Council approves switch to purchasing card program to improve controls and earn rebates

Livonia City Council approved a request to replace the city’s older staff credit card program with a purchasing‑card (P‑Card) program designed to provide real‑time transaction tracking, easier reconciliation and a cash rebate that will be credited to the general fund.

Finance Director Deborah Lichtenberg said the current cards offer minimal reporting and no rebate; the P‑Card program includes an online portal, transaction controls and a rebate structure. Council members supported the change, noting spending limits will remain governed by the city’s procurement policy and that individual card limits will be set to prevent circumventing established purchasing thresholds.

A resident asked whether fees would offset rebates. Lichtenberg replied that merchant and processing fees exist but the program’s structure typically yields a net rebate and that the rebate will be recorded in the general fund. Councilmembers said real‑time tracking and spending controls will improve oversight and potentially reduce procurement costs over time.

The council approved the contract change on consent and directed staff to implement card limits consistent with procurement rules and provide oversight procedures.