HomeMy Public PortalAbout2016-07-06 packetNOTICE OF MEETING & TENTATIVE AGENDA
Council Committee on Administration
Wednesday,July 6,2016 –7:30 a.m.
Boone/Bancroft Room (City Hall) –320 E McCarty St
Tentative Agenda
1.Call to Order
2.Roll Call
3.Approval of Minutes
4.Approval of Grant Applications (Hilpert & Mueller)
5.Transferring Cultural Arts Committee to the supervision of the Parks and Recreation
Dept. (McMillan)
6.Appointment Review (Strope)
Current
Volunteer
Full terms
served
Board or Commission Recommended
appointment
New term
expires
Term Full/Partial
Erin Wiseman/
ALTERNATE
N/A Planning & Zoning Matthew Hall May 2017 FULL
7.Adjournment
NOTES
Minutes of Meeting
Jefferson City Council Committee on Administration
Wednesday,June 1, 2016
City Hall -320 E. McCarty Street
Large Conference Room
ATTENDEES.
Committee members present:Jim Branch, Glen Costales, Rick Mihalevich, Erin Wiseman
Staff present:Drew Hilpert,Gail Strope, Steve Crowell, Margie Mueller
Meeting came to order at 7:33 a.m. Councilman Costales made a motion to approve the minutes
which was seconded by Councilman Mihalevich.The motion passed 4-0.
Smoking 21 bill.The Committee heard a presentation from several members of the Smoking 21
group regarding changing the minimum age for purchasing tobacco products to 21.
Amending the Grant Application Process.
Presented by Drew W. Hilpert.Mr. Hilpert explained that staff would like to amend the Grant
Application and approval process to allow the City Administrator to approve all grant
applications under $25,000 and the power to accept those grant funds. After discussion and
questions, committee members recommended that staff draft amendments to policies and code to
allow the City Administrator to approve all applications for grants which do not require more
than a $5,000 city match.
Citizen Committee .
Presented by Councilman Jim Branch.Councilman Branch discussed his desire to review the
City’ s citizen boards. After questions and discussion, the Committee members requested that
staff bring them a review of all the City’ s Citizen Boards and Commissions including their
charge, authority, and reporting requirements, for review. Staff advised they would bring that
back in a few months.
Appointments Review.
Presented by Gail Strope.The committee reviewed the recommendations by Mayor Tergin.
After discussion and questions, Councilperson Wiseman made a motion to move the bill onto the
Council which was seconded by Councilman Mihalevich. The motion passed 4-0.The
positions approved were as followed:
Volunteer Full terms
served
Board or Commission Recommended
appointment
New term
expires
Term
Full/Partial
Chet Hartley 0 Airport Advisory Trey Propes Mar 2020 FULL
Lara Underwood 0 Cultural Arts Heidi Lucas Mar 2019 FULL
Gara Loskill 0 Cultural Arts Hold Mar 2018 PARTIAL
Taryn Prewitt 0 Cultural Arts Katy Lacy Mar 2019 FULL
Erin Wiseman/N/A Planning & Zoning Hold May 2017 FULL
ALTERNATE
Jefferson City Industrial
Development Authority (IDA)
Dan Westhues May 2019 FULL
Jefferson City Industrial
Development Authority (IDA)
Diane Gillespie May 2019 FULL
Jefferson City Industrial
Development Authority (IDA)
Beth Utrecht May 2019 FULL
Jefferson City Industrial
Development Authority (IDA)
Larry Vincent May 2019 FULL
Jefferson City Industrial
Development Authority (IDA)
Bernie Fechtel May 2019 FULL
Jefferson City Industrial
Development Authority (IDA)
Hank Vogt May 2019 FULL
Jefferson City Industrial
Development Authority (IDA)
Bob Gilbert May 2019 FULL
Smoking 21 bill (continued). The Committee further discussed the Smoking 21 bill including
whether it was best suited for initiative petition. After further discussion and questions
Councilman Mihalevich made a motion to send this matter to the Public Safety Committee for
further discussion. The motion was seconded by Councilman Costales. The motion passed 4-0.
New Business.
Drew Hilpert advised the Committee regarding the liability insurance coverage and that it would
be on the next Council agenda on the consent agenda.
There being no further business,after discussion and questions, Councilman Costales made a
motion to adjourn which was seconded by Councilman Mihalevich. The motion passed 4-0.
BILL NO.[Bill No.]
SPONSORED BY COUNCILMAN _______________________
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AMENDING THE
GRANT APPLICATION AND ACCEPTENCE REQUIREMENTS TO ALLOW THE CITY
ADMINISTRATOR TO APPROVE AND ACCEPT GRANTS WHICH DO NOT REQUIRE
MORE THAN A $5,000 MATCH IN FUNDS BY THE CITY OF JEFFERSON AND
AMENDING THE FINANCIAL POLICY OF THE CITY OF JEFFERSON.
BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS
FOLLOWS:
Section 1.Chapter 2 (Administration) Section 28 (Grants) is amended as
follows:
Sec. 2-28. Grants.
A.Application.Grants under Five Thousand Dollars ($5,000)The City Administrator may approve all
applications for grants which do not require more than a Five Thousand Dollar ($5,000) match of
City Funds.
Prior to application for any grant that requires the City to contribute matching funds of Five Thousand
Dollars ($5,000.00) or more, the Council shall approve by Resolution any the grant application filed on
behalf of the City.
B.Acceptance.
