City Council Expense & Credit Card Policy

Ordinance No. 1231, the policy that guides members of City Council regarding city business expense charged on city issued credit cards and requests for reimbursement of expenses incurred in conducting city business, was passed October 3, 2022.

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Purpose
Policy Objectives
Policy Scope & Coverage
Policy Basis
Policy
Responsibilities of the Kyle City Council
Definitions
Procedures for Out-of-Town Travel & Completing Travel Expense Claim Form
Procedures for the Settlement of Expenses Charged on City-Issued Credit Card
Procedures for Requesting Reimbursement of City-Related Business Expenses
Procedures for Requesting Mileage Reimbursement for Use of Personal Vehicle
Unallowed Expenses
Resignation or Upon Completion of Council Member's Term
Policy Directives to City Manager & City Staff
Exhibits
City Council Authorization

1. Purpose

This policy is intended to provide guidance and policy compliance requirements to members of the City Council for allowable expenses charged on City issued credit cards and for the reimbursement of expenses incurred while conducting City business.

Furthermore, this policy is also intended to provide direction to the City Manager, to ensure for the consistent application of this policy and to ensure compliance with the policy requirements when processing City issued credit card charges and or requests for expense reimbursements for individual members of the City Council.

2. Policy Objectives

Establish a clearly defined policy for members of the City Council to adhere to and comply with when incurring allowable City-related business expense charges on their City issued credit card and or when requesting reimbursement for City-related business expenses incurred by individual members of the City Council in carrying-out their official duties.
Establish a policy that provides clear guidelines, procedures, and requirements that are uniform and can be consistently applied by the City Manager and their staff to strengthen administrative and budgetary controls.
Ensure accountability and transparency to the residents and taxpayers of the City of Kyle for all City-related business expenses incurred by the members of the Kyle City Council.

3. Policy Scope & Coverage

This policy is applicable to and exclusively covers all elected officials of the City of Kyle including but not limited to the following elected positions:

Mayor
Council Member, District 1
Council Member, District 2
Council Member, District 3
Council Member, District 4
Council Member, District 5
Council Member, District 6

4. Policy Basis

The Kyle City Charter is the authoritative basis for the development and implementation of this City policy. Specifically, Article Ill, Section 3.09 states as follows:

"Members of the City Council shall also be entitled to reimbursement for all necessary and approved expenses incurred in the performance of their official duties. There shall be provided in each annual city budget an amount for the expenses of the mayor and for each council member. The city council by ordinance shall provide a method for determining what expenses are reimbursable and what requirements must be met to receive reimbursement. No staff or assistant shall be provided for any member of the city council."

5. Policy

Based on Article Ill, Section 3.09 of the City Charter, it is the policy of the City of Kyle to allow members of the City Council to:

Attend training, educational conferences, seminars, and meetings related to the duties and responsibilities as a member of the City Council.
Travel to other cities as a member of the City of Kyle delegation that is officially sanctioned by a majority vote of the City Council, to explore economic development opportunities and to further the interest of the City of Kyle.
Use City issued credit card to charge allowable City-related business expenses incurred in the performance of their official duties including travel.
Request reimbursement of allowable City-related business expenses incurred in the performance of their official duties including travel which was paid for with personal funds.

6. Responsibilities of the Kyle City Council

Under this policy, each individual member of the City Council shall be responsible for, including but not limited to the following:

Fully adhere to and comply with the requirements of this policy as adopted by the City Council by an Ordinance.
Each member of the City Council shall be responsible for monitoring and ensuring that City-related business expenses incurred or planned to be incurred, do not exceed the total approved budget for their respective cost center excluding the line-item budget for Legal Services. A monthly expenditure report for cost centers pertaining to Mayor and Council members shall be provided to each City Council member to assist in the monitoring of the expense line-item budget status and remaining available funds.
Each member of the City Council shall be responsible for obtaining and submitting actual itemized receipts from the respective vendor, retailer, restaurant, hotel, airline, and or other establishment for their City-related business expense.
Each member of the City Council shall be responsible for ensuring that they submit to the City Secretary, on a timely basis each month, actual itemized receipts for any and all charges made on their City-issued credit card statement.
Each member of the City Council shall be responsible for reviewing their individual monthly statement for the City-issued credit card.
Each month, members of the City Council shall be responsible for submitting all actual itemized receipts supporting each credit card transaction reported on the monthly credit card statement within five (5) business days from the date the credit card statement is provided to them by the City Secretary.
Members of the City Council shall be responsible for paying back to the City for all unallowed expenses and for all unsupported transactions charged to the City-issued credit card.

