CR 05-160 Revise Legislative Policy 2-H Travel Reimbursement Policy
December 20, 2005
Council Report 2005-160
REVISE LEGISLATIVE POLICY 2-H
TRAVEL REIMBURSEMENT POLICY
Proposed Action
Staff recommends approval of the following motion: Move that the Hopkins Citv Council adopt
Resolution 2005-118 revising Legislative Policv 2-H, Travel Reimbursement Policv.
Approval of this motion will revise the language in Policy 2-H in order to update the City's
policy on Travel Reimbursement and bring it into compliance with state law.
Overview
Attached are proposed revisions to the City's Travel Policy. This policy has not been updated
since 1990. The major changes are in response to State of Minnesota requirements.
The Legislature passed a law requiring all political subdivisions to "develop a policy that
controls travel outside the state of Minnesota for the applicable elected officials." by January
2006. The revised policy complies with this requirement.
The revised policy also includes a section that makes it clear that any frequent flyer miles, earned
by the City paying for airfare, belong to the City. This section brings the City's policy in
compliance with Minnesota Statute 15.435.
Finally, the per diem section ofthe policy has been updated. The per diem rate had not been
changed since 1990. Based simply on inflation, the $26.00 rate in 1990 equals a $39.00 rate in
2005. Another source for per diem amounts is the Government Services Administration. The
GSA set rates for individual states as well as an average rate for the entire country. The GSA rate
for Minnesota for 2005 was between $39.00 and $51.00, with the metro area being the highest.
The average rate for the entire country is between $39.00 and $64.00. The proposed rates of
$36.00 for Minnesota and $44.00 for out-of-state are a reasonable increase from 1990.
Supporting Documents
. Resolution 2005-118
. Travel Reimbursement Policy with proposed revisions
tf
.
mes A. Genellie
Assistant City Manager
1
City of Hopkins
Hennepin County, Minnesota
RESOLUTION NO. 2005-118
WHEREAS, the City Council of the City of Hopkins has approved a document entitled
the Legislative Policy Manual to provide uniform guidelines on City policies
so that actions taken are consistent and fair; and
WHEREAS, the City Council has established Legislative Policy 2-H in order to regulate
reimbursements for travel; and
WHEREAS, the City Council has determined that the existing policy needs to be
revised in order to bring it into compliance with state law,
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins
hereby adopts the attached Legislative Policy 2-H, Travel Regulations and
Reimbursement Policy.
Adopted by the City Council of the City of Hopkins this 20th day of December 2005.
By
Gene Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk
POT .ICY 2-H
TR A VF,T. RFr.m.A TTONS
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RFTMRTTRSFMFNT POT .TCY
1. PURPOSE
1.01 The purpose of this policy is to establish guidelines for the reimbursement of money
spent on official city business.
2. OUT-OF-STATE TRAVEL FOR ELECTED OFFICIALS
2.01 The event, workshop, conference or assigmnent must be approved in advance by the City
Council at an open meeting and must include an estimate of the cost of the travel. In
evaluating the out-of-state travel request, the Council will consider the following:
. Whether the elected official will be receiving training on issues relevant to the city or
to his or her role as the Mayor or as a council member;
. Whether the elected official will be meeting and networking with other elected
officials from around the country to exchange ideas on topics of relevance to the City
or on the official roles of local elected officials.
. Whether the elected official will be viewing a city facility or function that is similar in
nature to one that is currently operating at, or under consideration by the City where
the purpose for the trip is to study the facility or function to bring back ideas for the
consideration of the full council.
. Whether the elected official has been specifically assigned by the Council to visit
another city for the purpose of establishing a goodwill relationship such as a "sister-
city" relationship.
. Whether the elected official has been specifically assigned by the Council to testify on
behalf of the city at the United States Congress or to otherwise meet with federal
officials on behalf of the city.
. Whether the city has sufficient funding available in the budget to pay the cost of the
trip.
2.02 No reimbursements will be made for attendance at events sponsored by or affiliated with
political parties.
2.03 The city may make payments in advance for airfare, lodging and registration if
specifically approved by the council. Otherwise all payments will be made as
reimbursements to the elected official.
2.04 The City will reimburse for transportation, lodging, meals, registration, and incidental
costs using the same procedures, limitations and guidelines outlined in this policy for out-
of-state travel by city employees.
3. APPROVAL AND ADVANCES
3.01 Reimbursement for City business related travel, conference, seminar and meeting
expenses are intended to refund actual costs incurred by employees and elected officials
of the City of Hopkins.
3.02 Cash advances intended to defray costs incurred during authorized travel and prior to
submission of a TRAVEL EXPENSE REPORT AND REQUEST FOR
REIMBURSEMENT form may be obtained by submitting a REQUEST FOR TRAVEL
ADVANCE form to the Finance Department at least seven (7) calendar days prior to a
regular Council meeting at which the request for Advance will be considered.
4. ALLOWABLE EXPENSES-LODGING
4.01 Accommodations shall be selected at a reasonable cost consistent with the facilities
available and convenient to the location of the conference, seminar or meeting attended.
4.02 Only the costs of single occupancy will be reimbursed. If a double occupancy occurs (i.e.
a spouse/guest accompanies the employee) the employee is responsible for the additional
cost of double over single occupancy.
4.03 Lodging for the night before the commencement of a conference, seminar or meeting may
be claimed.
