CC Resolution No. 5939 ~ ~ .
RESOLUTION N0. 5939
i . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING RESOLUTION N0. 3721 ADOPTING STATEMENTS
OF POLICY RELATING TO CITY TREASURY FUNCTIONS
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~ WHEREAS, good financial planning requires [he development of sound fiacal
policies and adherence thereto in the successful administration of any program;
and,
WHEREAS, there is now a need for said policies to be brought into con-
formance with more current circumstances:
NOW, THEREFORE, BG IT RESOLVED that the Sta[ements of Policy attached
hereto is hereby adopted by the City Council of the City of Cupertino with
the eame [o remain in effect until modified by City Council action.
PASSED AND ADOPTED at a regular meeting of the City Council of the City
oE Cupertino thia 7th day of September, 1982, by the following vote:
Vote Membera of the City Council
AYES: Johnson, Rogers, Sparks, Plungy
NOES: None
ABSENT: Catto
ABSTAIN: None
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I APPROVED:
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~ or, C of Cupert
' Temp e
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ATTEST:
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i , City C erk
' Deputy
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CITY OF CllPERTINO
STATEMENTS OF POLICY
TREASURY FUNCTIONS
The development and adoption of these policies is for the express purpose of
setting forth procedural guidelines by which the City of Cupertino treasury
functions are to be administered. It ia 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.
Unleas and until there is delegation of authority to the contrary, in wfiich
case these policies must undergo substantial revision, the City Councll reserves
the right to make appointment of the Treasurer and who shall so aerve at the
pleasure of the Council. It also 1s expressly stated that nothing herein
contained shall preclude the functional assistance and direction of the City
Manager with whom close liaison on all fiscal mattera shall be maintained.
A. 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 officea shall serve at the pleasure of the City Council.
The Deputy Treasurer shall be empowered [o act as the Treasurer during
the latter's absence. {Jhen the duly appointed Depu[y Treasurer is also
a City employee such action shall be [aken only on specific authorization
of the City Dfanager.
B. Investment oE Funds
The Cuper[ino 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 intereat income for the City consistent with the maintenance of required
minimum 6alances in the commercial bank account and the availability of
sufficient moneys to meet the cash demands of the City.
The placing of moneys in certificates of time deposits is but one form of
inveatment available to the Treasurer. For moneys so placed the following
provisione ahall apply:
1. Said deposits ahall be placed only with financial institutions
located within the State of California. Firs[ conaideration
will be given to those financial inati[utions located within
the city limite who have indicated a deaire to provida euch
aervice for the City.
2. All depoaita ao made will be on the basis of bids aolicited
or received. All such bida received, whether orally or in
' writing, will be recorded for sudit purpoaea; and,
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3. Awards of such deposita will be made to those submit[ing
the hi6hest bid in such a manner so as to maintain equity
of balances or as near thereto as is practicable.
~ A summary of.lnvestment types'and depository balances shall be reported
by the Treasurer to the City Council not less often than once a month.
C. Commercial Sank Account
I[ shall be the prerogutive of the City Council to designate [he banking
institution to serve as the depository for [he City's commerciul bank
account. Such designations shall be made without regard to term but will
be made on the bnsis of type and quality of service available as well as
costs of adminiatration, minimum balances required and such other factors
as the City Council may deem appropriate.
D. Issuance of Checks
The Treasurer shall pay out all moneys owed by [he City on certification 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 conditiona:
1. Obligations for which any check is issued shall have been
incurred purauant 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 obligations under contract previously approved by the City
Council, and for zefunds of deposit or similar accounts payable.
2. No check shall be issued unless there is an unencumbered appro-
priation available in the appropriate Activity in the annual
Operating and Gonstruction Budget or where moneys are on deposit
or otherwise available where appropriation accounting is not
standard procedure.
3. All checks so iasued shall be aerially numbered and a report
thereof as to date, payee, amount and purpose shall be presen[ed
to the City Council not leas often than once a month for rati-
fication.
~othing herein ahall require the Treasurer to iasue a check ei[her in
contravention [o the foregoing proviaions and conditions or when in his
opinion such would not be in the bes[ interest of the City; provided,
however, that any euch request so re~ected will be presented to the City
Council at ita next subsequent regulnrly scheduled meeting unless the
originator of the request withdrawa it during the interim.
E. Check Signatures '
All payment of City moneys ahall be by check as provided by the Cupertino
Municipal Code, Section 2.24.020, except ae followa:
~ 1. A Petty Cash Fund may be eatabliahed to permit cash payments for
incidental items that by their nature make it impractical to isaue
a check. The Treasurer shall eatabliah procedurea for adminis-
[ration of the Petty Cash Fund.
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