HomeMy WebLinkAbout[04c] City Claims
Council Agenda Item 4c
MEETING DATE: January 6, 2020
AGENDA ITEM: City Claims
SUBMITTED BY: Finance
BOARD/COMMISSION/COMMITTEE RECOMMENDATION: N/A
PREVIOUS COUNCIL ACTION: Resolution 2008-006 authorized prepayment of claims. Staff is
requesting the update since new staff were hired in 2019 that will directly impact the claims payments.
BACKGROUND INFORMATION: Minnesota Statute 412.271, Subd. 8 authorizes the City Council
to adopt a resolution delegating authority to pay claims prior to City Council review. The City must have
established internal controls in place and an annual financial audit from an outside CPA firm or the State
Auditor to have the stated authority.
The Council authorized payroll and the related withholdings to be paid prior to Council review when
approving pay schedules and personnel contracts.
Some vendors do not allow many days to pay their claims timely to follow the normal process of
presenting the claim to Council prior to paying. Finance has attempted to lengthen the time to pay the
claims, but some vendors cannot change the billing period in their systems to accommodate us.
Finance is requesting approval of this resolution to avoid late payments. The established internal control
procedures of checks and balances will be followed when paying the claim. A listing of prepaid claims
will be presented to Council at the next regular Council meeting. Finance will only pay claims prior to
Council approval that would otherwise be late. The payments will be either an electronics funds payment
or a paper check. Authorized signers include the Mayor, City Administrator and Finance Director (two
signatures required on all checks).
In addition, the resolution authorizes the following city employees to make purchases on the city’s behalf
using a city issued credit card:
Administrator Department Heads Recreation Director
Administrative Services Coordinator/Deputy Clerk Custodian
Public Works employees (full time) Police Sergeant
BUDGET/FISCAL IMPACT: No Direct, Allows to Follow Budget/Purchasing Policy
ATTACHMENTS: Request for Council Action: City Claims
Resolution 2020-001
REQUESTED COUNCIL ACTION: Adopt Resolution 2020-001 authorizing the delegation to pay
claims prior to Council review and authorizing the listed positions to hold city credit cards.
Resolution 2020-001
Authorizing the Delegation to Pay Claims Prior to Council Review
WHEREAS, Minnesota Statute, Section 412.271, Subdivision 8 authorizes the City of St. Joseph to adopt
a resolution delegating authority to pay claims prior to city council review; and
WHEREAS, the City of St. Joseph intends to pay claims made against the City of St. Joseph prior to city
council approval; and
WHEREAS, the St. Joseph City Council authorized the following positions be granted as authorized
signers on behalf of the City of St. Joseph: Mayor, Administrator and Finance Director; and
WHEREAS, the City of St. Joseph employees holding the following positions are allowed to make
purchases using a City of St. Joseph credit card: Administrator, Finance Director, Public Works Director,
Community Development Director, Police Chief, Police Sergeant, Fire Chief, Administrative Services
Coordinator/Deputy Clerk, Recreation Director, Maintenance Supervisor, Maintenance Lead Worker,
Utility Operators, full time Maintenance Workers and Custodian. Credit card purchases must be made
within the guidelines of the City of St. Joseph’s Purchasing Policy.
NOW THEREFORE BE IT RESOLVED:
1. By the St. Joseph City Council that the authority to pay claims prior to city council review that
meet the standards and procedures established by the city council has been granted to all
authorized signers of the City of St. Joseph.
2. The St. Joseph City Council requires a list of all claims paid under this resolution shall be
presented to the city council at the next regularly scheduled meeting following the payment of the
claim.
3. The St. Joseph City Council authorizes the list of employees to hold City of St. Joseph credit
cards for city purchases.
Adopted by the City Council of St. Joseph, this 6th day of January, 2020.
Rick Schultz, Mayor
ATTEST
Kris Ambuehl, Administrator