City of Oak Creek

Common Council Report

Meeting Date:  07-05-06

Item No.:  7

Recommendation:  To authorize the reimbursement to the City Administrator of $1,384.32 for payroll taxes paid on his moving expenses of $4,615.68, which would equal the $6,000 limit in the Employment Agreement.

Background:  Through the City Administrator’s employment agreement, Article 15, the City agreed to pay the actual moving expenses to move his current residence to a residence in the City of Oak Creek, limited to $6,000.

The move successfully concluded on May 26^th by United Van Lines at a cost of $4,615.68.  Per the Internal Revenue Code these expenses are a taxable benefit because the move was less than 50 miles, which resulted in the Administrator paying payroll taxes of $1,431.45 on this benefit.  The Administrator is requesting the City to authorize the balance of $1,384.32 be reimbursed to him to cover the taxes he had to pay for the actual moving expenses. 

Fiscal Impact:  The financial impact is $1,384.32, contained within the amount budgeted for moving expense reimbursement. 

Prepared and Submitted by: Patrick DeGrave City Administrator

Fiscal Review by: Beverly A. Buretta, CMC City Clerk