CC Resolution No. 3721 ~
RESOLUTION N0. 3721
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTTNO
ADOPTING STATEMENTS OF POLICY RELATING TO CITY
TREASURY FUNCTIONS
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WHEREAS, good financial planning requires the development of sound fis-
' cal policies and adherence thereto in the successful administration of any
program; and,
WHEREAS, the City of Cupertino never has set forth in a consolidated or
in a comprehensive written form those policies under which the fiscal affairs
of the City are administered; and,
WHEREAS, there is now a need for said policies to be brought into con-
formance with more current circumstances:
NOW, THEREFORE, BE IT RESOLVED that the Statements of Policy attached
hereto is hereby adopted by the City Council of the City of Cupertino with the
same to remain in effect until modified by City Council action.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 4th day of September , 1974, by the following vote:
Vote Members of the City Council
AYES: Frolich, Jackson, Meyers, Nellis, Sparks
NOES: None
ABSENT: None
ABSTAIN: None
APPROVED:
/s/ Reed Sparks
Mayor, City of Cupertino
ATTEST:
/s/ Wm. E. Ryder
City Clerk
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CITY OF CUPERTINO
STATEMENTS OF POLICY
TREASURY FUNCTIONS
~ The development and adoption of these policies is for the e~ress purpose of
setting forth procedural guidelines by which the City of Cupertino treasury
~ functions are to be administered. It is the intent of the City Council to pro-
vide suitable administrative flexibility in these matters necessary to efficient
operations while at the same time providing adequate internal auditing controls.
Unless and until there is delegation of authority to the contrary, in which
case these policies must.undergo substantial revision, the City Council reserves
the right to make appointment of the Treasurer and who shall so serve at the
pleasure of the Council. It also is expressly stated that nothing herein
contained shall preclude the functional assistance and direction of the City '
Manager with whom close liaison on all fiscal matters shall be maintained.
Office of Treasurer
The Office of Treasurer shall be filled through appointment by the City Council.
There also shall be appointed a Deputy Treasurer to assure continuity of work
during the absence of the Treasurer but with such appointment being subject to
confirmation by the City Council. Incumbents of both offices shall serve at
the pleasure of the City Council.
The Deputy Treasurer shall be empowered to act as the Treasurer during the
latter's absence. When the duly appointed Deputy Treasurer is also~a City
employee such action shall be taken only on specific authorization of the City
Manager.
Investment of Funds'
The Cupertino Municipal Code grants authority to the Treasurer to invest or
reinvest funds.of the City to the extent as is permitted by State statute.
Such investments shall be made so as to receive the best return of interest
income for the City consistent with the maintenance of required minimum balances
in the commercial bank account and the availability of sufficient moneys to
meet and cash demands of the City.
The placing of moneys in certificates of time deposits is but one form of in-
vestment available to the Treasurer. For moneys so placed the following provisions
shall apply:
1. Said deposits will be placed only with those banks or branches of
banks situated within the City limits who have indicated a desire
• to provide such'services for the City;
2. All deposits so made will be on the basis of bids solicited or re=
ceived. All such bids received, whether orally or in writing, will
be recorded for audit purposes; and,
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~ 3. Awards of such deposits will be made to those submitting the
' highest bid in such a manner so as to maintain equity of bal-
' ances or as near thereto as is practicable.
All investment transactions, including dates, rates of interest or yield, types
of investment and depository balances, shall be reported by the Treasurer to
the City Council at the next subsequent regularly scheduled meeting for receiving
such reports, but not less often than once a month.
' Commercial Bank Account
It shall be the prerogative of the City Council to designate the banking in-
~
stitution to serve as the depository for the City's commercial bank account.
Such designations shall be made without regard to term but will be made on the
basis of type and quality of service available as well as costs of administra-
tion, minimum balances required and such other factors as'the City Council may
deem appropriate.
Issuance of Checks ~
The Treasurer shall pay out all moneys owed by the City on cer~tification of the
Director of Finance that such are due and owing. Such payments may be made
without prior authorization of the City Council under the following provisions
and conditions:
l. Obligations for which any check is issued shall have beeniin-
curred pursuant.to the purchasing system as set forth in the
Cupertino Municipal Code; or, as may be authorized by the City
Attorney under condemnation proceedings, in payment of obliga-
tions under contract previously approved by the City Council,
and for refunds of deposit or similar accounts payable.
2. No check shall be issued unless there is an unencumbered ap-
propriation availab le in the appropriate Activity in the annual
Operating and Construction~~.Budget or where moneys are on de-
posit or otherwise available where appropriation accounting is
not standard procedure.
3. All checks so issued shall be serially numbered and a report
thereof as to date, payee, amount and purpose shall be presented
to the City Council not less often than once a month for rati-
fication.
Nothing herein shall require the Treasurer to issue a check either in contra-
vention to the foregoing provisions and conditions or when in his opinion such
would not be in the best interest of the City; provided, however, that any such
request so rejected will be presented to the City Council at its next subsequent
regularly scheduled meeting unless the originator of the request withdraws it
during the interim.
Check Signatures
As provided by the Cupertino Municipal Code all payments, transfers or withdrawals
of City moneys shall be by check signed manually by the Treasurer and counter-
signed by facsimile signature of the Mayor. The Treasurer sfiall have physical
custody of the facsimile signature stamp and shall be responsible for its safe-
keeping. This shall not be construed as to prevent a manual signature of the
Mayor from being valid.