Highland Park council adopts citywide policy for accepting credit and debit card payments after extended debate

The Highland Park City Council on July 21 adopted a resolution establishing procedures for the city's collection of credit and debit card payments after extended discussion about who should control payment systems and how to protect cardholder data.

City Council members said the move responds to a repeated audit finding and will create a baseline procedure while allowing amendments later. The motion to bring the item off the table and to adopt the resolution was made by Councilwoman Manuka and carried on roll call.

The resolution follows a recommendation by the city's auditor, Alan Panter of Yeo & Yeo. Council members cited the auditor's report as the reason to approve a written policy now. "That is what is before you tonight," Panter told the council during the discussion.

Why it matters: Council members said the city lacked a formal policy for accepting electronic payments, a deficiency flagged in audits. Supporters said adopting a policy now remedies that deficiency and creates internal controls for departments that accept card payments; opponents said the draft as written gives too much operational authority to the finance director and should preserve the treasurer's statutory responsibilities.

Treasurer Lisa Stolarski, who addressed council, urged a more detailed policy modeled on examples she found (she cited a municipal-style policy from Michigan Tech) that includes purpose language, department responsibilities and daily settlement practices. "These standards are designed to assist [the city] in safekeeping of cardholder information, which in turn reduces the chances of security breaches, fraud, and potential financial losses," Stolarski said while urging stronger departmental controls.

City Attorney Bosnick and other staff said the proposed resolution was drafted with guidance from the auditor and that a policy is needed now because audits have repeatedly flagged the absence of one. Bosnick said he worked on the draft with Mr. Panter. He also said the finance director has charter responsibilities that the resolution acknowledges; the draft makes the treasurer and finance director jointly responsible for selecting instruments for card acceptance, though council members were told they could amend that later.

Council discussion centered on two issues: (1) timing and process, with several members objecting to receiving the final text only hours before the meeting; and (2) which official or office has final say under the charter about methods of receipt. Opponents also noted litigation involving the treasurer that complicates communications between the treasurer's office and the administration.

Councilwoman Martin said the resolution should be adopted to cure the audit finding and then refined: "We actually just need to establish a policy. The audit person told us this. So we can amend later if there's something else that needs to be amended. But I appreciate if we would just vote on having a policy." Council debate also raised that Hamtramck currently processes some Highland Park card payments, and members asked staff to coordinate with that arrangement.

Action and outcome: The motion to approve the resolution regarding city procedures for collection of credit and debit card payments passed on roll call. The minutes record mixed votes; council members who voted yes cited the auditor's recommendation. The resolution as adopted establishes an approved procedure; council members and staff said the document can be amended later to clarify department responsibilities and operational details.

What the policy does and does not say: According to council discussion and the draft presented, the resolution establishes an approved procedure for accepting card payments and sets roles for the treasurer and finance director to coordinate on instruments used. It does not itself create new payment infrastructure or list every technical control referenced by PCI DSS; council members called for additional internal-control language, daily settlement rules, and clearer departmental duties to be added in future amendments.

Next steps: Council members asked staff and legal to return with clarifying language and indicated they could hold a workshop to allow more review. Treasurer Stolarski provided supplemental materials by email and offered to provide additional examples of municipal card policies if council directed further drafting.

Ending: Council supporters said adopting the resolution now remedies a repeated audit deficiency; opponents urged quicker notice and tighter protections for the treasurer's statutory duties. Council members said the resolution can be amended after enactment to add department-level controls and other operational details.