(A) It is the intent of this section that the use of credit cards shall be limited to specific uses as follows: cards are to be used primarily for travel-related expenses and for registration fees for conferences and educational seminars. Credit cards may also be used for the purchase of goods and supplies where a merchant charge account has first been requested, but cannot be established for any valid reason or the purchase is a one-time purchase or infrequent purchase where establishing an account would be an inefficient use of time or resources. The use of merchant charge accounts remains the preferred method of purchasing supplies, goods and services for the city. The cards may not be used to intentionally bypass the normal accounting and claims approval process of the city, nor used for personal purchases.
(B) The Clerk-Treasurer is authorized to obtain credit cards for those who occupy the following positions: Mayor, Clerk-Treasurer, City Engineer, Chief of Police, Fire Chief, Street Commissioner, Park Superintendent, Water Superintendent, Wastewater Superintendent, Electric Superintendent, Animal Control Manager, Utility Office Manager, Building Commissioner and Director of Information Technology. Issuance of cards to additional positions shall be approved by both the Mayor and the Clerk-Treasurer.
(C) Said credit cards shall have a credit limit of $2,500.00.
(1) Upon approval by both the Mayor and the City Clerk-Treasurer, certain department heads may be permitted to seek higher credit limits in order to accommodate the training and lodging expenses within a specified department.
(2) Any such credit limit increase should be requested by the pertinent department head in writing and shall be approved by the Mayor and Clerk-Treasurer, in writing, on a case-by-case basis.
(D) Employees to whom cards are issued may permit use of the card by other employees in his/her department. However, the department head or official to whom the card is issued is responsible for ensuring purchases are authorized, legitimate and appropriate, and is responsible for custody and security of the card itself.
(E) The Department Head shall maintain an activity log showing the date, amount and purpose of each charge, name and title of person who charged the purchase and from whom the purchase was made. A log shall also track the balance due and date and payment amounts on the account.
(F) The City is not permitted to pay sales tax. The card holder should make every effort to avoid the payment of sales tax by presenting an Exempt Certificate at the time of purchase. If the establishment will not remove the sales tax after presentation of the Exempt Certificate, the SBOA will not take exception and the City will pay the sales tax. Exempt Certificates are available in the Clerk-Treasurer’s office. If any sales tax is assessed to the account because the employee intentionally failed to present the Certificate, the sales tax shall be paid by the cardholder and is not reimbursable to that individual.
(G) Department Head and officials are responsible to personally pay interest charges and all extraneous charges such as over-the-limit and late fees. Employees should be aware of the time period between charge card statement date, date of claim approval by the appropriate board or city official and payment posting by the credit card company, and that at times this can be an extended period of time.
(H) The purchase of goods and supplies authorized in division (A) above includes purchases over the internet. Employees are cautioned though to exercise appropriate judgment related to security and should buy only from vendors whom they have otherwise scrutinized and deemed to be legitimate and trustworthy.
(I) No city credit card may be linked in any manner to a personal internet site or account such as Paypal, Ebay, Amazon, and the like.
(J) Original detailed credit card receipts must be forwarded to the appropriate financial office, i.e. Utility office for utility departments and Clerk-Treasurer for all others, within 48 hours of a purchase (or within 48 hours of returning to work in the case of travel). Original receipts will be sent in with monthly credit card statements as per the normal claims process. A photocopy shall be kept in the appropriate department. Credit card payments will not be made on the basis of the account statement only.
(K) Travel-related expenses include hotel or motel rooms; hotel or motel room charges for telephone calls pertaining to city business; meals, including gratuities not to exceed 20%; gasoline for city-owned vehicle, parking and registration fees for conferences and educational seminars. Non-allowable charges include alcoholic beverages, room service (if the meal was included in the conference or seminar), non-business-related telephone calls, in-room movies and cash advances.
(L) Because purchases made with a credit card are paid to the vendor outside the normal claims approval process, each department head shall provide to the Board of Public Works each month a copy of the activity log (division (E) above) coinciding with the claim to the credit card issuer which the Board is being asked to approve. This copy shall be provided to the Clerk-Treasurer’s office in time for it to be copied for the Board’s meeting.
(Ord. 22-2016, passed 12-12-2016; Am. Ord. 23-2021, passed 11-8-2021)