Guelph-Eramosa councillors have decided to raise the mileage rate paid to themselves and staff, joining several other municipalities in the county that have done so recently in light of rising fuel prices.
Clerk Janice Sheppard explained to council on Aug. 5 the township last raised its mileage rate three years ago – from $0.37 to $0.42 per kilometre.
“The mileage reimburse-ment costs are to pay for fuel as well as compensate for wear and tear on a vehicle,” Sheppard said in her report. “The present amount of $0.42 is not adequate in light of increased fuel costs.”
She suggested the township base its rate on the Canada Revenue Agency’s rate – this year and beyond – which is currently $0.50/km for the first 5,000km and $0.46/km thereafter.
The township’s 2008 budget includes a total of $14,000 for mileage, with over $6,300 spent to date. While the proposed increased rate would raise the budgeted amount by over $4,000, Sheppard said staff is not requesting a budget amendment.
Mayor Chris White said the rate set by the Canada Revenue Agency will be fair and added it is best to have a federal body properly monitoring the township rate.
Council voted unanimously in favour of the increase and also to base the township’s future annual mileage rates on those of the Canada Revenue Agency. Councillor Roger Knapp was absent.