1.Upon award of the grant to the City, the City Administrator shall submit to the City Council for
approval on the Consent Agenda a copy of the document awarding the grant and a memo which
includes at least the following information:
a.The name of the grantor;
b.The amount of the grant;
c.The purpose of the grant;
d.Any matching requirements or future obligations tied to acceptance of the grant;
e.CFDA#Catalog of Federal Domestic Assistance (CFDA) number:
f.Grant Award # (if any):
g.Revenue and Expense account to be amended.
2.Upon Approval of the Consent Agenda, the City Administrator may, on behalf of the City execute
any documents necessary for accepting the grant and amend the budget to reflect the acceptance of
such revenue, and amend the budget to reflect equivalent expenses so as to accomplish the purpose
of such funds.
3.If a grant, gift, or donation of five thousand dollars ($5,000.00) or less is given to the City without
application, the City Administrator, or his/her designee, may, on behalf of the City, accept such
grant, gift, or donation, and shall amend the budget to reflect the acceptance of such revenue, and
shall may amend the budget to reflect any equivalent expenses so as to accomplish the purpose of
such funds.
Section 2.Ordinance 15329 (Financial Policy Guidelines for City of Jefferson
Missouri) is amended and replaced as follows:
See exhibit A
Financial Policy Guidelines
For:
City of Jefferson, Missouri
Supersedes: Ordinance 15329
Review Responsibility: Finance Department
Review Scheduled: Annually or as needed
Approval Needed: City Council
Adopted October 20, 2014____________, 2016 by Ordinance
Financial Policy Guidelines
City of Jefferson, Missouri
October 20, 2014_______________, 2016
TABLE OF CONTENTS
I ntroduction…… …… …… …… …… …… …… …… …… …… … …… …… …… …… …… …… …… … …… . 3
Revenue Policies… …… …… …… …… …… …… …… …… … …… …… …… …… …. … …… …… … …. …3
Expenditure Policies…… …… …… …… …… …… …… …… … …… …… …… …… …. . …. . … …… …… . 7
Financial Planning Policies… …… …… …… …… …… … … …… …… …… . … …… …. …… …… . … …. 10
Purchasing Policies…… …… …… ………… …… …… …… … …… …… …… …… …. . … …… …. …… . … 13
I ndependent Audit Requirem ents… …… …… …… …… …… …… …… …… …… …… …… … …… 14
Glossary… …… …… …… …… …… …… …… …… …… …… …… … …… …… …… …… …. …. …… … . … …. 14
I NTRODUCTI ON
The City of Jeff erson ( City) has a variety of financial policies that can be found in many diff erent
sources, including, City Council ordinances, city code, personnel manual, budget documents,
and comprehensive financial statements.
The f ollow ing financial policies have been developed based on the Government Finance
Of ficers Association ( GFO A) recommendations. GFOA recommends f inancial policies in the
f ollow ing areas be developed by professional staf f and formally adopted: Revenue,
Expenditure, and Financial Planning.
These adopted policies w ill be used to frame policy initiatives and will be summarized in the
budget document. These policies will be reviewed during the budget process. Prof essional staff
will review to ensure continued relevance and to identify any gaps that should be addressed
with new policies. The result of the review will be shared during the review of the proposed
budget.
The Charter of the City of Jeff erson, Missouri, Article VI I Financial Procedures, Section 7. 1. 7-
Establishing Financial Procedures states, “The f iscal af fairs of the city shall be the responsibility
of the f inance department. The head of the finance department shall be designated the fiscal
off icer of the city. Qualif ications, duties and pow ers of the fiscal of ficer shall be set by
ordinance. ” The adopted financial policies require compliance f rom all City Departments and
Commissions within the City.
Revenue Policies
Understanding the revenue sources is essential to planning. The revenue policies seek to
provide stability in order to avoid potential service disruptions caused by revenue shortfalls.
The revenue policies are broken dow n into the f ollow ing:
a.Use of One-time Revenues –The City will discourage the use of one-time revenues f or
ongoing expenditures.
b.Revenue Diversif ication – The City w ill encourage a diversity of revenue sources in order
to improve the ability to handle f luctuations in individual sources.
c.Uses of Unpredictable Revenue – The City w ill identif y each maj or unpredictable
revenue source and the aspects of the revenue source that make the revenue
unpredictable.
d.Fees and Charges – Fees and charges are reviewed annually in schedule Y of the City
Code.
1.Use of One-Time Revenues
Purpose: The one-time revenue policy provides guidance to minimize disruptive ef fects on
services due to non-recurrence of these sources.
Def ined: One-Time revenues are revenues that cannot be relied on in f uture budget periods.
One-time revenues may be available f or more than one year ( e. g. , a three year grant) , but are
expected to be non-recurring. One-time revenues may be used for start-up costs, stabilization
( e. g. , to cover expenditures that temporarily exceed revenues) , early debt retirement, and
capital purchases. Uses that add to the on-going expenditure base will be caref ully review ed
and minimized, e. g. , capital expenditures that significantly increase ongoing operating expenses
without sustainable and of fsetting long-term revenue plan.
Examples of one-time revenues include:
I nf requent sales of government assets
Bond ref unding savings
I nf requent revenues from development
Grants when the approval/authorization of the grant is reevaluated on a periodic basis,
the money received is based on f unding availability and/or perf ormance. Attachment A is
the internal policy and procedures that guide the City when applying f or and accepting
grants as w ell as the financial responsibilities af ter grant acceptance.
Summary:Compliance will be reviewed periodically.
2.Revenue Diversification
Purpose: The revenue diversification policy encourages a diversity of revenue sources in order
to improve the ability to handle f luctuations in individual sources and to maintain needed
services during periods of declining economic activity.
An analysis of revenue sources will be conducted on a regular basis. The results of the analysis
will be provided to the City Council f or review with the City Council providing direction or
action( s) required of the staf f.
