HomeMy Public PortalAboutORD15545 PASSED AS AMENDED
BILL NO. 2016-22
SPONSORED BY COUNCILMAN Branch
ORDINANCE NO. / 5
AN ORDINANCE AMENDING THE CODE OF THE CITY OF JEFFERSON, MISSOURI,
PERTAINING TO GRANT APPLICATION AND ACCEPTENCE REQUIREMENTS TO
ALLOW THE CITY ADMINISTRATOR TO APPROVE AND ACCEPT GRANTS WHICH
DO NOT REQUIRE MORE THAN A $25,000.00 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) Sec. 2-28 (Grants) of the Code of the City
of Jefferson, Missouri, is amended as follows:
Sec.2-28. Grants.
A. Application. - .• ..•. - .. .•. e: . ,!!! The City Administrator may approve all
applications for grants which do not require more than a Twenty-Five Thousand Dollar($25,000)
match of City Funds.
Prior to application for any grant that requires the City to contribute matching funds of Twenty-Five
Thousand Dollar ($25,000) 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
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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 twenty-five thousand dollars($25,000.00)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 2^ 2091 , 2016 by Ordinance
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Financial Policy Guidelines
City of Jefferson, Missouri
October 20 '7011 , 2016
TABLE OF CONTENTS
Introduction 3
Revenue Policies 3
Expenditure Policies 7
Financial Planning Policies 10
Purchasing Policies 13
Independent Audit Requirements 14
Glossary 14
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INTRODUCTION
The City of Jefferson (City) has a variety of financial policies that can be found in many different
sources, including, City Council ordinances, city code, personnel manual, budget documents,
and comprehensive financial statements.
The following financial policies have been developed based on the Government Finance
Officers Association (GFOA) recommendations. GFOA recommends financial policies in the
following areas be developed by professional staff and formally adopted: Revenue,
Expenditure, and Financial Planning.
These adopted policies will be used to frame policy initiatives and will be summarized in the
budget document. These policies will be reviewed during the budget process. Professional 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 Jefferson, Missouri, Article VII Financial Procedures, Section 7.1.7-
Establishing Financial Procedures states, "The fiscal affairs of the city shall be the responsibility
of the finance department. The head of the finance department shall be designated the fiscal
officer of the city. Qualifications, duties and powers of the fiscal officer shall be set by
ordinance." The adopted financial policies require compliance from 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 down into the following:
a. Use of One-time Revenues—The City will discourage the use of one-time revenues for
ongoing expenditures.
b. Revenue Diversification—The City will encourage a diversity of revenue sources in order
to improve the ability to handle fluctuations in individual sources.
c. Uses of Unpredictable Revenue—The City will identify each major unpredictable
revenue source and the aspects of the revenue source that make the revenue
unpredictable.
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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 effects on
services due to non-recurrence of these sources.
Defined: One-Time revenues are revenues that cannot be relied on in future budget periods.
One-time revenues may be available for 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 carefully reviewed
and minimized, e.g., capital expenditures that significantly increase ongoing operating expenses
without sustainable and offsetting long-term revenue plan.
Examples of one-time revenues include:
• Infrequent sales of government assets
• Bond refunding savings
• Infrequent revenues from development
• Grants when the approval/authorization of the grant is reevaluated on a periodic basis,
the money received is based on funding availability and/or performance. Attachment A
is the internal policy and procedures that guide the City when applying for and accepting
grants as well as the financial responsibilities after 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 fluctuations 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 for review with the City Council providing direction or
action(s) required of the staff.
Examples of what the analysis could include are:
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• 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 will be reviewed periodically. Diversity of
revenue sources can affect the relative tax burden on different stakeholders.
3. Use of Unpredictable Revenues
Purpose: Unpredictable revenues cannot be relied on as to the level of revenue they will
generate. Particularly with major revenue sources, it is important to consider how significant
variation in revenue receipts will affect the City's outlook and ability to operate programs in the
current and future budget periods.
The City will identify each major 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
identify in advance a set of tentative actions to be taken if one or more of the revenue sources
generates higher or lower than projected. The tentative actions will be publicly discussed and
used in budget decision making.
Unpredictable revenues are often used to fund ongoing programs. The City's financial 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:
• Intergovernmental revenues
• Interest income
• Sales taxes
• Revenues subject to future judicial rulings
• Property Taxes subject to assessed values as established by the County Assessors of Cole
and Callaway Counties
Summary: The tentative actions will be reviewed annually.
