Good News – “D Mileage” Reimbursement Rate Has Been Increased!

As a result of the dramatic rise in gas prices, MEA has been advocating for the City to increase D Mileage reimbursement rates immediately, even though our current labor contract does not expire until June 30, 2023.  Earlier this month, the City agreed to do just that, and this week the City Council gave final approval to a side letter agreement with MEA to finalize the increase.

Accordingly, effective back to May 1, 2022 (and until our current contract expires on June 30, 2023), the City will increase D Mileage reimbursement rates by 12 cents per mile as follows:

• D1 (first 250 miles driven per month) increases from 72 cents per mile to 84 cents per mile.
• D2 (next 167 miles driven per month) increases from 69 cents per mile to 81 cents per mile.
• D3 (next 208 miles driven per month) increases from 66 cents per mile to 78 cents per mile.
• D4 (next 208 miles driven per month) increases from 63 cents per mile to 75 cents per mile.
• D5 (next 209 miles driven per month) increases from 60 cents per mile to 72 cents per mile.
• D6 (all other miles driven in the month) increases from 58 cents per mile to 70 cents per mile.

This represents a nearly 20% increase over the current average D Mileage reimbursement rate.  The changes also increase all levels of D Mileage reimbursement substantially higher than the current IRS standard mileage reimbursement rate of 58.5 cents per mile.

(These increases only apply to employees who use their personal vehicles for City business and have been deemed eligible for D Mileage.  Other levels of mileage reimbursement rates in the City – such as C Mileage – only change when the IRS modifies its standard mileage reimbursement rate.)

We hope this additional mileage reimbursement helps offset the rising costs of using your personal vehicle for City business!  If you have any questions or need more information on any issue, don’t hesitate to reach out to MEA.