HomeMy Public PortalAboutResolution 16-89 Regulating the Budgeting, Management and Accounting for Funds and other assets of the City of Mccall Resolution No . 16-89
FINANCIAL POLICY
A policy of the City of McCall , Idaho, regulating the
Budgeting, Management and Accounting for Funds
and other assets of the City of McCall .
A. FINANCE POLICY STATEMENT
The governing body finds and declares that the
citizens of the City of McCall , Idaho expect and desire that
public funds be managed so as to provide the maximum services
at the lowest reasonable cost ; that measures be taken to
protect those funds from improper use or loss ; that the
funds be accounted for in a manner consistent with state and
federal law; and that when not immediately needed that funds
be prudently invested. To that end, we hereby adopt these
basic policies to guide and govern financial management and
accounting of City funds .
B. BUDGET DEVELOPMENT
SECTION 1 -- PURPOSE
An annual budget is a written financial projection
setting forth the planned activities for the city for the
coming year in terms of available dollars . Its primary
purpose is to effectively utilize the city' s scarce
resources in providing services to citizens .
An effective budget performs four major functions :
1 . It is a forward-looking or planning document . Its
preparation prompts managers to anticipate future
costs and (in the case of some funds) future
receipts .
2 . It is a statement of the policies of the
governingbody for the budget year . It outlines
the governing body' s priorities and precedences .
3 . It is a communication tool . It should therefore
be presented in such a way as to be easily
understood and followed by the public .
4 . It is a management tool . The budget guides
management decisions throughout the budget year
and at the end of the budget year provides a
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measure of the planning process and, with a
number of conditions , a measure of managerial
effectiveness . Its ability to measure managerial
effectiveness extends only to those items that
the manager can effectively influence .
SECTION 2 -- PREPARATION
Preparation begins with planning sessions with the
various department heads and City administrative officers .
Each department head shall estimate expenditures in three
major areas :
1 . Personnel Services . This area shall include
anticipated salaries , benefits and obligatory
contributions such as workmen' s compensation,
social security and the city' s contribution to
the employees' retirement plan . Elements to be
considered shall include the current number of
employees and their salaries , anticipated merit
promotions , additional personnel to be hired and
their benefits , an estimate of the workmen' s
compensation insurance premiums based on the
total salaries and category of position, an
allowance to be contributed to the Unemployment
Trust Fund, current health benefits and
anticipated rate increases , and the city' s
associated contributions to the employees' social
security and public retirement plans .
2 . Capital Outlay . This area shall include
anticipated expenditures to acquire fixed assets
for the city . Include are land, buildings ,
equipment and improvements that increase the
value of fixed assets .
3 . Service and Supply . This area shall include
purchased services , utilities , professional
services , consumable supplies and other
expenditures that are not described in 1 or 2
above .
The City Administrator/Clerk and City Treasurer shall
be responsible for estimating revenues for the budget year .
This estimate shall be prepared from consultation with state
and county agencies responsible for dispersing revenues .
The Mayor and City Council , together with the City
Administrator/Clerk and City Treasurer shall , using the
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information gathered during interviews with Department Heads ,
shall prepare a proposed operating budget . The proposed
operating budget shall include any fund balances accumulated
from the prior fiscal year and the necessary adjustments ,
either the reduction of proposed expenditures or the increase
of revenues through increased tax rates or user charges in
order to achieve a balanced budget where expenditures are
less than or equal to available funds .
Following tentative approval of the budget , a public
hearing shall be held so than any interested person may
appear and comment on the proposed budget . The notice of
time and place of the public hearing will be published in the
official newspaper of the City . This notice shall be
published twice, seven (7) days apart . After the
tentative operating budget has been approved by the City
Council and the Notice of Hearing published, the budget may
be decreased but may not be increased. Following the public
hearing, the City Council shall approve the budget and
legally enact the budget through an appropriations ordinance .
The annual appropriations ordinance shall be published in the
official newspaper of the City in the same manner in which
all ordinances are published. The preparation of the
proposed operating budget , the notice of public hearing, the
public hearing and approval of the final budget shall be
completed on or before the Friday before the second Monday in
September of each year . The annual appropriation ordinance
shall be passed in sufficient time to allow its publication
in the official newspaper of the City on or before the last
day of September of each year .
