FAIRFAX TOWN COUNCIL MEETING
STAFF REPORT
AGENDA ITEM #6.m.
MEETING DATE May 7, 2025
PREPARED FOR Mayor and Town Council
PREPARED BY Heather Abrams, Town Manager, and Michael Vivrette, Finance Director SUBJECT Receive Informational Report on Town Credit Card Use
RECOMMENDATION
Review the Informational Report on Town Credit Card Use.
BACKGROUND
In 2010, Council approved use of Town credit cards for to reduce costs associated with check issuance.
Nearly all California local governments use the same highly reputable credit card issuer that provides a distractive look including “For Official Use Only” printed on the front of the cards. These cards are commonly referred to as CalCards. A copy of the 2010 staff report, which outlines the checks and balances utilized to ensure appropriate use of the cards, is attached to this report.
Fifteen years later, the reasons to use CalCards have multiplied. Reasons for using a CalCard for official town purchases include:
• Processing credit card charges save the cost of checks and check processing issues such as tracking outstanding checks.
• CalCard is a cash back program providing funds to the town • Many vendors no longer accept purchase orders, checks, nor cash, for example:
o Common software vendors (such as Adobe) and subscriptions, o Fairfax lacks an office supply store, so office supplies are ordered online and shipped • Several store charge programs (such as Fairfax Lumber) have been converted to credit card payment
• Registration for local government trainings and meetings (i.e. POST, CalCities, etc) are done online with credit card payments
• CalCard program is tailored to local governments, facilitating:
o Needed controls, and
o Financial administration
DISCUSSION
The number of Town CalCards has decreased from 28 in 2010 to 26 in 2025.
Of the 26 CalCards, 19 are in the Police Department, two are with the Recreation staff, one is with the Town Hall front desk staff, one is with the Planning Director, one is with the Clerk staff, one is with the Town Manager, and one is with the Finance Director. There is an overall Town limit beyond which the total of all CalCards cannot extend.
The monthly credit extended to each CalCard is also tightly controlled, and aligns with the position’s responsibilities. For example, the Finance Director’s CalCard is used for FEMA and insurance payments, repair supplies purchased by the DPW crew on the Town’s Fairfax Lumber account are charged to this CalCard. The Town Manager’s CalCard is used to book Council Member and Town Manager trainings, 2 conferences, meals and travel required for those trainings and meetings; in addition, the Town Manager must be at the ready if major disaster supplies are needed. The Clerk staff’s CalCard is used for payment of online only services such as Zoom, Constant Contact newsletter platform, etc. Calcards for Town Hall front desk and Planning are used primarily for supplies and minor training expenses. Police department CalCards, while issued to all full-time employees and some select part-time employees, do not hold on to their physical cards. Instead CalCards are kept secure by the Chief of Police and provided to select employees on a case by case basis for needed and previously approved circumstances. No charges can be made by any individual employee unless approved by the Chief of Police. Examples of charges that are re-occurring include costs for departmental supplies, building services as well as POST trainings and travel/parking/fuel and other associated costs. CalCards in Recreation are used for event and program supplies, such as candy and eggs for the Spring egg hunt, paints and supplies for Alice in Wonderland Tea, as are supplies ordered by Recreation on behalf of the Fairfax Festival because the Town is the Festival’s fiscal agent.
The Town’s total CalCard monthly payment between April 2024 and March 2025 was $24,120.56, divided by 26 cards equals $928 average per card per month. The Town pays the total balance in full each month, so no finance fees nor interest are accrued.
CalCards can only be held by staff responsible for Town purchases and they cannot be used for personal purposes. Each month the Finance Department receives a “master bill” of all the charges on any Town Cal Cards used and each CalCard holder receives a “sub bill” of all the charges to that CalCard.
The employee is responsible for fully coding and justifying each expense, including attaching all receipts which need to be coded and justified to the CalCard bill. Each Department head reviews the coding and justification before sending it to Finance for additional review and payment. For example, a CalCities training for Council Members would be coded on the CalCard bill and on the receipt as 01- 111-861 corresponding to the budget code, and a justification or description would be added to the receipt such as Town Manager’s CalCard for Council Member Cutrano to attend CalCities Academy. The budget coding is used to account for expenses reported by budget code monthly reports.
ATTACHMENT
2010 Staff Report Regarding Cal Cards