HomeMy WebLinkAboutORDINANCE NO. 06-11-05ORDINANCE NO. 06-11-05
STATE OF GEORGIA
COUNTY OF FULTON
AN ORDINANCE TO ADOPT AND APPROVE POLICIES RELATING TO ACCOUNTING.
AUDITING, FINANCIAL REPORTING, BUDGETARY, CAPITAL ASSETS, CASH AND
INVESTMENT MANAGEMENT, DEBT MANAGEMENT, ELECTED OFFICIALS
EXPENDITURES, EXPENDITURES/EXPENSES, GRANT MANAGEMENT, POLICY ON
CELL PHONES AND OTHER ELECTRONIC DEVISES, RECORD RETENTION, REVENUE
ADMINISTRATION, AND TRAVEL AND MEAL EXPENDITURES, COMPRISING THE
FINANCIAL MANAGEMENT PROGRAM FOR THE CITY OF MILTON GA; TO PROVIDE
FOR GUIDANCE IN ADMINISTERING SUCH POLICIES; AND FOR OTHER PURPOSES
The Council of the City of Milton hereby ordains while in special session on the 14th day of November,
2006 at 6:00 pm.:
WHEREAS, it is necessary, from time to time, to establish policies and procedures consistent with the
administration of a municipal government in alignment with federal, state, and local regulations; and
WHEREAS, the City Treasurer in conjunction with the City Manager has comprehensively developed
the Financial Management Program, consisting of accounting, auditing, financial reporting, budgetary,
capital assets, cash and investment management, debt management, elected officials expenditures,
expenditures/expenses, grant management, policy on cell phones and electronic devises, purchasing,
record retention, revenue administration, and travel and meal expenditures policies in order to provide
guidance and direction to City officials and employees, to establish standard policies for recurring
matters, to establish strong internal controls and legal compliance, and to provide for an efficient and
effective means to operate the government; and
WHEREAS, upon adoption, staff will incorporate the above policies into the Financial Management
Program, and into the City's daily operations to effectuate the management of finances and operations;
and
WHEREAS, the City intends to utilize these policies and procedures in all applications which warrant
such oversight.
NOW, THEREFORE, THE COUNCIL OF THE CITY OF MILTON HEREBY ORDAINS that:
SECTION 1. That the Ordinance relating to the Financial Management Program is hereby
adopted and approved; and is attached hereto as if fully set forth herein; and,
SECTION 2. That this Ordinance shall be designated as the Financial Management Program of
the City of Milton, GA; and,
SECTION 3. That staff is hereby directed to develop operating procedures and practices
consistent with the nature and scope of the policies attached hereto; and
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SECTION 4. This Ordinance shall be effective on December 1, 2006.
ift" ORDAINED this 21 S` day of November, 2006.
Attest:
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Approved:
l/
Joe Lockwo d, or
-dOor r City of Milton
I
� georgia
FINANCIAL MANAGEMENT PROGRAM
ACCOUNTING, AUDITING AND
FINANCIAL REPORTING
Developed under the Authority
of the City Council by the
City Manager's Office, and
Approved by ordinance no.
06-11-05 on November 21, 2006.
Page 1 of 4
City of Milton Financial Management Program
SECTION I. ACCOUNTING
The City shall maintain a system of financial monitoring, control, and reporting for all operations
and funds in order to provide an effective means of ensuring that financial integrity is not
compromised. In addition, such practices shall provide City officials with the necessary resources
in order to make sound financial decisions.
A. SCOPE
This policy applies to all accounting records that are the responsibility and under the
management of the City's City Treasurer's Office.
B. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)
The City will establish and maintain a high standard of accounting practices. Accounting
standards will conform to generally accepted accounting principles of the United States as
promulgated by the Governmental Accounting Standards Board (GASB). The City also will
follow the Financial Accounting Standards Board's pronouncements, as applicable.
C. FUND STRUCTURE
The City will maintain the minimum number of funds consistent with legal compliance and
sound financial administration. The City will adhere to the mandatory fund structure included
in the Georgia Department of Community Affairs' (DCA) chart of accounts (see below).
Funds shall be classified in conformity with GAAP. Further, all funds shall be reported within
the annual financial statements.
D. CHART OF ACCOUNTS
The Georgia General Assembly passed the Local Government Uniform Chart of Accounts and
Reporting Act in 1997 (House Bill 491). This law requires the DCA to prepare and issue a
standardized chart of accounts for Georgia governments. It shall be the policy of the City to
implement and utilize the account classifications as the chart of accounts prescribes.
SECTION II. AUDITING
Georgia Law on Local Government Audits, O.C.G.A. Section 36-81-7, requires an independent
annual audit for the City. The annual independent audit shall be conducted in accordance with
generally accepted auditing standards (GAAS) and generally accepted governmental auditing
standards (GAGAS). In addition, the City shall comply with the requirements of the General
Accounting Office (GAO) and the Office of Management and Budget (OMB) when audits are
conducted relating to federal funding, consistent with the 1996 (and any future) amendments to
the Single Audit Act.
A. SCOPE
This policy applies to all funds that are the responsibility and under the management of the
City of Milton.
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City of Milton Financial Management Program
B. AUDITOR QUALIFICATIONS
A properly licensed Georgia independent public accounting firm shall conduct the audit.
C. CHOSING THE AUDIT FIRM
Every three to five years, the City will issue a request for proposal to choose an audit firm for
a period of three years with two one year renewal options. The City will request two
proposals from qualified public accounting firms. One proposal shall contain the firm's costs
and a second will contain the firm's qualifications. When awarding the contract for the
independent audit, not less than 70% of the decision will be based upon technical
qualifications rather than cost.
C. AUDITING AGREEMENT
The agreement between the independent auditor and the City shall be in the form of a
written contract or an engagement letter. The contract or engagement letter shall include
the request for proposal as an appendix to the written document and all issues addressed in
the request for proposal shall be required as part of the contract or engagement letter.
D. INTERNAL AUDIT
The City shall develop, and once developed, maintain a strong internal audit function,
whereby applying financial practices and policies to transactions. The City shall develop
accounting practices and procedures, which will be documented for use in internal control
evaluation.
E. MALFEASANCE AND EMBEZZLEMENT
Any employee will be prosecuted to the extent of the law in any instance where the
employee is proven to have committed an illegal act such as theft.
SECTION III. FINANCIAL REPORTING
The City shall develop and maintain an ongoing system of financial reporting to meet the
information needs of the government, authorities, and regulatory agencies. In addition, the City
Manager, Mayor, Council, Department Heads and the public shall have access to reports to allow
them to monitor, regulate, and to use as a basis for future financial decisions.
A. COMPREHENSIVE ANNUAL FINANCIAL REPORT
In conjunction with the annual independent audit, the City shall prepare and publish a
Comprehensive Annual Financial Report (CAFR). The City shall prepare the CAFR in
conformity with GAAP and the Government Finance Officers Association's (GFOA) program
requirements. Annually, the City will submit its CAFR to the GFOA to determine its eligibility
to receive the GFOA's "Certificate of Achievement for Excellence in Financial Reporting." The
City shall make this report available to the elected officials, bond rating agencies, creditors
and citizens.
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City of Milton Financia/ Management Program
All financial statements and schedules contained within the CAFR shall be audited, with the
purpose to effectively communicate the complete financial affairs of the City to all interested
readers.
B. ANNUAL BUDGET DOCUMENT
The City shall prepare and publish an annual budget document in accordance with the
policies contained within this document. This budget shall measure the annual funding and
forecast the financial position of the City for the two subsequent fiscal years. This document
shall be prepared in conformity to the GFOA program requirements. Annually, the City will
submit the budget to the GFOA to determine its eligibility to receive the GFOA's
"Distinguished Budget Presentation Award." The City shall make the report available to
elected officials, citizens, and any interested parties.
C. ANNUAL CITIZEN'S REPORT
In order to provide citizens with financial information that is easily disseminated, the City
shall coordinate the publication of an annual report to the citizen's (e.g., a popular report)
which includes financial details. The citizen's report shall be in addition to the CAFR. This
report shall be in conformance with GAAP, and follow the recommendations of the GFOA's
"Popular Annual Financial Report" (PAFR) program guidelines. The City shall submit the
Annual Citizen's Report to the PAFR program to determine it eligibility to receive the award.
D. FINANCIAL REPORTING TO THE CITY COUNCIL
On a monthly basis, the City Treasure's Office shall prepare and present a summarized
"Statement of Revenues and Expenditures" to the City Council for all of the City's operating
funds. The City also shall prepare a "Capital Project" report outlining appropriations (if any),
expenses, outstanding encumbrances, and available appropriable balances.
E. FINANCIAL REPORTING TO THE ADMINISTRATION
In addition to the external reporting detailed above, the City Treasurer's Office shall
coordinate the reporting needs of each department in order to design and implement those
reports which the departments need to make sound business decisions. At a minimum,
departments will receive reports detailing monthly department financial activity including
revenues, expenses, any personnel costs in excess of the approved budget, and
recommended budget line -item re -allocations.
G. EXTERNAL FINANCIAL REPORTING
The City shall report in conformity with O.C.G.A Section 36-81-7. A copy of the City's annual
audit (i.e., the CAFR) shall be submitted to the Georgia Department of Audits and Accounts
within 180 days of year-end, as required. Additionally, all external reports as required by the
regulatory agencies shall be completed and filed as prescribed by state and federal law.
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� r City of Milton
georgia
FINANCIAL MANAGEMENT PROGRAM
BUDGETAR Y POLICIES
Developed under the Authority
of the City Council by the
City Manager's Office, and
Approved by ordinance no.
06-11-05 on November 21, 2006.
Page 1 of 7
City of Mi/ton Financia/ Management Program
SECTION I. GENERAL BUDGET POLICIES
The budget process provides the primary mechanism by which key decisions are made regarding
the levels and types of services to be provided within estimated resources. Budget policy guides
this process. Budget policy also directs the City's financial health and stability.
Georgia law (e.g., O.C.G.A. 36-81-2 et seq.) provides the budget requirements for Georgia local
governments. The information below provides an outline of the City's application of those laws.
The City's goal will be to adopt operating budgets where current revenues equal anticipated
expenditures once operating reserves are met. All departments supported by the resources of
this City must function within the limits of the financial resources identified or available specifically
to them. A balance must be struck between revenues and expenditures, so that the public can
realize the benefits of a strong and stable government. It is important to understand that this
policy is applied to budget entities over periods of time which extend beyond current
appropriations. By law, budgets cannot exceed available resources, defined as revenues
generated in the current period added to balances carried forward from prior years. Temporary
shortages, or operating deficits can and do occur, but they are not tolerated as extended trends.
A. SCOPE
This policy applies to all budgeted funds, which are the responsibility, and under the
management of the City of Milton.
B. FINANCING CURRENT COSTS
Current costs shall be financed with current revenues, including the use of authorized fund
balances. The City is prohibited from balancing current expenditures through the obligation
of future year's resources. The City shall strive to avoid short-term borrowing to meet cash
flow requirements. However, the City may enter into short-term borrowing should a critical
need arise.
C. BUDGET OBJECTIVE BY TYPE OF FUND
The following budget objectives are established for the different funds the City uses:
1. General Fund — The annual budget for the General Fund shall provide for
general government operations of the City and maintain working capital
necessary for the City's financial health and stability.
2. Special Revenue Fund(s) — The City adopts annual budgets for each special
revenue fund that demonstrates any legally restricted revenue sources are used
consistent with the applicable laws and/or regulations (i.e. Emergency 911 Fund,
Impact Fee Fund, etc.).
3. Capital Project Fund(s) — The City adopts project budgets for each of its capital
project funds. These adopted appropriations do not lapse at the end of a fiscal
year; rather they remain in effect until project completion or re -appropriation by
City Council.
4. Debt Service Fund(s) — The City adopts annual budgets for its debt service
funds as applicable. Any remaining fund balances from prior years plus current
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City of Milton Financial Management Program
years projected revenues shall be sufficient to meet all annual debt service
requirements.
5. Enterprise Fund(s) - Although generally accepted accounting principles (GAAP)
and Georgia statutes do not require the City to adopt budgets for enterprise
funds, the City shall adopt budgets for its enterprise funds in order to monitor
revenues and control expenses. The City uses a business approach when
budgeting enterprise funds. Enterprise funds shall be self-supporting whenever
possible and subsidized losses will be minimized when break-even is not
possible. See revenue policies.
Additionally, the City classifies funds as either operating funds or non-operating funds.
Operating funds are those funds that include appropriations for the payment of
salary/benefits and whose maintenance & operating appropriations are necessary to
continue the daily operations of the City. The General Fund will always be an operating
fund. Non-operating funds are those funds that do not include appropriations for the
payment of salary/benefits and whose maintenance & operating appropriations are not
critical to the daily operations of the City.
SECTION II. OPERATING BUDGET
The operating budget shall be prepared on an annual basis and include those funds detailed in
Section I that are subject to annual appropriation (all funds excluding the Capital Project Funds).
Prior year budget appropriations and prior year actual data will be provided as reference data,
with the current year appropriation and projection of expenditures. At a minimum, the City shall
adopt annual balanced budgets for the general fund, each special revenue fund, and each debt
service fund in accordance with O.C.G.A. 36-81-3.
The annual proposed budget should be submitted to the governing authority in accordance with
the City of Milton's Charter while being held by the City Manager's Office for public
review/inspection in accordance with O.C.G.A. 36-81-3. Public meetings will be conducted after
proper advertisement prior to the City Council adopting and approving the annual budget
document. (O.C.G.A. 36-81-5 and 36-81-6).
A. DEPARTMENTAL APPROPRIATIONS
The budget shall be developed based upon "line -item" expenditures within each department.