Examples of what the analysis could include are:
Address the sensitivity of revenues to changes in rates
Fairness of the tax or fee
Administrative aspects of the revenue source
Summary: Approach to implementing this policy w ill be review ed periodically. Diversity of
revenue sources can af f ect the relative tax burden on dif ferent stakeholders.
3.Use of Unpredictable Revenues
Purpose: Unpredictable revenues cannot be relied on as to the level of revenue they will
generate. Particularly with maj or revenue sources, it is important to consider how signif icant
variation in revenue receipts w ill af f ect the City’ s outlook and ability to operate programs in the
current and future budget periods.
The City w ill identif y each maj or unpredictable revenue source and the aspects of the revenue
source that make the revenue unpredictable and how these revenues will be used. The City
will identify the expected or normal degree of variation of the revenue source as well as
identif y in advance a set of tentative actions to be taken if one or more of the revenue sources
generates higher or lower than proj ected. The tentative actions will be publicly discussed and
used in budget decision making.
Unpredictable revenues are of ten used to f und ongoing programs. The City’ s f inancial plan will
take into account the unpredictable nature of the revenues identified. A specific allocation
contingency plan may become increasingly necessary as the size of the predictability of the
revenue sources increases.
Examples of unpredictable revenues include:
I ntergovernmental revenues
I nterest income
Sales taxes
Revenues subj ect to future j udicial rulings
Property Taxes subj ect to assessed values as established by the County Assessors of Cole
and Callaw ay Counties
Summary: The tentative actions will be reviewed annually.
4.Charges and Fees
Purpose: The charge and f ee policy requires identif ication of both the cost of the program and
the portion of the cost that will be recovered through f ees and charges.
Def ined: Certain services provide a benefit to a particular group; the City w ill consider charges
and f ees on the direct recipients of those groups that receive benef its f rom such services.
Policy:
a)Consider applicable law s and statutes bef ore the implementation of specific fees and
charges, specifically Missouri’ s Hancock Amendment ( Article X Sections 18-24) .
b)I dentify the f actors ( af f ordability, pricing history, inflation, service delivery alternatives,
and available ef ficiencies) to be taken into account when pricing.
c)State w hether the intention is to recover the full cost. I f the f ull cost is not recovered,
provide an explanation of the rationale f or the deviation.
d)Outline considerations that might inf luence pricing decisions. Examples include: the
need to regulate demand, the desire to subsidize a certain product, competition with
private businesses, economic development, elasticity of demand f or the service, and
visibility of the service to the community.
e)How the charges and f ees w ill be levied and collected w ill be considered.
f )Calculate the f ull cost of providing the service in order to provide a basis f or setting the
charge or f ee. This w ould include direct and indirect costs. Examples of indirect costs
include:
i.Payroll processing
ii.Accounting services
iii.Computer usage
g)Associated costs of collection need to be addressed.
h)Review and update charges and f ees periodically. Some f actors to include in the review
could be:
i.I mpact of inf lation
ii.Cost increases
iii.Adequacy of cost recovery
iv.Use of services
v.Competitiveness of current rates
i)Utilize long-term f orecasting in ensuring that charges and f ees anticipate f uture costs in
providing the service.
j )Provide inf ormation on charges and f ees to the public.
Summary:A suggested tool f or calculating service cost is Activity Based Costing. This costing
method assigns costs to the activities required to deliver a service and can be more accurate
than traditionally costing methods.
All f ees and charges w ill be review ed periodically. Stakeholders will be given the opportunity
to provide input into formation of the policies. Charges and f ees will be identif ied in other
government documents, including planning and management reports. Reasons f or not
recovering f ull costs will be identif ied and explained.
Expenditure Policies
Prudent expenditure planning and accountability will ensure fiscal stability. The expenditure
policies will be broken down into the f ollowing:
a.Debt Capacity, I ssuance, and Management –The City will specif y appropriate uses f or
debt and identifies the maximum amount of debt and debt service that should be
outstanding at any given time.
b.Reserve or Stabilization Accounts – The City will maintain a prudent level of f inancial
resources to protect against the need to reduce service levels or raise taxes and f ees
due to temporary revenue shortf alls or unpredicted one-time expenditures.
c.Operating/Capital Expenditure Accountability – The City w ill compare actual
expenditures to budgets periodically ( e. g. , quarterly) and decide on actions to bring the
budget into balance, if necessary.
1.Debt Capacity, I ssuance, and Management
Purpose: Policies guiding the amount of debt that may be issued by the City w ill help ensure
that outstanding and planned debt levels do not exceed an amount that can be supported by
the existing and proj ected tax and revenue base.
Policy:
The City may issue general obligation bonds, revenue bonds, special obligation bonds, and
short-term notes and leases in accordance with applicable laws.
The City may issue refunding bonds for the purpose of ref unding, extending or unif ying the
whole or any part of its valid outstanding revenue bonds.
The City w ill limit long-term debt to only those capital proj ects that cannot be financed f rom
current revenue or other available sources and are a high priority of the City Council.
The City w ill f ollow a policy of f ull disclosure on every financial report and bond prospectus.
W hen the City f inances capital proj ects by issuing bonds, it will repay the bonds within a period
not to exceed the expected usef ul life of the proj ects.
The City w ill manage its budget and financial af f airs in such a way so as to ensure continued
high bond ratings.