The Council shall certify to the Valley County
Commissioners , the total amount required from a property tax
on the property in the City so as to raise the required funds
fixed by the budget . The amount certified shall not exceed
the maximum levy prescribed by law.
Idaho Code Sections 50-1002 and 50-1003 govern
the budget process and in all cases of conflict with this
policy the state code shall prevail .
C . PURCHASING PLAN
SECTION 1 -- PURPOSE
The purpose of the City' s Municipal Purchasing plan
shall be :
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1 . To obtain the most suitable services and
commodities at the lowest price .
2 . To provide a means of control over expenditures .
3 . To have definite control over the quality of the
products that are purchased.
SECTION 2 -- SELECTION OF VENDORS
There shall be no discrimination in the selection of
vendors . The selection of a particular vendor shall be
determined by the suitability of the product or service to
the City' s needs , its cost , and such factors that make a
particular offering more beneficial to the City such as the
time or place of delivery . All vendors shall be given equal
consideration without regard to political affiliation, race,
color , creed, national origin or ancestry, age, sex, religion
or handicap .
SECTION 3 -- PURCHASING AUTHORITIES
1 . The City Administrator shall be the purchasing
agent for the City and shall have overall
responsibility for carrying out the purchasing
plan . The purchasing agent shall personally
approve all expenditures of more than $1 , 000
before the purchase is made . The purchasing
agent shall sign a completed purchase order for
each expenditure of $1 , 000 or more that does not
require a competitive bid.
2 . Expenditures for the following departments
indicated in Table 1 may be approved by the
department head indicated, subject to the $1 , 000
limitation above . The purchasing agent may
further restrict this authority . Expenditures of
$300 or more but less than $1 , 000 must be
approved, in advance, by the applicable
department head. The approval shall be evidenced
by the department head' s signature on a completed
purchase order .
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Table 1
Departmental Purchasing Authorities
Department Approving Authority
Mayor/Council Mayor or Member of
the council making
the purchase .
Magistrate Court Court Clerk
City Administrator City Administrator
City Treasurer City Treasurer
City Attorney City Administrator
Planning & Zoning City Administrator
Building Inspector Building Inspector
General Government City Administrator
Building Maintenance Building Maintenance
Supervisor
Police Police Chief
Fire Fire Chief
Animal Control Police Chief
Public Works Public Works Director
Parks Public Works Director
Streets Public Works Director
Library Librarian and the
Library Board
Tort Liability City Administrator
Recreation Recreation Director
Water/Sewer Administration • City Treasurer
Water/Sewer Operation • Public Works Director
Sewer Treatment Treatment Plant
Manager
Golf Course Golf Course
Superintendent
Airport Administration • City Administrator
Airport Maintenance • Public Works Director
3 . The authority to make minor purchases of not more
than $100 may be delegated in writing to members
of the department by the appropriate department
head.
4 . When purchased commodities are received, they
shall be inspected by the department head, When
he or she is satisfied that the commodities are
as ordered in terms of quality and quantity, that
approval will be noted on the invoice or vendor
statement and forwarded to the City Treasurer for
processing. Such approval shall include the
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date, the account to be charged, the amount , and
where not clear in the vendor' s documents , a
description of the items purchased.
D. CLAIMS
Claims represent demands against the City' s assets .
They fall into three general categories : Claims by vendors
of goods and services furnished; tort claims which are claims
for damages ; and reimbursements or claims for expenses
incurred by city employees while conducting City business .
All claims must be approved by the City Council before they
can be paid. The method of presenting claims to the Council
differs slightly by category .
SECTION 1 - CLAIMS BY VENDORS OF GOODS AND SERVICES
Invoices and statements by vendors will first be
routed to the head of the department that ordered the
services or goods . The department head shall verify that the
goods were received in acceptable quantity and condition or
that services were satisfactorily rendered and that the
amount billed is correct . The department head shall then
certify his or her approval using a stamp provided for that
purpose by providing the date of approval , his or her
initials , the amount approved and the expenditure account to
which the claim is to be charged.
If the invoice amount exceeds $300 . 00, the department
head will attach a copy of the pre-approved purchase order
authorizing the expenditure .
The invoice or statement (claim) will then be
forwarded to the City Treasurer for payment . At each City
Council meeting, the Treasurer shall present a list of the
claims to be paid. The list of claims shall include the
claimant , the department and account to which the claim is to
be charged, the amount of each claim and a concise
description of item(s) or service (s) for which payment is
claimed. Upon approval of the City Council , the City
Treasurer shall issue checks or warrants in payment of the
approved claims .
