Chapter 3.75
CREDIT CARD PURCHASES
Sections:
3.75.020 Procedure for use of city credit cards.
3.75.010 Issuance and use of Costco credit cards.
Repealed by Ord. 1872. (Ord. 986, 1990)
3.75.020 Procedure for use of city credit cards.
(1) Purpose. The purpose of this section is:
(a) To establish a policy and procedure related to the distribution, authorization, control, and use of city credit cards;
(b) To establish credit limits and payment of bills related to city credit cards.
(2) Policy. The city finds that the use of credit cards is a customary and economical business practice to improve cash management, reduce costs and increase efficiency.
(3) Procedure.
(a) Setting up of Accounts.
(i) The finance director will be responsible for setting up each department’s credit card account(s) with an appropriate banking facility.
(ii) Each department director will request city credit cards for his or her department.
(iii) The existing gas card program will continue. Gas cards will only be made available through the city mechanic and can only be used on city vehicles.
(iv) Except gasoline credit cards, each credit card account will have a credit limit as determined by the department director and the finance director. In the case of the finance department, the credit limit shall be determined by the finance director and the mayor.
(b) Credit Card Limits. In no case shall the credit limit on each account exceed $10,000.
(c) Distribution of Credit Cards. The number of cards issued per account will be determined by the department director, keeping in mind the regularity of anticipated use and frequency of travel by department staff.
(d) Authorization and Control. Each department director will be responsible for the distribution and tracking of each credit card issued to his or her department.
(e) Payment of Bills. Billing statements will be sent to each individual department. Each department will establish a system of receipt collection and will prepare a purchase order, with appropriate receipts attached, for the total amount of the current statement. Payment of any disallowed charges will be processed as stated in subsection (3)(g) of this section.
(f) Personal Charges. Personal charges to city credit cards are not allowed.
(g) Disallowed Charges.
(i) Disallowed charges, or charges not properly identified, will be paid by the employee before the charge card billing is due. Failure to do so will render the employee personally liable for the unpaid amount, plus interest and/or any fees at the rate charged by the bank which issued the card.
(ii) The act of obtaining a city credit card does not indicate preapproval of expenses.
(iii) If a situation arises where an employee is responsible for charges, and the timing of the payment may result in interest and/or late fees, the finance director must be informed immediately. These charges are considered liens against any amount owed by the city to the employee. Any amounts in default may be withheld by the city from funds owed to the employee.
(iv) Any employee with a demonstrated history of charge card defaults may be barred from using any city credit cards by the mayor or department director, as appropriate.
(h) Annual Fees. Annual fees will be the responsibility of the department to which the credit cards are issued.
(i) Credit Cards and Travel. Refer to the policy and procedure regarding travel.
(j) Cash Advances. Cash advances on all city credit cards are prohibited. (Ord. 1352, 1999)