Payment Policy Changed for the Use of a Private Vehicle While on Official Business
WILLMAR, MN – Minnesota State Auditor Rebecca Otto said state law prohibits public entities from paying.
WILLMAR, MN – Minnesota State Auditor Rebecca Otto said state law prohibits public entities from paying both a vehicle allowance and mileage reimbursement to employees who use private vehicles for work, according to the West Central Tribune. As a result, the City of Willmar, Minn., has changed the policy of making both payments to three department heads that use their private vehicles during official business.
The policy had only been in effect since the first of 2007 after new employee contracts were approved. After the state auditor issued her opinion in March, the city changed its policy, according to City Administrator Michael Schmit.
Schmit said he has always received an allowance of about $250 per month to cover gas and maintenance costs associated with using his vehicle for city business, according to the West Central Tribune.
During the last round of contract talks, department directors who used their own vehicles and were not assigned a city vehicle received allowances for the first time. Those who were required to attend meetings outside city limits on official business would be reimbursed based on mileage driven. Three other department directors are assigned city vehicles.
The auditor said state law provides that public entities may pay either an allowance or mileage. The opinion said the auditor’s office will comment on noncompliance whenever an employer is paying both forms of compensation to an employee for use of a personal vehicle.
More Operations

Why Fleet Business Plans Need Three Perspectives
A fleet business plan should help agency leaders understand the fleet’s value, give the organization a clear direction, and establish shared expectations with customer departments.
Read More →
How Oil Analysis, Safety Technology, and Fleet Awards Drive Improvement
What happens when fleets let measured results guide their next decision?
Read More →
Emergency Response, Fleet Sales and New Technology
This week’s fleet news covers emergency preparedness, shifting vehicle sales, electric truck investments, and new tools for monitoring road conditions.
Read More →
NCDOT Adds Dash Cam Imagery to Statewide Traffic Monitoring
North Carolina transportation officials are adding another set of eyes to roads that aren't covered by fixed traffic cameras. A statewide deployment gives NCDOT access to on-vehicle imagery to verify conditions during work zones, severe weather, emergencies, and other traffic events.
Read More →
Turning a Bottleneck Into a Blueprint: How Tallahassee Rethought Police Fleet Readiness
For Tallahassee, finally receiving 87 delayed police cruisers created a new problem: how to get them on the road without creating a massive backlog. The solution would change more than the upfit process.
Read More →
AI, Police Fleet Readiness and Fire Apparatus News
See how AI, a reworked police-vehicle upfitting process, and a fire apparatus acquisition could affect public fleet operations.
Read More →
How AI and Automation Work Together to Reduce Government Fleet Downtime
As their assets age and their budgets’ purchasing power shrinks, government fleet managers are facing growing pressure to do more with less.
Read More →
Police Fleet Innovation, EV Strategy and AI
See how public fleets are rethinking police vehicle readiness, electrification, workplace culture, and driver workflows.
Read More →
From What He Inherited to What He’ll Leave Behind: David Renschler’s Lessons in Leadership
David Renschler walked into Fairfield with plenty to learn and no idea what awaited him. Twenty years later, the lessons from what came next are still shaping his approach to fleet.
Read More →
Have Fleets Changed Enough to Solve the Technician Shortage?
Are government fleets finally closing the gap on the technician shortage, or are critical challenges still holding them back?
Read More →

