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Friday, Apr. 29, 2016

Credit card may solve purchase order problem

Wednesday, September 14, 2005

What happens when a business says to a city, "Your purchase order is no good here"? In two recent instances, the mayor and a department head used their personal credit cards to be sure City businesses continued unimpeded.

In one case, the engine blew up in a city truck and a rebuilt engine was purchased. A similar situation has also arose recently, Mayor Tom Arthur told the Brazil City Council Tuesday night.

So, the mayor is asking the City Council to approve a credit card made out to the City and administered by a local bank. The card would be like a business corporate card and could be used by the mayor, department heads or employees at the department heads' request.

There would be a $5,000 credit limit on the card and all receipts would have to be turned in to the clerk-treasurer within 72 hours. The credit card balance would be paid by the City each month to avoid interest.

The need is not a rare situation, Arthur said. Several companies including Wal-Mart and the United States Postal Service will not accept City purchase orders. The City sends notices by registered letter repeatedly through the month.

When asked what would happen if the credit card was abused by a city employee, the mayor said the employee would be subject to disciplinary action or possible dismissal.

"We seem to have several deadlines that are not met and I wonder if this would be another one," Councilman James Sheese said.

The council voted 5-0 to table the request until the next meeting.



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