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South Lyon staff to pursue Huntington corporate card with $25,000 account minimum; council signals support
Summary
City staff reported operational issues with the current PNC corporate card and presented Huntington Bank as an alternative offering online management; Huntington requires a $25,000 corporate account minimum while allowing individual card limits—council encouraged staff to continue negotiations and return with a contract and resolution.
City staff told the council on May 26 they are exploring moving the city corporate credit card from PNC Bank to Huntington Bank because PNC does not provide online access for city reconciliation and sometimes delays payment processing through a lockbox.
Staff explained Huntington can provide online reconciliation, immediate payment transfers from operating accounts and per‑card spending controls; however Huntington requires a $25,000 minimum account balance for the corporate card program. The current aggregate corporate limit is $10,000 and four department heads have access to the card. Staff said individual card limits could be set below the corporate maximum to control spending while preserving an emergency corporate cushion.
Council members responded positively to the proposal, saying online management and quicker deactivation would modernize city controls. Several members suggested adding additional department cards for operational efficiency and asked staff to pursue negotiations with Huntington, prepare a draft credit‑card agreement for the city attorney to review, and return to council with a resolution authorizing any switch and limit change.
Why it matters: the change would update internal controls and speed reconciliations and emergency access to funds; it also commits city banking relationships and requires a higher corporate balance.
Next steps: staff will continue discussions with Huntington, draft a credit‑card agreement and present a resolution to council for formal approval.