Bonds shall be issued in accordance w ith Missouri and Federal law . Two sections of the
Missouri Constitution address debt limits f or the City. Article VI , Sections 26( b) and ( c) of the
Missouri Constitution provides, w ith a vote of f our-sevenths of qualif ied electors voting at a
general municipal election day, primary or general election day or tw o-thirds f or all other
elections, a city may incur an indebtedness not to exceed in aggregate, 10 percent of the value
of taxable tangible property of the City, f or any purposes authorized in the charter of the city or
by any general law of the State of Missouri. Article VI , Sections 26( d) and ( e) of the Missouri
Constitution provides, w ith a vote of four-sevenths of qualif ied electors voting at a general
municipal election day, primary or general election day or two-thirds f or all other elections, a
city may become indebted an additional 10 percent of the value of taxable tangible property of
the City f or lawf ul purposes.
I ndustrial revenue bonds will be issued upon City Council approval and f or purposes allow ed in
Chapter 100 of the Revised Missouri Statutes.
Revenue bond issuance requires the City to set aside assets w hich are treated as restricted
assets to serve as security for the payment of debt service costs on outstanding revenue bonds,
f or replacement reserves, for contingencies and f or the periodic accumulation of f unds to pay
semi-annual bond interest and annual principal due during the next f iscal year.
The City has available to it several economic development incentives. Some of those incentives
allow for the City to take on debt and the debt capacity may be aff ected by the use of those
incentives. Economic Development tools w ill be considered in accordance w ith this policy and
Chapter 25 Article XI I of the City Code.
2.Reserve or Stabilization Accounts
Purpose: To provide guidelines to the City Council and staff f or establishing, maintaining and
perf orming an annual review of the minimum and target f und balance reserves.
Background: A minimum General Fund reserve policy is generally considered a prudent and
conservative f iscal policy to deal w ith unf oreseen situations and long-term f inancial planning.
Some examples of unf oreseen situations include, but are not limited to:
Unfunded Federal/State or other mandates
Economic dow nturn
Revenue shortf all
Credit rating agencies continually monitor the levels of unassigned fund balance in a
government’ s General f und when evaluating the government’ s creditw orthiness and assigning
a credit rating to a government’ s debt issuance.
Policy:
The City calculates an unreserved, undesignated General Fund balance at a minimum of 17% of
operating expenditures as originally adopted f or the General Fund budget. These funds will be
used to avoid cash f low interruptions, generate interest income, and reduce need f or short-
term borrow ing. All other f unds, if they are not subsidized by other f unds, shall maintain a
minimum 10% fund balance. ( e. g. , W astew ater Fund, Parking Fund)
The reserves shall be used w hen approved by f ormal City Council action.
Some examples of situations w hen approval by f ormal City Council action is required include,
but are not limited to:
Large one-time cost.
Unanticipated budgetary shortf all.
To mitigate service impacts during a signif icant economic downturn in the economy or a
signif icant and unexpected loss of revenue.
Catastrophic event or natural disaster that threatens the saf ety of persons and property
within the City.
City sustains unexpected liabilities created by Federal, State, or other mandates out of
the City’ s control.
I n any fiscal year the General Fund reserve balance is required to be used or is not achieved, the
City Administrator and Finance Director shall present to the City Council a strategy to meet the
f und balance reserve level w ithin 2 fiscal years.
Staf f shall ensure that the provisions of this policy are ef f ectively implemented. I f it is
determined that there is a conflict between this policy and other more specific governing
policies involving the operating budget, this shall be brought to the attention of the City
Administrator and the Finance Director w ho will determine the appropriate course of action.
The Transit and Airport f unds have historically been subsidized from the General Fund. The
f iscal year ending balance in both f unds is made available for Transit and Airport operations f or
the next fiscal year. The City w ill not calculate an unreserved, undesignated f und balance
amount f or these two f unds until such time as there is not a subsidy from the General Fund.
Generally, the City w ill strive to not have one f und subsidize another f und.
Summary: Compliance to the Fund Balance Reserve Policy will be examined on an annual basis.
3.Operating/Capital Expenditure Accountability
Purpose: To ensure mechanisms are in place to ensure compliance with the adopted budget
while allowing the City to detect and correct signif icant deviation if it occurs.
Policy:
The Finance Director is responsible f or maintaining a system of control to ensure that
expenditures do not exceed budgetary appropriations.
A report of the General Fund current year expenditures is provided on a monthly basis to the
City Finance Committee/Council, w hich is also available to the public.
All departments of the City have access to run a monthly budget vs. actual report at any time.
The Finance Department will analyze the expenditure of each department on a quarterly basis
and inf orm each Department Director whose expenditures appear to be exceeding the adopted
budget. During preparation of mid-year proj ections, the Finance Department will notif y all
Department Directors and the City Administrator w hose budgets are likely to be exceeded f or
f urther direction.
Summary: A department w ill not exceed its approved overall budget without authorization
f rom the City Administrator. The Director of each department w ill be held responsible and
accountable f or the expenditures of his/her department. The Finance Director through timely
reports and analysis, keep Department Directors and elected off icials inf ormed of any possible
budget problems.
Financial Planning Policies
Financial planning policies address both the need for a long-term view and the f undamental
principle of a balanced budget. The f inancial planning policies will be broken dow n into the
f ollow ing:
a.Balanced Budget –The City’ s policies def ine a balanced operating budget, commitment
to a balanced budget under normal circumstances, and require disclosure w hen a
deviation from a balanced operating budget is planned or w hen it occurs.
b.Long-Range Planning – The City’ s policies support a financial planning process that
assesses the long-term f inancial implications of current and proposed operating and
capital budgets, budget policies, cash management and investment policies, programs
and assumptions.
c.Asset I nventory – The City’ s policies require an inventory and an assessment of the
condition of all maj or capital assets.
