HomeMy WebLinkAbout05(H) - Approval Delegating Authority to Pay Claims and Make Electronic Fund Transfers Report
ITEM: 5H
CITY COUNCIL AGENDA REPORT
MEETING DATE: January 13, 2026
PREPARED BY: Nicole Klekner, Finance Director
PRESENTED BY: Nicole Klekner
AGENDA ITEM: Approval of Delegating Authority to Pay Claims and Make
Electronic Fund Transfers
RECOMMENDED ACTION:
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 city 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, and (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
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 to approve a resolution delegating authority to pay claims and make
electronic fund transfers.
2. Motion and second to remove this item from the consent agenda for additional discussion
City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372
Item 5H
Page | 2
ATTACHMENTS:
1. Resolution – Approval of Delegating Authority to Pay Claims and Make Electronic Fund
Transfers
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 26-
A RESOLUTION APPROVING THE DELEGATING OF AUTHORITY TO PAY CLAIMS AND
MAKE ELECTRONIC FUND TRANSFERS
Motion By: Second By:
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; and
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 HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. Effective January 1, 2026 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. Effective January 1, 2026 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.
Passed and adopted by the Prior Lake City Council this 13th day of January 2026.
VOTE Briggs Braid Churchill Lake Hellier
Aye
☐
☐ ☐ ☐ ☐
Nay
☐ ☐ ☐ ☐ ☐
Abstain
☐ ☐ ☐ ☐ ☐
Absent
☐ ☐ ☐ ☐ ☐
______________________________
Jason Wedel, City Manager
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