SECTION 2 - TORT CLAIMS
These claims must be made on forms provided by the
City and reasonably present the nature of the claim and the
details of the events .
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Generally, claims for damages shall be forwarded to
the City' s liability insurance carrier for resolution . A copy
of the Notice of Claim shall be sent to the City Attorney .
Each claim shall be signed and the time of receipt indicated
thereon by the City Clerk. A copy of the claim shall be
forwarded for formal action at the next City Council meeting.
In some instances , when the amount claimed is less than the
deductible; and the City' s liability is not questioned, such
claims may be paid directly from the Tort Liability Fund.
Since these claims may represent subsequent legal
action, any admissions of liability or comment by staff or
elected officials is discouraged.
SECTION 3 - CLAIMS FOR EXPENSES
From time to time, City employees must pay for
expenses that are rightly the City' s . This section describes
the expenses that may be reimbursed.
Travel expenses may be reimbursed subject to the
following limitations :
a . The travel shall use the most economical and
practical mode of transportation both from the
standpoint of time and cost .
b . Commercial transportation shall be coach class or
the lowest cost available transportation .
c . City Vehicles shall be used for local travel (up
to 30 miles from the city) . Reimbursement for
use of personal vehicles forlocal travel shall
not be paid unless approved in advance and in
writing by the City Administrator .
d. Employees shall be reimbursed for travel by
personal vehicle at the rate of $0 .205 per mile
when it is more practical than other
transportation . Mileage shall be computed using
current State Highway maps or charts .
Reimbursement is allowed for travel in the
vicinity of the area or city being visited while
on official business . The traveler shall keep
track of such "vicinity" mileage in addition to
the mileage to and from the location .
e . Employees may use personal vehicles for their own
convenience when commercial travel would be more
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practical but reimbursement shall not exceed the
cost of commercial transportation .
f . Vehicle rental , after reaching a destination by
commercial transportation is permissible when it
is necessary and is the most economical and
practical means of transportation . Vehicle
rental shall be limited to subcompact , compact or
intermediate sizes .
g. Claims for travel by commercial carrier shall be
accompanied by a copy of the ticket or receipt by
the commercial carrier . A credit card receipt is
not sufficient . Claims for travel by personal
vehicle shall be supported by the traveler' s
certification of the miles traveled.
h . Employees shall be reimbursed for meals consumed
while on official business away from the City .
Reimbursement shall not exceed the actual costs
of the meals or $25 . 00 per day whichever is less .
Claims for meals shall be supported by receipts .
Credit card receipts are not acceptable to
support claims for meals .
Requests for advances toward travel expenses shall be
approved by the Department Head and forwarded to the City
Treasurer at least one week prior to the departure . The
request for advance will contain an itemized estimate of the
cost of travel , the account (s) to be charged and the amount
requested. The City Treasurer shall prepare a check payable
to the employee . Such check shall not be released to the
employee more than two working days prior to departure . If
an employee does not commence travel , he or she shall return
the check to the City Treasurer, or if the check has been
cashed, the employee shall reimburse the city for the full
amount advanced within one (1) day of the date travel was to
begin . If the employee fails to reimburse the city as
required, the full amount of the advance shall be deducted
from the employee' s next regular pay .
If an advance is paid, the employee must file a claim
for expenses as outlined above within seven (7) days of his
or her return . This claim shall include the required
receipts and documentation . If the employee is due
additional reimbursement , the claim shall be processed as a
claim for expenses .
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If the amount due exceeds the amount of the advance,
the employee shall include a check or money order payable to
the City of McCall or the excess amount shall be deducted
from that employee' s next regular pay . Similarly , if an
employee does not file a claim for expenses within seven (7)
days of return, the full amount of the advance shall be
deducted from the employee' s next regular pay .
E. CASH MANAGEMENT
For the purposes of this discussion, "cash" shall be
defined as funds in demand deposits in the City' s checking
accounts , the petty cash fund maintained by the City
Treasurer , the evidence fund maintained by the City Treasurer
for the use of police officers to purchase evidence and/or to
pay informants , and the various change funds needed to
transact business with the public .
SECTION 1 - CHECKING ACCOUNTS .