7. Definitions

Actual Expenses: Expenses incurred for City-related business and supported by an original legible printed receipt; detailing items purchased. Refer to definition of receipts/invoices below.
Approved Budget: Appropriations (spending authority) as authorized by the City Council for line-item expenditures in the approved cost center budget for the Mayor and each Council member.
City-Issued Credit Card: This is also referred to as the City Purchasing Card. A City-issued credit card is a standard credit card issued by the City's banking institution in the name of the City Council member for use only by the specific member of the City Council to charge an allowable City-related business expense incurred in carrying-out their official duties as a member of the City Council.
City-Related Business Expense: An expense incurred by a member of the City Council that is required and or is necessary in the performance of their official duties of a public purpose for the benefit of the City.
Credit Card Statement: A monthly statement in the name of each member of the City Council provided by the City's banking institution showing, in date order, all transactions including amounts charged on the City-issued credit card by the individual member of the City Council during the reporting month.
Entertainment Expenses: Includes but not limited to, movies, concerts, theatre performances, events at museums, entertainment shows, car shows, social and cultural events, hunting and fishing events, hot air balloon rides, sport events, golf games, sports tournaments, food and drink tasting, or any other excursion/entertainment are not allowed under this policy.
Mileage Reimbursement: Reimbursement request for actual mileage driven per trip in a personal vehicle by a member of the City Council to conduct City related business. Filling up fuel tanks in a personal vehicle with a City-issued credit card and or reimbursement with City funds is strictly prohibited and as such, is not allowed under this policy.
Receipts/Invoices: An original legible printed receipt issued by a retailer, restaurant, hotel, airline, or similar business establishment that shows the date of transaction, name of the vendor/retailer, vendor/retailer's address, product or itemized description, quantity, and amount for each item purchased or ordered.
Travel - Local: From Kyle City Hall to a destination that is equal to or less than seventy-five (75) miles and to which it can be reasonably expected to travel, conduct City-related business, and return to Kyle City Hall within the same business day.
Travel - Out-of-Town: From Kyle City Hall to a destination that is more than seventy-five (75) miles and to which it cannot be reasonably expected to travel, conduct City-related business, and return to Kyle City Hall within the same business day.
Unallowed Expenses: A list of expenses specifically identified in this policy and other similar personal type expenses, that under no circumstances, shall be paid for with the use of a City-issued credit card or shall be reimbursed to any member of the City Council with City funds.
Unsupported Expenses: Any expense transaction incurred and charged to the City-issued credit card that is unsubstantiated and for which no actual itemized receipt has been provided. An unsubstantiated expense can also occur when a Request for Reimbursement Form is submitted by a member of the City Council without actual receipts substantiating the expense reimbursement claim.

8. Procedures for Out-of-Town Travel & Completing Travel Expense Claim Form

When a member of the City Council travels to another city, or state to:

Attend a training session, educational conferences, seminars, and meetings related to the duties and responsibilities as a member of the City Council.
Explore economic development opportunities and to further the interest of the City of Kyle as an official member of the City of Kyle delegation that is sanctioned by a majority vote of the City Council.

Within five (5) business days of completion of the travel, each member of the City Council who traveled, must prepare, sign, and submit to the City Secretary, a Travel Expense Claim Form (Exhibit A) along with all original itemized receipts as supporting documentation.

9. Procedures for the Settlement of Expenses Charged on City-Issued Credit Card

Each month, the City receives a separate credit card statement from the City's banking institution in the names of individual members of the City Council. This monthly statement includes in date order, a listing of itemized transactions with amounts, that the respective member of the City Council authorized to be charged to their City-issued credit card.

