HomeMy WebLinkAboutORDINANCE 2088-20051
Suggested by: Administration
CITY OF KENAI
ORDINANCE N0.2088-2005
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING
KMC 23.30.110(b) AND (c) TO CHANGE THE AUTOMOBILE EXPENSE MILEAGE
RATE FROM x.30 PER MILE TO THE STANDARD IRS MILEAGE RATE AND CHANGE
THE PER DIEM TRAVEL EXPENSES FROM X35.00 TO X50.00 PER DAY.
WHEREAS, in 1996 the City set the current automobile expense rate is x.30 per mile;
and,
WHEREAS, the rate has not been adjusted for inflation since 1996 whereas the
standard IRS mileage rate is adjusted for inflation; and,
WHEREAS, having the City's rate track the IRS standard mileage rate would allow the
City's rate to be adjusted for inflation as the IRS rate is adjusted; and,
WHEREAS, the City's current per diem travel rate of X35.00 was set in 1996 and has
not been adjusted for inflation since then; and,
WHEREAS, adjusting the per diem rate to X50.00 would reflect the increases in travel
expenses for the employees.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA that KMC 23.30.110(b) and (c) are amended as follows:
23.30.110 Travel Expense.
When employees are required to travel outside the City on City business,
reimbursement, subject to advances received, for expenditures incurred
shall be determined as follows:
(a) Prior to traveling outside the City, the employee shall obtain
permission for the trip and the mode of travel from the department head.
(b) Travel on official business outside the City by one individual shall be
via public carrier or City-owned vehicle whenever practical. If, for
-extenuating circumstances, the employee is authorized to use a private
vehicle, total mileage shall be paid at the standard IRS mileage rate [of
x.30 per mileJ. This rate includes all travel, insurance and fuel.
(c) Those employees who habitually use their privately owned vehicle for
City business shall be reimbursed X30.00 per month, subject to
authorization by the City Manager.
(d) fihe authorized per diem rates are [35.00] 50.00 per full twenty-four
hour day, plus lodging expenses. Part days will be reimbursed for actual
costs incurred, up to [35.00] 50.00 per day. Claims for lodging
expenses will be supported by receipts.
Ordinance No.2088-2005
Page 2 of 2
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of April,
2005.
JO OORE, VICE MAYOR
ATTEST:
r
Carol L, Freas, City Clerk
Introduced: April 6, 2005
Adopted: Apri120, 2005
Effective: May 20, 2005
(3/21/05 sp)
2005 Standard Mileage Rates Set
Page 1 of 1
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IR-2004-139, Nov. 17, 2004
WASHINGTON--The Internal Revenue Service today released the optional standard
mileage rates to use for 2005 in computing the deductible costs of operating an automobile
for business, charitable, medical or moving expense purposes.
Beginning Jan,1, 2005, the standard mileage rates for the use of a car (including vans,
pickups or panel trucks) will be:
• 40.5 cents a mile for all business miles driven, up from 37,5 cents a mile in 2004;
• 15 cents a mile when computing deductible medical or moving expenses, up from 14
cents a mile in 2004; and
• 14 cents a mile when giving services to a charitable organization.
The 3-cent increase in the business mileage rate was the largest one-year rise ever. The
primary reasons were higher prices for vehicles and fuel during the year ending in
September, The charitable standard mileage rate is set by law.
The standard mileage rates far business, medical and moving purposes are based on an
annual study of the fixed and variable costs of operating an automobile. An independent
contractor, Runzheimer International, conducted the study for the IRS.
A taxpayer may not use the business standard mileage rate for a vehicle after using any
depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after
claiming a Section 179 deduction for that vehicle, for any vehicle used for hire, or for more
than four vehicles used simultaneously. Revenue Procedure 2004-64 contains additional
information on these standard mileage rates.
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http://www.irs.gov/newsroom/article/0„id=131232,OO.html 4/13/2005