Chapter 3.60
CITY CREDIT CARD USE

Sections:

3.60.010    City-authorized credit cards.

3.60.020    Definitions.

3.60.030    Issuance, use and control of credit cards.

3.60.010 City-authorized credit cards.

City of Covington credit card usage is intended to provide an efficient method for the purchase of goods and services when the use of the City’s purchasing system is not possible or practical. The City Manager or designee shall implement the system set forth in this chapter for the distribution, authorization and control, credit limits, and payment of bills related to the use of credit cards by City officials and employees. (Ord. 03-06 § 1; Ord. 21-00 § 1)

3.60.020 Definitions.

As used in the chapter, “credit card” means a card or device issued under an arrangement pursuant to which the issuer gives to a cardholder the privilege of obtaining credit from the issuer. (Ord. 21-00 § 2)

3.60.030 Issuance, use and control of credit cards.

The City Council hereby adopts the following policies for the issuance, use, and control of credit cards by City officials and employees:

(1) The Finance Director shall develop and implement procedures for the distribution, authorization and control, credit limits and payment of bills related to the use of credit cards by City officials and employees which should include, but not be limited to, the following:

(a) Distribution. Credit cards may be issued to those City officials and employees who, in the opinion of the City Manager or designee, have job responsibilities which would benefit or otherwise be more effectively facilitated by the use of a credit card.

In addition, credit cards may be checked out to those employees when, in the opinion of the Finance Director, the use of the credit card meets the criteria of the credit card policy and would benefit the City and said employee has not been issued an individual credit card.

(b) Credit Limits. The credit limit on each card issued shall not exceed $2,500.

(c) Approved Uses for Credit Card Purchases. Credit cards may be used for the following purchases:

(i) Fuel, supplies and equipment only if a purchase order cannot be issued or an open charge account is not available. Fuel purchase is limited to City-owned vehicles when on travel status.

(ii) Registrations.

(iii) Travel and/or training expenses.

(iv) Expenses related to recreational programs when in a travel status or when normal purchasing procedures are not practical.

(v) Other items specifically authorized by the City Manager or designee.

(d) Purchasing Restrictions. Credit cards may not be used for cash advances of any kind, for the payment of invoices or statements, for personal use or for any expense not otherwise allowed under law and City policies.

(e) Reporting Credit Card Charges. Credit card charges, including all receipts and supporting documents and a properly coded and executed claims request, will be reported to the Finance Department at the earliest convenience of the official or employee responsible for the purchase (the “cardholder”).

(f) Unauthorized Use of Credit Cards. Any charge against the credit card not allowed following a post audit shall be paid by the cardholder by check, U.S. currency or salary deduction. Finance charges resulting from a cardholder’s failure to submit all necessary receipts and supporting documents within the time allowed will be considered disallowed charges and will be charged to the cardholder. If for any reason disallowed charges are not repaid before the charge card billing is due and payable, the City shall have a prior lien against and a right to withhold any and all funds payable or to become payable to the cardholder up to an amount of the disallowed charges and interest at the same rate as charged by the issuing credit card company. The City shall have unlimited authority to revoke use of any charge card issued for failure to repay a disallowed charge or failure to adhere to the City’s credit card policies and procedures. The responsible cardholder shall also be subject to disciplinary action. (Ord. 03-06 § 2; Ord. 21-00 § 3)