Exh 7DAGENDA ITEM #7D
MAY 29, 2001
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: ORDINANCE NO. OS-O1-34
SUBMITTED BY: Nelson Van Liere, Finance Director
DATE: May 21, 2001
BACKGROUND: .The current meal allowance, or subsistence, has been $21 since 1984. Employees
expected to travel on City business are fording more and more that the City's
current per diem does not cover the cost of basic meals. Currently, an employee is
advanced $3 for breakfast, $6 for lunch and $12 for dinner.
Due to the inadequacy of the current amounts, we aze proposing that the City
advance employees an amount that represents the Internal Revenue daily
allowance. We are recommending that the City automatically adjust the per diem
amount with the Internal Revenue daily allowance whenever it changes in the same
way we adjust for the mileage reimbursement. The current Internal Revenue rate is
$30 a day. The breakdown for meals would then be $7 for breakfast, $8 for lunch
and $15 for dinner. These amounts do include gratuity. We propose that the
breakdown of the total allowance be the responsibility of the City Manager to set so
that when there are changes to the total, the "per meal" limits can be adjusted as a
matter of internal policy.
The employee would still have the option of requesting payment based on receipts
if for some reason the higher allowance was not sufficient.
We do not recommend going higher than the federal limit due to the personal
income tax implications that would have to be addressed by the employees.
Amounts over the $30 limit would be reported as taxable income and the City
would have to withhold taxes from that.
BUDGET: No budget increase required, The additional cost is to be absorbed by individual
departments existing budgets.
RECOMMENDATION:
Approve Ordinance No. OS-Ol-34 amending section 2-361(b) to delete the stated
dollar amounts for per diem, or meal allowance, and have the City's allowance to
change in accordance with the federal daily limits.
ATTACHMENTS: ORDINANCE NO. OS-Ol-34
REVIEWED BY THE CITY MANAGER __
AGENDA ITEM #7D
MAY 29, 2001
ORDINANCE NO. 5-t)1-34
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH;
FLORIDA AMENDING CHAPTER 2 SECTION 2-361,
SUBSISTANCE, TO DELETE THE DOLLAR AMOUNTS FOR
DAILY PER DIEM AND REPLACE THEM WITH THE INTERNAL
REVENUE DAILY ALLOWANCE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF ATLANTIC BEACH,
FLORIDA:
Section 1. Sec. 2-361. Subsistence, be amended as follows:
(a) When the period of travel conforms to the schedule of allowances in section 2-360 above, all
authorized travelers may be allowed subsistence when traveling to a convention, conference, seminaz, and
activity or on city-related business wish that serves a direct public purpose.
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Subsistence will be consistent with the Internal Revenue,
Service daily rates.
Actual meal charges may be reimbursed if accompanied by a receipt and justification for incurring the
additional cost. Hotel or accommodation chazges must be single occupancy rate and substantiated by
receipt.
(c) Tips and gratuities aze included iri the basic travel allowance for meals. When actual meal
charges are reimbursed, fifteen (15) percent may be added to the meal chazges provided the cost is stated
on the receipt.
Section 2. This ordinance.shall take effect immediately upon its adoption.
Passed by the City Commission on first reading this day of May, 2001.
AGENDA ITEM #7D
MAY 29, 2001
Passed by the City Commission on second and final reading this day of June, 2001.
John S. Meserve
Mayor /Presiding Officer
Approved as to form and correctness:
Alan C. Jensen, Esquire
City Attorney
ATTEST:
Maureen King, CMC
City Clerk