4. Charges and Fees
Purpose: The charge and fee policy requires identification of both the cost of the program and
the portion of the cost that will be recovered through fees and charges.
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Defined: Certain services provide a benefit to a particular group;the City will consider charges
and fees on the direct recipients of those groups that receive benefits from such services.
Policy:
a) Consider applicable laws and statutes before the implementation of specific fees and
charges, specifically Missouri's Hancock Amendment (Article X Sections 18-24).
b) Identify the factors (affordability, pricing history, inflation, service delivery alternatives,
and available efficiencies)to be taken into account when pricing.
c) State whether the intention is to recover the full cost. If the full cost is not recovered,
provide an explanation of the rationale for the deviation.
d) Outline considerations that might influence 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 for the service, and
visibility of the service to the community.
e) How the charges and fees will be levied and collected will be considered.
f) Calculate the full cost of providing the service in order to provide a basis for setting the
charge or fee. This would 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 fees periodically. Some factors to include in the review
could be:
i. Impact of inflation
ii. Cost increases
iii. Adequacy of cost recovery
iv. Use of services
v. Competitiveness of current rates
i) Utilize long-term forecasting in ensuring that charges and fees anticipate future costs in
providing the service.
j) Provide information on charges and fees to the public.
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Summary: A suggested tool for 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 fees and charges will be reviewed periodically. Stakeholders will be given the opportunity
to provide input into formation of the policies. Charges and fees will be identified in other
government documents, including planning and management reports. Reasons for not
recovering full costs will be identified and explained.
Expenditure Policies
Prudent expenditure planning and accountability will ensure fiscal stability. The expenditure
policies will be broken down into the following:
a. Debt Capacity, Issuance, and Management—The City will specify appropriate uses for
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 financial
resources to protect against the need to reduce service levels or raise taxes and fees
due to temporary revenue shortfalls or unpredicted one-time expenditures.
c. Operating/Capital Expenditure Accountability—The City will compare actual
expenditures to budgets periodically (e.g., quarterly) and decide on actions to bring
the budget into balance, if necessary.
1. Debt Capacity, Issuance, and Management
Purpose: Policies guiding the amount of debt that may be issued by the City will help ensure
that outstanding and planned debt levels do not exceed an amount that can be supported by
the existing and projected 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 refunding, extending or unifying the
whole or any part of its valid outstanding revenue bonds.
The City will limit long-term debt to only those capital projects that cannot be financed from
current revenue or other available sources and are a high priority of the City Council.
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The City will follow a policy of full disclosure on every financial report and bond prospectus.
When the City finances capital projects by issuing bonds, it will repay the bonds within a period
not to exceed the expected useful life of the projects.
The City will manage its budget and financial affairs in such a way so as to ensure continued
high bond ratings.
Bonds shall be issued in accordance with Missouri and Federal law. Two sections of the
Missouri Constitution address debt limits for the City. Article VI, Sections 26(b) and (c) of the
Missouri Constitution provides, with a vote of four-sevenths of qualified electors voting at a
general municipal election day, primary or general election day or two-thirds for 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, for 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, with a vote of four-sevenths of qualified electors voting at a general
municipal election day, primary or general election day or two-thirds for all other elections, a
city may become indebted an additional 10 percent of the value of taxable tangible property of
the City for lawful purposes.
Industrial revenue bonds will be issued upon City Council approval and for purposes allowed in
Chapter 100 of the Revised Missouri Statutes.
Revenue bond issuance requires the City to set aside assets which are treated as restricted
assets to serve as security for the payment of debt service costs on outstanding revenue bonds,
for replacement reserves, for contingencies and for the periodic accumulation of funds to pay
semi-annual bond interest and annual principal due during the next fiscal 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 affected by the use of those
incentives. Economic Development tools will be considered in accordance with this policy and
Chapter 25 Article XII of the City Code.
2. Reserve or Stabilization Accounts
Purpose: To provide guidelines to the City Council and staff for establishing, maintaining and
performing an annual review of the minimum and target fund balance reserves.
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Background: A minimum General Fund reserve policy is generally considered a prudent and
conservative fiscal policy to deal with unforeseen situations and long-term financial planning.
