HomeMy WebLinkAbout06(F) - Resolution Delegating Authority to Pay Claims and Make Electronic Fund Transfers ReportCITY COUNCIL AGENDA REPORT
MEETING DATE:
PREPARED BY:
PRESENTED BY:
AGENDA ITEM:
GOAL AREA
OBJECTIVE:
January 04, 2023
Nicole Klekner, Assistant Finance Director
Cathy Erickson, Finance Director
Resolution Delegating Authority to Pay Claims and Make
Electronic Fund Transfers
High-Value City Services
1.Establish financial stability for all funds.
RECOMMENDED ACTION:
ITEM: 6F
Adopt a resolution delegating authority to pay claims and make electronic fund transfers.
BACKGROUND:
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. Obtaining this council approval on an
annual basis is a recommended best practice.
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. The necessary 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
(iii)Preparation of an annual audited financial statement attested by an independent
certified public accountant.
Minnesota State Statute Section 471.38, subdivision 3 and 3a states 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
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. The City Council will continue to receive the
expenditures (claims) list as part of the regular agenda, and these reports will include claims paid
electronically as they have in the past.
FINANCIAL IMPACT:
Delegation of the authority to the Finance Director to pay claims and make electronic fund
transfers ensures claims are paid in a timely manner and that all claims made against the City
City of Prior Lake I 4646 Dakota Street SE I Prior Lake MN 55372
Item 6F
Page 12
meet the standards and procedures established by the Finance Department, City policies, City
Council approved resolutions and the requirements of applicable statutes.
ALTERNATIVES:
1.Motion and second as part of the consent agenda to approve a resolution delegating
authority to pay claims and make electronic fund transfers as presented.
2.Motion and second to remove from the consent agenda for additional discussion
ATTACHMENTS:
1.Resolution -Consider Approval of a Resolution Delegating Authority to Pay Claims and
Make Electronic Fund Transfers