Finance, DEI Committee Meeting: Credit Card Ordinance Amendments - Jan 12, 2026
Finance, DEI Committee Meeting: Credit Card Ordinance Amendments - Jan 12, 2026
The Committee on Finance, Equity, and Diversity met on January 12, 2026, to discuss and vote on Ordinance 1507-2025. The primary agenda item was an emergency amendment to the codified ordinances regarding the use of city credit cards. The amendment sought to institute backup credit cards for key officials to ensure uninterrupted travel and operational payments, explicitly authorize payments for arbitration and third-party neutrals, and refine travel coordinator protocols. The meeting also featured extensive discussion regarding the city's transition to electronic invoicing, streamlining the disbursement of discretionary funds, and ensuring compliance with the Community Reinvestment Act (CRA).
Consent Calendar
- Ordinance 1507-2025 (as amended): Approved unanimously. The ordinance amends Section 171.40 of the Codified Ordinances to allow the Clerk of Council and Travel Coordinator to hold backup credit cards, adds "or other third party neutral" to payment authorities, and clarifies the role of the travel coordinator.
Public Comments & Testimony
- Councilman Richard Starr: Expressed strong concern regarding the current reimbursement process for council operations and discretionary funds. He argued that requiring non-profits and CDCs to front-load money is inefficient, noting that funds are already allocated in the budget but locked in a manual, multi-step legislative and contracting process that delays payments for weeks or months. He proposed a streamlined workflow where legislation approves funding for a specific purpose, the city pays the vendor directly after the event, and documentation is pre-encumbered in the system.
- Councilman Mike Palency: Expressed deep concern regarding the Community Reinvestment Act (CRA) compliance of the city's financial partners. He specifically questioned whether Huntington Bank, the primary issuer, meets its CRA obligations to support local mortgages and lending. He demanded verification that all financial institutions doing business with the city are in full compliance before continuing business relationships.
- Councilman Conwell: Stressed the frustration of personal financial outlays due to reimbursement delays, citing specific instances where he spent thousands of his own funds to ensure city business was completed. While acknowledging the need for documentation, he requested a specific timeline for the new electronic invoicing system rather than vague assurances, and urged the finance department to provide regular progress reports.
Discussion Items
- Backup Credit Cards & Arbitration Payments: The Director of Finance explained that the amendment is necessary because certain vendors refuse checks and cash. He confirmed that backup cards are a reinstitution of a prior procedure. Council members questioned if "third party neutrals" allows for the payment of large law firms (e.g., Jones Day). The Director clarified the amendment is strictly for arbitration fees (e.g., labor negotiations) involving fees of usually a few thousand dollars, not for general legal contracts or services exceeding $50,000.
- Credit Card Limits and Usage: Councilman Starr requested a breakdown of credit card limits. The Director provided the following limits: City Council ($53,120, under Clerk Patricia Brett), Law Department ($15,000), Port Control ($10,000), Finance/Admin ($5,000), Purchasing/Supplies ($10,000), Housing Court ($5,000), City-wide Travel ($200,000, held by Travel Coordinator Andre Reynolds), IT ($10,000), Mayor's Office ($5,000), and Public Safety ($5,000). It was noted that all cards except those for the courts are issued by Huntington Bank.
- Electronic Invoicing System: The Director outlined a plan to implement a new electronic invoicing system to replace manual processes, aiming to speed up payments to vendors. He stated vendors can upload invoices and banking information, allowing for a centralized system. Implementation is expected to take six to eight months, with a full rollout targeted for the end of 2026. Council President emphasized that despite digitalization, pre-encumbrance of funds and strict documentation remain mandatory to ensure checks and balances.
- Discretionary Funds and Wards Adjustment: Council members discussed the discrepancy in funds between the 17-ward and 15-ward council structures. The Director acknowledged the need to reaggregate funds and assign ownership to the new wards, promising to work with council staff to update the accounting system. Councilman Harsh expressed willingness to lead operational discussions on streamlining the legislative intake and contracting process for discretionary funds.
- Interest and Accountability: Councilmembers asked about the risk of interest charges and fraud. The Director assured the committee that cards are paid in full every month to avoid interest. Regarding fraud or dissatisfaction with services, the city can dispute charges through the bank, which is described as a more robust safeguard than checks or debit cards.
Key Outcomes
- Ordinance 1507-2025 approved unanimously.
