HomeMy WebLinkAboutItem 06.g
January 4, 2021 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 Council 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. The City
Council approved a resolution with this additional language in May 2020.
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.
Starting in 2021, 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 include claims that have been 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 January 2021 by the City Council of the City of Lakeville.
CITY OF LAKEVILLE
By: ________________________________
Douglas P. Anderson
ATTEST:
________________________________
Charlene Friedges, City Clerk