By the second (2nd) business day of the month, the Accounts Payable team will forward to the City Secretary, a PDF copy of the monthly credit card statement for each individual member of the City Council.
By the third (3rd) business day of the month, the City Secretary will review and forward by email, a copy of the monthly credit card statement to the respective member of the City Council.
By the eighth (8th) business day of the month, each member of the City Council shall:
- Complete their review of all posted transactions reported on their respective monthly statement for the City-issued credit card,
- Compile and attach all actual itemized receipts supporting each expense transaction reported on the monthly statement for the City credit card,
- Prepare and attach a personal or a bank check made payable to the City of Kyle in the amount of any unallowed or personal expenses charged to the City-issued credit card,
- Submit the complete documentation packet (credit card statement, actual receipts, and personal check if applicable) to the City Secretary for processing.
- The City Secretary will examine the monthly credit card statement and all attachments submitted by the member of the City Council for completeness, accuracy, and assign appropriate expense line-item and cost center coding for processing.
- If the City Council member's submittal is complete and accurate, the City Secretary will forward the credit card statement and all attachments to the Accounts Payable section in the City's Financial Services Department for final processing.
- If the City Council member's submittal is incomplete or receipts do not reconcile with the amount charged and posted on the monthly credit card statement, then the City Secretary will contact the City Council member in writing by email and request them to rectify the incomplete items and to resubmit by no later than the tenth (10th) business day of the same month.
- For any transactions charged to the City-issued credit card for which an actual itemized receipt is not provided or if a personal check is not provided to pay back the City of Kyle, then an equivalent amount shall be deducted from the respective City Council member's next regular monthly compensation payment (paycheck). An email will be sent by the City Secretary informing the City Council member of the amount of the deduction from their monthly compensation payment.

10. Procedures for Requesting Reimbursement of City-Related Business Expenses

If a member of the City Council is interested in seeking reimbursement of City related business expenses that the City Council member incurred and paid for with personal funds in the performance of their official duties, then they must follow the following procedural steps:

Complete a City of Kyle Request for Expense Reimbursement Form (Exhibit B).
Attach all actual itemized receipts supporting the reimbursement request.
Sign and date the Request for Expense Reimbursement Form.
Submit the completed form with attached itemized receipts to the City Secretary.
The City Secretary will acknowledge by email, the receipt of the submittal to the member of the City Council.
The City Secretary will examine the Request for Expense Reimbursement Form and all attachments submitted by the City Council member for completeness, accuracy, and assign appropriate expense line-item and cost center coding for processing.
If the submittal is complete and accurate, the City Secretary will forward the Request for Expense Reimbursement Form and all attachments to the Accounts Payable section in the City's Financial Services Department for processing a reimbursement payment to the requesting City Council member.
Should the Accounts payable team in the Financial Services Department find the submittal packet forwarded by the City Secretary to be incomplete, incorrect, or missing any receipts, then the entire submittal will be returned to the City Secretary to take corrective action(s).
If the Request for Expense Reimbursement Form submittal is incomplete or receipts do not reconcile with the amount claimed for reimbursement, then the City Secretary will contact the member of the City Council in writing by email and request them to rectify the incomplete items and to resubmit their request for reimbursement.
If the Accounts payable team's review and examination of the Request for Expense Reimbursement Form submittal packet indicates that it is complete and accurate, then a reimbursement check will be processed and issued to the requesting member of the City Council within ten (10) business days.

11. Procedures for Requesting Mileage Reimbursement for Use of Personal Vehicle

If a member of the City Council is interested in seeking reimbursement for the actual number of miles driven using their personal vehicle in the performance of their official duties, then they must follow the following procedural steps:

