HomeMy WebLinkAbout6.c. Electronic Funds Transfer Policy
City Council Regular Meeting: August 2, 2021
EXECUTIVE SUMMARY
AGENDA ITEM: Electronic Funds Transfer Policy AGENDA SECTION:
Consent
PREPARED BY: Teah Malecha, Finance Director AGENDA NO. 6.c.
ATTACHMENTS: Draft Electronic Funds Transfer Policy &
Electronic Funds Transfer Authorization
Form
APPROVED BY: LJM
RECOMMENDED ACTION: Motion to approve Electronic Funds Transfer Policy
BACKGROUND
The City relies on technology for making electronic payments of payroll. As the City continues to create
efficiencies, the ability to make electronic payments will expand. It is recommended to adopt an Electronic
Funds Transfer Policy in accordance with Minnesota State Statute §471.38. It allows local governments to
complete electronic funds transfers, rather than sending paper checks, for the following:
• A claim for a payment from an imprest payroll bank account or investment of excess money;
• A payment of tax or aid anticipation certificates;
• A payment of contributions to pension or retirement funds;
• Payments to vendors; and
• Payment of bond principle, bond interest and a fiscal agent service charge from a debt redemption
fund.
The City will also provide our current financial institutions with an Electronic Funds Transfer
Authorization Form stating employees who are authorized to make electronic payment, bank wires, etc.
This form will be updated annually and issued to the City’s financial institutions.
RECOMMENDATION
Staff recommends approval of the Electronic Funds Transfer Policy and annual Electronic Funds
Transfer Authorization Form.
ELECTRONIC FUNDS TRANSFER AUTHORIZATION FORM
The City of Rosemount has adopted an Electronic Funds Transfer Policy for 2021 as required by
Minnesota Statute 471.38. City council hereby authorizes the City Administrator, Finance Director,
and Payroll Specialist to make electronic funds transfers. These transfers can occur via bank wire or
online banking. The city will maintain documentation of the electronic funds transfer according to
retention practices.
ADOPTED this 2nd day of August, 2021, by the City Council of the City of Rosemount.
William H. Droste, Mayor
ATTEST:
Erin Fasbender, City Clerk
CITY OF ROSEMOUNT
POLICY TITLE: ELECTRONIC FUNDS TRANSFER POLICY
EFFECTIVE DATE: AUGUST 2, 2021
PROPOSED BY: FINANCE
DATE APPROVED
BY COUNCIL: AUGUST 2, 2021
PURPOSE
The purpose of this policy is to set forth the circumstances in which the City of
Rosemount may make electronic funds transfers.
POLICY
It is the policy of the City of Rosemount to abide by Minnesota Statute §471.38 when
making an electronic funds transfer.
TRANSFERS ALLOWED FOR CERTAIN PURPOSES
The City of Rosemount is allowed to make an electronic funds transfer for the following:
1. For a claim of a payment from an imprest payroll bank account or investment of
excess money;
2. For a payment of tax aid anticipation certificates;
3. For a payment of contributions to pension or retirement funds;
4. For vendor payments; and
5. For payment of bond principle, bond interest, and a fiscal agent service charge
from the debt redemption fund.
POLICY CONTROLS
The City of Rosemount will only make payments via electronic funds if the following
policy controls are met:
1. The City Council shall annually delegate the authority to make electronic funds
transfers to the City Administrator, Finance Director, and Payroll Specialist;
2. The disbursing bank shall keep on file a certified copy of the delegation of
authority;
3. The initiator of the electronic transfer shall be identified;
4. The initiator shall document the request and obtain an approval from the City
Administrator, Finance Director, or Payroll Specialist before initiating the transfer;
5. A written confirmation of the transaction shall be made within one business day
after the transaction and shall be used in lieu of a check required to support the
transaction;
6. A list of all transactions made by electronic funds transfer shall be submitted to
the City Council at the next regular meeting after the transaction.
DELEGATION OF AUTHORITY
The City Administrator is designated as the business administrator of the City and is
responsible for electronic funds transfers and activities under the direction of this policy.
The City Administrator may delegate certain duties to appropriate staff but shall remain
responsible for the operation of the transfer program.
LEGAL REFERENCE
Minnesota Statute §471.38, subds. 3 and 3a