This type of budget focuses on categories of expenditures such as personal services,
contractual services, supplies, equipment, etc. within each department. At a minimum, each
department's appropriation in each fund shall be detailed within the budget document.
(O.C.G.A. 36-81-3 and 36-81-5).
B. PERFORMANCE BUDGET
In addition to requesting expenditures by line item, the budget document shall include
"performance" budget information. A performance budget provides information on each of
the departments' core deliverables as they relate to services received by the constituents of
the City. A performance budget also utilizes "Service Efforts and Accomplishments" which
measure performance of services rendered and department efficiency/effectiveness on a
historical basis and project targets of the indicators for the upcoming budget year. The City
shall strive to maximize services delivered through innovation, efficiency, effectiveness, and
industry best practices and reduce, where possible, expenses which do not contribute to the
core deliverables, goals, and objectives of the department, organization, Mayor, and City
Council.
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City of Mi/ton Financial Management Program
C. BUDGET PREPARATION CATEGORIES
Each department shall submit budget requests separately for:
❑ Status quo services - A current services budget is defined as that level of funding
which is necessary to provide the same level of service for the upcoming year
that is currently being provided. The current services budget will include
replacement of capital equipment and maintenance of existing systems.
❑ Enhanced services - An enhanced services budget includes funding requests
associated with new services or improved services including additional personnel
or new capital projects/equipment which directly correspond to a core service
delivered to constituents identified as a goal of the department, City Manager,
Mayor, or City Council.
D. BALANCED BUDGET
The budget shall be balanced for each budgeted fund. Total anticipated revenues plus that
portion of fund balance in excess of authorized reserves (see operating budget policy H
below) that is designated as a budget -funding source shall equal total estimated expenditures
for each fund.
E. BASIS OF BUDGETING
Neither GAAP nor Georgia statutes address a required budgetary basis of budgeting;
however, the City shall adopt budgets in conformity with GAAP for all budgeted funds. All
governmental funds shall use the modified accrual basis of accounting and proprietary funds
shall use the accrual basis of accounting for budgeting purposes.
F. LEVEL OF BUDGET ADOPTION AND CONTROL
All budgets shall be adopted at the legal level of budgetary control, which is the department
level within each individual fund. See section K below for amending the budget.
G. BUDGET STABLIZATION RESOURCES
The City shall establish a fund balance reserve in all operating funds (defined in Section I of
this policy) for working capital. The purpose of working capital is to cover the cost of
expenditures caused by unforeseen emergencies, cover shortfalls caused by revenue
declines, and to eliminate any short-term borrowing for cash flow purposes. This reserve
shall accumulate and then be maintained at an amount, which represents no less than two
(2) months of operating and debt expenditures (approximately 16% of budgeted
expenditures).
Upon incorporation of the City, no reserve exists. The City shall establish the 16% reserve
requirement referenced above over a minimum three year period and maximum five year
period. Such reserve shall be discussed during the annual financial planning process so that
a clear understanding is maintained by the Mayor and City Council of the City's progress in
meeting the reserve requirements.
H. UTILIZATION OF PRIOR YEAR'S FUND BALANCE IN BUDGET
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City of Mi/ton Financia/ Management Program
If necessary, the City may use fund balance in excess of the reserve for working capital (see
budget policy G above) as a funding source for that fund's budget in any given year. The
amount of unreserved fund balance shall be estimated conservatively, taking into
consideration future year needs. The minimum requirement for the reserve for working
capital, equal to two (2) months of operating and debt expenditures, must first be met before
utilizing the excess fund balance as a funding source for the budget. The utilization of fund
balance shall be deemed a use of one-time revenues for budgeting purposes
1. APPROPRIATION LAPSES AT YEAR END
All operating budget appropriations (including encumbered appropriations) shall lapse at the
end of a fiscal year. Purchases encumbered in the current year, but not received until the
following year, must be charged against a department's subsequent year appropriation.
J. BUDGET CONTROL REPORTS
The City shall maintain a system of budgetary control reports to assure adherence to the
budget. The City will prepare and distribute to departments, timely monthly financial reports
comparing actual revenues, and outstanding encumbrances and expenditures with budgeted
amounts.
K. AUTHORIZATION OF BUDGET ADJUSTMENTS AND AMENDMENTS
The budget is a dynamic rather than static plan, which requires adjustments and formal
budget amendments as circumstances change. The Mayor and City Council must approve
all increases in total departmental appropriations in accordance with O.C.G.A. 36-81-3 et
seq.
Department Heads may submit budget amendment requests transferring appropriations from
one line item to another within the specific department appropriation and the fund, other than
those prohibited above, and obtain approval by the City Manager. Adjustments from
appropriations that have been obligated, committed, or reserved for a designated purpose
shall not be transferred until a formal de -obligation occurs.
L. CONTINGENCY LINE -ITEM
The City shall establish an appropriated contingency of one percent of the total annual
expenditure appropriation in all operating funds (defined in Section I of this policy) in order to
accommodate unexpected operational changes, legislative impacts, or other economic
events affecting the City's operations which could not have been reasonably anticipated at
the time the budget was prepared. Non-operating funds (defined in Section I of this policy)
shall not require a contingency reserve appropriation.
This contingency reserve appropriation will be a separate line item within the budget. This
amount shall be subject to annual appropriation. The approval of the City Manager is required
before this appropriation can be expended. If approved, the appropriation from the
contingency line item to the applicable line item(s) with the applicable department's budget
will occur.
M. MAINTENANCE AND REPLACEMENT OF CAPITAL EQUIPMENT
The Mayor and City Council will give budget priority to requests that provide for adequate
maintenance of capital equipment and facilities and for their orderly replacement.
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City of Mi/ton Financia/ Management Program
N. CONTRIBUTIONS
Outside contributions to programs operated by City departments shall be subject to the City's
accounting and budgetary policies. The City welcomes both unrestricted and restricted
contributions compatible with the City's programs and objectives. Any material contribution
shall be approved and accepted by the Mayor and City Council prior to expenditure. Material
contributions shall be defined as one-time contributions exceeding one percent of the
department's annual maintenance and operating expenditure appropriation or $25,000,
whichever is less.
O. ADMINISTRATIVE SERVICE FEE/COST ALLOCATION
Whenever possible, the City may assess an administrative service fee from the General Fund
to any other fund, based upon documentation and/or an outside independent study. This
assessment will be based upon a percentage of the operating revenues, or services provided
to the fund and shall be used to reimburse the General Fund for the administrative and
support services provided to the assessed fund.
P. ONE-TIME REVENUE SOURCES
Non-recurring revenues shall be utilized within the appropriate fund for items relating to non-
recurring expenses. The purpose of limiting these funding sources is to eliminate the
fluctuations in funding operations with non -sustainable resources. One-time revenues shall
be distinguished during the budget process and budget presentation so that a match can be
made with non-recurring expenditures.
SECTION III. CASH FLOW BUDGET
For analysis and internal management purposes, the City shall prepare an annual cash flow
budget in conjunction with the Operating Budget. The purpose of this document will be to
provide the necessary guidelines to insure that cash will be available to pay budget costs on
a timely basis.
A. BUDGET ALLOTMENTS
Budget allocations (i.e., budget allotments) are used in the operating budget, when needed to
manage cash flows. The annual appropriation may be divided into segments in order to
insure that the projected revenue streams will be adequate to fund the appropriated
expenditures. The cash flow budget will provide details as to the periods in which the
revenues will be collected, and thereby providing for available resources to pay obligations.
SECTION IV. CAPITAL PROJECT IMPROVEMENT PLAN
The City will prepare a five-year capital project improvement plan (CIP) which will be updated
annually. This plan will assist in the planning, acquisition, and financing of capital projects. A
major capital project generally is defined as an expenditure that has an expected useful life of
more than 3 years with an estimated total cost of $50,000 or more, or an improvement/addition to
an existing capital asset. Examples include building/infrastructure construction, park
improvements, streetscapes, computer systems, land acquisitions, heavy duty trucks.
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City of Mi/ton Financia/ Management Program
Major capital projects will be budgeted in the Capital Improvement Fund consistent with all
available resources. With the involvement of the responsible departments, the City Treasurer's
Office will prepare the capital budget in conjunction with the operating budget.
A. PROJECT LENGTH BUDGET
The CIP budget shall be developed based upon defined projects approved by the Mayor and
City Council. Budget appropriation shall include the complete project costs with contingency
amounts as appropriate and if available. (O.C.G.A. 36-81-3)
B. BUDGET PREPARATION
Each department, in conjunction with the Mayor and City Council, will identify potential capital
projects throughout the year. All identified projects will be added to the CIP document,
regardless of available funding. These needed projects will provide a method of tracking and
planning for the future needs of the City. Every effort will be made to identify those projects
committed by the City Council through legislative action.
C. BUDGET CONTROL REPORTS
The City shall maintain a system of budgetary control reports to assure adherence to the
budget. The City will prepare and distribute to departments, timely monthly financial reports
comparing actual revenues, and outstanding encumbrances and expenditures with budgeted
amounts.
D. AUTHORIZATION OF BUDGET ADJUSTMENTS AND AMENDMENTS
The reallocation of budgetary appropriations for Capital Projects shall occur when the project
having available funds is substantially complete or the priority of the project has changed. All
obligations and encumbrances shall be covered prior to any transfer being completed.
Unused appropriations from existing projects can only be used for those projects deemed
necessary and acceptable recipients of appropriations during the annual budget process.
Projects receiving appropriations shall be the next in-line for funding, based upon the existing
project priority at the time the appropriation occurs. The City Manager shall review and
approve all requests for budget adjustments.
E. APPROPRIATIONS AT YEAR END
Capital project appropriations shall carry forward to the subsequent budget period an equal
amount of any encumbrances/purchase orders issued as of the close of the fiscal year plus
any unencumbered amount. Purchases encumbered in the current year, but not received
until the following year, must be charged against each department's subsequent year carry-
over appropriation. Any remaining appropriation available by project at year-end must be re -
appropriated.
F. CONTINGENCY ACCOUNT
The City shall include an appropriated contingency of three percent of the total annual
expenditure appropriation in the Capital Project Fund in order to accommodate expenditures
that may not have been expected during the duration of a capital project. Expenditure of
contingency funds shall only be authorized in accordance with the Change Order Policy
outlined within the purchasing section of the Financial Management Program. All
contingency budgets shall be subject to annual appropriation.
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�.- AML
City of Milton
r� georgic
FINANCIAL MANAGEMENT PROGRAM
CAPITAL ASSET
POLICIES
Developed under the Authority
of the City Council by the
City Manager's Office, and
Approved by ordinance no.
06-11-05 on November 21, 2006.
Page 1 of 5
City of Mi/ton Financia/ Management Program
CAPITAL ASSETS
A. INTRODUCTION
The Capital Asset Policy is designed to provide a comprehensive description of the
capital asset and property systems of the City of Milton. The primary purpose of the
policies are to provide for consistent and uniform accounting of capital asset
transactions throughout the City; guidelines for physical control and accountability of
capital assets; and guidelines for disposal and depreciation of capital assets.
B. DEFINITIONS
Asset Acquisition: There are various methods by which the City acquires assets.
These methods include, but are not limited to: purchase, donation, lease/purchase,
trade-in, forfeiture, condemnation, internal/external construction, transfers from other
governments, or any other method which transfers title of any property to the City.
Leased Assets: The City capitalizes assets, acquired under capital lease,
provided they meet the capitalization threshold and a buy-out option is included
in the lease agreement. The capital lease must meet accounting standards for
capitalization purposes. For capital leases, where the title of the asset will
ultimately be transferred to the City, the asset will be capitalized at the net
present value of future minimum lease payments. The City does not capitalize
assets they acquired under operating leases.
Gifts/Donations: The City capitalizes all equipment acquired through
donations at fair market value on the date of the transaction, provided such gift or
donation meets the capitalization threshold of this policy. If the equipment is new
and the donor can furnish an invoice, the invoice would determine the fair market
value. If the equipment is used or no information is available regarding the cost
of new equipment on date of acquisition, an appraisal will be conducted to
establish the capitalization amount.
Property: Property is divided into several classes including:
Real property Land and whatever is attached to the land that cannot be readily
removed, such as buildings and permanent improvements to the land.
Infrastructure is included within this classification.
Personal property: Property that is movable and further classified as tangible and
intangible.
Tangible personal property: Property that is moveable such as furniture,
machinery, automobiles, or works of art.
Intangible personal property: The right of ownership in property such as bonds,
notes, contracts, computer software, programs, and proprietary assets that are
created or purchased and owned by the City.
Capital Asset: Any real or personal property acquired by the City which has an
estimated useful life of three (3) or more years with an acquisition value of $10,000
or more. This includes land, improvements to land, easements, buildings, building
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City of Milton Financial Management Program
improvements, vehicles, machinery, equipment, works of art and historical treasures,
infrastructure, and all other tangible or intangible assets that are used in the
operations of the government.
Asset Capitalization Amount: The City will capitalize purchased assets at
acquisition cost plus costs incurred in preparing the asset for use. The City will
recognize acquisition costs based on individual unit prices.
Generally Accepted Accounting Principles (GAAP) Reporting: All assets
capitalized under this policy shall be included in the financial statements issued by
the City and in the annual external audit.
Gifts/Donations: Gifts and donations are capitalized at fair market value on the
date donated, if the value of the asset meets the threshold levels.
B. CLASSIFICATION CATEGORIES
Land: The City will capitalize all costs incurred to acquire land (without regard to a
dollar threshold) and to place it in use. The acquisition costs of land should include:
(1) the purchase price; (2) ancillary charges; (3) the assumption of any liens or
mortgages on the property; and (4) improvements made to the land that are
permanent in nature. Examples of ancillary charges to be included in the
capitalization costs are: legal and title fees, closing costs, appraisal and negotiation
fees, surveying fees, site preparation fees, demolition costs, architect and accounting
fees, insurance premiums during construction phase, and transportation charges.