Maintain actual record for each trip taken using personal vehicle to conduct City related business to include:
- Name of member of the City Council
- Description of personal vehicle (2022 Chev Tahoe)
- Date of each City business trip
- Purpose of each trip (for example: to meet with County Commissioners)
- Provide destination for each trip (for example: from City Hall to County Government Center in San Marcos and return to City Hall)
- Total actual miles driven for each trip
At the end of each month, complete a Request for Mileage Reimbursement Form for Use of Personal Vehicle for City Business (Exhibit C).
Sign and date the Request for Mileage Reimbursement Form for Use of Personal Vehicle for City Business.
If a member of the City Council wants to utilize a GPS-based IRS compliant mileage tracking software for the use of their personal vehicle for City-business trips, they can submit a report generated from the GPS-based IRS compliant mileage tracking software in lieu of completing the City mileage reimbursement form provided the following minimum information is included in the report:
- Name of member of the City Council
- Description of personal vehicle (2022 Chev Tahoe)
- Date of each City business trip
- Purpose of each trip (for example: to meet with County Commissioners)
- Provide destination for each trip (for example: from City Hall to County Government Center in San Marcos and return to City Hall)
- Total actual miles driven for each trip
- Sign and date of signature
Submit the completed mileage reimbursement form to the City Secretary for processing.
If the submittal is complete and accurate, the City Secretary will forward the Request for Mileage Reimbursement Form for Use of Personal Vehicle for City Business or the GPS-based IRS compliant mileage tracking software report to the Accounts Payable section in the City's Financial Services Department for processing a reimbursement payment to the requesting member of the City Council.
If the request for mileage reimbursement form for the use of personal vehicle for City business is incomplete, then the City Secretary will contact the City Council member in writing by email and request them to rectify the incomplete items and to resubmit their request for reimbursement.
If the Accounts payable team's review and examination of the Request for Mileage Reimbursement Form for Use of Personal Vehicle for City Business indicates that it is complete, then a reimbursement check will be processed and issued to the requesting member of the City Council within ten (10) business days. Otherwise, the form will be returned to the City Secretary for corrections.

12. Unallowed Expenses

The City of Kyle will not pay for nor reimburse with City funds, the following types of personal expenses to any member of the City Council. This list is an example of unallowed expenses and includes but is not limited to the following types of personal expenses:

Alcoholic beverages including beer, wine, liquor, mixed drinks, accessing mini bars in hotel rooms, including rental of alcoholic beverage dispensing equipment and associated supplies and materials.
Automobile and other vehicle expenses including but not limited to any repair and or maintenance expenses associated with a personal vehicle such as for fuel charges, electric vehicle charging costs/fees, oil changes, brakes, battery, tires, wiper blades, damages due to accidents, insurance, vehicle rental while personal vehicle is being repaired, etc.
Books and magazines for personal reading, , movie rentals, in-room movies, online entertainment services, etc. Newspapers such as the Austin American Statesman, Hays Free Press, Austin Business Journal, Wall Street Journal, etc, are allowed under this policy.
Cash advances or cash equivalents, money orders, wire transfers, foreign currency, bitcoins, traveler's checks, gift cards, pre-paid cards, etc.
Charges, fees, and or fines for illegal substances, products, activities, and or services.
Commuting mileage reimbursement claims. Driving personal vehicle from home to work and driving back from work to return home is an unallowed expense.
Computer equipment including but not limited to hardware, software, desktop computers, laptop computers, notebook computers, tablets, iPads, printers, scanners, projectors, cameras, audio/video equipment, copiers, shredders, fax machines, cellular devices, mobile phones, routers, hotspot or hotspot service, telecommunication equipment, etc. This includes expenses associated with the purchase, lease, rental, and or the repair and maintenance of any such equipment.
Cost of any travel ticket class on any airline, limousine, bus, coach, train, ship, or other means of transportation that is above the economy (coach) class.
Cost of any priority boarding, preferred seating, and or other upgrades on any airline, limousine, bus, coach, train, ship, or other means of transportation.
Donations and any charitable contributions to individuals, organizations, and not-for-profit entities including value of time donated.
Entertainment expenses including but not limited to, movies, concerts, theatre performances, events at museums, entertainment shows, car shows, social and cultural events, hunting and fishing events, hot air balloon rides, sport events, golf games, sports tournaments, food and drink tasting, or any other excursion/entertainment.
Excess baggage fees and or surcharges for overweight baggage.
Expenses for spouse, partners, family members, pets, and or for other guests accompanying the member of the City Council.
Fitness center charges, health club expenses, and other personal services including sports spa, hot tub, and massage/reflexology services.
Flight and or travel/trip insurance.
Gambling expenses, cost of lottery tickets, bingo, betting on sports and races, and cost of other game of chance even if it is operated by charitable organizations.
Gifts, souvenirs, t-shirts, baseball caps, jackets, and other similar personal items.
Grooming care services including haircuts, beard trimming, hair stylists, hair removal services, nail salon services, beauty parlor services, tattoo services, tattoo removal services, shoe shining, etc.
Home office expenses including but not limited to internet services, cable service, cellular or mobile phone service, networking services, office equipment, furniture and fixtures, file cabinets, lighting, ceiling fans, flooring, security and surveillance systems, rent for office space, and any repairs or maintenance of such items. Cost of Wi-Fi service during travel including in-flight to conduct City business is allowed under this policy.
Loss of personal funds and or personal property including repair of personal property.
Marijuana and or related by-products.
Passport fees, global entry or similar security clearance fees, annual service fees for security clearance, airline pre-check fee for pre-screening convenience service, etc.
Personal items such as clothing, jewelry, watches, batteries for hearing aid and watches, shoes, handbags, hats, raincoats, umbrellas, wigs, toothbrush and toothpaste, shaving kits, toiletries, mints, chewing gum, breath fresheners, air fresheners, sunglasses, visors, baseball caps, sunscreens, etc.
Prescription and over the counter medications, sleep aids, thermometers, oxygen sensors, oxygen tanks or refills, contact lens cleaners, bandages, pain relievers, sanitary pads, adult diapers, etc.
Pet sitting, pet-care, kenneling, veterinarian fees, pet supplies, etc.
Private and or charter flights.
Subscription and membership services including but not limited to airline frequent flyer clubs, airport and airline lounge services, auto clubs, Amazon Prime, lnstacart, Costco, Sam's Warehouse, and other similar card membership fees and dues.
Tobacco and or tobacco products.
Traffic citations, parking tickets, related attorney fees, court fees, and other fines.
Valet service for parking when self-parking options are available.

