City Uses Credit Cards And Saves Taxpayers Money!
City of Colorado Springs employees are saving taxpayers money and earning cash rebates with every swipe of the city’s 1,751 credit cards.
A program in its seventh year has saved $16.5 million in administrative costs for the city and Colorado Springs Utilities, compared to using labor-intensive and time-consuming purchase orders.
A survey of 25 municipalities nationwide found it costs $46 less in administrative costs to use a credit card than to run a purchase order through the system, said Steve Gess, the city’s contracting manager.
It’s impossible to know whether the city would have actually spent the higher amount in the last six years or found other ways to achieve efficiencies.
What’s indisputable is the city’s rebates.
The city’s general fund and utilities collected $635,204 in rebates on their $75.3 million in charges over the six-year period. The city’s share, about $230,000, is enough to cover almost half the cost of a new city park or the salaries of 3½ police patrol officers.
“If we didn’t have these tools to eliminate purchase orders, we’d be overwhelmed and couldn’t keep up with it,” said Gess, who organized and oversees the program.
The city now uses 24,500 fewer purchase orders and checks annually than in 1999. Utilities uses about 7,400 fewer as well.
Very Interesting! Why can’t every city adopt this strategy and save taxpayers money.