Chapter 27 – City Depository

Chapter 27–City Depository

 

27.010.    City clerk to advertise for bids.  The city clerk is hereby ordered to advertise in the paper doing the city printing, for sealed proposals for the custody of the city funds from any banking corporation, association, or individual banker doing business in the City that may desire to be selected as the depository of the funds of the City. Said advertisement shall be published one week before the first regular meeting of the council in July of each year and shall be continued up to the time of said meeting. The city clerk is also ordered to deliver a copy of said notice to each banking corporation, association or individual banker doing business in the City.

 

27.020.   Who permitted to bid.  Any banking corporation, association, or individual banker doing business within the City that may desire to bid shall deliver to the city clerk, on or before the day of such meeting, a sealed proposal stating the rate in percent upon daily balances that such corporation, association or individual banker offers to pay the City for the year next ensuing the said meeting, or in event that said selection shall be made for a term less than one year, as hereinafter provided, then for the time between the date of such bid and the next regular meeting for the selection of a depository as aforesaid.  It shall be a misdemeanor for the city clerk or other persons to directly or indirectly disclose the amount of any such bid to any person or persons before the selection of a depository.

 

27.030.   Bond of depository.  Upon the opening of the sealed proposals submitted, the city council shall select as the depository of the  city funds, the banking corporation, association or individual banker offering to pay the

City the largest amount for such privilege; provided, however, the council shall have the right to reject any and all bids. Within five days after the selection of such depository, it shall be the duty of the banking corporation, association, or individual banker so selected to execute a bond payable to the City, to be approved by the mayor and filed with the city clerk with not less than three solvent sureties, who shall own unencumbered real estate in the state, of as great value as the amount of the bond, above homestead and other exemptions, the penalty of said bond to be at least double the revenues of the City for one year, and conditioned for the faithful performances of all the duties and obligations devolving by law or ordinances upon said depository, and for the payment upon presentation of all checks drawn upon said depository by  the city treasurer whenever any funds shall be in said depository applicable to the payment of said check, and that all funds of the City shall be faithfully kept by said depository and accounted for according to law. For a breach of said bond, the City, or any person injured may maintain an action in the name of the City, to use of the person injured thereby.

 

27.040   Treasurer to deposit in depository, penalty for failure. As soon as said bond shall be given and approved, an order shall be made by the council designating said banking corporation, association, or individual banker as the depository of the funds of the City until the time fixed by these sections for another selection, and such order shall be entered upon the journal.  Thereupon, it shall be the duty of the city treasurer, immediately upon the making of said order to transfer to said depository all the funds in his hands belonging to the City, and immediately upon the receipt of any money thereafter he shall deposit the same to the credit of the City with said depository, and for each and every failure to make such deposit, the treasurer and his bondsmen shall be liable to said depository in the amount of same to be recovered by civil action in any court of competent jurisdiction.  If any banking corporation, association or individual banker, after having been selected as such depository, shall fail to give said bond within the time provided by this section, then the selection of such banking corporation, association or individual banker as the depository of the city funds shall be set aside and be null and void, and the city council shall, after notice published in the manner hereinbefore provided, proceed to receive new bids and select another depository.

 

27.050.    Payment of warrants.  It shall be the duty of the city treasurer, upon the presentation to him of any warrant drawn by the proper authority, if there shall be money enough in the depository belonging to the fund upon which said warrant is drawn and out of which the same is payable, to draw his check as city treasurer upon the city depository in favor of the legal holder of such warrant and to take up said warrant and charge the same to the fund upon which it is drawn to pay the same.  No money belonging to the City shall be paid out of the city depository except upon the checks of the treasurer, and all such checks shall be payable by said depository at its place of business in the City.  In case any bonds or coupons or other indebtedness of the City are payable by terms of such bonds, coupons or other indebtedness, at any place other than the city depository, nothing herein contained shall prevent the city council from causing the treasurer to place a sufficient sum at the place where such bonds, coupons or other indebtedness shall be payable at the time of their maturity to meet the same.

 

27.060.    Failure to select depository, duty of council.  If, for any reason, no selection of a depository is made at the time fixed herein, the city council may, at any subsequent meeting, after notice published as hereinbefore provided, receive bids and select a depository in the manner herein set out, and the banking corporation, association or individual banker so selected shall remain the depository until the next regular term for the selection of a depository unless the order selecting it be revoked for the causes specified in this section.  If the city council shall at any time deem it necessary for the protection of the City it may, by resolution, require the depository to execute a new bond and upon failure so to do within five days after the service of a copy of the resolution on said depository, the city council may proceed to select another depository in the manner hereinbefore provided.  The city treasurer shall not be responsible for any loss of the city funds through the negligence, failure, or wrongful act of such depository, but nothing in this act shall release said treasurer from claim for misappropriation for any loss resulting from any official misconduct on his part, or from responsibility for the funds of the city depository, or until a depository shall be selected and the funds deposited therein, or for any misappropriation of such funds in any manner by him.

 

27.070.    Appropriations.

 

  1. Appropriation bills to be referred to treasurer. Every ordinance that contemplates the payment of money shall, upon its second reading be referred to the treasurer for his endorsement in writing to the effect that a sufficient sum stands to the credit of the City, unappropriated, in the fund covered by such ordinance to meet the requirements of such bill, and no ordinance appropriating money shall be passed without the aforesaid endorsement of the treasurer thereon.
  2. Money, how drawn. No check shall be drawn upon or money paid out of the city treasury except upon a warrant signed by the mayor and attested by the city clerk, with the seal of the City hereto affixed.  No warrant shall be drawn upon the treasurer, nor shall any ordinance be passed, appropriating money unless there be an unexpended balance to the credit of the

City in the fund upon which such warrant is drawn, to meet such warrant nor unless a sufficient sum of unappropriated money is in the fund upon which such warrant is drawn to meet such warrant.

 

  1. Limitation as to the expenditure of money. It shall not be lawful for any officer of this City or any committee of the council except in pursuance of any ordinance or resolution of the council duly passed and approved, to lay out or expend or to contract for the laying out or expenditure of a sum of money greater than two hundred fifty dollars for any purpose whatsoever.