CITY SEES SIGNIFICANT GROWTH IN PCARD PROGRAM

[quote]By: Vice Mayor Richard Fimbres
Ward 5[/quote]

The City of Tucson recently received a rebate of more than $849,000 for its participation in the JP Morgan purchasing card (PCard) program. The PCard program allows the City to purchase items under $10,000 through a credit card instead of the traditional purchasing process of issuing a check. The City receives a percentage of total spending as a rebate at the end of the year. The rebate contributes to the City’s General Fund, which is used for public safety, parks, and other services.

The City has greatly expanded its use of the PCard since its implementation and extended the use of the PCard program contract to other public sector groups. The 2015 PCard rebate represents an increase of more than $500,000 over the rebate the City received in 2011. Ward 5 Councilmember Richard Fimbres has asked for updates on this program since 2011.

In the past four years, the city has more than doubled the amount of money spent on goods and services through the PCard program, from $28.0 million to $60.7 million in 2015. According to a J.P. Morgan study, the PCard transaction process costs $20 per each transaction while the traditional process of issuing a check costs $92 per each transaction.

“I am proud to say that my Chief of Staff Mark Kerr and I have led the charge to get all City departments and its partners to utilize this program,” said Council Member Richard Fimbres. “The PCard program allows the City of Tucson to spend its limited dollars more efficiently. I want to thank Procurement Director Marcheta Gillespie and PCard Coordinator Marie Sena for their work on the program, as well as city staff working to further implement the PCard program and saving tax payer dollars.”

The implementation of the PCard program has reduced the need for the ity to write checks by 75 percent. The City of Tucson had over 66,000 transactions in 2015, for which the cost savings from last year was more than $4.5 million.