Some examples of unforeseen situations include, but are not limited to:
• Unfunded Federal/State or other mandates
• Economic downturn
• Revenue shortfall
Credit rating agencies continually monitor the levels of unassigned fund balance in a
government's General fund when evaluating the government's creditworthiness 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 for the General Fund budget. These funds will be
used to avoid cash flow interruptions, generate interest income, and reduce need for short-
term borrowing. All other funds, if they are not subsidized by other funds, shall maintain a
minimum 10%fund balance. (e.g., Wastewater Fund, Parking Fund)
The reserves shall be used when approved by formal City Council action.
Some examples of situations when approval by formal City Council action is required include,
but are not limited to:
• Large one-time cost.
• Unanticipated budgetary shortfall.
• To mitigate service impacts during a significant economic downturn in the economy or a
significant and unexpected loss of revenue.
• Catastrophic event or natural disaster that threatens the safety of persons and property
within the City.
• City sustains unexpected liabilities created by Federal, State, or other mandates out of
the City's control.
In 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
fund balance reserve level within 2 fiscal years.
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Staff shall ensure that the provisions of this policy are effectively implemented. If 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 who will determine the appropriate course of action.
The Transit and Airport funds have historically been subsidized from the General Fund. The
fiscal year ending balance in both funds is made available for Transit and Airport operations for
the next fiscal year. The City will not calculate an unreserved, undesignated fund balance
amount for these two funds until such time as there is not a subsidy from the General Fund.
Generally, the City will strive to not have one fund subsidize another fund.
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 significant deviation if it occurs.
Policy:
The Finance Director is responsible for 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, which 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 inform each Department Director whose expenditures appear to be exceeding the adopted
budget. During preparation of mid-year projections,the Finance Department will notify all
Department Directors and the City Administrator whose budgets are likely to be exceeded for
further direction.
Summary: A department will not exceed its approved overall budget without authorization
from the City Administrator. The Director of each department will be held responsible and
accountable for the'expenditures of his/her department.The Finance Director through timely
reports and analysis, keep Department Directors and elected officials informed of any possible
budget problems.
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Financial Planning Policies
Financial planning policies address both the need for a long-term view and the fundamental
principle of a balanced budget. The financial planning policies will be broken down into the
following:
a. Balanced Budget—The City's policies define a balanced operating budget, commitment
to a balanced budget under normal circumstances, and require disclosure when a
deviation from a balanced operating budget is planned or when it occurs.
b. Long-Range Planning—The City's policies support a financial planning process that
assesses the long-term financial implications of current and proposed operating and
capital budgets, budget policies, cash management and investment policies, programs
and assumptions.
c. Asset Inventory—The City's policies require an inventory and an assessment of the
condition of all major 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 significant deviation if it occurs.
Policy:
The Finance Director is responsible for maintaining a system of financial 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
inform each Department Director whose expenditures appear to be exceeding the adopted
budget. During preparation of mid-year projections, the Finance Department will notify all
Department Directors and City Administrator whose budgets are likely to be exceeded for
further direction.
Summary: The Director of each department shall be held responsible and accountable for the
expenditures of his/her department.The Finance Director through timely reports and analysis,
keep Department Directors and elected officials informed of any possible budget problems. A
department shall not exceed its approved budget without authorization from the City
Administrator.
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2. Long-Range Planning
Purpose: To ensure the City assesses the long-term financial implications of current and
proposed operating and capital budgets, budget policies, cash management and investment
policies, programs and assumptions.
Policy:
The City will adopt a budget that includes a multi-year analysis. The multi-year analysis will
establish assumptions for revenues, expenditures and changes to fund balance over a five year
horizon. The assumptions will be evaluated periodically as part of the budget process.
3. Asset Inventory
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 major government facilities, infrastructure, equipment and networks that
enable the delivery of public sector services.
Policy:
The Finance Director will be responsible for maintaining a central inventory control system.
Capital assets are defined by the City Finance Director as assets with an estimated useful life in
excess of one year with a threshold of$10,000. The capitalization threshold for infrastructure
assets (e.g., roads, bridges, sidewalks, and similar items) is$10,000.
Capital assets for all fund types are recorded at cost or estimated historical cost where cost
could not be determined from available records. Donated fixed 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 life are charged to
operations as they occur and are not included in the capital assets. Renewals and betterment
are capitalized over the remaining useful life of the related capital assets, as applicable.
