Chapter 4.01
FISCAL ADMINISTRATION
Sections:
4.01.020 Collection and deposit of City funds.
4.01.030 Investment of City funds in City Treasury.
4.01.040 Accounting and auditing.
4.01.050 Drawing checks upon the City Treasury.
4.01.070 City Treasurer utilization of staff.
4.01.080 City Treasurer duties, responsibilities, and powers.
4.01.010 Purpose of chapter.
A. Purpose. The purpose of this chapter is to provide guidance to, and procedures to be followed by, officers and employees of the City relating to the collection, deposit, investment and expenditure of funds paid to or received by the City. The provisions of this chapter are intended to complement the various provisions of the Government Code of the State of California which govern such matters and are not intended to conflict with those provisions. [Ord. 12-004.]
4.01.020 Collection and deposit of City funds.
A. Primary Responsibility for Collection of Funds. The Finance Director of the City shall have primary responsibility for the collection of all funds paid to or received by the City from any source, except in those instances in which by statute, by ordinance, or by contract approved by the City Council, the responsibility for the collection of specific funds has been vested in another officer or employee of the City.
B. Initial Disposition of Funds Collected by the Finance Director. All City funds collected by the Finance Director, or the officer of the City charged by law or ordinance with the responsibility for collecting same, shall be delivered or deposited as follows:
1. All funds paid to or received by the City, the deposit of which by the City is governed by contract approved by the City Council or by statute or regulation, shall be deposited in accordance with the provisions of the contract approved by the City Council or in accordance with any applicable statute or regulation which governs the deposit of such funds.
2. Those funds specifically paid to the City Treasurer by reason of statute or ordinance shall be delivered to the City Treasurer for deposit. At the option of the officer of the City collecting said funds, instead of physically delivering said funds to the City Treasurer for deposit by him or her, said funds may be deposited in an account established by the Finance Director or City Treasurer for such deposits.
3. All other funds shall be deposited in an account established by the Finance Director or the City Treasurer for such deposits in accordance with any applicable statute or regulation which governs the deposit of such funds and need not be physically delivered to the Finance Director or City Treasurer prior to deposit.
4. Each City account shall be established as an interest-bearing account in a legal depository selected in accordance with the requirements set forth in this chapter and applicable law. Officers and employees of the City making deposits in such account shall advise the Finance Director or City Treasurer of both the making of each such deposit and the fund of the City to which the deposit shall be credited.
5. The City Council, the City Treasurer and the Finance Director may agree to jointly use the services of a single-story depository for the deposit of funds. In the absence of such agreement, the City Treasurer has the statutory authority to select the depository or depositories for the funds coming into possession of the City Treasurer.
C. Collection of City Taxes or Fees. The City Treasurer is not authorized to perform any duty related to the collection of City taxes or license fees. [Ord. 12-004; Ord. 16-011 § 1; Ord. 18-007 § 1.]
4.01.030 Investment of City funds in City Treasury.
A. Investment of Deposited Funds. City funds which have been deposited as provided in DMC 4.01.020 may be invested in accordance with the requirements of law and any investment policy statement approved by the City Council as follows:
1. All funds paid to or received by the City, the deposit of which by the City is governed by contract approved by the City Council or by statute or regulation, shall be invested in accordance with the provisions of the contract approved by the City Council or in accordance with any applicable statute or regulation which governs the investment of such funds. The City Council shall be responsible for the investment of such funds.
2. All other funds are subject to investment by the City Council under the provisions of Cal. Gov’t Code § 53601 to the extent that such funds constitute money in a sinking fund or are determined by the City Council to be idle or surplus money not required for the immediate needs of the City. The City Council may, by resolution, establish criteria to be used in determining which deposited funds are subject to investment by the City as moneys in a sinking fund or as idle or surplus money not required for the immediate needs of the City. The City Treasurer shall have no authority to invest said deposited funds unless the City Council has, by resolution, delegated its authority to invest such funds to the City Treasurer in accordance with the requirements of Cal. Gov’t Code § 53607.
B. Quarterly Report(s) on Deposits and Investments. The Finance Director shall prepare and submit to the City Manager and the City Council the quarterly report(s) on deposited and invested funds of the City that are required by Cal. Gov’t Code § 53646(b).
C. Monthly Report(s). The City Treasurer and the Finance Director may, by prior agreement, jointly prepare and submit to the City Manager and City Council monthly reports required to be prepared by the City Treasurer under the provisions of Cal. Gov’t Code § 41004. In the absence of such agreement, the City Treasurer shall prepare such monthly reports on the funds which remain subject to control of the City Treasurer, if any. The City Treasurer shall be entitled only to the financial information necessary for the purposes of preparing the monthly report, subject to prior approval by the City Manager or Finance Director. The City Treasurer may only utilize City staff to prepare a monthly report as provided in DMC 4.01.070. Nothing in this section shall prohibit the Finance Director from preparing and submitting a similar monthly report to the City Manager and City Council.
D. Investment Oversight Committee. The City Council may, by resolution, establish an investment oversight committee to advise the City Council on investment matters. The Finance Director and the City Manager shall be members of such committee together with such other members as may be provided for in said resolution, appointed by the Mayor and confirmed by the City Council. [Ord. 12-004; Ord. 16-011 § 1.]
4.01.040 Accounting and auditing.
A. Accounting and Internal Auditing Responsibility. The Finance Director shall have the primary responsibility to provide accounting and internal auditing services in reference to all funds of the City which have been deposited or invested pursuant to this chapter.