1.Balanced Budget
Purpose: To ensure mechanisms are in place to ensure compliance with the adopted budget
while allowing the City to detect and correct signif icant deviation if it occurs.
Policy:
The Finance Director is responsible f or maintaining a system of f inancial control to ensure that
expenditures do not exceed budgetary appropriations. A report of the General Fund current
year expenditures is provided on a monthly basis to the City Finance Committee/Council. All
departments of the City have access to run a monthly budget vs. actual report at any time. The
Finance Department will analyze the expenditure of each department on a quarterly basis and
inf orm each Department Director w hose expenditures appear to be exceeding the adopted
budget. During preparation of mid-year proj ections, the Finance Department will notif y all
Department Directors and City Administrator whose budgets are likely to be exceeded f or
f urther direction.
Summary: The Director of each department shall be held responsible and accountable f or the
expenditures of his/her department. The Finance Director through timely reports and analysis,
keep Department Directors and elected of f icials inf ormed of any possible budget problems. A
department shall not exceed its approved budget without authorization from the City
Administrator.
2.Long-Range Planning
Purpose: To ensure the City assesses the long-term f inancial implications of current and
proposed operating and capital budgets, budget policies, cash management and investment
policies, programs and assumptions.
Policy:
The City w ill adopt a budget that includes a multi-year analysis. The multi-year analysis w ill
establish assumptions for revenues, expenditures and changes to fund balance over a f ive year
horizon. The assumptions will be evaluated periodically as part of the budget process.
3.Asset I nventory
Purpose: The capital assets of a government and the condition of the capital assets are critical
to the quality of services provided, and are important in determining whether the needs and
priorities of the stakeholders can be met.
Capital assets include maj or government f acilities, inf rastructure, equipment and netw orks that
enable the delivery of public sector services.
Policy:
The Finance Director will be responsible f or maintaining a central inventory control system.
Capital assets are def ined by the City Finance Director as assets w ith an estimated usef ul life in
excess of one year with a threshold of $10, 000. The capitalization threshold f or inf rastructure
assets ( e. g. , roads, bridges, sidewalks, and similar items) is $10, 000.
Capital assets f or all f und types are recorded at cost or estimated historical cost where cost
could not be determined f rom available records. Donated f ixed assets are recorded at their
estimated fair value at the date of donation. The cost of normal maintenance and repairs that
do not add to the value of the asset or materially extend the asset lif e are charged to
operations as they occur and are not included in the capital assets. Renew als and betterment
are capitalized over the remaining useful lif e of the related capital assets, as applicable.
Maj or outlays f or capital assets and improvements are capitalized in proprietary f unds as
proj ects are constructed. I nterest incurred during construction is reflected in the capital value
of the asset. I n addition, capital outlays f or intangible assets are capitalized. I ntangible assets
include easements with an indef inite life w hich are theref ore, not being amortized.
Property, plant and equipment are depreciated using the straight line method over the
f ollow ing estimated usef ul lives:
Buildings 10-50 years
I mprovements other than buildings 7-10 years
W astew ater plant and system 40-50 years
Machinery and equipment 3-20 years
Furniture and f ixtures 5-10 years
Motor Vehicles 2-15 years
I nf rastructure:
Streets and stormwater drainage 35 years
Sidew alks and trails 30 years
Street lighting 30 years
Traf fic signals 20 years
The Finance Department capital asset inventory reports are distributed to each department
near the end of the City’ s f iscal year with instructions to proceed with their inventory. The
inventory reports are returned to the Finance Department as directed in the instructions.
W hen a department has indicated an asset has been transf erred to another department, a
transfer sheet needs to be submitted to the Finance Department.
W hen a department has indicated an asset has been deleted, a deletion form needs to be
submitted to the Finance Department.
All capital assets deleted must have been declared surplus by the City Council.
On a yearly basis, or as needed, all departments shall submit to the purchasing agent reports
show ing any property to be declared surplus. The purchasing agent shall submit a report to the
City Council inf orming them of the content of the departmental reports.
Summary: Annually conduct an inventory of all existing assets. Evaluate existing assets to
determine if they still provide the more appropriate method to deliver services. Allocate
suf ficient f unds in the multi-year capital plan and annual operations budget for condition
assessment, preventive maintenance, repair and replacement of capital assets in order to
continue the provision of services that contribute to public health, saf ety, and quality of life of
the public.
Purchasing Policies
Bef ore the City makes any purchase or contract, or lets any contract f or improvements, there
shall be given ample opportunity f or competitive bidding.
Employees will be responsible f or adhering to the City Purchasing Policy, approved by the City
Council. The current City Purchasing Policy can be f ound in City Code, Chapter 26A ( attachment
B).
I ndependent Audit Requirem ents
City Charter, Section 3. 10 requires the City Council to provide f or an independent audit of all
City accounts at least annually. The audit will be conducted by a certified public accountant or
f irm of accountants w ho have no personal interest, direct or indirect, in the f iscal af fairs of the
City government or any of its of ficers. A copy of the report prepared by a certif ied public
accountant or f irm of such accountants shall be kept in the city clerk’ s of fice and shall be open
to public inspection.
GLOSSARY
Adopted Budget: Ref ers to the budget amount as originally approved by the City Council at the
beginning of the fiscal year.
Agency Fund: The City’ s agency f und is a clearing account f or tax incremental f inancing. The
agency is custodial in nature and does not involve measurement of results of operations.
Appropriation: The legal authorizations made by the City Council ( w ho approve department
budgets) to the departments, of f ices and agencies of the City, allow ing the departments to
make expenditures and incur obligations for specif ic purposes w ithin the amounts approved.