- Finance Department Directive: The Finance Director committed to providing Councilman Starr with the cardholder agreement detailing limits and to meeting with council members to discuss streamlining discretionary fund disbursements.
- CRA Verification: Councilman Harsh (CRA Board Representative) confirmed Huntington Bank was rated "Outstanding" for CRA compliance in 2025 and offered to formally review the city's status with the board.
- Process Review: The Finance Department agreed to reaggregate funds to align with the new 15-ward structure and to establish an automated reporting process to reconcile discrepancies between the City Council's records and the Finance Department's records regarding Neighborhood Equity Funds (NEF) and other accounts.
- Timeline Acknowledged: The Finance Director provided a tentative timeline of 1-2 weeks to select a vendor for the electronic invoicing system, with a full system implementation expected by the end of 2026.
Meeting Transcript
Good afternoon. Today is Monday, January the twelfth, two thousand twenty six. This committee of finance diversity, equity, and inclusion is called to order. Madam Clerk, call the roll. Thank you, Madam Chair. Please let the record show that Councilman Santana has an excused absence. All right, thank you. The first ordinance that we will hear is ordinance number 1507-2025, as amended by Councilmember Griffin by departmental request, an emergency ordinance to amend section one seventy-one dot four zero of the codified ordinances of Cleveland, Ohio, nineteen seventy-six, as amended by ordinance number ten eighty one-twenty twenty-four passed November twenty fifth, twenty twenty-four, relating to the use of city credit cards. And there is an amendment. And after clerk of council insert an additional credit card, also held by the clerk of counsel or his or her designee that will serve as a backup to the principal card. Each of which two in section one at amended section one seventy-one dot oh dot four zero at division A to After or arbitration association insert in quotations or other third party neutral. Number three, in section one, at amended section one hundred seventy-one dot four zero at Division A eight in the first line strike, a credit card, including an additional backup card and insert principal credit card and in second line strike project coordinator travel coordinator and insert travel coordinator and an additional credit card also held by the travel coordinator or his or her designee that will serve as a backup to the principal credit principal card, each of which and strike or his or her designee. Number four, in section one, add amended section one seventy-one dot four zero, strike on her or her designee. This is dated one twelve, twenty twenty-six. So the rationale for requesting this, uh we want to ensure and provide safe travel for city employees and other city stakeholders. Um in order to do that, we need to make sure that if a credit card while someone's on travel, if it gets cut off for some reason for uh suspected fraud or some other reason that we have a backup so that um we can go ahead and make whatever adjustments or whatever payments we need to make while we're rectifying that event. So this again is for finance and for uh city council as well, and then also just expanding on the language for a law. All right, thank you. Uh just real question, uh quick couple of quick questions do the services have to be rendered before any payment is remitted by these credit cards. To the chair, I don't think that these microphones are allowed. Our microphone system is updated. Yeah, th to the chair. So normal procedure is a reimbursement procedure. Um I think through code that allows us in certain instances to pay in advance. Um go ahead, I'm listening to you. Yeah, so there um you know there is that uh exception in some cases. Okay. Uh so um is this normal or best practice that other cities have used too pretty much to have a backup because I could see how if there is fraud or something else and a card gets um frozen, um a lot of us could be end up being stuck out in uh a city without backup support. So to the chair, this city actually used to have two cards. So this is just reinstituting uh a prior uh procedure that we had. So yes, it is best procedure to make sure that uh we don't have somebody stuck while they're out on travel without a way to pay their their bills. Okay. All right, those are the questions I have. Uh Ms. Stigers, did you want to have any comment? No, but this is um Council President. This is just for like when we're ready when you all go to NLC and stuff like that. What usually happens on my end is when I'm doing the credit cards for the um the credit card payment for the airplan the airfare, it'll stop me after I do so many of your um airfare. So this is what that helps for. And then also when you all get down there, if they have an issue, it helps us have an extra card. Okay. Thank you. Are there any other questions for the director or for the team? Uh councilman Charles Slife and then Councilman Brian Casey. Yes, uh, thank thank you. Um could the director through the chair uh expound on what arbitration association means? Sure. So through the chair to the councilman, it's expenses related to arbitration to pay the arbitrator and those associated expenses. I I will admit that um I'm not sure if this body is familiar with the ins and outs of every time we're with an arbitration. Uh is there a specific reason that that was brought forward as putting that on a credit card and and that almost seems like an expense that this body would want to be aware of, just paying for it on a credit card doesn't feel intuitive given the the gravity of what that could be.
openpublica.com