B. Processing and Auditing of Claims. All claims against the funds of the City, including payroll claims, shall be audited by the Finance Director and may be approved by the Finance Director if they conform to a budget approved by ordinance or resolution of the City Council and funds are available in the City Treasury for payment of said claims. All other claims shall be audited and approved by the City Council prior to payment. Claims subject to audit and approval by the Finance Director need not be audited by the City Council prior to payment, but may be presented to the City Council for review following payment. All claims audited and approved by the Finance Director may thereafter be ratified and approved by the City Council in connection with the City Council’s acceptance and approval of an audited comprehensive annual financial report for the City.
C. Authority of Finance Director to Establish Procedures. The Finance Director may prescribe written procedures to be followed by all officers and employees of the City who collect or receive funds payable to the City to ensure the safekeeping and deposit of said funds by appropriate officers of the City in accordance with the laws of the State of California and the applicable ordinances and resolutions of the City. Officers and employees of the City who collect or receive said funds payable to the City shall comply with said written procedures and shall make the deposits of said funds at the intervals and in the manner provided for in said written procedures. The accounts of officers or employees making deposits in the City Treasury shall be settled as provided in said written procedures, but not less frequently than on the first Monday of each month. [Ord. 12-004.]
4.01.050 Drawing checks upon the City Treasury.
A. Use of Checks and Electronic Transfers in Lieu of Warrants. When funds are available for the payment of claims, the audit and approval of said claims by either the Finance Director, when authorized in DMC 4.01.040, or by City Council in all other cases, shall, without issuance of a warrant, be authority to the legal depository holding the funds in the City Treasury to pay the audited claims by check or electronic transfer as authorized by Cal. Gov’t Code § 53912. Registers and transfers maintained by the Finance Director pertaining to said checks and electronic transfers shall contain substantially the same information as required by law or ordinance to be maintained in connection with the use of warrants for payment of claims. Such required information shall consist of the purpose or purposes for which the check is drawn or for which electronic transfer is made, the identity of the fund or funds from which the payment is to be made and the identity of the officers of the City who authorized the drawing of the check or the making of the electronic transfer. All funds held in the City Treasury shall be subject to being drawn upon by check or electronic transfer, subject to such limitations upon the use of said checks and electronic transfers as may be required by the legal depository holding said funds and also subject to such further limitations as may be required by law or ordinance.
B. Transfer of Funds and Investment of Funds by Check or Electronic Transfer. Funds held in the City Treasury may be transferred between interest-bearing and non-interest-bearing accounts for use of paying audited claims by checks drawn as provided in this section. Funds in the City Treasury may also be drawn upon by check or electronic transfer as provided in this section for the purchase of investments for idle and surplus funds of the City as authorized by DMC 4.01.030.
C. Manner of Drawing Checks and Issuing Electronic Transfers. All manually prepared checks drawn upon funds in the City Treasury shall be executed by the Mayor and either the City Manager or the Finance Director as the City’s legally designated persons. All machine prepared checks drawn upon funds in the City Treasury either may be manually executed as provided above or may be executed by use of facsimile signatures in accordance with the procedures provided for in Cal. Gov’t Code § 5500 et seq. [Ord. 12-004; Ord. 16-011 § 1.]
4.01.060 Definitions.
“Audited claim” shall mean a claim that has been reviewed and approved by either the Finance Director, when authorized to do so by law or ordinance, or by the City Council in all other cases, for payment from a fund of the City as being in all respects a valid and legally enforceable obligation of the City payable from that fund.
“Check” shall have the same meaning to that term as is given in the Commercial Code of the State of California.
“City Treasury” shall mean and include all of the funds of the City which have been deposited with the City Treasurer or in accounts in a legal depository selected by the City Treasurer for such deposit, together with all other funds of the City which have been lawfully deposited in a legal depository for the benefit of the City in accordance with the requirements of law.
“Claim” shall mean a demand for payment of money from the funds of the City, but shall exclude any claims for money or damages which must be presented to the City in accordance with the provisions of Cal. Gov’t Code Part 3, Division 3.6, Title 1, Chapter 1 (commencing with Cal. Gov’t Code § 900) or Chapter 2 (commencing with Cal. Gov’t Code § 910).
“Legal depository” shall have the same meaning as is given to the term “depository” as defined in Cal. Gov’t Code § 53630(c).
“Warrant” shall mean a written instrument executed by an officer or officers of the City as required by law or ordinance addressed to the City Treasurer and directing him or her to pay from moneys deposited in the City Treasury a claim against the City or the purpose stated in that instrument and from such fund in the City Treasury which is described in said instrument. [Ord. 12-004.]
4.01.070 City Treasurer utilization of staff.
In executing and performing the duties and powers conferred upon the City Treasurer by this chapter, the City Treasurer shall deal with the administrative services of the City only through the City Manager, except for the purpose of inquiry, and the City Treasurer shall not give orders to any subordinates of the City Manager. Notwithstanding the foregoing, the City Treasurer may provide assistance in an advisory capacity to any department heads, so long as such assistance does not conflict with the administrative duties of the City Manager. [Ord. 16-011 § 1.]
4.01.080 City Treasurer duties, responsibilities, and powers.
The City Treasurer shall have no duty, responsibility, or power beyond those explicitly enumerated in this code. Notwithstanding the foregoing, the City Treasurer shall not be precluded from performing those duties mandated by State law. [Ord. 16-011 § 1.]