Balanced Budget: Annual financial plan in w hich expenses do not exceed revenues.
Budget ( Operation): A plan of f inancial operation embodying an estimate of proposed
expenditures f or a given period and the proposed means of financing them. Used without any
modifier, the term usually indicates a financial plan f or a single f iscal year.
Capital Assets: Assets of signif icant value and having a usef ul life of several years. Capital
Assets are also called Fixed Assets.
Capital Outlays: Expenditures f or the acquisition of capital assets.
Capital Proj ects: Proj ects that purchase or construct capital assets. Typically a capital proj ect
encompasses a purchase of land and/or the construction of a building or f acility.
Capital Proj ects Fund: Capital proj ects funds account f or the acquisition and construction of
maj or capital f acilities other than those f inanced by propriety f unds and trust f unds.
Cash Managem ent: Tracking and f orecasting cash f low, and w orking w ith investment
personnel to develop an investment plan. Maintaining cash accounts and controlling their
disposition. Coordinating and controlling bank accounts.
Debt: An obligation resulting from the borrowing of money or f rom the purchase of goods and
services. Debt of governmental units includes bonds, time w arrants, notes, and floating debt.
Debt Service: The amount of money necessary to pay interest on an outstanding debt.
Departm ent: The Department is the primary unit in City operations. Each is managed by a
Department Director. Departments are generally composed of divisions w hich share a common
purpose or w hich perf orm similar duties.
Enterprise Fund: Enterprise f unds account for operations that are f inanced and operated in a
manner similar to private enterprises, where the intent of the City is that the costs of providing
goods and services to the general public on a continuing basis be f inanced or recovered
primarily through user charges; or w here the city has decided that periodic determination of
net income is appropriate for accountability purposes. The City of Jef ferson uses enterprise
f unds to account f or wastew ater, airport, parking, and transit operations.
Expenditures: W here accounts are kept on the accrual or modified accrual basis of accounting,
the cost of goods received or services rendered w hether cash payments have been made or
not. W hen accounts are kept on a cash basis, expenditures are recognized only w hen the cash
payments f or the above are made.
Expense: Charges incurred ( w hether paid immediately or unpaid) f or operations, maintenance,
interest or other charges.
Fiscal Policy: A government’ s policy relating to budgeting of expenditures and revenues.
Fiscal Year: A 12-month period of time to w hich the annual budget applies and at the end of
which a governmental unit determines its financial position and the results of its operations.
The City of Jeff erson has a fiscal year of November 1st through the f ollow ing October 31st.
Fiduciary Funds: Fiduciary f unds are used to account f or resources held f or the benef it of
parties outside the government. The Firefighter’ s Retirement plan is a f iduciary f und.
Full Disclosure: Providing accurate and complete inf ormation material to a bond issue, which a
potential investor would be likely to consider important in deciding whether to invest. Material
f acts that enable the investor to evaluate the credit quality of an issue.
Fund: An independent f iscal accounting entity with a self-balancing set of accounts recording
cash and/or other resources together w ith all related liabilities, obligations, reserves, and
equities which are segregated for the purpose of carrying on specif ic activities or attaining
certain obj ectives.
Fund Balance: An accumulated excess of revenues over expenditures. Any amount lef t over
af ter expenditures are subtracted f rom resources is then added to the beginning f und balance
each year.
Fund Type: All f unds f or the City of Jef f erson are classified into six f und types: General, Special
Revenue, Capital Proj ects, Enterprise, I nternal Service, and Fiduciary and Agency.
General Fund: The largest governmental f und, the General Fund accounts f or most of the
f inancial resources of the general government. General Fund revenues include property taxes,
licenses and permits, local taxes, service charges, and other types of revenue. This fund usually
includes most of the basic operating services, such as f ire and police protection, f inance,
planning and protective services, public w orks, and general administration.
General Obligation Bonds: Bonds which are secured by the f ull faith and credit of the issuer.
General Obligation bonds issued by local units of government are secured by a pledge of the
issuer’ s ad valorem taxing power.
Governm ental Funds: Governmental f unds are used to account f or governmental activities
f ocusing on near-term inf low s and outf low s of spendable resources, as well as on balances of
spendable resources available at the end of the City’ s f iscal year. The City maintains twelve
individual governmental funds.
Grant: A contribution of assets ( usually cash) by a governmental unit or other organization to
another. Typically, their contributions are made to local governments from state and f ederal
governments and made f or specified purposes.
I ndustrial Revenue Bonds: Bonds issued to provide financial assistance to private-sector
entities f or the acquisition and construction of industrial and commercial f acilities deemed to
be in the public interest. The bonds are secured by the property financed and are payable solely
f rom payments received on the underlying f inancing agreement. Upon repayment of the
bonds, ow nership of the acquired f acilities transf ers to the private-sector entity served by the
bond issuance.
I nternal Service Fund: I nternal Service f unds account for the self-insurance workers
compensation f unds.
Long-Term Debt: Debt with a maturity or more than one year af ter date of issuance.
Outstanding: I n general as used with respect to the principal of an issue, remaining unpaid.
Proprietary Funds: Proprietary Funds are business-like funds. The City maintains two dif ferent
types of proprietary f unds, enterprise f unds and internal service f unds.
Revenue Bond: A bond whose principle and interest are payable exclusively from earnings of
an enterprise f und.
Special Revenue Fund: Special revenue f unds are used to account f or specif ic revenues that
are legally restricted to expenditures f or particular purposes. The City of J eff erson uses Special
Revenue Funds to account for Parks & Recreation, JC Veteran’ s Plaza Trust Fund, Police Training
Fund, Lodging Tax Fund, City Hall Trust Fund, U SS JC Submarine Trust, and W oodland Cemetery.