Major outlays for capital assets and improvements are capitalized in proprietary funds as
projects are constructed. Interest incurred during construction is reflected in the capital value
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of the asset. In addition, capital outlays for intangible assets are capitalized. Intangible assets
include easements with an indefinite life which are therefore, not being amortized.
Property, plant and equipment are depreciated using the straight line method over the
following estimated useful lives:
Buildings 10-50 years
Improvements other than buildings 7-10 years
Wastewater plant and system 40-50 years
Machinery and equipment 3-20 years
Furniture and fixtures 5-10 years
Motor Vehicles 2-15 years
Infrastructure:
Streets and stormwater drainage 35 years
Sidewalks and trails 30 years
Street lighting 30 years
Traffic signals 20 years
The Finance Department capital asset inventory reports are distributed to each department
near the end of the City's fiscal year with instructions to proceed with their inventory. The
inventory reports are returned to the Finance Department as directed in the instructions.
When a department has indicated an asset has been transferred to another department, a
transfer sheet needs to be submitted to the Finance Department.
When 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.
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On a yearly basis, or as needed, all departments shall submit to the purchasing agent reports
showing any property to be declared surplus. The purchasing agent shall submit a report to the
City Council informing 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
sufficient funds 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, safety, and quality of life of
the public.
Purchasing Policies
Before the City makes any purchase or contract, or lets any contract for improvements,there
shall be given ample opportunity for competitive bidding.
Employees will be responsible for adhering to the City Purchasing Policy, approved by the City
Council. The current City Purchasing Policy can be found in City Code, Chapter 26A{a++. ;_
Independent Audit Requirements
City Charter, Section 3.10 requires the City Council to provide for an independent audit of all
City accounts at least annually. The audit will be conducted by a certified public accountant or
firm of accountants who have no personal interest, direct or indirect, in the fiscal affairs of the
City government or any of its officers. A copy of the report prepared by a certified public
accountant or firm of such accountants shall be kept in the city clerk's office and shall be open
to public inspection.
GLOSSARY
Adopted Budget: Refers to the budget amount as originally approved by the City Council at the
beginning of the fiscal year.
Agency Fund: The City's agency fund is a clearing account for tax incremental financing. The
agency is custodial in nature and does not involve measurement of results of operations.
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Appropriation: The legal authorizations made by the City Council (who approve department
budgets)to the departments, offices and agencies of the City, allowing the departments to
make expenditures and incur obligations for specific purposes within the amounts approved.
Balanced Budget: Annual financial plan in which expenses do not exceed revenues.
Budget (Operation): A plan of financial operation embodying an estimate of proposed
expenditures for a given period and the proposed means of financing them. Used without any
modifier,the term usually indicates a financial plan for a single fiscal year.
Capital Assets: Assets of significant value and having a useful life of several years. Capital
Assets are also called Fixed Assets.
Capital Outlays: Expenditures for the acquisition of capital assets.
Capital Projects: Projects that purchase or construct capital assets. Typically a capital project
encompasses a purchase of land and/or the construction of a building or facility.
Capital Projects Fund: Capital projects funds account for the acquisition and construction of
major capital facilities other than those financed by propriety funds and trust funds.
Cash Management: Tracking and forecasting cash flow, and working with 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 from the purchase of goods and
services. Debt of governmental units includes bonds,time warrants, notes, and floating debt.
Debt Service: The amount of money necessary to pay interest on an outstanding debt.
Department: The Department is the primary unit in City operations. Each is managed by a
Department Director. Departments are generally composed of divisions which share a common
purpose or which perform similar duties.
Enterprise Fund: Enterprise funds account for operations that are financed 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 financed or recovered
primarily through user charges; or where the city has decided that periodic determination of
net income is appropriate for accountability purposes. The City of Jefferson uses enterprise
funds to account for wastewater, airport, parking, and transit operations.
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Expenditures: Where accounts are kept on the accrual or modified accrual basis of accounting,
the cost of goods received or services rendered whether cash payments have been made or
not. When accounts are kept on a cash basis, expenditures are recognized only when the cash
payments for the above are made.
Expense: Charges incurred (whether paid immediately or unpaid)for 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 which 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 Jefferson has a fiscal year of November 1st through the following October 31st.