13. Resignation or Upon Completion of Council Member's Term

When a member of the City Council resigns from their elected position or upon completion of their term of office, all procedural and requirements of this policy will continue to apply until they fully reconcile and settle all credit card transactions for expenses incurred by them and posted to the final credit card statement for their City issued credit card.

Upon resignation by a member of the City Council or completion of their elected term of office, the City Manager and City staff in the City's Financial Services Department shall take the following actions immediately:

Deactivate the City-issued credit card.
Cease processing of any credit card transaction incurred after the resignation date or the term end date.
Cease reimbursement of any expenses incurred after the resignation date or the term end date.
If the outgoing member of the City Council fails to reconcile and settle their last credit card statement for the City issued credit card, then the City Manager and appropriate City staff are fully authorized under this policy to create an accounts receivable for the amount owed to the City on the City's General Fund balance sheet, send an invoice to the outgoing member of the City Council to pay the amount owed within fifteen (15) business days.
Should the outgoing member of the City Council fail or refuse to pay any amount owed to the City by the deadline (within the fifteen (15) business days), then the City Manager and appropriate City staff in the City's Financial Services Department are fully authorized to submit the outstanding accounts receivable balance to the City's collection agency for processing.

14. Policy Directives to City Manager & City Staff

This policy is adopted by a City Ordinance approved by a majority vote of the City Council. Accordingly, it is the expressed intent and direction of the City Council to the City Manager, Assistant City Managers, City Secretary, and all appropriate City staff in the City's Financial Services Department that should any member of the City Council fails to adhere to and comply with the requirements of this policy, that all of the following actions shall be immediately implemented:

Deactivation or suspension of the City-issued credit card, and
Cease and suspend all requests for reimbursement of City-related business expenses, and
Cease and suspend all requests for mileage reimbursement for City-related business use of personal vehicle.

The above action steps shall be enforced equally by the City Manager and City staff for all members of the City Council and shall remain in effect until the City Council member comes into full compliance with the requirements of the City's Policy for Members of City Council Regarding City Business Expenses Charged on City Credit Card & Request for Reimbursement of City Business Expenses.

The City Manager nor any member of the City staff has been authorized or given the expressed or implied authority under this policy to make any exceptions to any of the requirements of this policy as adopted by the City Council under this Ordinance.

15. Exhibits

Travel Expense Claim/Report Form - For Use by Members of City Council
Request for Expense Reimbursement Form - For City Related Business Expense Incurred by Member of City Council
Request for Mileage Reimbursement Form - For Use of Personal Vehicle by Member of City Council for City Business

16. City Council Authorization

The above guidelines and policy requirements of the City's Policy for City Council Members Regarding City Business Expenses Charged on City Credit Card & Request for Reimbursement of City Business Expenses were considered, approved, and adopted by a majority vote of the City Council when adopting the City Ordinance.

City Council Credit Card Charges & Expense Reimbursements

Expense Forms for Council