(A) Purpose. The city credit cards are a purchase card system, benefitting the city and the city’s authorized user of the credit card by allowing purchases to be made from vendors for certain types of goods and/or services that are not available through other procurement means or from other vendors.
(B) Policy. Usage of the city’s credit/purchase card (a/the card/s) is allowed at the discretion of the City Clerk-Finance Director or City Administrator, who will determine which current employees are granted city purchasing authority and will establish appropriate limits for each purchase and the total credit limit for each card account, which any increases in vendor account spending limits are approved by the governing body. Use of a card is restricted to the purchasing of those goods or services that cannot be procured through normal procedures. The use of a card does not justify the payment of any sales taxes for which the city is exempt and shall be given a copy of the state tax exemption certificate/letter issued to the city. The employee using a card is responsible for obtaining a timely credit for any sales tax charged. If sales tax is charged and a credit is not obtained, the user is responsible for the sales tax.
(C) Authorized employees. The City Clerk-Finance Director or City Administrator may authorize the use of a city credit card, for intermittent use or continuing use, for any city employee who consents to use of the credit card. If city-issued credit cards are used for personal use or any stated violation in division (E) below, the cost of such purchase(s) will be considered an advance of future wages payable to the employee who made the purchase and will be recovered in full from the employee’s wages until the wage advance is fully repaid. No city employee who is authorized to use a city credit card may allow use of the credit card by any designee, employee or individual who has not received authorization for its use by the City Clerk-Finance Director or City Administrator.
(D) Authorized purchase purposes. Authorized employees may use city-issued credit cards only for official business purchases of materials and services and for approved city travel-training expenses. The city’s credit card serves as a means of payment only, and use of the card does not eliminate the need for employee compliance with other regulations concerning purchasing, budgeting and preauthorization for travel.
(E) Prohibited purchases.
(1) The city credit card may not be used to charge personal purchases; food may not be purchased with the city credit card except food incident to approved city travel-training and purchases pursuant to express permission from the City Clerk-Finance Director or City Administrator. Violations include, but are not limited to, a purchase of items substantially for personal use; cards may not be used for personal purchases, cash advances or purchases that exceed the authorized purchase amount. Anyone who makes unauthorized purchases or advances will be liable for the amount of such purchases or advances, plus any administrative fees charged by the bank or corporation in connection with the misuse.
(2) Card user violations of this policy or of any policy regarding the purchase of goods or services will be investigated and may result in any or all of the following actions, but not limited to: written warning, revocation of credit card privileges, including purchasing authority, disciplinary action, termination and/or criminal prosecution. Human error and extraordinary circumstances may be taken into consideration when investigating any violation of this agreement. The City Clerk-Finance Director or City Administrator has the authority to investigate and to determine whether a violation of purchasing or credit card policy has occurred and to determine the action deemed most appropriate pursuant to applicable law and/or city policy.
(F) Receipts. It is the responsibility of each credit card user to obtain receipts from the vendor each time it is used, including receipts for travel. These are to be immediately forwarded to the City Clerk-Finance Director for review and to ensure eligibility and signature of user for payment. Failure to provide the required documentation for payment processing may subject the user to loss of credit card or travel privileges and may cause the amount charged to be classified as a personal purchase by the card user. The city shall keep statement data and proof of reconciliation, including receipts and packing slips, on file for a period consistent with the record retention requirements of the law. Any department who fails to provide receipts and allow for timely payment of the credit card will also subject the user to any finance charges incurred on the charge.
(G) Disputes, safeguarding and lost or stolen cards. It is each user’s responsibility to follow up on any erroneous charges, returns, disputes or adjustments to ensure proper credit is given on subsequent statements. Authorized card users are responsible for the card’s protection and custody. An issued card or card account number should always be treated with utmost care and secured to prevent misuse by unauthorized users. When using a card for internet purchases, users should ensure that the site utilizes industry-recognized encryption transmission tools. It is the responsibility of each department that possesses a card and/or account number to keep such information secured and track department usage among authorized users. If a credit card is lost or stolen, it is the responsibility of the user to immediately contact the City Clerk-Finance Director, who will make contact with the issuer and take the appropriate steps to protect the account from unauthorized purchases. The City Clerk-Finance Director can be contacted after normal hours of operation.
(H) City Clerk-Finance Director responsibilities. City employees must receive approval from the City Clerk-Finance Director and/or City Administrator to have permission to use the city’s cards, and each department is responsible for notifying the City Clerk-Finance Director of their authorized users. Each city department will provide such a listing, which includes the signature of each user, to the City Clerk-Finance Director. Any additions or deletions to this authorized list will require the same method of notification. The City Clerk-Finance Director is responsible for ensuring the proper use of all cards and/or account numbers of the city. Those duties include, but are not limited to, timely reconciliation of all accounts, appropriate record keeping, knowing card limitations and restrictions, developing and implementing internal procedures that govern the usage and communicating with the City Administrator on any issues.
(I) Ownership and cancellation of cards. The authorized employee and his or her department head are accountable for all activity on the credit card issued. The bank or the City Clerk-Finance Director or City Administrator may limit, suspend or terminate charging privileges at any time without cause.
(Ord. 462, passed 3-27-2023)