Credit card spending
The city of Indio provides credit cards to various employees to buy goods related to conducting city business. Before most of the cards were revoked in January, there were 62 cards issued. Cardholders spent $423,196.56 in 2008 and $440,144.34 in 2009.
Dramatic decrease
After the cards were revoked in January, charges dropped dramatically from the previous months and year.
The city spent $6,666.70 on credit card charges in January, an 80 percent decrease from a year ago when the city spent $34,414.01 in January 2009 and a 67 percent decrease from the previous month when the city spent $20,750.04 in December.
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Credit card spending by Indio city employees dropped 80 percent in January compared to the same month a year ago.
The decrease followed a Jan. 3 Desert Sun investigation that revealed charges in excess of $805,000 over a 22-month period.
The city charged $6,666.70 in January — an 80 percent decrease from January 2009, when cardholders charged $34,414.01, and a 67 percent decrease from December, when they charged $20,750.04
Following the Desert Sun investigation, city officials revoked most of the 62 city-issued cards at the request of Mayor Gene Gilbert.
And last week, the council revised the city's credit card policy to a much lengthier and stricter one.
“We just needed to stop and get a handle on it,” Gilbert said Monday.
Credit card statements reviewed by The Desert Sun revealed that frequent nationwide travel and meals, as well as tickets to multiple national sporting events, were being charged to city-issued cards.
Soon after the article, residents began to criticize the city for its spending habits, especially in the face of a multimillion-dollar deficit.
Even Gilbert was surprised at how many meals employees charged to their cards.
Despite statements by city officials that every department has been cutting expenditures over the past year, credit card bills in 2009 exceeded the previous year's total by almost $17,000, according to records recently received by The Desert Sun.
“Over the last year we have been reducing expenditures across every department,” said Chris Escobedo, senior management analyst via e-mail on Monday.
He said the drastic reduction in January “is the result of our action to bring expenditures in line with revenues as we continue to adjust to the economic downturn.”
Gilbert, though, said the decline in charges is clearly the result of the revocation of credit cards.
“If you have 60 (some) out before and now it's down to 13 or 14 that would be the significant reason,” he said.
In reviewing the recent credit card statements, employees who maintained their cards after most were returned had significantly fewer charges and almost none from restaurants.
On Wednesday, the City Council approved a temporary credit card policy that is much stricter and lengthier than the previous one. The new one will go into effect in mid-April — 30 days after the second reading of the ordinance.
City officials, however, have said they expect some changes to the new policy. Suggestions include shortening the policy and adding a requirement that cardholders receive training on acceptable charges. Any changes will need City Council approval.
Accountability is what Gilbert sought in the new policy.
“That everybody know they have to account for use of their credit card. It's no different than using their own. You want to be very prudent in what you do,” he said.
Escobedo said a decision has not yet been made regarding the re-issuance of credit cards.
Gilbert anticipates that some will be returned, but doesn't think it will be near the number previously in circulation.
“Some people flat don't need credit cards,” he said.
Xochitl Peña covers Indio and Coachella for The Desert Sun. She can be reached at (760) 778-4647 or at xochitl.pena@thedesertsun.com.
