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Employee travel is a necessary part of municipal operations, yet many local governments manage it through methods that can create friction and cause administrative headaches. Mileage reimbursement, while common, is a solution that leaves money on the table and complicates expense tracking and compliance.

The Challenges of Traditional Reimbursement

Mileage reimbursement, often thought to be a hard cost with no alternatives, can miss opportunities to save money, raise duty of care concerns, and increase organizational risk. These programs require employees to use personal vehicles for municipal business—vehicles that may not be the right fit or meet safety and reliability standards. Manual approval processes add administrative burden, creating delays in reimbursement and frustration for staff. Finance teams struggle to budget, forecast actual costs, verify compliance with travel policies, and maintain visibility into employee travel patterns.

A Better Solution: Rental Programs

A structured business rental program can address these challenges head-on. Consider the numbers: Organizations using rental vehicles as an alternative to mileage reimbursement can realize nearly 25% savings per mile*—a significant reduction that compounds across departments and throughout the year.

The benefits extend beyond dollars. In addition to the potential cost savings of rental, employees can also gain access to a diverse fleet of well-maintained vehicles suited to their actual needs—sedans for routine travel, vans for group transportation, trucks for short-term or seasonal projects. With thousands of neighborhood locations nationwide, staff can conveniently source newer vehicles with the latest technology and safety features that provide a wide range of solutions.

For finance and administration, the advantages are equally compelling. Rental programs provide cost predictability through negotiated rates, making budgeting simpler and more accurate. Travel management tools improve spending pattern visibility, policy compliance, and decision-making.

A Trusted Partner for Flexible Solutions

With more than 5,000 rental locations nationwide, Enterprise and National Car Rental offer coverage in thousands of neighborhoods across the United States. In each of these communities, we purchase vehicles, generate tax dollars through sales and employment, and create meaningful jobs that generate income and benefits for employees and their families. We also foster a culture of community engagement and fund programs that support and empower the communities where we live and work.

An established partner brings customized solutions tailored to municipal needs—and the right partner listens to your challenges and builds accordingly. Enterprise and National help local governments source specialized vehicles across regions, respond quickly to evolving demand, and provide integrated mobility solutions through state-level agreements across nearly 90% of the United States.

Moving Toward a More Efficient Model

Ultimately, reevaluating traditional mileage reimbursement programs presents a clear opportunity. By transitioning to a structured rental approach, municipalities can reduce costs, enhance safety, improve oversight, and simplify administration.

The result is a streamlined, transparent system that benefits employees, protects your organization, and reduces costs. That’s a win for your budget, your people, and the communities you serve. Learn more about mobility solutions for state and local governments at enterprise.com/publicsector.  

* Estimate based on 2025 Enterprise reporting at home city locations by business rental customers in the USA. Claim assumes Enterprise business rental customers rented an ICE vehicle with a fuel efficiency of 31mpg and gas cost $3.10/gallon.

MIKE GUADAGNOLI is vice president of business rental sales – global operations at Enterprise Mobility.