time of booking. If the group rate
is not available, see next section.
Other Lodging
Travelers
must request government rates, when available.
Lodging rates equal to or less than government rates are presumed to be
reasonable and hence reimbursable for purposes of this policy. A listing of
hotels offering government rates in different areas is available at http://www.catravelsmart.com/lodguideframes.htm.
In
the event that government rates are not available at a given time or in a given
area, the following rates shall be considered reasonable and reimbursable: (1) lodging
rates that do not exceed the median retail price for lodging for that area
listed on websites like www.priceline.com or an equivalent service;
(2) lodging rates that do not exceed $150 per night; and/or (3) lodging rates
that do not exceed the IRS per diem rates for a given area.
Reimbursable
meal expenses and associated gratuities will not exceed the following rates:
|
Breakfast Lunch Dinner |
$12 $18 $35 |
Such
amounts will be annually adjusted to reflect changes in the cost of living in
accordance with statistics published by the United States Department of Labor,
Bureau of Labor Statistics Consumer Price Index, all urban consumers for the San
Francisco-Oakland-San Jose Area. (The
annual adjustment will be based on this area whether travel is within the area
or not.) The City will not pay for
alcohol/personal bar expenses.
Telephone / Fax / Cellular
Officials
will be reimbursed for actual telephone and fax expenses incurred on City business. Telephone bills
should identify which calls were made on City
business. For cellular calls when the official has a particular
number of minutes included in the official’s plan, the official can identify
the percentage of calls made on public business.
Officials
will be reimbursed for Internet access connection and/or usage fees away from
home, not to exceed $15.00 per day, if Internet access is necessary for City-related business.
Long-term
parking must be used for travel exceeding 24-hours.
Baggage
handling fees of up to $1 per bag and gratuities of up to fifteen percent (15%)
will be reimbursed. Expenses for which City
officials receive reimbursement from another agency are not
reimbursable.
From
time to time, it may be necessary for an official to request a cash advance to
cover anticipated expenses while traveling or doing business on the City’s behalf. Such request
for an advance should be submitted to the Department Head or responsible City
official ten (10) business days prior to the need for the advance with the following
information:
1.
The
purpose of the expenditure(s);
2.
The
benefits of such expenditure to the residents of City;
3.
The
anticipated amount of the expenditure(s) (for example, hotel rates, meal costs,
and transportation expenses); and
4.
The
dates of the expenditure(s).
Any
unused advance must be returned to the City
Finance Division within five (5) business days of the official’s return,
along with an expense report and receipts documenting how the advance was used
in compliance with this expense policy.
In
the event the Department Head or responsible City official is uncertain as to
whether a request complies with this policy, such individual must seek
resolution from the City Council.
The City does not issue credit
cards to individual officeholders but does issue credit cards for selected City expenses. City officeholders may use these
credit cards for such purposes as airline tickets and hotel reservations by
following the same procedures for cash advances. Receipts documenting expenses
incurred on City credit
cards and compliance with this policy must be submitted within five (5) business
days of return.
City credit cards may not be used for personal expenses, even if
the official subsequently reimburses the City.
All
cash advance expenditures, credit card expenses, and expense reimbursement
requests must be submitted on a business expense report form provided by the
City. This form shall include the
following advisory:
All expenses
reported on this form must comply with the City’s policies relating to expenses
and use of public resources. The information submitted on this form is a public
record. Penalties for misusing public resources and violating the City’s policies
include loss of reimbursement privileges, restitution, civil, and criminal
penalties as well as additional income tax liability.
Expense
reports must document that the expense in question met the requirements of this
policy. For example, if the meeting is with a legislator, the City official
should explain whose meals were purchased, what issues were discussed, and how
those relate to the City’s adopted legislative positions and priorities.
Officials
must submit their expense reports within thirty (30) days of an expense being
incurred, accompanied by receipts documenting each expense. Restaurant
receipts, in addition to any credit card receipts or other written documents,
are also part of the necessary documentation.
Inability
to provide such documentation in a timely fashion may result in the expense
being borne by the official.
All
expenses are subject to verification that they comply with this policy.
At
the following City Council
meeting the official attends, the official shall provide a brief report on the meetings
attended at City expense. If
multiple officials attended, a joint report may be made.
City officials should keep in mind that some expenditures may be
subject to reporting under the Political Reform Act and other laws. All City
expenditures are public records subject to disclosure under the Public Records
Act.
Individual Officeholder Expense Accounts
The Council shall establish an annual budget for
conferences, meetings, seminars, and training. Council Members shall attend such
events at their own discretion for purposes of improving comprehension and
proficiency of municipal affairs and/or legislative operations. The budget
shall be divided equally among the Council Members for individual usage
throughout the fiscal year, with the Mayor receiving an additional $500
allocation for representation purposes. At the mid-year review of the City’s
fiscal budget, Council Members may, on a voluntary basis, donate any unused
funds which have not been earmarked for usage throughout the remainder of the year,
to a combined account with the intent of the funds being used by other Council
Members who may have exceeded their individual amounts. It is understood that
individual members of the City Council may have differing educational needs and
interests. The underlying principle is that it is in the best
interest of the City that elected and appointed officials remain informed and
trained in activities, developments, and professional trends affecting the
affairs of the City and its citizens.
Use
of public resources or falsifying expense reports in violation of this policy
may result in any or all of the following: (1) loss of reimbursement
privileges, (2) a demand for restitution to the City, (3) the agency’s reporting the expenses as income to the
elected official to state and federal tax authorities, (4) civil penalties of
up to $1,000 per day and three times the value of the resources used, and (5)
prosecution for misuse of public resources.