Council approves $5,000 city credit card for tourism director after debate over oversight

The Lincoln City Council voted to authorize issuance of a City of Lincoln credit card with a $5,000 limit to Scott McCoy for tourism-related expenses, following extended debate about financial controls and precedent for third-party or contract staff holding city cards.

The item was presented as an authorization for a card to be issued to Scott McCoy for tourism expenses with a not-to-exceed $5,000 limit. Council members raised questions about oversight: whether the card should be issued to a contract employee (non-payroll), invoicing and sign-off procedures, how the card would be monitored against the tourism budget and whether additional controls or a signed agreement should be required. John Hovlett urged caution and referenced legal precedent: “there is not a hard and fast ban on issuing a city credit card to someone who is a 1099 employee…Most notably, there was a peaking case, People versus Howard, I believe it was…This conviction stood,” he said, citing concerns about misuse in past cases.

Mayor and others said they trust McCoy and noted checks and balances: invoices must back credit-card charges; the clerk and treasurer process bills; and the cardholder is responsible for retaining receipts. Council also discussed requiring monthly summaries or spreadsheets to ensure charges are within the tourism fund and suggested drafting an accountability agreement for a third-party cardholder.

Vote: Alderman Parrott moved the authorization and Mister Clement seconded. The roll call showed seven Yes votes and one abstention by Mister McCall; the motion passed. Council directed staff to clarify signing/approval processes and said they could draft an agreement with the city attorney to formalize accountability for a nonemployee cardholder.