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Amendment to Resolution Approving Prepayment of Claims Copyrighted September 16, 2019 City of Dubuque Consent Items # 17. ITEM TITLE: Amendmentto ResolutionApproving Prepaymentof Claims SUMMARY: City Manager recommending approval of an amendmentto the resolution approving prepayment of claims. RESOLUTION Approving prepayment of claims as amended SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Adopt Resolution(s) ATTACHMENTS: Description Type MVM Memo City Manager Memo Staff Memo Staff Memo Prepayment of Claims Resolution Resolutions Dubuque THE CITY OF � All-America City DuB E ;���� �, Maste iece on the MissTssT i zao�.zo12•zo13 YP PP �oi�*zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Amendment to Resolution Approving Prepayment of Claims DATE: September 6, 2019 Director of Finance and Budget Jennifer Larson is recommending approval of an amendment to the resolution approving prepayment of claims. In April 2018, the City established a new accounts payable process to include a primary check run with items that require City Council approval prior to payment. A resolution was also approved which allows staff to issue checks in payment for certain expenditures prior to City Council approval. After using the City Council expenditure approval process for over twelve months, it has been determined that additional expenditure types should be added to the resolution to allow checks to be issued for items already approved by City Council. The additional expenditure types recommended to be added to the resolution include: 1. All annual software maintenance payments for existing software. 2. All legal bills. 3. All legal filings. 4. All property purchases approved by previous City Council actions. I concur with the recommendation and respectFully request Mayor and City Council approval. �,�'"�C'"Q �w"/���JP��'`� Michael C. Van Milligen MCVM/jml Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Jennifer Larson, Director of Finance and Budget Dubuque THE CITY OF � All-America City DuB E ;,��I�,� �, Maste iece on the MissTssT i zao�•zoiz•zois YP PP zoi�.zoi9 TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Director of Finance and Budget SUBJECT: Amendment to Resolution Approving Prepayment of Claims DATE: September 6, 2019 INTRODUCTION The purpose of this memorandum is to recommend an amendment to the Resolution Approving Prepayment of Claims. DISCUSSION In April 2018, the City established a new accounts payable process to include a primary check run with items that require City Council approval. The approval list is generated on the Thursday prior to the scheduled City Council meeting. The checks are released for mailing after City Council approval. On alternate weeks, a secondary check run that consists of only of those items that are already authorized by council are generated (e.g. construction contracts, equipment purchases, debt service payments, etc.). There are a few categories of checks that have historically been mailed as issued as well due to timing issues, such as monthly routine utility bills, reimbursements to employees for budgeted purchases, and deposit refunds. The normal practice is to mail the secondary list check immediately, as these expenditures already have City Council approval. It is possible that some of the pre-authorized expenses will be processed as part of the primary check run, simply because of the due date of the invoice. Regardless of which check run an item is processed, a complete report/register of all checks issued is sent to each City Council meeting for review and approval. A resolution was approved which allows staff to issue checks in payment for certain expenditures prior to City Council approval. After using the City Council expenditure approval process for over twelve months, it has been determined that additional expenditure types should be added to the resolution to allow checks to be issued for items already approved by City Council. The additional expenditure types recommended to be added to the resolution include: 1. All annual software maintenance payments for existing software. 2. All legal bills. 3. All legal filings. 4. All property purchases approved by previous City Council actions. RECOMMENDATION I respectfully recommend the adoption of the enclosed amended resolution to add additional expenditure types to be paid prior to City Council approval. JML Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Teri Goodmann, Assistant City Manager Jennifer Raber, Finance Manager 2 Prepared by Jenny Larson, City Hall, 50 W. 13th St., Dubuque, IA 52001, 563-589-4322 Return to Kevin Firnstahl, City Clerk, 50 W. 13th St., Dubuque, IA 52001, 563-589-4100 RESOLUTION NO. 334-19 APPROVING PREPAYMENT OF CLAIMS AS AMENDED Whereas, the City of Dubuque is committed to making timely payment of amounts due to avoid service interruptions and penalties or late fees which would become due if payments are not timely made. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA THAT: The Director of Finance is hereby authorized to issue checks in payment of the following expenditures prior to City Council approval: 1. Bonds and principal representing bonded indebtedness of the City, when said bonds and principal are due and presented for payment. 2. All interest on bonded indebtedness of the City when the same is due and coupons are presented for payment, or when the contracted bond Registrar requests payment. 3. All sales tax due to the State of Iowa. 4. All utility bills for water, electricity, gas, telecommunications, etc. 5. All medical, dental, disability and life insurance premiums and medical claims from insurance provider. 6. All annual premiums of the City's property, liability, and pollution policies. 7. Salaries and wages of officers and employees at the rates authorized by City Council. 8. Payment of federal and state withholding taxes, social security, Medicare, retirement fund and IPERS contributions, and unemployment taxes as required. 9. Contractual payment for items approved by previous City Council actions. 10. Reimbursements for employees for budgeted purchases (i.e. travel costs). 11. Utility overpayment refunds. 12. To take advantage of early payment discounts. 13. All annual software maintenance payments for existing software. 14. AII legal bills. 15. All legal filings. 16. All property purchases approved by previous City Council actions. Passed, approved and adopted this 16th day of September 2019. Attest: Kevin Firnstahl, c fy Clerk Roy D. Buol, Mayor