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 12 I. Limits on issuing checks Minn. Stat. § 471.69. No statutory city may contract for any debt, or issue any warrant or order in any calendar year in anticipation of the collection of taxes levied or to be levied for that year in excess of the average amount actually collected on the tax levy for the previous three years, plus 10 percent. This does not apply to cities where the mineral net tax capacity exceeds the net tax capacity of real property by 25 percent or more. Minn. Stat. § 471.69. This limit applies to each fund for which the city has made a tax levy. The clerk must annually (as soon as possible after January 1) present to the council a statement of tax collections the city credited to each fund during each of the three previous fiscal years with the yearly average. The county auditor must furnish this information to the clerk upon request. J. Duplicate checks Minn. Stat. § 471.415, subd. 1. The city may issue duplicate checks to replace those lost or destroyed. The new check must correspond in number, date, and amount with the original, and the word “duplicate,” along with the date of its issuance, must be written on its face. Minn. Stat. § 471.415, subd. 2. Before the clerk can issue a duplicate, the check’s owner must file with the clerk: • An affidavit indicating ownership, a description of the order, and the manner of its loss or destruction. • An indemnifying bond in the amount of the lost check (at its discretion, the council may dispense with this requirement). Minn. Stat. § 471.415, subd. 3. The clerk must keep a record showing: the number, dates, and amounts of all mutilated, lost or destroyed orders; the date of duplicate issuance; and the names of people who received duplicates. K. Petty cash (imprest funds) Minn. Stat. § 412.271, subd. 5. The council may establish one or more petty cash (or “imprest”) funds for the payment, in cash, of any proper claim against the city which is impractical to pay in any other manner, except that no claim for salary or personal expenses of an officer or employee shall be paid from such funds. Minn. Stat. § 412.271, subd. 5. Office of the State Auditor, Statement of Position: Petty Cash (Imprest) Funds, Jan. 2014. Each fund must have a council appointed custodian responsible for its safekeeping and disbursement. When the custodian has accumulated a number of claims, he or she should present an itemized “master” claim for council approval at the next council meeting following the disbursement(s).