Improvements other than Buildings (IMP): The City classifies improvements
to land with limited lives, such as fences, parking lots, and walkways as land
improvements. These improvements will be depreciated over their estimated useful
lives.
Buildings (BLD): If the City purchases a building, the capitalized cost should
include the purchase price and other incidental expenses incurred at the time of
acquisition. If the building is constructed, the capitalized cost should include
material, labor, supervision, and overhead, or the contract price, including costs such
as: permits and licenses, architectural and engineering fess, insurance, title costs,
and interest incurred on tax exempt debt.
Building Improvements: The City capitalizes costs of improvements to a
building if the following criteria are met: (1) the expenditures increase the service
potential of the building and (2) the total improvement costs, including the
contract price, engineering, architectural, and attorney's fees, etc., meet the
capitalization threshold of this policy.
❑ Items considered as improvements include: ramps, fire escapes, truck doors
or other appurtenances; modifications to comply with fire, health, or safety
codes; conversion of unusable to useable floor space, upgrade of the space.
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City of Milton Financia/ Management Program
❑ Repairs to a building are not considered an improvement unless it extends
the useful life of the structure or increases the value of the structure (i.e., a
betterment). The City considers ordinary repairs as operating costs.
Construction in Progress (CIP): Construction in progress includes
accumulation of on-going project costs that increase the value or life of the asset.
Upon project completion, the construction account in progress will be closed out and
costs will be capitalized into the appropriate asset category (infrastructure, land
improvement, building).
Moveable Equipment (EQP): Expenditures for individual items or pieces of
equipment meeting the capitalization threshold shall be capitalized, consistent with
the designations of personal property, both tangible and intangible as outlined
above.
Infrastructure: Long-lived capital assets that normally are stationary in nature and
normally can be preserved for a significantly greater number of years than most
capital assets shall be capitalized based on the capitalization threshold requirement
of this policy. Examples of infrastructure include roads, bridges, drainage systems,
sidewalks, etc.
C. ANNUAL INVENTORY
Annually, an asset listing is sent to each department for their verification of the
existence of their department's capital assets. The department should identify any
assets that their department has, which are not included on the asset listing. Also,
the department should identify any missing assets. Designated staff will investigate
any missing items with the assistance of the department. Significant unaccounted
for losses of assets will be brought to the attention of the City Manager for further
actions. The City Manager's Office may make an annual physical inventory to verify
the accuracy of inventory records.
D. TRANSFER OR DISPOSAL OF ASSETS
All capital assets are the property of the City. They may not be donated, discarded
or transferred to another owner without direct authorization from the City Manager's
Office. Departments should notify the City Manager's Office of all surplus assets
ready for disposition.
The disposition of capital assets the City purchased with federal, state, or other grant
funds must follow Federal Guidelines. The guidelines of the specific grant, or
Federal general guidelines, will dictate the duration of time that the asset must
remain property of the City. The guidelines also will indicate the disposition of the
proceeds of from the sale of the asset.
In accordance with O.C.G.A. 36-37-6, all sales by the City of real property or
personal property with an assigned value of equal to or more than $500 must be
offered for purchase, either by sealed bids or by auction to the highest bidder.
Notice of the sale must be published once in the official newspaper of the City or in a
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City of Milton Financial Management Program
newspaper of general circulation in the City. The legal notice must appear not less
than 15 days or more than 60 days prior to the date of the sale. The notice must
contain a brief description of the property and a legal description for real property. If
the sale is by sealed bid, the notice shall also contain an invitation for proposals and
shall state the conditions of the proposed sale, the address at which bids and other
materials may be obtained, and the date, time, and place for the bid opening. Bids
shall be opened in public at the time and place stated in the legal notice. The bids
shall be kept available for public inspection for 60 days. The City may reject any and
all bids or cancel a proposed sale.
If the sale is by auction, the notice shall also state the conditions of the sale and shall
state the date, time, and place of the proposed sale. As a condition of the sale, a
minimum amount may be established for the sale to occur.
The Mayor and City Council shall approve by resolution the sale of all real estate
prior to any staff action.
Property with an estimated value of less than $500.00 may be sold without regard to
the above provisions. Such sales may be made in the open market without
advertisement and without acceptance of bids. The City has the power to estimate
the value of the property being sold.
E. DEPRECIATION
The City records depreciation for its capital assets monthly. Depreciation is
calculated using the straight-line method with no estimated salvage values. For
purchased capital assets, the City uses the invoice date as the in service date.
F. ESTIMATED USEFUL LIFE
For purposes of depreciation, each asset is assigned an estimated useful life. Useful
lives are based upon the category of assets. The life of the asset begins when it is
put into service, which is recognized as the invoice date. The estimated lives shall
be based upon those recommended by the Governmental Accounting Standards
Board, the Government Finance Officers Association, and the City's experience.
G. RESPONSIBILITY FOR CAPITAL ASSET AND PROPERTY
INVENTORY AND CONTROL
It is the responsibility of the City Manager's Office to establish and maintain an
accurate accounting of capital assets, and to design and implement continually
improved operating procedures for activities required as a result of this policy. It
shall be the responsibility of all City departments to cooperate in the capitalization
process and to perform the annual inventory.
Page 5 of 5
City of Milton
georgia
FINANCIAL MANAGEMENT PROGRAM
CASH AND INVESTMENT
MANAGEMENT POLICIES
Developed under the Authority
of the City Council by the
City Manager's Office, and
Approved by ordinance no.
06-11-05 on November 21, 2006.
Page 1 of 8
City of Milton Financia/ Management Program
CASH AND INVESTMENT MANAGEMENT
The objective of the cash and investment management policy is to maximize interest earnings
within an environment that strongly emphasizes legal compliance and safety while providing cash
flow liquidity to meet the City's financial obligations.
A. SCOPE
This investment policy applies to all cash and investments, both short and long-term,
which are the responsibility, and under the management of the City of Milton's City
Manager's Office.
B. POOLED CASH/INVESTMENT MANAGEMENT
Except for cash in certain restricted and specialized funds, the City will consolidate cash
balances from all funds to maximize investment earnings. Investment income will be
allocated to the various funds based upon their respective participation and in
accordance with generally accepted accounting principles.
C. GENERAL OBJECTIVES
The primary objectives of investment activities shall be as follows:
1. Safety
Safety of principal is the foremost objective of the investment program.
Investments shall be undertaken in a manner that seeks to ensure the
preservation of capital in the overall portfolio. The objective will be to
mitigate credit risk and interest rate risk.
Credit Risk
The City will minimize credit risk, the risk of loss due to the failure of
the security issuer or backer, by:
• Limiting investments to the safest types of securities
(primarily obligations of the U.S. government or obligations
explicitly guaranteed by the U.S. government or their
agencies)
• Requiring a credit rating of "AY or better from Moody's rating
agency and "A-" from Standard & Poor's.
• Pre -qualifying the financial institutions, brokers/dealers,
intermediaries, and advisers with which the City will do
business
• Diversifying the investment portfolio so that potential losses
on individual securities will be minimized.
ii. Custodial Risk
Custodial risk, that is the risk associated with uninsured deposits,
uninsured securities, or securities not registered in the City's name
shall be minimized by,
• Collateralization in alignment with State of Georgia
legislation equal to 110% of the deposit held in the City's
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City of Milton Financia/ Management Program
name (see section F, Safekeeping and Custody, subsection
2, Collateralization);
• Securities shall be held in the City's name.
iii. Interest Rate Risk
The City will minimize the risk that the market value of securities in
the portfolio will fall due to changes in general interest rates, by:
• Structuring the investment portfolio so that securities mature
to meet cash requirements for ongoing operations, thereby
avoiding the need to sell securities on the open market prior
to maturity
• Investing operating funds primarily in shorter -term securities,
money market mutual funds, or similar investment pools.
iv. Concentration Risk
The risk associated with a high concentration of government funds
which are not diversified shall be reduced by:
• Limiting investments to any one issuer to less than 5% of the
investment portfolio.
• Investments explicitly guaranteed by the U.S. government
and investments in mutual funds, external investment pools,
and other pooled investments are excluded from this
requirement.
v. Foreign Currency Risk
The City will negate all foreign currency risk through investment only
in instruments where exchange rates do not apply.
2. Liquidity
The investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated. This is accomplished by
structuring the portfolio so that securities mature concurrent with cash needs
to meet anticipated demands (static liquidity). Furthermore, since all possible
cash demands cannot be anticipated, the portfolio should consist of
securities with active secondary or resale markets (dynamic liquidity). A
portion of the portfolio also may be placed in instruments offering same-day
liquidity for short-term funds.
3. Yield
The investment portfolio shall be designed with the objective of attaining a
market rate of return throughout budgetary and economic cycles, taking into
account the investment risk constraints and liquidity needs. Return on
investment is of secondary importance compared to the safety and liquidity
objectives described above. The core investments are limited to relatively
low risk securities in anticipation of earning a fair return relative to the risk
being assumed. Securities shall not be sold prior to maturity with the
following exceptions:
• A security with declining credit may be sold early to minimize loss of
principal or to reduce any eminent risk as identified under Section 1,
"Safety" of this policy
• A security swap which improves the quality, yield, or target duration
in the portfolio
• Liquidity needs of the portfolio require that the security be sold.
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City of Milton Financia! Management Program
D. STANDARDS OF CARE
1. Prudence
The standard of prudence to be used by investment officials shall be the
"prudent person" standard and shall be applied in the context of managing an
overall portfolio. Investment officer(s) acting in according with written
procedures and this investment policy and exercising due diligence shall be
relieved of personal responsibility of an individual security's credit risk or
market price changes, provided deviations from expectations are reported in
a timely fashion and the liquidity and the sale of securities are carried out in
accordance with the terms of this policy.
Investments shall be made with judgment and care, under circumstances
then prevailing, which persons of prudence, discretion and intelligence
exercise in the management of their own affairs, not for speculation, but for
investment, considering the probable safety of their capital as well as the
probably income to be derived.
2. Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from
personal business activity that could conflict with the proper execution and
management of the investment program, or that could impair their ability to
make impartial decisions. Employees and investment officials shall disclose
any material interests in financial institutions which they conduct business.
They shall further disclose any personal financial/investment positions that
could be related to the performance of the investment portfolio. Employees
and offices shall refrain from undertaking personal investment transactions
with the same individual with whom business is conducted on behalf of the
City.
3. Delegation of Authority
Authority to manage the investment program is granted to the City Manager
or his/her delegate, referred to as the investment officer in this policy.
Responsibility for the operation of the investment program is hereby
delegated to the investment officer, who shall act in accordance with the
established written procedures and internal controls for the operation of the
investment program consistent with this investment policy. Procedures
should include references to: safekeeping, delivery vs. payment, investment
accounting, repurchase agreements, wire transfer agreements, and
collateral/depository agreements. No person may engage in an investment
transaction except as provided under the terms of this policy and the
procedures established by the investment officer. The investment officer
shall be responsible for all transactions undertaken and shall establish a
system of controls to regulate the activities of subordinate officials.
E. SAFEKEEPING AND CUSTODY
1. Authorized Financial Dealers and Institutions
A list will be maintained of financial institutions authorized to provide
investment services. In addition, a list also will be maintained of approved
security broker/dealers selected by creditworthiness (e.g., a minimum capital
requirement of $10,000,000 and at least five years of operation). These may
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City of Milton Financia/ Management Program
include "primary" dealers or regional dealers that qualify under Securities and
Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule).
All financial institutions and broker/dealers who desire to become qualified for
investment transactions must supply the following as appropriate:
• Audited financial statements
• Proof of National Association of Securities Dealers (NASD)
certification
• Proof of state registration
• Completed broker/dealer questionnaire
• Certification of having read and understood and agreeing to comply
with the City's investment policy.
An annual review of the financial condition and registration of qualified
financial institutions and broker/dealers will be conducted by the investment
officer.
From time to time, the investment officer may choose to invest in instruments
offered by minority and community financial institutions. In such situations,
all criteria identified above shall apply. All terms and relationships will be
fully disclosed prior to purchase and will be reported to the appropriate entity
on a consistent basis and in compliance state and local law. These types of
investment purchases should be approved by the Mayor and City Council in
advance of their purchase.
2. Internal Controls
The investment officer is responsible for establishing and maintaining an
internal control structure designed to ensure that the assets of the City are
protected from loss, theft, or misuse. The internal control structure shall be
designed to provide reasonable assurance that these objectives are met.
The concept of reasonable assurance recognizes that (1) the cost of a
control should not exceed the benefits likely to be derived and (2) the
valuation of costs and benefits requires estimates and judgments by
management.
Accordingly, the investment officer shall establish a process for an annual
independent review by an external auditor to assure compliance with
regulatory policies and procedures including Generally Accepted
Governmental Auditing Standards.
3. Delivery vs. Payment
All trades where applicable will be executed by delivery vs. payment (DVP) to
ensure that securities are deposited in an eligible financial institution prior to
the release of funds. Securities will be held by a third -party custodian in the
City's name, as evidenced by safekeeping receipts.