Fiduciary Funds: Fiduciarylunds are used to account for resources held for the benefit of
parties outside the government. The Firefighter's Retirement plan is a fiduciary fund.
Full Disclosure: Providing accurate and complete information material to a bond issue, which a
potential investor would be likely to consider important in deciding whether to invest. Material
facts that enable the investor to evaluate the credit quality of an issue.
Fund: An independent fiscal accounting entity with a self-balancing set of accounts recording
cash and/or other resources together with all related liabilities, obligations, reserves, and
equities which are segregated for the purpose of carrying on specific activities or attaining
certain objectives.
Fund Balance: An accumulated excess of revenues over expenditures. Any amount left over
after expenditures are subtracted from resources is then added to the beginning fund balance
each year.
Fund Type: All funds for the City of Jefferson are classified into six fund types: General, Special
Revenue, Capital Projects, Enterprise, Internal Service, and Fiduciary and Agency.
General Fund: The largest governmental fund,the General Fund accounts for most of the
financial 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 fire and police protection, finance,
planning and protective services, public works, and general administration.
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General Obligation Bonds: Bonds which are secured by the full 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.
Governmental Funds: Governmental funds are used to account for governmental activities
focusing on near-term inflows and outflows of spendable resources, as well as on balances of
spendable resources available at the end of the City's fiscal 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 federal
governments and made for specified purposes.
Industrial Revenue Bonds: Bonds issued to provide financial assistance to private-sector
entities for the acquisition and construction of industrial and commercial facilities deemed to
be in the public interest.The bonds are secured by the property financed and are payable solely
from payments received on the underlying financing agreement. Upon repayment of the
bonds, ownership of the acquired facilities transfers to the private-sector entity served by the
bond issuance.
Internal Service Fund: Internal Service funds account for the self-insurance workers
compensation funds.
Long-Term Debt: Debt with a maturity or more than one year after date of issuance.
Outstanding: In 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 different
types of proprietary funds, enterprise funds and internal service funds.
Revenue Bond: A bond whose principle and interest are payable exclusively from earnings of
an enterprise fund.
Special Revenue Fund: Special revenue funds are used to account for specific revenues that
are legally restricted to expenditures for particular purposes. The City of Jefferson 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, USS JC Submarine Trust, and Woodland Cemetery.
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Tax or Taxes: Compulsory charges levied by a governmental unit for the purpose of raising
revenue. Tax revenues are used to pay for services or improvements provided for the general
public benefit.
I. RESPONSIBILITIES AFTER ACCEPTANCE
A. Department Accepting Grant Funds
1. Once grant funds are accepted, the Director of the accepting department
MUST designate a Grant Administrator for each accepted grant who will be
responsible for 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 preferred, however 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. Where there is no
specific form for reimbursement required by the Grantee, the Grant
Administrator shall use the attached "Request for Reimbursement" form
attached as exhibit E.
a) ALL PAYMENTS of grant funds received MUST be forwarded to the
Accountant in the Finance Department for 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 form
b) Supporting documentation for each item being requested for
reimbursement. This should include but is not limited to the following:
(1) General Ledger Detail Reports for accounts that the expenses
were originally coded to
(2) Copies of Invoices
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(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 funds to the appropriate expense accounts.
2. When the Finance Department receives the reimbursement requests with
supporting documentation from the Grant Administrator, the Accountant will
compare the supporting documents to the general ledger and update the
Schedule of Expenditures of Federal Awards.
3. The finance department will notify the Department Director receiving the
grant upon receipt of grant funds.
II. Re-appropriation.
A. It shall be the responsibility of the Grant Administrator to file a request for re-
appropriation for any unspent multi-year grant funds which are unspent each year no later than
January 1st of each year. The Grant Administrator shall utilize the "Re-Appropriation Form"
attached herewith as exhibit F.
B. The Finance Department shall notify 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 file the Re-appropriation.
III. Gifts.
Gifts to the City shall be treated the same as Grants.
Attachment A
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PASSED AS AMENDED
Procedures for Applying For and Accepting Grants PLUS
Responsibilities after Acceptance
IV. APPLICATION
A. The City Administrator may approve all applications for grants which do not
require more than a Twenty-Five Thousand Dollar($25,000.00) match of City funds.
