Payson car allowances under review

PAYSON — City Council members have asked 11 city employees who receive a $550 monthly car allowance to justify their use of the money in writing. The intent is to determine if the $76,200 the city spends on such allowances is appropriate.

"It's just a review," Councilman Brent Burdick said. The council wants to make sure the employees who get it need it. They also want to know if workers who aren't getting the allowance should also be included, he said.

City Administrator Andy Hall could report on the issue as early as Wednesday's City Council meeting.

The issue came up during last month's review of the 2004-05 fiscal budget that went into effect July 1.

Car allowances have been a hot topic in many cities following a Salt Lake County controversy where some employees were found to have violated county policies.

Burdick said it is possible some Payson supervisors could lose their car allowance or have it cut back.

Hall has been gathering the written responses as he prepares to make recommendations to the City Council.

"We're trying to see if some positions don't warrant the allowance," Mayor Bernell Evans said. "Some (employees) may be better (off) just using a city vehicle."

Workers who use city vehicles don't receive a car allowance.

Dora Edvalson, the city's human resources director who oversees the program, said at the end of each year she collects mileage information from each person receiving the allowance and deducts it at the IRS set reimbursement rate of 35.5 cents per mile from the $6,600 each receives over the year. Only mileage used in city business counts, she said.

What's left is tabulated as income subject to income taxes, Medicare and other government mandated deductions, she said. Generally, the middle-management employees end up with $2,400 to $3,000 in additional income annually. The perk is usually enough to cover monthly car or lease payments for each of the employees' cars, she said.

"It's not really as good as it looks," she said, noting that while the money may be enough to cover a car or lease payment, those receiving the money have to cover operational costs. "In many ways it's better for the city because the city doesn't have to maintain (the vehicles)."

Spanish Fork leaders recently left in place a $450 monthly car allowance for 15 department heads and top level employees in that city, totaling $81,000 annually.

Santaquin officials steered clear of the controversy, giving new city manager Stefan Chatwin a car, rather than a car allowance. Chatwin must also buy his own gas. The previous city manager received a $450 per month car allowance, based on what it costs to operate a car, Mayor LaDue Scovill said.

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