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/~~ -"~ Memo To: Mayor and City Council Neal Beets, City Manager From: Chris Miller, Finance Director C~'~ Date: May 16, 2005 Re: Continued Discussion on the Use of City Purchasing Cards Date: 05/16/05 Item: 8. Purchasing Cards Introduction Over the past 9 months, the City Council has formally held numerous discussions on the City's purchasing function and the use of purchasing cards. In addition, the Council has also inquired on several occasions about the format of the City's check register that comes before the Council for approval. At the request of the Council, Staff has prepared a summary of the informative points that have been previously shared with the Council specifically relate to the use of purchasing cards, and the check register. General Information about Purchasing Cards The following bulleted points provide general information regarding the use of purchasing cards. 1) Purchasing cards are a tool used to make the purchase. They replace the need to use cash or a check 2) Purchasing cards are assigned to individual employees for better internal control. We know who used the card, where, when, and for what purpose and amount. With shared purchasing cards or with purchases on store credit, we have less information. 3) Purchasing cards are assigned to the same individuals that are authorized to make purchases on behalf of the City on store credit 4) Purchasing cards save the City money. No checks, no envelope, no postage. Purchases can be made from the desktop via the Internet alleviating the need to make a purchase in person. This saves the City thousands of dollars each year 5) We can restrict purchasing card purchases based on vendor, purchase type, and amount. This is not always possible with purchases made on store credit