F. SAFEKEEPING AND CUSTODY
1. Investment Types
Investments (other than bond proceeds) shall be made in instruments permitted
by the State of Georgia for local governments, regulated under Georgia Code,
O.C.G.A. 36-83-4. Such instruments include:
• Obligations issued by the U.S. government,
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City of Mi/ton Financia/ Management Program
• Obligations fully insured or guaranteed by the U.S. government or by a
government agency of the United States,
• Obligations of any corporation of the U.S. government;
• Prime bankers' acceptances,
• The Georgia local government investment pool (i.e., Georgia Fund 1)
• Repurchase agreements, and
• Obligations of other political subdivisions of the state
In accordance with O.C.G.A. 36-82-7, investments made with unexpended bond
proceeds shall be limited to:
• Bonds or obligations of the governmental entities and/or political
subdivisions of the state,
• Bonds or obligations of the U.S. government which are fully guaranteed,
• Obligations of agencies of the U.S. government, bonds or other
obligations of public housing agencies or municipal corporations in the
United States,
• Certificates of deposit of national or state banks insured by the Federal
Deposit Insurance Corporation;
• Certificates of deposit of Federal Saving and Loan Associations; and
• The Georgia local government investment pool (Georgia Fund 1)
2. Collateralization
City shall require pledges of collateral from the depository institution covering
at least 110% of the cash/investment. This requirement is in accordance
with O.C.G.A. 36-83-5; 45-8-12; 50-17-59; and 45-8-13. Deposit -type
securities (i.e., certificates of deposit) shall be collateralized at 110% of the
face value.
Other investments shall be collateralized by the actual security held in
safekeeping by the primary agent.
3. Repurchase Agreements/Derivatives
Repurchase agreements shall be consistent with GFOA Recommended
Practices on Repurchase Agreements. Investments in derivatives of the
above instruments shall require authorization by the Mayor and City Council
and be consistent with GFOA Recommended Practices on the "Use of
Derivatives by State and Local Governments".
G. USING GEORGIA FUND I
The City will utilize the State of Georgia local government investment pool (i.e., Georgia
Fund 1) anytime this investment tool is deemed to be in the best interest of the City.
Criteria used to determine the use of this investment pool will be the same as any other
investment purchase.
H. INVESTMENT PARAMETERS
1. Diversification
The investments shall be diversified by:
• Limiting investments to avoid over concentration in securities from a
specific issuer or business sector (excluding U.S. Treasury
securities)
Page 6 of 8
City of Milton Financia/ Management Program
Limiting investment in securities that have higher credit risks
Investing in securities with varying maturities, and
Continuously investing a portion of the portfolio in readily available
funds such as a the Georgia Local Government Investment Pool,
money market funds or overnight repurchase agreements to ensure
that appropriate liquidity is maintained in order to meet ongoing
obligations.
2. Maximum Maturities
To the extent possible, the City shall attempt to match its investments with
anticipated cash flow requirements. Unless matched to a specific cash flow,
the City will not directly invest in securities maturing more than five (5) years
from the date of purchase. The City shall adopt weighted average maturity
limitations ranging from 90 days to 5 years, consistent with the investment
objectives.
Reserve funds and other funds with longer-term investment horizons may be
invested in securities exceeding five (5) years if the maturities of such
investments are made to coincide as nearly as practicable with the expected
use of funds. The intent to invest in securities with longer maturities shall be
disclosed in writing to the Mayor and City Council.
I. REPORTING
1. Methods
The investment officer shall prepare an investment report monthly which
shall be included in the Financial Update Report. Information provided will
include a management summary that provides an analysis of the status of
the current investment portfolio and transactions made over the last month.
This management summary will be prepared in a manner which will allow the
City to ascertain whether investment activities during the reporting period
have conformed to the investment policy. At a minimum, the report will
include the following:
• Listing of individual securities held at the end of the reporting period
with maturity dates
• Realized and unrealized gains or losses resulting from appreciation
or depreciation by listing the cost and market value of securities over
one-year duration that are not intended to be held until maturity
• Average weighted yield to maturity of portfolio on investments as
compared to applicable benchmarks
• Percentage of the total portfolio which each type of investment
represents.
2. Performance Standards
The investment portfolio will be managed in accordance with the parameters
specified within this policy. The portfolio should obtain a market average rate
of return during a market/economic environment of stable interest rates. A
series of appropriate benchmarks shall be established against which the
portfolio performance shall be compared on a regular basis.
3. Marking to Market
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City of Mi/ton Financial Management Program
The market value of the portfolio shall be calculated at least monthly and a
statement of the market value of the portfolio shall be issued at least
monthly.
Governmental Accounting Standards Board References:
Statement No. 3, Deposits with Financial Institutions, Investments, and Reverse
Repurchase Agreements
Statement No. 28. Accounting and Financial Reporting for Securities Lending
Transactions
Statement No. 31. Accounting and Financial Reporting for Certain Investments and for
External Investment Pools
Statement No. 40. Deposit and Investment Risk Disclosures
Page 8 of 8
-dOoor r City of Milton
r� georgic
FINANCIAL MANAGEMENT PROGRAM
POLICY ON CELL PHONES
AND OTHER ELECTRONIC DEVICES
Developed under the Authority
of the City Council by the
City Manager's Office, and
Approved by ordinance no.
06-11-05 on November 21, 2006.
Page 1 of 3
City of Milton Financia/ Management Program
CELL PHONE POLICY
The objective of the Cell Phone and Other Electronic Devices Policy is to provide guidelines for
the use of electronic equipment, whether directly or indirectly paid for by the City, as the employer
of key staff who are in need of such electronic equipment; and to maximize flexibility and
availability of city personnel within the scope of the city's Financial Management Program.
A. SCOPE
This policy applies to all devices referenced in section B, Definitions, below issued to
employees of the City of Milton. Cell phones and other electronic devices can be those
pieces of equipment issued directly by the City or by a third party provider or contractor.
Such devices shall be those issued to employees for business purposes.
B. DEFINITIONS
Cell phones and Other Electronic Devices are defined as devices which allow or facilitate
communication between two or more individuals in a wireless format, and include, but are
not limited to traditional cellular telephones, pagers, and Blackberry PDA's.
C. GENERAL OBJECTIVES
The primary objectives of activities related to the Cell Phone and Other Electronic
Devices policy shall be as follows:
1. Safety
Electronic devices whether or not provided or reimbursed by the City, and
whether with or without hands-free equipment, should be used only when
conditions make it safe to use them. Employees should always use the
highest degree of care to insure safety for themselves and those around
them while using these devices.
2. Flexibility
Cell phones and Electronic Devices will be assigned to City of Milton
employees based on their role and need.
D. PLAN OPTIONS
The plan options available for City of Milton employees shall be as follows:
1. Allowance
City employees selecting this option will be paid a "stipend" to cover a portion or
all of the expenses of a cell phone or other electronic device. The City shall be
responsible for setting up the service and billing plan and for acquiring all
hardware and software associated with operating the device; however, the
account shall be billed to the employee on behalf of the employer. The employee
is responsible for paying the bill. All stipends will not be in excess of $100 per
month and will be shown as taxable income for the employee under a non -
accountable IRS plan. City employees selecting this option will be allowed to use
these devices for personal use.
Page 2 of 3
City of Milton Financial Management Program
2. City provided
City employees selecting this option will not be provided a monthly bill or
statement detailing expenses for use of the device. All billings will be sent direct
to the City or their agent for payment. The City will contract for the cell phone
service and provide a cell phone to the employee to be used solely for business
purposes.
E. SAFEKEEPING AND CUSTODY
1. Internal Controls
City Operations is responsible for establishing Agreements with Cell Phone
providers. Each Department shall determine what functions in their
Departments require the use of a cell phone in order to perform their job in
the most efficient and effective manner. A request shall be made through the
IT Manager using the IT Procurement Form.
The Cell Phone Coordinator shall maintain a list of City employees that have
cell phones that includes the date the service was initiated, the date the
service was terminated, the serial number for the equipment, the Company
providing the service, the equipment purchase price, data setup fees, and
monthly service fees.
2. Replacement
The employee is responsible for the replacement or repair of damaged
phones. Employees may be allowed to purchase new equipment every 3
years and only if their existing equipment is no longer functional.
Page 3 of 3
� r City of Milton
georgic
FINANCIAL MANAGEMENT PROGRAM
DEBT
MANAGEMENT POLICIES
Developed under the Authority
of the City Council by the
City Manager's Office, and
Approved by ordinance no.
06-11-05 on November 21, 2006.
Page 1 of 4
City of Milton Financia/ Management Program
DEBT ISSUANCE AND MANAGEMENT
The goal of the City's debt policy is to maintain a sound fiscal position; thereby only utilizing long-
term debt to provide resources to finance needed capital improvements, while accumulating
adequate resources to repay the debt. In addition, it is the City's goal to maintain and improve its
credit rating through strong financial administration. The City acknowledges that failure to meet
the demands of growth may inhibit its continued economic viability, but also realizes that excess
outstanding debt may have detrimental effects on the ability of the City to meet its continuing
operational needs.
Issuing debt commits the City's revenues several years into the future, and may limit it's flexibility
to respond to changing service priorities, revenue inflows, or cost structures. Adherence to this
debt policy helps ensure that the City issues and manages its debt prudently in order to maintain
a sound financial position and protect its credit rating.
Credit ratings are the rating agencies' assessment of the City's ability and willingness to repay
debt on a timely basis. Credit ratings are an important indicator in the credit markets and can
influence interest rates a borrower must pay. Each of the rating agencies believes that debt
management is a positive factor in evaluating issuers and assigning credit ratings. Therefore,
implementing debt management practices will be viewed positively by the rating agencies and
could influence the City's credit rating and ultimately lower borrowing costs.
A. CONDITIONS FOR ISSUING LONG-TERM DEBT
Debt financing for capital improvements and equipment will be generally used when at
least one of the following conditions exist:
1. When one-time, non -continuous projects (those not requiring annual
appropriations) are desired;
2. When the City determines that future users will receive a benefit from the
capital improvement that the debt financed;
3. When the project is necessary to provide basic services to the City residents;
4. When total debt, including debt issued by overlapping governments (e.g., the
county), does not constitute an unreasonable burden to the taxpayers; and
5. Exhaustion of the use of all other possible revenue sources provides no
alternative funding for capital projects.
The City will limit its short-term borrowing to cover cash flow shortages through the
issuance of tax anticipation notes.
B. SOUND FINANCING OF DEBT
When the City utilizes debt financing, the following will occur to ensure that the debt is
soundly financed:
1. Analysis of the financial impact, both short-term and long-term, of issuing the
debt;
2. Conservatively projecting the revenue sources that the City will use to repay
the debt;
3. Insuring that the term of any long-term debt the City incurs shall not exceed
the expected useful life of the asset the debt financed;
Page 2 of 4
City of Milton Financial Management Program
4. Maintaining a debt service coverage ratio (i.e., for revenue secured debt) that
ensures that the revenues pledged for the repayment of the outstanding debt
will be adequate to make the required debt service payments.
C. DEBT RETIREMENT
Generally, borrowings by the City should be of a duration that does not exceed the
economic life of the capital improvement that it finances and where feasible, should be
shorter than the projected economic life. To the extent possible, the City should design
the repayment of debt so as to recapture rapidly its credit capacity for future use.
D. DISCLOSURE
The City shall follow a policy of full disclosure in financial reporting and with the
preparation of a bond prospectus.
E. LEGAL COMPLIANCE
When issuing debt, the City shall comply with all legal and regulatory commission
requirements, including the continuing disclosure requirements. This compliance
includes adherence to local, state and federal legislation and bond covenants.
More specifically, the City Manager's Office is responsible for maintaining a system of
record keeping and reporting to meet the arbitrage rebate compliance requirements of
the federal tax code. This effort includes tracking investment earnings on bond proceeds,
calculating rebate payments in compliance with tax law, and remitting any rebatable
earnings to the federal government in a timely manner in order to preserve the tax-
exempt status of the City's outstanding debt issues. Additionally, general financial
reporting and certification requirements embodied in bond covenants are monitored to
ensure that all covenants are complied with.
The City will comply with Amended SEC Rule 15c2-12 (the "Rule") by providing
secondary market disclosure for all long-term debt obligations, which are subject to the
Rule. As required, the City will submit annual financial information to all nationally
recognized municipal securities repositories.
F. CREDIT RATINGS
The City Manager's Office is responsible for maintaining relationships with the rating
agencies that assign ratings to the City's various debt obligations. This effort includes
providing periodic updates on the City's general financial condition along with
coordinating meetings and presentations in conjunction with a new debt issuance.
G. OTHER POLICIES
All bond issue requests shall be coordinated by the City Manager's Office. Requests for
new bonds must be identified during the Capital Improvement Program (CIP) process.
Opportunities for refunding outstanding bonds shall be communicated by the City
Treasurer's Office.
Annual budget appropriations shall include debt service payments (interest and principal)
and reserve requirements for all debt currently outstanding.
Page 3 of 4
City of Milton Financial Management Program
Long-term borrowing shall be incorporated into the City's capital improvement plan (see
above).
Page 4 of 4
� r City of Milton
r'+ georgic
FINANCIAL MANAGEMENT PROGRAM
ELECTED OFFICIALS
EXPENDITURE POLICIES
Developed under the Authority
of the City Council by the
City Manager's Office, and
Approved by ordinance no.
06-11-05 on November 21, 2006.
Page 1 of 2
City of Mi/ton Financia/ Management Program
EXPENDITURE POLICIES
This section provides guidance on providing reimbursement/allowances on authorized
expenditures for the Mayor and City Council. This section shall cover those costs incurred for
conducting official business relating to elected positions.
A. APPROPRIATION
In conjunction with the annual budget process, the City Council shall authorize
appropriations consistent with the annual adopted operating budgets.
B. EXPENDITURE REIMBURSEMENT
Operating expenditures relating to elected officials shall be reimbursed using a direct
reimbursement for expenses incurred on behalf of the City in official capacity as an
elected official.
The direct reimbursement based expenditures shall require receipts. As defined by the
Internal Revenue Service, this type of transaction will be on an accountable
reimbursement plan, which will not be taxed by the City. The primary means for paying
for items under this method will be through the submission of receipts by elected officials
to the City, thereby providing justification for the subsequent reimbursement.
