Kingman staff to implement state-mandated rounding for cash transactions after penny production ends

Kingman officials outlined how the city will respond to the end of penny production and to a new Arizona law requiring rounding for cash transactions.

Assistant Finance Director Wendy Sherwood told council that the U.S. Mint produced its last pennies in November 2025 and that pennies remain legal tender but are increasingly hard to obtain. Sherwood briefed the council on state legislation (House Bill 2938, enacted March 13, 2026) that establishes a mandatory Swedish rounding procedure for cash transactions when 1‑cent coins are unavailable. "If 1 cent coins are unavailable, then you're to round to the nearest 5 cent," she said, describing the rounding rules for totals ending in 1–4 or 6–9 cents.

Sherwood said the city has already experienced limited trouble obtaining pennies for change and that several customer‑facing departments (parks, golf, tourism, utility billing) frequently handle cash. She outlined next steps: standardize cash‑rounding procedures across departments, post notices at cash collections sites and on the city website, and update multiple point‑of‑sale systems so the rounding is applied only to cash transactions (non‑cash payments and rates remain calculated to the cent). Sherwood said the method is not a change to fees or rates and is not intended as a revenue measure.

Council members asked about POS compatibility and consumer impact; Sherwood said updates must be made per POS system and the state mandate simplifies the city's policy for public messaging.

Staff will return with implementation timing and with signage and POS‑update schedules.