Funds received in the transaction of business shall
be deposited daily . This shall include all payments and
reimbursements and cash in excess of the designated change
fund amounts .
The City Treasurer shall monitor the balance of each
checking account of the City on a daily basis in order to
ensure that sufficient deposits are available to pay checks
as they are presented and to ensure that the balance of each
account does not exceed $100, 000 . The Federal Depositor' s
Insurance Corporation protects each depositor' s account up to
$100, 000 and in order to ensure that the City' s funds are
fully protected, the City Treasurer shall invest all funds in
excess of $100, 000 as provided in F below and when required
withdraw such investments to fund the operations of the City .
SECTION 2 - CHANGE FUNDS .
Each department that routinely conducts financial
transactions with the public shall maintain a change fund.
Said fund shall be maintained a specified amount which shall
be the minimum amount necessary to transact a day' s business .
Receipts shall be deposited daily so that the specified
amount of cash is maintained. Cash in change funds shall not
be used to make purchases or for any type of dispersal .
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SECTION 3 - PETTY CASH.
There is often a need for the payment of small
amounts , such as for postage due or transportation charges
where payment by check would result in delay and excessive
expense in maintaining the records . Though each transaction
is small they can accumulate to a considerable amount and it
is essential that adequate controls be established. This is
accomplished through the petty cash account .
A specific amount shall be established for petty cash
and when the petty cash account is nearly depleted, it shall
be replenished. The replenishment shall be by check drawn on
the City and charged to the expense accounts for which the
funds were used.
Whenever a cash expenditure is required, the employee
requiring the expenditure shall request the amount needed and
sign a receipt therefore, indicating the purpose of the
expenditure . Upon completion of the transaction the employee
shall present a receipt and return any unused cash to the
City Treasurer .
Petty cash shall not be used to pay expenses and for
reimbursements that require processing in accordance with D
above .
SECTION 4 - EVIDENCE FUND.
The evidence fund is for the exclusive use of the
Police Department for the sole purpose of payment of
informants or to conduct undercover investigations . This
fund shall also be maintained at a specific level and shall
be replenished as used.
Any police officer requiring such funds shall request
them in writing from the City Treasurer . Because of the
confidential nature of these transactions the police officer
shall not be required to disclose the purpose of the funds ,
but each request shall include the case number and shall be
countersigned by the Chief of Police .
The evidence fund shall not be used to pay expenses
and for reimbursements that require processing in accordance
with D above .
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F. INVESTMENTS
From time to time, the funds available to the City
exceed the funds needed to finance the City' s operations . At
such times it is prudent to invest these idle funds in such a
way as to generate additional funds .
The City Treasurer may be empowered by resolution of
the Mayor and the City Council to invest funds in the
securities authorized by section 50-1013 of the Idaho Code .
The City Treasurer shall make such investments to provide the
greatest yield consistent with the City' s future needs for
funds .
HISTORY
This policy was adopted under Resolution No . 16-89 on July
13, 1989 by the McCall City Council at a regular meeting.
M. or
ATTEST :
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City Clef — —
Revisions to the Policy are hereto attached:
Resolution No ._ Date :
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TREASURER'S REPORT
July 13, 1989
1. Aspen Village Water Bill: (Letter in Packet) I received a
letter from the attorney for Aspen Village Homeowners Association
in reply to my letter requesting payment of past due water/sewer
bills. I've passed the correspondence to the City Attorney.
2. Financial Report: In Packet.
3. Financial Policy: In Packet. Our last auditor recommended we
have an accounting manual. This policy is a step towards that.
In summary, the policy:
a. Implements the budgeting procedure as outlined in the
State Code.
b. Establishes a purchasing plan which, in turn:
1) Establishes a purchase order system.
2) Assigns responsibility for purchases in the various
departments.
3) Sets dollar limits on the purchasing authority of
city employees.
c. Reduces to writing our present claims procedure.
d. Establishes a policy of managing and controlling cash
and investments.
I recommend that this policy be referred to the City Attorney to draft
an adopting resolution.
4. Unpaid Non-property Tax: On May 28, 1987, Dautis Pearson
executed a Promissory Note to the City in the amount of $357.31
plus interest. This note was due on November 15, 1987. I
recommend we pursue this matter in small claims court and that
you grant me or some other person specific authority to initiate
this action.