C. QUALIFIED EXPENDITURES
All operating expenditures incurred by the official relating to the conducting of official
business on behalf of the elected position shall qualify for reimbursement. Those
expenditures relating to travel shall be covered in a separate policy using separately
appropriated funds.
Types of qualified expenditures for the direct receipt reimbursement basis include:
General Office Supplies
Customary Mileage
Business Meals
Professional Memberships
Educational Materials
Copying/Printing
Cellular charges
This list is non-inclusive and provided as an example of types of qualified expenses.
Page 2 of 2
City of Milton
r� georgia
FINANCIAL MANAGEMENT PROGRAM
EXPENDITURE POLICIES
Developed under the Authority
of the City Council by the
City Manager's Office, and
Approved by ordinance no.
06-11-05 on November 21, 2006.
Page 1 of 2
City of Milton Financial Management Program
EXPENDITURE POLICIES
This section provides guidance on authorized expenditures for all departments under the
authority of the City Manager, Mayor and City Council. This section shall cover those costs
incurred for normal business operations, including those associated with salaries and benefits.
Operating guidelines and procedures for procuring goods and services shall be issued under a
separate cover.
A. APPROPRIATION
In conjunction with the annual budget process, the City Council shall authorize
departments appropriations consistent with the annual adopted operating and capital
budgets. Departments shall not incur expenditures unless an appropriation is available.
B. EXPENDITURE APPROVAL
All expenditures relating to City operations shall be processed consistent with
procurement/purchasing guidelines. Once the City Treasurer's Office receives the proper
documentation from the incurring departments, the execution of payment shall occur.
The City Treasurer's Office shall only process transactions for payment based upon the
proper approval for the dollar amount of the expenditure, including adequate
documentation, received either electronically or in writing.
C. SETTLEMENT OF DISPUTE
The City Treasurer's Office shall review expenditure documents for compliance and
appropriateness with all City policies and procedures. Expenditure documents that are
not in compliance with these policies and procedures shall be returned to the originating
department with recommendations for changes (e.g., travel issues, cellular phone use).
In the event the department does not agree with the recommendations, the City Manager
shall make the final decision.
D. ELECTED OFFICIALS ALLOCATION
During the annual budget process, an appropriation will be allocated to each elected
official to be used at his/her discretion for the benefit of the City (e.g., travel costs
incurred at the annual GMA conference). The amount appropriated will be dependent
upon the approval during the budget process.
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City of Milton
FINANCIAL MANAGEMENT PROGRAM
GRANT
MANAGEMENT POLICIES
Developed under the Authority
of the City Council by the
City Manager's Office, and
Approved by ordinance no.
06-11-05 on November 21, 2006.
Page 1 of 2
City of Milton Financia/ Management Program
GRANT MANAGEMENT
This policy provides direction in the application, acceptance and administration of funds awarded
through grants to the City from other local governments, the state or federal government, non-
profit agencies, philanthropic organizations and the private sector.
A. GRANT APPLICATIONS
The City Manager's Office is responsible for the submission of all grant applications on
behalf of the City of Milton. Departments who wish to submit grant applications must
work in conjunction with the City Treasurer's Office and City Manager's Office. Once a
grant opportunity has been identified, the requesting department must notify the City
Treasurer's Office of the application, the financial reporting requirements, and any
required matching funds or other City resources needed to meet the grant requirements.
Prior to the acceptance of the grant, the City Treasurer's Office, in cooperation with the
submitting/receiving department shall complete an analysis of financial requirements to
ensure the City can meet the grant program's financial requirements and the City can
fulfill the applicable obligations required by the grant. All grant revenues and
expenditures, including matching requirements, must be appropriated, either in the
current budget or included for appropriation in the subsequent budget. The Mayor and
City Council shall approve grant applications and submissions by adopting an official
resolution, certified by the City Clerk that will allow both the submission of the grant
application and the acceptance of the grant award.
B. GRANT ADMINISTRATION
The City Treasurer's Office is responsible for coordinating and insuring the financial
reporting and accountability requirements of each grant the City accepts. The City
Treasurer's Office and receiving departments are responsible for adhering to the grant
program requirements and tracking all applicable expenditures for reporting purposes.
The City Treasurer's Office is responsible for accounting for grant transactions according
to the Accounting, Auditing, and Financial Reporting Policy and in compliance with
Generally Accepted Accounting Principles (GAAP).
The City Treasurer's Office is responsible for coordinating and maintaining the following
records for each grant award with the receiving department:
a. Copy of Grant Application
b. Resolutions authorizing application and acceptance
c. Notification of Grant Award
d. Financial reporting and accounting requirements
e. Schedule of funding needs
C. AUDITING
The City Treasurer's Office shall comply with all local, state, and federal requirements
with respect to the auditing of information as they pertain to the acceptance of grant
funds. This includes the Single Audit Act with any future revisions or additional that may
be applicable to City grant projects.
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City of Milton
georgia
FINANCIAL MANAGEMENT PROGRAM
PURCHASING POLICIES
Developed under the Authority
of the City Council by the
City Manager's Office, and
Approved by ordinance no.
06-11-05 on November 21, 2006.
Page 1 of 16
City of Milton Financia/ Management Program
PURCHASING POLICY
PURPOSE
The purpose of this policy is to state the City's position regarding the purchasing responsibility and
authority. This document will clarify purchasing functions and outline purchasing procedures, as well as
describe departmental relationships, responsibilities and participation in the procurement cycle. In
addition, this policy will provide control functions, assure proper record keeping and confirm purchases in
writing.
The philosophy behind this policy is one of separating the need for an item or service from the function of
negotiation and executing the necessary contractual purchase agreement. The determination of the
need for an item or service is clearly the responsibility of the department which will ultimately use the item
or service.
SCOPE
The scope of this purchasing policy covers the procurement of ALL MATERIALS AND SERVICES
without regard to the past method by which the material or service has been or is customarily procured.
The policy covers all contractual and purchase agreements between the City of Milton and another
company or person. The procurement function includes the initial agreement/purchase, renewals,
changes and/or re -negotiations. This policy establishes the specific responsibility and authority of the
procurement of materials and services.
For clarification purposes, these purchasing policies are not required to be followed by organizations
providing services, directly or indirectly to the City through service orientation contract personnel. Those
contractual agreement of service oriented in nature were procured in conjunction with the creation of the
City. However, as part of the audit process, the organizations providing services, either directly or
indirectly to the City shall have their internal controls and accounting processes evaluated and a measure
of assurance given as a requirement of completion of the City's annual audit.
DEFINITIONS
When used in this policy, the following words, terms, and phrases, and their derivations shall be the
meaning ascribed to them in this section, except where the context clearly indicates a different meaning,
A. CITY DIRECTOR OF FINANCE means the City Treasurer, his/her agent, or the Chair of the City
Treasurer's Office, if such a department is created, or is in existence.
B. CONSTRUCTION means the process of building, altering, improving, or demolishing any public
structure or building, or other public improvements of any kind to any public real property. The term
"Construction" does not include the routine operation, repair and/or maintenance of existing
structures, buildings, or real property.
C. CONTRACT means any City agreement, regardless of form or title, for the procurement or
disposition of goods, commodities, and services.
D. EMPLOYEE means an individual drawing a salary or wage from the City whether on a full-time, part-
time basis or contractual third -party. The term shall encompass all members of the Governing
Authority without regard to how individual is compensated.
E. GIFTS or FAVORS means any thing or any service of value.
F. GOODS or COMMODITIES means supplies, apparatus, materials, equipment, and other forms of
tangible personal property.
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City of Mi/ton Financia/ Management Program
G. GOVERNING AUTHORITY means the City entity responsible for the contract.
H. ORDINANCE means Purchasing Ordinance.
PAYMENT TERMS: 2% Net 30
J. PURCHASING is the process of securing materials, services, repairs, leases, and rentals necessary
for the operation and support of the City. The renewal, renegotiations, and changes to contracts,
leases and agreements, are functions of purchasing.
K. PURCHASING AGENT means the principal purchasing official of the City.
L. THE USING DEPARTMENT/DIVISION (USER) is defined as the department which has the authority
and responsibility for determining the need for an item or service, its related specifications, and
need date. The USER is responsible for funding the need and advising PURCHASING of the
approved funding and the specific budget account number.
IV. ETHICS IN PROCUREMENT
Each person involved in the procurement process must adhere to a high standard of ethics. Actions such
as acceptance of gratuities and kickbacks are expressly prohibited. The Purchasing Division seeks to
avoid even the appearance or perception of impropriety. All employees are expected to conduct
themselves according to the highest level of standards. Unethical actions by employees or vendors will
not be tolerated. As a guideline, the National Institute of Governmental Purchasing (NIGP) Code of Ethics
is included by reference and made a part hereof. The following principles are to be maintained:
1. Consider the best interest of the City in all transactions;
2. Purchase without prejudice, seeking to obtain the maximum value for each dollar expenditure in
accordance with required quality standards;
3. Subscribe to and work for honesty and truth in purchasing and avoid all forms of conflict of interest;
4. Avoid all unethical practices and appearance of same; and
5. Strive consistently for knowledge of materials and supplies required for use by the City.
Employee Conflict of Interest
It shall be unethical for any City of Milton employee, official, contractor, or service provider to transact any
business or participate directly or indirectly in a procurement contract when the employee, official,
contractor, or service provider knows that:
(a) the employee or official or any member of the employee's or official's immediate family has a
substantial interest or financial interest pertaining to the procurement contract, except that the
purchase of goods and services from businesses which a member of the Council or other City of
Milton employee has a financial interest is authorized as per O.C.G.A. § 36-1-14, or the
procurement contract is awarded pursuant to O.C.G.A. § 45-10-22 and § 45-10-24, or the
transaction is excepted from said restrictions by O.C.G.A. § 45-10-25;
(b) any other person, business, or organization with whom the employee or official or any member of
an employee's or official's immediate family is negotiating or has an arrangement concerning
prospective employment is involved in the procurement contract.
(c) An employee or official or any member of an employee's or official's immediate family who holds
a substantial interest or financial interest in a disclosed blind trust shall not be deemed to have a
conflict of interest with regard to matters pertaining to that substantial interest or financial interest.
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City of Mi/ton Financia/ Management Program
Gratuities, Rebates, or Kickbacks.
(a) Gratuities. It shall be unethical for any person to offer, give, or agree to give any City of Milton
employee or official, or for any City of Milton employee or official to solicit, demand, accept, or
agree to accept from another person, a gratuity of more than nominal value or rebate or an offer
of employment in connection with any decision, approval, disapproval, recommendation, or
preparation of any part of a program requirement or a purchase request, influencing the content
of any specification or procurement standard, rendering of advice, investigation, auditing, or in
any other advisory capacity in any proceeding or application, request for ruling, determination,
claim or controversy, or other particular matter, pertaining to any program requirement or a
contract or subcontract, or to any solicitation or proposal therefor.
(b) Kickbacks and rebates. It shall be unethical for any payment, gratuity, or offer of employment to
be made by or on behalf of a subcontractor under a contract to the prime contractor or higher tier
subcontractor, or any person associated therewith, as an inducement for the award of a
subcontract or order.
(c) Contract clause. The prohibition against gratuities, rebates and kickbacks prescribed in this
Section shall be conspicuously set forth in every contract and solicitation therefor.
(d) Courtesies. Employees may accept for themselves and members of their families common
courtesies usually associated with customary business practices so long as a strict standard is
enforced with respect to gifts, services, discounts, entertainment, or consideration of any kind
from suppliers of merchandise, services, supplies, etc. to City of Milton staff and officials.
(e) Cash. It is never permissible for a City of Milton official or employee to accept a gift in cash or
cash equivalent (e.g. stocks or other forms of marketable securities) of any amount.
Prohibition Against Contingent Fees
It shall be unethical for a person to be retained, or to retain a person, to solicit or secure a City of Milton
contract upon any agreement or understanding for a commission, percentage, brokerage, or contingent
fee, except for retention of bona fide employees or bona fide established commercial selling agencies for
the purpose of securing business.
Use of Confidential Information
It shall be unethical for any City of Milton employee or official knowingly to use confidential information for
actual or anticipated personal gain, or for the actual or anticipated personal gain of any other person.
Unauthorized Purchases
No purchases of materials, supplies, equipment and services shall be made in the name of City of Milton
or one of its departments, or through its purchasing department, except such as are required for official
use by City of Milton or one of its departments. Purchases in the name of City of Milton or a department
for personal use by an individual or for other than official use are prohibited, and no City of Milton funds
will be expended or advanced therefor.
Penalties and Sanctions
(a) Legal or disciplinary action by City Council. The City Council may take appropriate legal and/or
disciplinary actions against any City of Milton official, vendor, contractor, organization, or person
in violation of these ethical standards.
(b) Legal or disciplinary action by City of Milton City Manager. The City of Milton City Manager may
take appropriate legal and/or disciplinary actions against any City of Milton employee subject to
the Manager's supervision and control as defined in the City of Milton Code and Charter.
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City of Mi/ton Financia/ Management Program
(c) Legal or disciplinary action by Elected/Constitutional Officers of City of Milton. The Constitutional
Officers and other Elected Officers of the City of Milton may take the appropriate legal and/or
disciplinary actions against any employee under their supervision.
(d) Administrative penalties for employees. The City of Milton City Manager or City Council may
impose any one or more of the following penalties or sanctions on a City of Milton employee for
violations of the ethical standards in this Section as appropriate to the situation, subject to the
Personnel Manual or other appropriate appeals procedures:
(1) oral or written warnings or reprimands;
(2) suspensions with or without pay for specified periods of time; or
(3) termination of employment.
(e) Administrative penalties for outside contractors/vendors. The City of Milton City Manager or City
Council may impose any one or more of the following penalties or sanctions on a
vendor/contractor or other person or organization for violations of these ethical standards:
(1) written warnings or reprimands;
(2) termination of contracts; or
(3) debarment or suspension as provided in the Purchasing Manual.
