Chapter 3.74
CREDIT CARD USE
Sections:
3.74.020 Issuance, use and control of credit cards.
3.74.030 Return of credit card.
*Prior legislation: Ords. 1335, 1518 and 1750.
3.74.010 Definitions.
(1) The finance director shall implement and maintain the following system for the authorization, distribution, and control of credit cards issued to or for the benefit of the city and used by city officials and employees.
(2) As used in this chapter, the term “credit card” or “purchasing card” means a card or device issued under an arrangement pursuant to which the issuer (credit card company) gives the city the option to obtain credit from the issuer, usually at the point of sale. (Ord. 1775 § 1, 2016).
3.74.020 Issuance, use and control of credit cards.
The city adopts the following system for the issuance, use, and control of credit cards by city officials and employees.
(1) The finance director is authorized to obtain city credit cards under the following system, which provides for the authorization, distribution, control, credit limits, and payment of purchases through the use of the credit cards by city officials and employees.
(a) Issuance and Use. Credit cards may be issued to city officials and authorized employees who, in the opinion of the finance director, have job responsibilities that would benefit or otherwise be facilitated by use of a credit card for purchasing goods, supplies, and other items from vendors or incurring registration, training, or travel expenses in connection with the performance of their duties on behalf of the city.
(b) Authorization and Control. The finance director shall develop specific administrative policies, guidelines, and accounting controls to ensure the proper usage of credit cards and credit card funds. The credit card is to be used when it is in the best interest of city administrative affairs. Upon authorization from the finance director, city employees may obtain credit cards from the finance director who shall maintain a ledger of the individuals receiving credit cards, including the date the individual cards were received and the authorized credit limit.
(c) Credit Limits. Individual card credit limits shall be established by the finance director with the approval of the city administrator. The credit limit shall not exceed $15,000 for any individual card. The $15,000 limit may be temporarily revised by the finance director, and approved by the city administrator, to accommodate purchases made under special circumstances such as emergency repairs, disaster responses, group or extended business travel, and other infrequent or unusual situations.
(d) Payment of Bills. The finance director shall establish a procedure for the prompt payment of all credit card bills on or before the due date.
(e) Unauthorized Charges. No official or employee shall use the city-issued credit card for non-city business purposes. Cash advances, payment of statements, and personal purchases of any kind are prohibited.
(2) Expenses incident to authorized travel may be charged to a city-issued credit card, provided the official or employee returns to the city with detailed credit card receipts in accordance with the city travel policies and procedures as established by the finance director.
If certain credit charges are disallowed as a result of audit or city policy, such charge shall be repaid to the city. Failure to do so will render the employee personally liable where the city shall have a prior lien against and a right to withhold any and all funds payable or to become payable to the employee up to the unpaid amount, plus interest and/or fees at the rate charged by the bank that issued the card. Employee shall not use the credit card if any disallowed charges are outstanding.
The act of obtaining a city credit card does not indicate preapproval of expenditures/expenses. The city finance director is authorized to revoke the use of any credit card issued and immediately require the surrender of the credit card. (Ord. 1775 § 1, 2016).
3.74.030 Return of credit card.
The employee shall return all city credit cards at the request of the finance director, or upon separation of employment. Final paycheck may be held until all outstanding city property has been returned. (Ord. 1775 § 1, 2016).
3.74.040 Additional policies.
The city finance director is authorized to implement any additional policies or administrative procedures necessary to implement the provisions of this section. (Ord. 1775 § 1, 2016).