Tax or Taxes: Compulsory charges levied by a governmental unit for the purpose of raising
revenue. Tax revenues are used to pay f or services or improvements provided f or the general
public benef it.
I . RESPONSI BI LI TI ES AFTER ACCEPTANCE
A.Department Accepting Grant Funds
1.Once grant f unds are accepted, the Director of the accepting department
MUST designate a Grant Administrator f or each accepted grant w ho w ill be
responsible f or the grant. The Department Director shall be accountable to the
City Administrator for the actions of the appointed Grant Administrator.
2.The Grant Administrator MUST provide to the Accountant in the Finance
Department the complete grant agreement.
3.The Grant Administrator MUST complete reimbursement requests on a
regular basis—monthly requests are pref erred, how ever requests should be no
less than quarterly. This provision shall only apply in the case that grant money
is actually spent during the above identified reporting period. W here there is no
specif ic f orm f or reimbursement required by the Grantee, the Grant
Administrator shall use the attached “Request f or Reimbursement” form
attached as exhibit E.
a)ALL PAYMENTS of grant funds received MUST be forwarded to the
Accountant in the Finance Department f or deposit.
4.At the time of each reimbursement request, the Grant Administrator MUST
provide to the Accountant in the Finance Department the following documents:
a)The reimbursement request f orm
b)Supporting documentation f or each item being requested f or
reimbursement. This should include but is not limited to the f ollowing:
( 1)General Ledger Detail Reports f or accounts that the expenses
were originally coded to
( 2)Copies of I nvoices
( 3)Copies of Timesheets
B.Finance Department
1.Once the grant funds are accepted, the Finance Department will complete a
Budget Amendment to the accounts specified on the “Memo for Grant
Acceptance”. As no grant revenues are being recognized in the initial budget
process, this step is necessary to not only recognize the revenue but to allocate
additional budgeted f unds to the appropriate expense accounts.
2.W hen the Finance Department receives the reimbursement requests w ith
supporting documentation f rom the Grant Administrator, the Accountant w ill
compare the supporting documents to the general ledger and update the
Schedule of Expenditures of Federal Aw ards.
3.The f inance department will notify the Department Director receiving the
grant upon receipt of grant f unds.
II.Re-appropriation.
A. I t shall be the responsibility of the G rant Administrator to f ile a request f or re-
appropriation f or any unspent multi-year grant f unds which are unspent each year no later than
January 1st of each year. The Grant Administrator shall utilize the “Re-Appropriation Form”
attached herew ith as exhibit F.
B. The Finance Department shall notif y each department of the re-appropriation
requirement at least 15 days prior to the due date, however a failure of the Finance
Department to comply with this section shall not relieve the Grant Administrator of their
obligation to f ile the Re-appropriation.
III.Gifts.
Gifts to the City shall be treated the same as Grants.
Attachm ent A
Procedures for Applying For and Accepting Grants PLUS
Responsibilities after Acceptance
I V. APPLI CATI ON
A.The City Administrator may approve all applications for grants which do not require
more than a Five Thousand Dollar ( $5, 000. 00) match of City funds.
A.B.For any grant which requires an application by the City Prior to application for
any grant that requires the City to contribute matching f und of Five Thousand Dollars
( $5, 000. 00) or more, prior to applying f or a grant, the Council MUST approve by
resolution any grant application filed on behalf of the City.
1.The Department applying f or the grant must complete a Resolution to be
submitted to the Council. The Department may submit either the resolution
required by the Grantor, or the “Resolution Grant Application Form”, herein
attached as Exhibit A. Exhibit A may be amended or modif ied as desired but
shall contain at least inf ormation f ound w ithin Exhibit A.
2.The Department shall also complete a Resolution Summary for submission to
the Council. The summary shall be essentially in the f orm attached as Exhibit B.
Exhibit B may be amended or modified as desired but shall contain at least
inf ormation f ound within Exhibit B.
3.The Department applying for the grant must take necessary steps w ith the
City Clerk to get the Resolution f or Grant Application added to the Council
Agenda.
B.C. For any grant w hich does not require an application by the City, the Department
shall upon notice of the aw arding to the City of such grant, submit the grant to the City
Council f or acceptance, pursuant to Section I I .
V.ACCEPTANCE
A.For Aw ards in excess of $2, 000 $5, 000
1.Upon award of the grant to the City, the Council MUST approve on the
Consent Agenda any grant funds being accepted on behalf of the City or in the
alternative the Council may approve a contract w ith the Grantor by ordinance.
I n either case, a) , b) , and c) below shall be applicable.
a)The Department wishing to accept the grant f unds must complete the
“Memo f or Grant Acceptance Over $2, 000 $5, 000”, herein attached as
Exhibit C, which should include at least the f ollowing inf ormation:
( 1)The name of the grantor
( 2)The amount of the grant
( 3)The purpose of the grant
( 4)Any matching requirements or f uture obligations tied to
acceptance of the grant
( 5)The Catalog of Federal Domestic Assistance (CFDA) number
( 6)The grant aw ard number ( if any)
( 7)The revenue and expense accounts to be amended
b)The Department w ishing to accept the grant funds must forw ard to
the Chief Accountant in the Finance Department the f ollowing
documents:
( 1)A copy of the document aw arding the grant
( 2)The completed “Memo f or Grant Acceptance Over $2, 000
$5, 000”
c)The Finance Department will review the “Memo f or G rant Acceptance
Over $2, 000 $5, 000” to verif y the account numbers to be amended are
correct. They will then f orw ard the following documents to the City Clerk
to add the item to the Consent Agenda f or the next regularly scheduled
Council Meeting:
( 1)A copy of the document aw arding the grant
( 2)The completed “Memo f or Grant Acceptance Over $2, 000
$5, 000”
B.For Aw ards under $2, 000 $5, 000
1.Upon award of the grant to the City, the City Administrator MUST approve
any grant funds being accepted on behalf of the City.