V. RESPONSIBILITIES
A. Purchasing Manager
The City Council hereby appoints the City Manager or his/her agent to serve as the Purchasing Agent
for the City, or the Council may contract with an independent third party to serve as the Purchasing
Agent.
DUTIES: The Purchasing Agent shall have the following duties and powers:
(i) Arrange and negotiate the purchase or contract for all equipment, supplies, and
contractual services for the City or any using agency; arrange and negotiate for the sale
or otherwise dispose of all surplus equipment and supplies or real estate of the City or
any using agency;
(ii) Maintain a perpetual or periodic inventory record of all materials, supplies, or equipment
stored in City storerooms, warehouses, and elsewhere, including monthly reports that
provide:
(a) the titles of all request for proposals and the method of source selections to be
used:
(b) all contracts authorized by the Council, the method of source selection used and
the total dollar amount;
(c) all emergency contracts awarded;
(d) all change orders or contract modifications authorized by the Council, the dollar
amount and the reason;
(e) all change orders or contract modifications authorized by the Purchasing Agent,
the dollar amount and the reason;
(f) an explanation of any changes, and the costs involved, in the scope of services
made between the time a contract is awarded and the time that a resolution
authorizing the contract is sent to the Council for adoption.
(iii) Manage and supervise purchasing staff.
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City of Milton Financial Management Program
(iv) Develop and maintain a purchasing policy and procedure manual which will be updated
by the City Manager or their designee periodically.
(v) Direct efforts to procure services through advertisements of bids in the local legal organ
as required by City Ordinances and state law.
(vi) Require bonds, insurance, and other forms of protection for the City on the process of
procuring goods and services for the City.
(vii) Terminate solicitations for bids for any good(s) or service(s) when, in the opinion of the
Purchasing Agent, it is in the City's best interest to do so. This includes termination or
breach of contract or anticipated breach of contract.
(viii) Reject any and all bids, when in the opinion of the Purchasing Agent it is in the City's
best interest to do so.
(ix) Consult with the City Attorney if a contracting party breaches or is reasonably anticipated
to breach its contract with the City.
(x) Assist in negotiating City contracts, as directed by the City Manager. The City Manager
and/or Mayor shall approve final contracts and execute and bind the City to such
agreements.
(xi) Advise the City Manager on the status of negotiations, as well as contracts provisions
and their impacts on the City.
(xii) Make recommendations on contract approval, rejection, amendment, renewal, and
cancellation.
(xiii) Provide contract administration and supervision of contracts and agreements, as
directed by the City Manager. Such tasks shall include, but not be limited to, monitoring
contract amendments, obtaining applicable insurance certificates, and monitoring
applicable progress.
(xiv) Work with the City Manager to plan and implement processes for the ongoing protection
of the City's interests.
(xv) Recommend and implement policies and procedures to provide for compliance with laws
related to bidding, contracting, and purchasing as set forth in the State of Georgia, by
examining the applicable laws and developing procedures for bidding, contracting, and
procurement processes.
(xvi) Assist and coordinate necessary grant applications and submissions as directed by the
City Manager.
B. Using Department/Division (USER)
1. Determine Need: The USER is responsible for determining the need for a material or service
and providing appropriate documentation, including a purchase requisition.
2. Determine Funding: The USER is responsible for providing proper funding. Specific budget
account numbers must be on the purchase requisition.
3. Determine Specifications: The USER is responsible for determining the quantity, quality,
dimensions, duration and all other necessary specifications essential to the determination of what
is to be procured. The specifications must, where applicable, conform to the approved City
standards for identity and continuity.
4. Purchase Requisition: It is imperative that the USER transmits its need to the Purchasing Office.
The Purchasing Office can only purchase supplies and services on the basis of an approved and
complete purchase requisition. A properly approved purchase requisition contains, as a
minimum, the following information:
a. Complete description and specifications;
b. Quantity;
c. Need date (lead time of at least one week, must be allowed);
d. Estimated cost;
e. Freight;
f. Complete budget account number;
g. Previous purchase information or quotation (if known);
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City of Milton Financia/ Management Program
h. Known or suggested vendor(s);
i. Authorized approval of department head and division director;
j. Authorized approval from the Budget/Finance Department
5. Acceptance of Procured Item or Service: The USER is responsible for advising the Purchasing
Office within 24 hours after receipt or within 48 hours if the items or services are found to be
unsatisfactory. This is to be done in writing on a Receiving Report.
C. Purchasing Functions
Source Selection: Except as provided below, all vendor selections shall be made by the
Purchasing Office. When making the vendor selection the Purchasing Office will choose the
lowest, best, responsible, responsive vendor. It is recognized that exceptional requirements may
dictate that the USER is instrumental in selecting vendors. In such cases, it is necessary that
this need be transmitted to the Purchasing Office with sufficient documentation as to the reason
for the exception. This must be done in advance of any firm negotiations or commitment with the
vendor.
In determining where to purchase products and services based on competitive prices and costs
incurred in obtaining the purchase, the City shall purchase locally when all of these requirements
are equal.
The City shall not make purchases of products or services from City employees or Council
members or from businesses owned by members of these two groups unless specically
approved by the City Council. The City shall have the right to "piggy -back" from other
municipality's contracts if the vendor will extend the same prices, terms, and conditions to the
City of Milton. This source seletion shall only be made available within the previous twelve (12)
month period and competition was sought.
2. Quotation/Bidding: All Quotations for materials or service must be requested through the
Purchasing Office. Price Quotations will be obtained in accordance with City Ordinances.
a. Verbal Quotes: Requisitions for items under $5,000 require at least three (3) documented
verbal quotes. The vendor name and quote must be written on the requisition, which is used
to generate the purchase order.
b. Written Quotes: Purchasing will receive at least three (3) written quotes on items
requisitioned that are valued over $5,000 to $50,000. These requests will always be made in
writing. The request for quotes can be made either verbally or in writing; the Purchasing
Agent will determine this.
c. Sealed Bids: The Purchasing Office will request sealed bids on items or projects
requisitioned that meet the following criteria:
• The items or projects are valued over $50,000.
• Clear and adequate specifications are available.
• Two or more responsible offerors are willing to participate in the process.
These requests are always made in writing. The vendor list is made up of companies from
the bid list and recommendations from the USER. The Bid List is a current file of requests
from companies for this purpose. Sealed bids will be publicly advertised for a minimum of
two (2) consecutive weeks in the City's legal organ.
Public Works Projects over $100,000 are required by Georgia State Law (HB1079) to have
Payment Bonds and Performance Bonds for 100% of the contract amount. When these bids
are requested the standard City documents with this information will be used. The City will
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City of Milton Financia/ Management Program
also require that a 5% Bid Bond be submitted with the bid. These projects will be advertised
in the legal organ of the City.
(1) Sealed Bidding Process and Award
(a) Receipt of Bids: No bid shall be eligible for consideration by the City unless it is
placed in a sealed envelope or package and actually received by the Purchasing
Office by the date and time specified in the bid request. The Purchasing Agent shall
cause all bids to be stamped with the date and time of receipt and secured until the
designated opening time. A bid delivered late shall under no circumstances be
eligible for consideration by the City, and shall be returned unopened to the bidder.
(b) Bid Openings: Bids shall be opened publicly in the presence of one or more
witnesses on the date and at the time and place designated in the Bid Letter. The
name of each Offerer, the purchase price contained in each bid, and such other
information as the Purchasing Agent deems appropriate shall be announced as the
bids are opened. A record of bid information shall be recorded and available for
public inspeciton.
(c) Modification of Bids: Any clerical mistake which is patently obvious on the face of
the bid may, subject to the limitations described below, be corrected upon written
request and verification submitted by the Offerer. A non -material omission in a bid
may be corrected if the Purchasing Agent determines the correction to be in the
City's best interests. Omissions affecting or relating to price or insurance shall be
deemed material and shall not be corrected after the bid opening:
(d) Withdrawal of Bids: Bids may be withdrawn at any time prior to the bid opening.
After bids have been publicly opened, the bidder shall give notice in writing of his/her
claim of right to withdraw his bid within two business days after the conclusion of the
bid opening procedure. If a bid is withdrawn under the authority of this provision, the
lowest remaining responsive bid shall be deemed to be the low bid.
(e) Bid Evaluation: Bids shall be evaluated based on the requirements set forth in the
Specifications. No criteria may be used in bid evaluation that is not specifically set
forth in the solicitation.
(f) Bid Cancellation: A Bid may be cancelled prior to opening date or any or all bids may
be rejected in whole or in part as may be specified in the solicitation, where it is in the
best interest of the City in accordance with regulations promulgated by the
Purchasing Office or, as a result of improper conduct on the part of a City employee.
The reasons for any cancellation shall be made part of the bid file.
(g) Modification of Specifications after Bid Opening: The City reserves the right to
negotiate with the lowest, responsive, and responsible bidder after the bids have
been opened and before an award is made in an effort to make sure that the
specifications and budget have been met. This will allow staff to add or delete parts
for equipment or value engineer a project in the City's best interest. On construction
projects the negotiations will be conducted with the design firm and City Staff before
a recommendation is made for the award of the bid.
(h) Negotiation with Lowest Responsive and Responsible Bidder: Once a bid has been
opened and accepted, the City reserves the right to negotiate with the lowest
responsive and responsible bidder in an effort to ensure that the bid meets the
approved budget and specification.
(i) Bid Award:
Responsive and Responsible Bidder(s): Subject to approval by the City Manager or
their designee and City Council, bids shall be awarded to the lowest, responsive and
responsible bidder(s)..
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City of Milton Financia/ Management Program
Approval of Bids: All bid awards for amounts of $50,000 or greater shall be
approved or rejected by the City Council.
Rejections of Bids: The City reserves the right to reject any or all bids if it determines
such rejection to be in the best interest of the City.
Disqualification of Bids: The following types of bids shall be disqualified for
consideration for a bid award:
• A bid arrives after the set time for submittal
• A bid which is incomplete in any material aspect
• A bid submitted without required bonds or insurance
• A bid submitted by a company on the ineligible source list.
d. Request for Proposals: Purchasing will be responsible for sending Requests for Proposals
(RFP) when use of the sealed bid process is either not practicable or not advantageous to
the City. The following criteria will be used when determining when to use the RFP process:
• When the quality, availability or capability is overriding in relation to price in procurement
of technical supplies or services.
• When the initial installation needs to be evaluated together with subsequent maintenance
and service capabilities and what priorities should be given these requirements in the
City's best interest.
• When the market place will respond better to a solicitation permitting not only a range of
alternate proposals, but evaluation and discussion of them before making the award.
RFP's will generally be solicited on a project -by -project basis. Professional services may be
solicited in multi-year increments deemed beneficial to the City based upon the investment of
staff time and return on such investment through savings on existing prices for service. The
USER will submit the Scope of Services to Purchasing, who will then determine which of the
following processes to use:
• Purchasing will request Letters of Interest and Statements of Qualifications from qualified
firms. The responses will be reviewed by the USERS and the Purchasing Agent and
interviews will be conducted with the firms selected by them. The Price Proposals will be
requested from the most qualified firms.
• Purchasing will request Letters of Interest, Statement of Qualifications and Price
Proposals from qualified firms. The USERS and the Purchasing Agent will review the
information submitted and make a selection from this information. This process should
be used when the City is familiar with the firms.
• Purchasing will request Letters of Interest and Statement of Qualifications from qualified
firms and schedule a meeting with all the firms to discuss the project and answer
questions. Then the firms who have attended the meeting will submit Price Proposals.
The USERS and the Purchasing Agent will review all the information and make a
selection.
(1) Request for Proposal Receipt. Evaluation and Award
(a) Dissemination of Proposals: Proposals shall be disseminated through a Request for
Proposal.
(b) Receipt of Proposals: No proposal shall be eligible for consideration by the City
unless it is placed in a sealed envelope or package and actually received by the
Purchasing Agent by the date and time specified in the RFP. The Purchasing Agent
shall cause all proposals to be stamped with the date and time of receipt and secured
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City of Milton Financial Management Program
until the designated opening time. A proposal delivered late shall under no
circumstances be eligible for consideration by the City and shall be returned unopened to
the bidder.
(c) Proposal Opening: Proposals shall be opened publicly in the presence of one or
more witnesses on the date and at the time and place designated in the RFP. The name
of each proposer shall be announced but no other information shall be disclosed nor
shall the proposals be considered an "open record" until a contract is awarded.
(d) Proposal Cancellation: An RFP may be cancelled prior to opening date or any or all
proposals may be rejected in whole or in part as may be specified in the solicitation,
where it is in the best interest of the City in accordance with regulations promulgated by
the Purchasing Office or, as a result of improper conduct on the part of a City employee.
The reasons for any cancellation shall be made part of the proposal file.
(e) Evaluation of Proposals
• Initial Evaluation: Each proposal shall be evaluated to determine whether it is
responsive to the scope of services and other terms and conditions contained in
the RFP. In evaluating the proposals, the evaluating team may communicate
with each Proposer to clarify and amplify each Proposer's proposal. No
information concerning any other Proposer's proposal shall be communicated in
any way to the Proposer.
• Request of Supplemental Information: Additional information may be requested
of Proposers.
(f) Award of Proposal
• Responsive and Responsible Proposal: Award shall be made to the responsible
Offeror whose proposal is determined to be the most advantageous to the City
based upon but, not limited exclusively to, price and the evaluation factors set
forth in the RFP.
• Approval of Proposals: All proposals where cost is $50,000 or more shall be
approved or rejected by the City Council.
• Rejection of Proposals: The City reserves the right to reject any or all proposals
if it determines such rejection to be in the best interest of the City.
