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 15 In the alternative, city staff could retain invoices and receipts for all items charged to a credit card. Minn. Stat. Ch. 475. Handbook, Debt and Borrowing. Credit card must also comply with laws governing city borrowing. Cities may not carry debt on their credit cards. Cities that use credit cards must adopt a policy of paying the entire credit card balance each month. Office of the State Auditor, Statement of Position: Credit Card Use and Policies, Feb. 2014. The Office of the State Auditor strongly urges cities to develop a credit card use policy to avoid misuse or misappropriation of funds. The policy should: • Identify the officers and employees authorized to make purchases on behalf of the city and eligible to use the card. • Identify the types of purchases to be made with the card. • Set up a review process for all purchases made with the card. • Prohibit the use of a city credit card for personal purchases. • Require supporting documentation. • Limit the total amount of charges that can be made on city credit cards. • Obtain signed written acknowledgments of the credit card policy from all authorized card users. 4. Other electronic funds transfer Minn. Stat. § 471.38. Electronic funds transfer means value exchange by mechanical means without the use of checks, drafts, or similar negotiable instruments. A local government may make an electronic funds transfers for the following: Minn. Stat. § 471.38. • For a claim for a payment from an imprest payroll bank account or investment of excess money. • For a payment of tax or aid anticipation certificates. • For a payment of contributions to pension or retirement fund. • For vendor payments. • For payment of bond principal, bond interest and a fiscal agent service charge from the debt redemption fund. 5. Cooperative purchasing Minn. Stat. § 471.59. Minn. Stat. § 471.345, subd. 15. Cities may increase savings by making purchases jointly with one or more governmental units through a process commonly known as cooperative purchasing. Under these programs, several governmental units can authorize one city to solicit bids on behalf of all participating units. Communities have found it profitable to purchase such items as fire hoses, street signs, paint, coal, oil, soap, office supplies, fire trucks, and police cars in this manner.