Title
Adopt a Resolution to Approve the Redistribution of Remaining Travel and Training Funds; and Accept the Year-End Report on Councilmember Travel and Training Expenditures
Staffreport
SUMMARY AND RECOMMENDATIONS
The report provides information on the travel and training expenses incurred by City Councilmembers and the Mayor during the fiscal year. It details the allocation of funds, reimbursement processes, and the establishment of a pooled reserve of $15,012 for future use, within one fiscal year. This pooled fund aims to provide additional support for Councilmembers who may exceed their individual travel budgets, ensuring they have adequate resources for professional development and official duties.
Notably, the requirement for a detailed report on these expenditures was introduced in 2023 along with the requirement to pool unused funds, marking the Fiscal Year 2023-24 as the first year of its implementation and this the first fiscal year of reporting. Some accounts have an overage, which are absorbed by the total unspent funds to be pooled. To assist with avoiding future overages, City staff have implemented a system of monitoring with monthly status updates emailed to Councilmembers.
Staff recommend that the City Council accept the report and approve that unspent Fiscal Year 2024-25 funds be pooled and allocated evenly among all Councilmembers to serve as a reserve to support upcoming travel and training expenditures pursuant to the Councilmember Handbook.
BACKGROUND
Councilmembers and the Mayor are provided with an Advocacy, Training & Technology budget, and an apparel budget per fiscal year. City budgets are set by the City Council as part of the budget cycle. The aforementioned budgets for the Mayor and Councilmembers are set per account, the monies are non-transferrable, and cannot carry over from year to year, with the exception of the advocacy, training and technology budget. In the occurrence of a Council vacancy where a temporary appointment is made, the budget for appointed Councilmembers will be prorated based on the remaining time left in the year.
A year-end report detailing travel and training expenditures must be presented to Council at the end of each Fiscal Year. Unused budget funds would be pooled for future use by Councilmembers, presumably by those who exceed their allotted budget.
After travel, both the Mayor and Councilmembers must submit trip reports to the City Manager and City Clerk for inclusion in a future City Council meeting's agenda. Reimbursement requests must be submitted within 30 days, supported by receipts for transportation, hotel costs, and other allowable expenses.
Agency Policies
The following are relevant excerpts from the City Council Handbook adopted on June 3, 2024, and were in effect during Fiscal Year 2024-25.
TRAVEL/TRAINING
Councilmembers are provided a travel and training budget of $10,000 per fiscal year. Councilmembers may be reimbursed for expenses related to official city business travel or training. Reimbursement requests must be submitted within 90 days of the expense to be eligible for reimbursement. Requests for reimbursement must include documentation of payment including receipts, invoices, cancelled checks or credit card receipts.
The Mayor is provided $15,000 per fiscal year for official City business travel or training, to be reimbursed after providing sufficient supporting documentation to the City Manager.
City Staff will facilitate conference registration and hotel accommodations at the conference site or approved conference hotel. Travel (Flight, Rental Car, Uber etc.) accommodations must be booked by the Councilmember or Mayor in addition to any variations on hotel or other accommodations.
If a Councilmember elects to travel by personal vehicle and airfare would be less expensive, the lower cost shall be used for reimbursement purposes. To determine the reimbursement cost, staff will use the price of an economy plane ticket booked 60 days in advance. At no time shall the expenses exceed the approved budget for Travel.
At the end of each fiscal year, a year-end report on Councilmember travel and training
expenditures will be added to a regular City Council meeting agenda, on the Consent Calendar. If Councilmembers have unused funds in their official City business Travel/Training budget, unused funds shall be deposited or set aside into a separate fund or pool and held for one fiscal year, to be used to cover the costs of future travel or training expenditures for Councilmembers who have exhausted their budget. The pooled funds will be administered through financial administrative procedures.
Councilmembers may be reimbursed up to $125 per month for actual and necessary automobile expenses incurred in the performance of official duties within the San Francisco Bay Area. The reimbursable amount will be based on the actual mileage traveled for the purposes of the Councilmember’s official duties. In no case shall the amount of reimbursement exceed $125 per month. Mileage reimbursement rates will be the annually posted IRS mileage rate, which the Finance Department will maintain. A travel expense form must be completed for reimbursement of mileage and travel related expenses, and must include documentation for payment including receipts, invoices, canceled checks or credit card receipts.
The Mayor receives a car allowance of a flat $375 per month, which shall be in lieu of the $125 automobile expense reimbursement afforded to other Councilmembers.
Councilmembers and the Mayor will receive a $100 per diem and $50 per one-half day is hereby fixed and determined as reasonable expenses to be allowed each member of the City Council when traveling on official duty for all out-of-pocket expenses other than transportation and hotel expenses. Admin Code 1.3.110
DOCUMENTATION OF EXPENSES; EXPENSE REPORTS
Councilmembers and the Mayor must submit expense reports on the “Expense Reimbursement Form” within 90 days of incurring the expense to qualify for reimbursement.
Expense reports must be accompanied by documentary evidence, such as a receipt, canceled check, or bill for each expense. The documentary evidence must show the amount, date, place and essential character of the expense.
Councilmember Travel and Training Budget Adjustments
At the November 18, 2024 Council Meeting, it was decided Councilmembers Victor Aguilar and Fred Simon would have a 50 percent reduction in their travel and training budget, equivalent to $5,000 for the remainder of Fiscal Year 2024-25 and that these reductions may be applied into Fiscal Year 2025-26 so the respective Councilmembers may travel to Washington D.C., should they choose to do so, for the City’s annual lobbying trip.
Councilmember Aguilar’s travel and training budget for Fiscal Year 2024-25 has a remaining balance of $18 from an unreduced baseline of $10,000. Subtracting this unspent balance from the $5,000 reduction that would be applied in Fiscal Year 2025-26 would result in a $4,982 remaining reduction pursuant to the City Council’s November 18, 2024 action.
Councilmember Simon’s travel and training budget for Fiscal Year 2024-25 has a remaining balance of $1,143 from an unreduced baseline of $10,000. Subtracting this unspent balance from the $5,000 reduction that would be applied in Fiscal Year 2025-26 would result in a $3,857 remaining reduction pursuant to the City Council’s November 18, 2024 action.
Councilmembers Aguilar’s and Simon’s remaining Fiscal Year 2024-25 balances that are applied toward their reductions for Fiscal Year 2025-26 are not included in pooling for future use in the current fiscal year.
Fiscal Impacts
After accounting for all expenses related to travel and training, a total of $15,012 will be pooled for future use by City Councilmembers for one fiscal year. This pooled fund will be allocated evenly among all City Councilmembers, resulting in $2,144 per Councilmember, and serve as a reserve to support upcoming travel and training expenditures, allowing for greater flexibility in funding needs that may arise. The establishment of this reserve aligns with the City’s commitment to ensuring that Councilmembers have the necessary resources for professional development and engagement in official City business.
ATTACHMENTS
Attachment A - DRAFT Resolution (Travel & Training)
Attachment B - FY 2024-25 Council Travel & Training Expenditure Report
PREPARED BY:
Sarah Bunting, CMC, Acting City Clerk, City Manager’s Office
T. Michael Yuen, Assistant City Manager, City Manager’s Office