• Disqualification of Proposals: The following types of proposals shall be
disqualified for consideration for award:
♦ A proposal arrives after the set time for submittal
♦ A proposal submitted without required bonds or insurance
♦ A proposal submitted by a company on the Ineligible Source List.
e. Emergency Purchasing: It is understood that, from time to time, occasions arise at
departments, which requires immediate action to purchase items in order to prevent
disruption of operations. The Purchasing Agent shall have the authority to purchase
commodities and services where there exists an emergency constituting a threat to
public health, safety or welfare or to the soundness and integrity of public property or
to the delivery of essential services and where the adverse effect of such emergency
may worsen materially with the passage of time.
If the emergency occurs after normal business hours and the Purchasing Agent is
unavailable, the Department Directors/Chiefs will be given the same authority as the
Purchasing Agent. The documentation and purchase requisitions are to be submitted to the
Purchasing Office as soon as possible following the emergency.
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City of Milton Financial Management Program
Adherence to these regulations and procedures concerning dollar amounts and bidding will
be followed as closely as circumstances will allow. All emergencies will be documented and
reports given to the City Manager, Mayor, and Council.
f. Brand Name Purchases: The Purchasing Agent may elect to purchase brand name products
or services when the goods comprise a major brand system, program or service previously
selected by the City and due to operational effectiveness, future enhancements or additions,
or maintenance or storage of spare parts precludes the mixing of brands, manufacture, etc.
Sole Source Purchases: A contract may be awarded or a purchase made without
competition when the City determines that there is only one source for the required products,
supply services, or construction items. The Purchasing Agent shall conduct negotiations as
appropriate, as to the price, delivery, and terms to determine reasonableness of price. A
separate file of sole source procurements shall be maintained as a public record and shall list
each contractor's name, the amount and type of each contract, and a listing of the item(s)
procured under each purchase order or contract.
h. Grants/Donations: Periodically, the City may be given private/public grants and donations;
from sources such as the State and Federal Government and private corporations. These
types of solicitations are more restrictive and will dictate the procurement process and
methodology that the City is to follow.
i. State Contract: A contract may be awarded or a purchase made without competition when
the City determines that the pricing available through the Department of Administrative
Services is below market rates. The Purchasing Agent shall conduct negotiations as
appropriate, as to the price, delivery, and terms to determine reasonableness of the overall
procurement.
3. Responsible for Prices: The final determination of the price and terms of any goods, materials or
services shall rest with the Purchasing Office.
4. Records: It shall be the responsibility of the Purchasing Office to document all contracts, purchases,
agreements for services, and leases and to maintain said documents consistent with the records
retention policy of the City. All agreements or contracts binding the City must be in writing. There will
be no exceptions.
5. Negotiations of Agreements: All negotiations of agreements for supplies, materials, or services, shall
be conducted by the Purchasing Office. It is recognized that special situations may exist where there
is a special need for the USER to be involved in the negotiation process. This must be in conjunction
with the Purchasing Office at all times. The Purchasing Office will make final recommendation for
agreements.
6. Approvals:
a. It is the responsibility of the Purchasing Office to secure all necessary approvals of the City
Manager or their designee, or legal authority, in writing, when necessary to protect the City and
its legal liability prior to execution of a contract or purchase agreement.
b. The Purchasing Office may make any authorized purchase for which payment will be made in a
current, routine manner following receipt of the goods or services. Procurement by leasing, long-
term financing, advance payments or deposits or any other special non -routine method must be
approved in advance by the City Manager or their designee.
The City Manager or their designee is authorized to approve budgeted capital purchases or
contracts up to $50,000 without obtaining Council approval. The USER is responsible for making
the recommendation for the award.
Council must approve any non -budgeted purchase or contract over $50,000. The USER and
Purchasing Agent are responsible for submitting the recommendation for this award.
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City of Milton Financial Management Program
c. The Purchasing Office will not normally provide purchase orders after procurement has been
initiated. Also, purchases must be documented by the USER with appropriate requisition and
specific budget account number prior to the issuance of the purchase order number.
d. In the case of contracts (other than routine purchase orders), leases or service agreements
(either new or renewals), the approval process is necessary. All such documents will be
forwarded to the Purchasing Office if not originated in said department. The Purchasing Office
will acquire the necessary approvals prior to execution of any agreement, contract or lease
through the City Attorney's office. When said contracts, leases or service agreements are up for
renewal or expiration the Purchasing Office will notify the USER for approval to either maintain
the contract or bid a new contract. The Purchasing Office will be responsible for maintaining a
file of all current contracts, leases or service agreements.
(1) The Purchasing Agent will review the contract for form, completeness, insurance
considerations, legal implications, and any other items dictated by each situation. The
contract will then be sent to the USER and approved the Director/Chief and returned to
Purchasing. The Purchasing Office will be responsible for having the contract signed by
the City Manager or their designee after it is signed by the vendor.
(2) The Purchasing Office will forward three copies of the contract for signature to the
vendor, with them returning two copies.
(3) The original of the contract will be filed in the open contract file. The other copy will be
attached to the purchase order.
(4) A copy of the completed contract will be forwarded to the USER.
(5) Once a contract is awarded by the City the contract may be amended without the
necessity of rebidding such contract, provided that such amendment shall not result in a
variance in price exceeding ten percent (10%) of the original contract amount.
7. Delivery, Quality, and Payment: It shall be the responsibility of the Purchasing Office to insure the
quality, delivery, and payment of required goods and services.
8. Disputes: Final adjudication of any dispute between the vendor and USER shall be made by the
Purchasing Office with appropriate input from the USER.
9. Vendor: In most cases, contact with vendors will be by the Purchasing Office and in conjunction with
the USER as necessary. All vendors must coordinate with the Purchasing Office before visiting any
other department. All visits must be made with the knowledge of the Purchasing Office and the
Purchasing Agent has the option of accompanying the visitor. It is recognized that this restriction on
visitation will not necessarily apply to those vendors with ongoing relationships such as computer,and
copy machine service technicians.
10. Return of Goods and/or Cancellation of Agreements: All return of goods must be initiated by the
USER through the Purchasing Office. Additionally, all cancellations of, or modifications to, any
agreements must be made by the Purchasing Office.
11. Receiving of Goods: It shall be the responsibility of the USER to ensure that purchased goods and
equipment are received, inspected and verified as to condition. This will be accomplished by the use
of a Receiving Report. Since the Department Director/Chief signed the purchase requisition, he
cannot be the receiver of the goods and must appoint an individual within the department to be the
receiver of the goods and services.
12. Use of State/Co-Op Contracts: The Purchasing Manager may, independent of the requirements of
bid process of this article, procure supplies, services or construction items through the contract
established through competitve means by the purchasing division of the State of Georgia, national
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City of Milton Financia/ Management Program
Co -Ops (i.e.-U.S. Communities), and collaborative purchasing agreements when deemed to be in the
best interest of the City.
13. Change Orders
The Purchasing Office will review all change orders and adjust encumbrances as applicable. Change
orders will be processed to correct the account distribution, quantity, addition/deletion of line items,
change in description, and unit price.
If a quoted price is equal to or less than $5,000, the Department Head will approve. If a requisition for
change order is received in over $5,000 but the total procurement remains less than $50,000, the
requisition will be sent to the City Treasurer and City Manager for approval. Any requisition with a
change order where the total procurement equals more than $50,000 requires Mayor/City Council
approval. The department cannot use the change order process to circumvent the Purchasing
Ordinance. Additionally, an available appropriation must exist for all change order amounts prior to
approval occurring.
VII. PAYMENT REQUESTS
Payment Request Forms are designed to streamline procedures for initiating routine payments of the
types outlined below:
A. Utility Bills.
B. Insurance Premiums and Bond Payments.
C. Postage Expenses.
D. Conferences, Training and Meeting Pre -paid Expenses.
E. Reimbursements as shown on a valid, approved Travel Expense Report.
F. Professional Services.
G. Court Fees.
H. Instructors or Speakers for Recreation Programs.
The above list is not all-inclusive; questions should be directed to the Finance Director or Purchasing
Agent. The use of the Payment Request Forms in no way implies that proper procedures outlined in
paragraph IV, B, 2 need not be adhered to. The Payment Request procedures are merely a means of
expediting payment.
APPENDIX A
NIGP CODE OF ETHICS
The Institute believes, and it is a condition of membership, that the following ethical principles should govern
the conduct of every person employed by a public sector procurement or materials management
organization.
Seeks or accepts a position as head (or employee) only when fully in accord with the professional principles
applicable thereto and when confident of possessing the qualifications to serve under those principles to the
advantage of the employing organization.
Believes in the dignity and worth of the service rendered by the organization, and the societal responsibilities
assumed as a trusted public servant.
Is governed by the highest ideals of honor and integrity in all public and personal relationships in order to
merit the respect and inspire the confidence of the organization and the public being served.
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City of Milton Financial Management Program
Believes that personal aggrandizement or personal profit obtained through misuse of public or personal
relationships is dishonest and not tolerable.
Identifies and eliminates participation of any individual in operational situations where a conflict of interest
may be involved.
Believes that members of the Institute and its staff should at no time, or under any circumstances, accept
directly or indirectly, gifts, gratuities, or other things of value from suppliers, which might influence or appear
to influence purchasing decisions.
Keeps the governmental organization informed, through appropriate channels, on problems and progress of
applicable operations by emphasizing the importance of the facts.
Resists encroachment on control of personnel in order to preserve integrity as a professional manager.
Handles all personnel matters on a merit basis, and in compliance with applicable laws prohibiting
discrimination in employment on the basis of politics, religion, color, national origin, disability, gender, age,
pregnancy and other protected characteristics.
Seeks or dispenses no personal favors. Handles each administrative problem objectively and empathetically,
without discrimination.
Subscribes to and supports the professional aims and objectives of the National Institute of Governmental
Purchasing, Inc.
GUIDELINES TO THE NIGP CODE OF ETHICS
I. RESPONSIBILITY TO YOUR EMPLOYER
Follow the lawful instructions or laws of the employer.
Understand the authority granted by the employer.
Avoid activities, which would compromise or give the perception of compromising the best interest of the
employer.
Reduce the potential for any charges of preferential treatment by actively promoting the concept of
competition.
Obtain the maximum benefit for funds spent as agents for the employer.
Il. CONFLICT OF INTEREST
Avoid any private or professional activity that would create a conflict between your personal interest and the
interests of your employer.
Avoid engaging in personal business with any company that is a supplier to your employer.
Avoid lending money to or borrowing money from any supplier.
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City of Milton Financia/ Management Program
/it. PERCEPTION
Avoid the appearance of unethical or compromising practices in relationships, actions and communications.
Avoid business relationships with personal friends. Request a reassignment if the situation arises.
Avoid noticeable displays of affection, which may give an impression of impropriety.
Avoid holding business meetings with suppliers outside the office.
When such meetings do occur, the meeting location should be carefully chosen so as not to be perceived as
inappropriate by other persons in the business community or your peers.
IV. GRATUITIES
Never solicit or accept money, loans, credits or prejudicial discounts, gifts, entertainment, favors or services
from your present or potential suppliers which might influence or appear to influence purchasing decisions.
Never solicit gratuities in any form for yourself or your employer.
Items of nominal value offered by suppliers for public relations purposes are acceptable when the value of
such items has been established by your employer and would not be perceived by the offeror, receiver or
others as posing an ethical breach.
Gifts offered exceeding nominal value should be returned with an explanation or if perishable either returned
or donated to a charity in the name of the supplier.
In the case of any gift, care should be taken to evaluate the intent and perception of acceptance to ensure
that it is legal, that it will not influence your buying decisions, and that it will not be perceived by your peers
and others as unethical.
V. BUSINESS MEALS
There are times when during the course of business it may be appropriate to conduct business during meals.
In such instances, the meal should be for a specific business purpose.
Avoid frequent meals with the same supplier.
The purchasing professional should be able to pay for meals as frequently as the supplier. Budgeted funds
should be available for such purposes.
Vl. CONFIDENTIAL INFORMATION
Keep bidders' proprietary information confidential.
Develop a formal policy on the handling of confidential information.
VII. RELATIONSHIP WITH THE SUPPLIER
Maintain and practice, to the highest degree possible, business ethics, professional courtesy, and
competence in all transactions.
Association with suppliers at lunches, dinners, or business organization meetings is an acceptable
professional practice enabling the buyer to establish better business relations provided that the buyer keeps
free of obligation. Accordingly, it is strongly recommended that if a seller pays for an activity that the buyer
reciprocate.
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City of Milton Financial Management Program
Purchase without prejudice, striving to obtain the maximum value for each dollar of expenditure.
Preclude from showing favoritism or be influenced by suppliers through the acceptance of gifts, gratuities,
loans or favors. Gifts of a nominal value that display the name of a firm which is intended for advertisement
may or may not be accepted in accordance with the recipient's own conscience or jurisdictional rules.
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� r City of Milton
georgia
FINANCIAL MANAGEMENT PROGRAM
RECORD RETENTION
POLICIES
Developed under the Authority
of the City Council by the
City Manager's Office, and
Approved by ordinance no.
06-11-05 on November 21, 2006.
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RECORDS RETENTION
In concurrence with State Law, the City of Milton shall comply with the Georgia Records Act, as presented in
O.C.G.A. 58-90-19 et seq. for public entities.
A. PURPOSE — STATEMENT OF POLICY
The City of Milton recognizes that its citizens have a right to expect, and the City has an obligation to
maintain, an efficient and cost-effective Records Management Program and it further recognizes the
importance of City records in the lives of its citizens. The City of Milton has a responsibility to its citizens to
manage, protect, preserve and make available City records.