a)The Department w ishing to accept the grant funds must complete the
“Memo f or Grant Acceptance Under $2, 000 $5, 000”, herein attached as
Exhibit D, which should include at least the f ollowing inf ormation:
( 1)The name of the grantor
( 2)The amount of the grant
( 3)The purpose of the grant
( 4)Any matching requirements or f uture obligations tied to
acceptance of the grant
( 5)The Catalog of Federal Domestic Assistance (CFDA) number
( 6)The grant aw ard number ( if any)
( 7)The revenue and expense accounts to be amended
b)The Department w ishing to accept the grant f unds must f orward to
the Chief Accountant in the Finance Department the f ollowing
documents:
( 1)A copy of the document aw arding the grant
( 2)The completed “Memo f or Grant Acceptance Under $2, 000
$5, 000”
c)The Finance Department w ill review the “Memo for Grant
Acceptance” to verif y the account numbers to be amended are correct.
They w ill then f orw ard the follow ing documents to the City Administrator
f or approval:
( 1)A copy of the document aw arding the grant
( 2)The completed “Memo f or Grant Acceptance Under $2, 000
$5, 000”
Exhibit A
RESOLUTION
RS20___-___
A RESOLUTION AUTHORIZING THE CITY OF JEFFERSON TO APPLY FOR THE
[insert name of grant] GRANT.
WHEREAS,the City of Jefferson has the opportunity to apply for the [insert name of
grant] grant, and
WHEREAS,the purpose of the grant is [explain purpose of the grant], and
WHEREAS, the grant, if awarded, would provide up to $[amount of grant] for the City
for the purpose stated above, and
WHEREAS,the grant would require the City to [explain match or obligation]
WHEREAS, receiving said grant would benefit the City.
NOW THEREFORE BE IT RESOLVED, that the City Council of Jefferson City, Missouri
supports and authorizes the City Administrator, or his designee to execute and submit the
necessary application to obtain funding for the [insert name of grant] Grant.
Adopted this ____ day of ___________, 2013__.
_____________________________
Mayor
ATTEST:APPROVED AS TO FORM:
__________________________________________________________
City Clerk City Counselor
Exhibit B
RESOLUTION SUMMARY
RESOLUTION NO:
SPONSOR:Councilman
SUBJECT:Approving an application for the (insert name of grant) grant
INTRODUCED:___________
ORIGIN OF REQUEST:[name of department requesting grant]
DEPARTMENT RESPONSIBLE:[name of department requesting grant]
PERSON RESPONSIBLE:[name of department director requesting grant]
Background Information: The City desires to apply for the [name of the grant] grant,
which is offered by [name of grantor]. The purpose of the grant is to [state purpose of
the grant]. The amount applied for is $[amount of grant if known]. The [name of
responsible department] Department will be responsible for filing for the grant and
administering the grant if awarded. If awarded the City would use the funds for [state
purpose/project for which the city would use the funds].
The future obligations and/or matching requirement known at this time are [state
matching requirements or future obligations].
If the grant is awarded to the City, the staff will return to the Council for acceptance of
the grant.
Fiscal Information:The application does no obligate the City to accept the fund and
therefore this resolution has no fiscal impact. However if awarded and subsequently
accepted by the City Council, the City could receive up to [state amount of grant].
Resolution Terms:The Resolution would authorize the City to apply for the [insert
name] grant.
Staff Recommendation:Approve.
Exhibit C
Memorandum
______________________________________________________________________________
To: City Council
From: City Administrator
Re: Grant Acceptance Over $5,000
For: Consent Agenda
______________________________________________________________________________
Pursuant to Section 2-28 of the City Code, I request authority to accept the following Grant:
The name of the grantor:
The amount of the grant:$
The purpose of the grant:
Any matching requirements or future
obligations tied to acceptance of the grant:
CFDA#:
Grant Award # (if any):
City Department Responsible:
Employee assigned as Grant
Administrator:
Revenue account # to be amended:
Expense account # to be amended:
Please NOTE: Upon Approval of the Consent Agenda, the City Administrator may, on behalf of the city
execute any documents necessary for accepting the grant and amend the budget to reflect the acceptance of
such revenue, and amend the budget to reflect equivalent expenses so as to accomplish the purpose of such
funds.
For Finance Department Use only:
Approved on the Consent Agenda this _______ day of _______, 20_____
Exhibit D
Memorandum
______________________________________________________________________________
To: City Administrator
From: [Insert Department Name]
Re: Grant Acceptance under $5,000
For: Your Approval
______________________________________________________________________________
Pursuant to Section 2-28 of the City Code, I request acceptance of the following Grant:
The name of the grantor:
The amount of the grant:$
The purpose of the grant:
Any matching requirements or future
obligations tied to acceptance of the grant:
CFDA#:
Grant Award # (if any):
City Department Responsible:
Employee assigned as Grant
Administrator:
Revenue account # to be amended:
Expense account # to be amended:
Approved this _______ day of _______, 20_____
_____________________________________________
City Administrator Signature
Section 3.This Ordinance shall be in full force and effect from and after the
date of its passage and approval.
Passed:Approved:
Presiding Officer Carrie Tergin, Mayor
ATTEST:APPROVED AS TO FORM:
City Clerk City Counselor