City records show show Indio's Fantasy Springs Resort is a popular spot for purchases by Indio staffers. Among the bills was a $2,048.11 charge made on City Manager Glenn Southard's card. / Wade Byars, The Desert Sun
By the numbers
The city of Indio has the second-highest number of credit cards issued among valley cities. Here's the breakdown:
• Palm Springs: 81 cards
• Indio: 62 cards
• Cathedral City: 21 cards
• Indian Wells: 9 cards
• Rancho Mirage: 3 cards
• Coachella, La Quinta, Palm Desert and Desert Hot Springs: 1 card
More
City of Indio credit cards have been issued to employees at varying levels — from a front desk receptionist to key department heads, according to a Nov. 24 city-provided list of 62 cardholders.
A Desert Sun analysis shows monthly statements, issued in employees' names, outline every charge.
Employees are required to sign an “acknowledgement of receipt” when they are issued a card vowing it will be “used appropriately and that all purchases are within the city's purchasing guidelines.”
Experts with the Government Finance Officers Association say there are advantages and disadvantages to a city's distribution of multiple cards.
One of the bigger downsides, the association notes in outlining its recommended practice, is that public perception of such cards “may be negative” in addition to the “potential for abuse despite the controls available with purchasing cards.”
However, the agency notes, having a purchasing or procurement card program can be an “efficient, cost-effective method of purchasing and paying for small-dollar as well as high-volume purchases,” even replacing the more traditional use of purchase orders.
This is the system the city of Palm Springs transitioned to four years ago, City Manager David Ready said.
Palm Springs started with a handful of cards.
Today, 81 employees — ranging from those with the Palm Springs International Airport to the city's Streets and Traffic Department — have cards.
Palm Springs has almost 450 employees; Indio has about 290 employees.
Records show Palm Springs was responsible for about $2.5 million in charges from Jan. 1, 2008, through Dec. 3, 2009.
Through a bank program that gives rebates based on average transaction incentives, volume of sales and prompt rates, Palm Springs earned back $7,017.45 in 2008 and another $4,515.89 in the first three quarters of 2009.
With the exception of the regular food for City Council, a Desert Sun review of Palm Springs' statements indicated few meals were purchased using the taxpayer-funded credit cards.
While some travel-related expenses appear on the statements, most of the charges were to businesses such as Home Depot and vehicle maintenance repair locations.
City policy requires pre-approval before employees can take someone out for a meal, Ready said.
And, when they travel, there is a per diem amount employees can spend on food.
“There's a high bar for that: Why would you have to take someone to dinner?” Ready said of the city's credit card policy.
“The exact same rules apply for the cards as they did with a purchase order. The key thing is the checks and balance in the system is the same as a purchase order.”
Other cities opt to have fewer cardholders.
Coachella, La Quinta, Palm Desert and Desert Hot Springs all have one city-issued card. Three cities keep the credit card with the finance director to control purchases.
Rancho Mirage assigns cards to three officials: the city manager, the director of Management Services and the library director, who is the only department head not located at city hall.
While Indio pays off its cards regularly to avoid interest, other cities don't: Records show the city of La Quinta has carried over large balances.
In 2008, $58,871.86 in new charges were made on City Manager Thomas Genovese's card. The city was billed for $2,606.36 in finance charges over the course of the year, and another $150 in late fees.
La Quinta finance officials could not be reached late last week for comment.