4.04 Reimbursement for meals and lodging shall be limited to the period of time required if
commercial air transportation were used. Generally this includes one travel day prior to
the conference and one travel day after the conference. If a conference does not start until
the late afternoon or evening, that day shall be considered the travel day.
4.05 Lodging within the metro area will not be reimbursed.
5. ALLOWABLE EXPENSES-TRANSPORTATION
5.01 Allowable transportation costs shall include reimbursement for mileage accumulated on a
personal vehicle at the current rate of mileage reimbursement or the actual round trip
coach-class airfare. rate, whichever is less. When two or more employees are traveling in
one automobile, reimbursement shall be made to one employee.
5.02 Air transportation shall be coach-class unless such service is unavailable. Reservations
are to be made in advance at the earliest date to insure the lowest possible fares. "Super
Saver" -type rates shall be used if available and appropriate for the particular situation. If
the reservation is not going to be used, it must be canceled immediately.
5.03 Airline travel credit. Whenever public funds are used to pay for airline travel by an
elected official or City employee, any credits or other benefits issued by any airline must
accrue to the benefit of the City. In the event the issuing airline will not honor a transfer
or assigmnent of any credit or benefit, the individual passenger shall report receipt of the
credit or benefit to the City Council within 90 days of receipt.
5.03-4 Local transportation such as taxicab and bus fares to and from the place of lodging and
conference, seminar or meeting are reimbursable only if circumstances require such
travel. Costs for local transportation not pertaining directly to City business will not be
reimbursed.
6. ALLOWABLE EXPENSES-MEALS
6.01 Reimbursement for meals while on authorized travel shall include only actual
expenditures including tax and tip. Receipts for meals must clearly indicate whether the
requested reimbursement is for BREAKFAST, LUNCH, or DINNER, and the date of the
meal. Detailed meal receipts should be obtained indicating the actual items purchased.
Reimbursement will not be provided for any meals which are included as part of
registration, tuition or fees.
6.02 Due to the general difficulty in acquiring receipts for meals and incidentals, any official
or employee may claim a per diem reimbursement for actual and necessary expenses.
The per diem for meals and miscellaneous subsistence expenses for employees who travel
within the State of Minnesota on City business shall be $36.00. The per diem for meals
and miscellaneous subsistence expenses for employees who travel outside the State of
Minnesota on City business shall be $44.00.
6.03 The per diem allowance includes all charges for meals, all gratuities and taxes, all fees
and tips to bellhops and porters, any laundry and/or cleaning expenses and any other
similar expenses.
6.04 Reimbursement is not allowed for alcoholic beverages.
6.05 Reimbursement for actual meal costs that exceed the daily allowance will be made only
when documented by receipts.
6.06 If meals are included in tuition or registration fees and/or only a fraction of the day is
authorized for travel, the per diem or expense allowance will be reduced as follows,
unless documented otherwise:
In-State
Breakfast
Lunch
Dinner
$ 8.00
$12.00
$16.00
Out-State
Breakfast
Lunch
Dinner
$10.00
$15.00
$19.00
6.07 Breakfast allowance shall be authorized for metro-Minneapolis departures prior to
8:00am and dinner allowance shall be authorized for metro-Minneapolis arrivals after
7:00pm.
7. ALLOW ABLE EXPENSES - GENERALLY
7.01 Whenever possible, receipts must accompany claims for reimbursement. Each such
receipt shall clearly depict the type of expense incurred, the date of its incurrence, and the
purpose of the expense. When using a credit card write the purpose of the expense on the
credit slip. If the credit purchase is made over the phone, a record of the amount, purpose,
and vendor must be turned into the Finance department.
7.02 Miscellaneous expenses may be authorized, such as business related telephone and
telegraph service and tips for bellhops. Business related telephone calls shall be made
collect whenever possible.
7.03 The City shall not pay for any expenses, the costs of which are included in registration for
conferences, seminars, or other purposes.
7.04 Spouse/Guest's conference registration or airline tickets may be advanced by the City but
must be reimbursed by the employee. The City shall pay no expenses for a spouse/guest
who accompanies the employee/city official to a conference/seminar/meeting including
the incremental lodging expenses of double over single occupancy rates.
7.05 The city will not reimburse for personal telephone calls, rental of luxury vehicles, or
recreational expenses such as golf or tennis.
8. EXPENSE REPORTS
8.01 A TRAVEL EXPENSE REPORT AND REQUEST FOR REIMBURSEMENT form
shall be submitted to the Finance Department within thirty (30) days of the date of the
conclusion of the conference, seminar, or other purpose for reimbursement by person
claiming reimbursement. Receipts for expense items, including meals, shall accompany
each TRAVEL EXPENSE REPORT AND REQUEST FOR REIMBURSEMENT form.
If a paid receipt for a particular item is unobtainable, the TRAVEL EXPENSE REPORT
AND REQUEST FOR REIMBURSEMENT form must contain a statement certifying
that the claim(s) for that particular item(s) is accurate.
8.02 Any unused portion of a travel advance must be promptly returned to the City. Attendees
shall be billed for nonreimbursable expenses paid by the City.
8.03 A copy of the conference registrationlbrochure shall be submitted with the expense
report.
Established 8/18/87
Revised 3/28/90
Revised Dec. 2005