B. _ . . - _ -. - _ . . _ _ . • - ' Prior to application for any
grant that requires the City to contribute matching fund of Twenty-Five Thousand
Dollars ($25,000.00) or more, the Council MUST approve
by resolution any grant application filed on behalf of the City.
1. The Department applying for 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 modified as desired but
shall contain at least information found within Exhibit A.
2. The Department shall also complete a Resolution Summary for submission to
the Council. The summary shall be essentially in the form attached as Exhibit B.
Exhibit B may be amended or modified as desired but shall contain at least
information found within Exhibit B.
3. The Department applying for the grant must take necessary steps with the
City Clerk to get the Resolution for Grant Application added to the Council
Agenda.
g: C. For any grant which does not require an application by the City, the Department
shall upon notice of the awarding to the City of such grant, submit the grant to the City
Council for acceptance, pursuant to Section II.
V. ACCEPTANCE
A. For Awards in excess of$7000 $25,000
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
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Page 21
alternative the Council may approve a contract with the Grantor by ordinance.
In either case, a), b), and c) below shall be applicable.
a) The Department wishing to accept the grant funds must complete the
"Memo for Grant Acceptance Over ,000 $25,000", herein attached as
Exhibit C, which should include at least the following information:
(1) The name of the grantor
(2) The amount of the grant
(3) The purpose of the grant
(4) Any matching requirements or future obligations tied to
acceptance of the grant
(5) The Catalog of Federal Domestic Assistance(CFDAI number
(6) The grant award number (if any)
(7) The revenue and expense accounts to be amended
b) The Department wishing to accept the grant funds must forward to
the Chief Accountant in the Finance Department the following
documents:
(1) A copy of the document awarding the grant
(2) The completed "Memo for Grant Acceptance Over $27000
$25,000"
c) The Finance Department will review the "Memo for Grant Acceptance
Over$2000 $25,000" to verify the account numbers to be amended are
correct. They will then forward the following documents to the City Clerk
to add the item to the Consent Agenda for the next regularly scheduled
Council Meeting:
(1) A copy of the document awarding the grant
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PASSED AS AMENDED
(2) The completed "Memo for Grant Acceptance Over $42,000
$25,000"
B. For Awards under$2,000 $25,000
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 wishing to accept the grant funds must complete the
"Memo for Grant Acceptance Under ,090 $25,000", herein attached as
Exhibit D,which should include at least the following information:
(1) The name of the grantor
(2) The amount of the grant
(3) The purpose of the grant
(4) Any matching requirements or future obligations tied to
acceptance of the grant
(5) The Catalog of Federal Domestic Assistance{CFDAI number
(6) The grant award number(if any)
(7) The revenue and expense accounts to be amended
b) The Department wishing to accept the grant funds must forward to
the Chief Accountant in the Finance Department the following
documents:
(1) A copy of the document awarding the grant
(2) The completed "Memo for Grant Acceptance Under $2,000
$25,000"
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Page 23
c) The Finance Department will review the "Memo for Grant
Acceptance" to verify the account numbers to be amended are correct.
They will then forward the following documents to the City Administrator
for approval:
(1) A copy of the document awarding the grant
(2) The completed "Memo for Grant Acceptance Under $27000
$25,000"
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 , 201-3 .
Mayor
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PASSED AS AMENDED
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:
DEPARTMENT DIRECTOR(S): (signature)
CITY ADMINISTRATOR: (signature)
STAFF RECOMMENDATION: Approve
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].
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Page 25
The future obligations and/or matching requirement known at this time are [state
matching requirements or future obligations].
If the grant is awarded Jo 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.
Exhibit C
Memorandum
To: City Council
From: City Administrator
Re: Grant Acceptance Over $25,000
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:
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PASSED AS AMENDED
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 $25,000
For: Your Approval
Pursuant to Section 2- 28 of the City Code, I request acceptance of the following Grant:
The name of the grantor:
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Page 27
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
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Page 28
PASSED AS AMENDED
Section 3. This Ordinance shall be in full force and effect from and after the date
of its passage and approval.
Passed: � o�/l Approved: -wited26-
ca. 2v aigmkt: t A/t e
'7"-P? (4,
Presiding Officer Mayor Carrie Tergin
ATTEST: APPROVED AS TO FORM:
City Clerk - . , = City Couns= •
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