2002-02-13 CC Packet - Laserfiche WebLink

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~ Paying City Claims (continued) 2. What procedures must a city follow to pay a claim? Generally, the following must be done in order for a claim to be paid: . The council authorizes that the claim be paid . An order for the amount of the claim is signed by the clerk and the mayor. . The order is presented to the treasurer. . The treasurer signs the order and issues it to the claimant as an order check. . The order check can be deposited or cashed by the claimant. 3. Who signs checks? Generally, the mayor, clerk, and treasurer will all sign the checks. When the claimant deposits or cashes the check, it must be endorsed with his or her signature. This endorsement must acknowledge a statement that the claim is a correct claim and not already been paid. 4. Must the council approve the expenditures in advance? Although there are exceptions, generally the city council must approve all expenditures before they can be paid. Claims for goods and services must (emphasis-italics not added) have prior council approval before being paid. 5. What expenditures may be made without prior council approval? "The following types of claims do not (emphasis-italics not added) need council approval before they are paid: . Judgements. . Principal or interest on obligations where the exact amounts have been previously fixed by contract. . Rent. . Other fixed charges determined under a contract which the council has previously authorized. . Wages that have been previously set by the councilor state law. 6. Can the Council delegate authority to pay bills? A city council may designate authority to pay certain claims to a city administrative official. In order to delegate this authority, the council must establish certain procedures that ensure review of the officer's actions. The City manager in a Plan-B city has the authority to make contracts for purchases that do not exceed $15,000. The city council can set a lower limit by passing a resolution. 7. Are rubber stamp signatures allowed? A rubber stamp or facsimile signature of a city official may be used if this type of signature has been approved by the city council. This approval is typically done by the council in passing a resolution.