HomeMy WebLinkAboutItem 06.i
May 4, 2020 Item No.
RESOLUTION DELEGATING AUTHORITY TO PAY CLAIMS AND MAKE
ELECTRONIC FUND TANSFERS
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Resolution delegating
authority to pay claims and make electronic fund transfers.
Approval of the resolution will delegate the authority to pay all claims made against the City and
to make electronic fund transfers to the Finance Director.
Overview
The City approved a resolution delegating the authority to pay claims to the Finance Director on
June 5, 2017. Upon review of state statutes and in discussion with our auditors,
CliftonLarsonAllen, it was determined that the resolution should be expanded to explicitly state
that electronic payments are allowed. The City currently makes electronic payments to vendors,
employees (for expense reimbursements), bond paying agents, payroll taxes, etc. This resolution
would bring the City into legal compliance.
Minnesota State Statute Section 471.38, subdivision 3 and 3a state that a city council may
authorize electronic fund transfers subject to similar criteria as the delegation of authority to pay
claims such as city internal accounting and administrative procedures, bank process controls and
administrative procedures, and regular review of expenditure list by City Council at each
meeting. All these criteria are currently in place.
Going forward, staff will be presenting this resolution for approval at the beginning of each year
in conjunction with other required annual resolutions.
Primary Issues to Consider
The City Council will receive a list of expenditures paid (claims list) for review at each council
meeting as part of the consent agenda. These reports have included claims paid electronically.
Supporting Information
• Resolution
Financial Impact: $ Budgeted: Y☐ N☐ Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Jerilyn Erickson, Finance Director
N/A
N/A
CITY OF LAKEVILLE
RESOLUTION No______
RESOLUTION DELEGATING AUTHORITY TO PAY CLAIMS AND MAKE
ELECTRONIC FUND TRANSFERS
WHEREAS, Minnesota State Statute Section 412.271, Subd. 8 states that a city council
may delegate its authority for paying certain claims against the city to a city
administrative official subject to certain criteria; and
WHEREAS, Minnesota State Statute Section 471.38, Subd. 3 and 3a state that a city
council may authorize electronic fund transfers subject to certain criteria; and
WHEREAS, the prerequisite criteria for delegating the payment of claims authority have
all been met by the city through the following: (i) city’s internal accounting and
administrative procedures, (ii) regular review of expenditure list by City Council at each
meeting, and (iii) preparation of an annual audited financial statement attested by an
independent certified public accountant, public accountant or state auditor; and
WHEREAS, procurement of goods and services are made under the authority granted in
the purchasing policy, council-approved resolutions and/or applicable state statutes; and
WHEREAS, Minnesota State Statute Section 471.425, Subd. 2 states that cities that have
at least one regularly scheduled meeting per month must pay their bills within 35 days of
receipt and this delegation of authority is conducive to this end while assuring
appropriate city council oversight.
WHEREAS, the prerequisite criteria for authorizing payments by electronic funds
transfer will be met by the city through the following: (i) city’s internal accounting and
administrative procedures, (ii) bank process controls and administrative procedures; and
(iii) regular review of expenditure list by City Council at each meeting.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville:
1. The recitals set forth above are incorporated herein.
2. The City Finance Director is authorized to pay all claims made against the City
that meet the standards and procedures established by the Finance Department,
City policies, City Council approved resolutions and the requirements of
applicable statutes.
3. The City Finance Director is authorized to pay such claims via electronic funds
transfer, in accordance with the foregoing requirements and Minnesota Statute
471.38, subds. 3 and 3a.
ADOPTED this 4th day of May 2020 by the City Council of the City of Lakeville.
CITY OF LAKEVILLE
By: ________________________________
Douglas P. Anderson
ATTEST:
________________________________
Charlene Friedges, City Clerk