04-10-2019 Council Packet - Laserfiche WebLink

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RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 10/15/2018 Expenditures, Purchasing, and Contracts Chapter 22 | Page 11 Minn. Stat. § 471.59. • Cities that have at least one regularly scheduled council meeting per month must pay within 35 days of receipt. • Cities that do not have at least one regularly scheduled council meeting per month must pay within 45 days of receipt. • Joint powers entities must pay within 45 days of receipt. Minn. Stat. § 471.425, subd. 4. If the city does not pay within the required period (and no good faith dispute concerning the product or the service exists), it must calculate and pay interest of 1.5 percent per month. The minimum monthly interest penalty on the unpaid balance of any overdue bill of $100 or more is $10. For unpaid balances less than $100, the city must calculate and pay the actual interest. Minn. Stat. § 471.425, subds. 3, 4. Cities must notify vendors of invoice errors within 10 days of receipt. If delays in payments result from good faith disputes (such as the fitness of the product or service, contract compliance, or any related defect, error or omission), no interest penalties accrue. If the delay is not in good faith, the vendor may recover costs and attorney’s fees. F. Immediate payment of claims Minn. Stat. § 412.271, subd. 4. Office of State Auditor audit form. When the city cannot defer payment of a claim until the next council meeting without forfeiting a discount or similar benefit, immediate payment can occur if at least a majority of the council endorses an itemized claim for payment. The council then must formally act on the claim at the next council meeting. Earlier payment does not affect the right of the city or any taxpayer to challenge the validity of the claim. G. Independent boards and commissions Minn. Stat. § 412.271, subd. 6. When a municipal public utilities commission or other independent board has the authority to contract and disburse funds without council approval, the independent commission, rather than the council, audits and approves the claims. H. Account book entry Minn. Stat. § 412.151, subd. 1. The clerk must enter, in the permanent account book, the dates and amounts of all receipts; the person from whom the money was received; and all orders drawn upon the treasurer with their payees and reasons for payment.