It is the policy of the City of Milton to provide for efficient, economical, and effective controls over the
creation, distribution, organization, maintenance, use, retention, and disposition of all records of the City of
Milton. This policy will be implemented through a comprehensive system of integrated procedures for the
management of records from their creation to their ultimate disposition, consistent with the requirements of
the Georgia Open Records Act and accepted records management practice.
The decision to adopt Milton's Records Management Program is a commitment to improving the City's
overall record keeping system. The City acknowledges that, while the utilization of retention schedules and
micrographics may in fact delay the inevitable chaos that results from records mismanagement or non-
management, long-term benefits can be realized only through the introduction of a well -conceived,
preplanned, comprehensive program that emphasizes the design, creation, use, maintenance and
disposition of records.
All City records must be created, maintained, and disposed of in accordance with this chapter and all
requirements, policies and procedures established pursuant to this chapter, and in no other manner.
B. DEFINITIONS.
"APPROVED RECORD'S RETENTION AND DISPOSITION SCHEDULE" - a record's retention and
disposition schedule that has been approved by the City Manager, the Records Management Officer, and
the Georgia Secretary of State Records Management Office and adopted by the City Council by ordinance
through this policy.
"CITY RECORD" - every document, paper, letter, record, book, map, drawing, photograph, tape (sound or
video recording), and all copies, duplicates, photographs, including microfilm, or other reproductions
thereof, or any other documentary materials, regardless of physical form or characteristics, including
information contained in electronic data processing equipment and on floppy disks, optical disks, and
compact disks, regardless of physical form or characteristic and regardless of whether public access to it is
open or restricted under State law, that is created or received by the City of Milton or any of its officers or
employees pursuant to law or in the transaction of public business. A City record does not include library
material acquired solely for reference, exhibit, or display or stocks of publications, advertisements, or other
unsolicited written materials received by the City or any of its officers or employees. The provisions of the
State of Georgia Open Records Act or any successor provisions thereof shall govern with regard to the
status of the records described herein as public records or as exempt from the public records laws.
"DEPARTMENT"- any department, division, commission, authority, committee, task force, or similar entity
of the City.
"DIRECTOR/DIVISION/HEAD" - the person who is in charge of a department of the City that creates or
receives City records.
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"ESSENTIAL RECORD" - any City record necessary to resume or continue operations of the City in an
emergency or disaster; recreate the legal and financial status of the City; or to protect and fulfill obligations
to the citizens of the City.
"FORM" - A document on which captions are pre-printed for entering variable data and which is used to
transmit information from one point to another. Forms are generally used to cause some action, establish a
memory and/or give a report. This includes stationery, envelopes, memo pads, checks, etc.
"OPEN RECORDS LAW"- O.C.G.A. 50-14-1 through 50-18-76, also known as the Georgia Open Records
Act and the Sunshine Law.
"PERMANENT RECORD"- any City record for which the retention period on Records Retention and
Disposition Schedule is given as permanent.
"RECORDS CENTER" - the facility used to provide centralized and secure storage for non-current and
permanent City records.
"RECORDS DISPOSITION% the removal or destruction of a City record from a department or from a non-
current records storage center and for a City record that has passed its minimum legal retention period and
no longer has value to the City, or for a permanent City record, transfer of the record to Records Center for
archival accession.
"RECORDS INVENTORY" - the process of locating, identifying, and describing in detail the records of a
department.
"RECORDS LIAISON" - a person designated by each Director/Division/Head to implement the Records
Management Program in their department.
"RECORDS MANAGEMENT% the creation and implementation of systematic controls for City records from
the point where they are created or received through final disposition or archival retention, including
distribution, use, maintenance, storage, retrieval, protection, preservation and disposal, for the purpose of
achieving adequate and proper documentation of the policies and transactions of City government and
reducing costs and improving the efficiency of record keeping. The term includes: development of Records
Retention and Disposition Schedules; management of filing and information retrieval systems; protection of
essential and permanent records; economical and space -effective storage of non-current records; control
over the creation and distribution of forms, reports, and correspondence; management of manual,
micrographic, electronic, and other records storage systems; and identification of functional record keeping
requirements that ensure City records are created to adequately document the City's business transactions.
"RECORDS MANAGEMENT OFFICER% the person appointed by the City Manager, primarily the City
Clerk, to administer the City's Records Management Program.
"RECORDS MANAGEMENT PROGRAM% the requirements, policies, and procedures developed by this
document.
"RECORDS RETENTION AND DISPOSITION SCHEDULE"- a document prepared by or under the
authority of the Records Management Officer that describes recurring records or records series on a
continuing basis, indicating for each record series the length of time it is to be maintained in a department or
in Records Center; when and if the record or records series may be destroyed or otherwise disposed of;
and other records disposition information that the Records Management Program may require.
"RETENTION PERIOD" - the minimum time that must pass after the creation, recording, or receipt of a City
record, or after the fulfillment of certain actions associated with a City record before the record is eligible for
disposition.
C. OWNERSHIP AND CUSTODY OF CITY RECORDS
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Every City record is the property of the City of Milton. No City officer or employee has any personal or
property right to a City record even though they may have developed or compiled the record. The
unauthorized alteration, destruction, deletion, removal, or use of a City record is prohibited. A City record
exempted from public disclosure under State or federal law is not made subject to disclosure by its designation
as City property under this section.
A City record may not be sold, loaned, given away, destroyed, or otherwise alienated from the City's custody
unless in accordance with this chapter. This subsection does not apply to a City record that is temporarily
transferred to a contractor for purposes of microfilming, duplication, and conversion to electronic media,
restoration, or a similar records management and preservation procedure if the transfer is authorized by the
Records Management Officer.
Except when a City record is transferred into the archival custody of a records center, legal custody of a City
record created or received by a department during the course of business remains with the
Director/Division/Head. The legal custodian, as guardian of the record, does not relinquish responsibility for
the care, preservation, or legal disposition of the record even though physical custody of the record for
maintenance and preservation purposes may be held by another department or agency. The physical
custodian of the record is also responsible for complying with all Records Management Program requirements,
policies, and procedures. An original City record may not leave the custody of the department concerned when
it is being used by a member of the public.
Every official or employee shall deliver to any successor all City records pertaining to the office held by the
City officer or employee. The legal and physical custody of a City record that has continuing historical value
to the City may be transferred to the Records Center upon agreement between the Director/Division/Head and
the Records Management Officer. Records Center's custody of the record subsequently will be known as
archival custody, and ownership of the record remains with the City. The records center shall have legal and
physical custody of all City records belonging to any defunct department that does not have a named
successor.
D. PASSWORD PROTECTED ELECTRONIC RECORDS PROHIBITED.
Because all City records, including all electronic records, are public records, electronic records may not be
password protected unless it is a record specifically exempt from the Open Records Law. Only confidential
documents as specified in the Open Records Law may be password protected as long as the creator of the
document provides his/her supervisor with the password. Written confirmation from the supervisor shall be
forwarded to the Records Management Officer confirming the record is confidential. Such confirmation shall
note the specific law that exempts the record from being an Open Record.
E. RECORDS INVOLVED IN PUBLIC INFORMATION REQUESTS, REQUESTS BY MEDIA,
AND RECORDS PENDING LITIGATION, OR PENDING AUDITS.
The destruction of a City record involved in a pending request under the Public Information Act, pending
litigation, or a pending audit is prohibited, even if the destruction of the record is authorized by an approved
Records Retention and Disposition Schedule. Retrieval and release of all records to the public or media shall
be in accordance to rules and regulations of the Open Records Act and City of Milton Open Records Policy.
All retrieval and release of records for litigation or media purposes shall ALSO be in accordance to the
advice and consent of the City of Milton Legal Department and City Clerk's Office.
F. RECORDS MANAGEMENT OFFICER - DUTIES AND RESPONSIBILITIES.
In addition to other duties assigned by this chapter and State law, the Records Management Officer shall:
Page 4 of 10
(1) Administer the City's Records Management Program and provide advice and assistance to
Directors/Divisions/Heads in its implementation;
(2) Prepare the requirements, policies and procedures for the City's Records Management Program;
(3) Review and approve the Records Retention and Disposition Schedules for all departments;
(4) In cooperation with Directors/Divisions/Heads, identify essential records and establish a records disaster
and recovery plan for each department to ensure maximum availability of the records in order to
re-establish operations quickly and with minimum disruption and expense;
(5) Monitor retention/disposition schedules and administrative rules issued by the Georgia Secretary of
State to determine if the Records Management Program and the City's Records Retention and
Disposition Schedules are in compliance with State regulations;
(6) Disseminate information concerning State laws and administrative rules relating to City records to the
Directors/Divisions/Heads;
(7) Instruct or train Records Liaison Officers and other personnel in the Records Management Program;
(8) Direct Records Liaison Officers and other personnel in the conduct of records inventories (of file types,
not individual files) in preparation for the development of Records Retention and Disposition Schedules;
(9) Ensure that the creation, maintenance, preservation, microfilming, electronic storage, destruction, and
other disposition of City records are carried out in accordance with the requirements, policies, and
procedures of the Records Management Program, this chapter and State law;
(10) Bring to the attention of the City Manager any noncompliance by a Director/Division/Head or other
personnel with the requirements, policies, and procedures of the Records Management Program, this
chapter, or State law;
(11) Develop procedures to ensure the permanent preservation of the historically valuable records of the
City;
(12) Conduct periodic reviews of departmental record keeping practices and Records Retention and
Disposition Schedules to ensure that the schedules are kept current;
(13) Provide uniform standards and efficient controls over the identification, appraisal, maintenance,
protection, preservation, transfer, retention, and disposition of City records;
Page 5 of 10
(14) Review City-wide and departmental policies to ensure compliance with the Records
Management Program, this chapter, and State law;
(15) In cooperation with Directors/Divisions/Heads, incorporate records management
policies, objectives, responsibilities, and authorities in pertinent departmental
directives;
(16) Review user requirements, cost feasibility studies, systems requirements, systems
specifications, and other systems design documents to ensure that record keeping
requirements and public access requirements are incorporated into electronic record
keeping systems at the design phase;
(17) Establish procedures for the use of approved general retention and disposition
schedules by City departments; and
(18) Serve as the City's liaison to the Georgia Secretary of State for Records Management
Program requirements.
G. DIRECTORS /DIVISIONS/HEADS - DUTIES AND RESPONSIBILITIES
Every Director and Division Head shall:
(1) Cooperate with the Records Management Officer in carrying out the policies,
procedures, and requirements of the Records Management Program, this chapter,
and State law;
(2) Maintain City records in their custody and carry out the preservation, microfilming,
electronic storage, destruction, and other disposition of those records only in
accordance with the Records Management Program, this chapter, and State law;
(3) Review and approve Records Retention and Disposition Schedules and requests to
dispose of City records that are prepared and submitted by or under the direction of
the Records Management Officer;
(4) Notify the Records Management Officer within 24 hours of the discovery of any loss,
theft, or damage to a City record;
(5) Ensure the ability to access records regardless of form or medium;
(6) Notify the Records Management Officer of proposed electronic record keeping
systems to ensure compliance with electronic record keeping requirements
established by the Records Management Program, this chapter, and State law;
(7) Under the direction of the Manager of Information Systems, ensure electronic records
in the director's custody are migrated forward as technology changes, for as long as
the records are determined to have value, and to ensure that requests for funding for
new systems or systems enhancements address requirements for backup, recopying,
disaster recovery, security, public access, audit trails, and other record keeping
requirements in accordance with the Records Management Program, this chapter,
and State law;
(8) Appoint a department Records Liaison Officer in accordance with this program;
(9) Incorporate the Records Management Program requirements in pertinent
departmental policies and procedures;
(10) In cooperation with the Records Management Officer, identify essential records of the
department and establish a Records Disaster Recovery Plan to ensure maximum
availability of the records to reestablish operations quickly and with minimum
disruption and expense;
H. RECORDS LIAISON OFFICERS — DUTIES AND RESPONSIBILITIES
Each Director/Division/Head shall designate in writing to the Records Management Officer a
member of the Director/Division/Head's staff to serve as the Records Liaison Officer for the
implementation of the Records Management Program for each division. If the Records
Management Officer determines that more than one Records Liaison Officer should be
City of Milton Financia/ Management Program
designated for a department, the Director/Division/Head shall designate the number of
Records Liaison Officers specified by the Records Management Officer. The
Director/Division/Head may serve as Records Liaison Officer for a department.
A person designated as a Records Liaison Officer shall be thoroughly familiar with
departmental policies and activities and have full knowledge of and access to all City
records created and maintained by the Division and by all officers and employees of the
department.
If a person designated as a Records Liaison Officer resigns, retires, or is removed by action
of the Director/Division/Head, the Director/Division/Head shall promptly designate another
person to fill the vacancy.
In addition to other duties assigned in this chapter or by State law, a Records Liaison Officer
shall:
(1) In cooperation with the Records Management Officer, coordinate and implement the
requirements, policies, and procedures of the Records Management Program in the
department;
(2) Disseminate information to department staff concerning the Records Management
Program;
(3) In cooperation with the Records Management Officer, coordinate the records
inventory of the department (inventory of file types, not individual files);
(4) Verify the accuracy, content and completeness of the records inventory prior to
submission to the Records Management Officer;
(5) Review departmental record keeping practices for compliance with the Records
Management Program and, in consultation with the Records Management Officer,
identify practices that require improvement for the purposes of increasing efficiency or
implementing corrective action for program compliance;
(6) Report any noncompliance with the Records Management Program to the
Director/Division/Head in writing and correct and re -submit to the Records
Management Officer any records inventory that is incomplete or inaccurate; and
(7) Periodically inventory records in department or division and give report to the Records
Management
Officer.
I. RECORDS RETENTION AND DISPOSITION SCHEDULES
The Records Management Officer, in cooperation with Directors/Divisions/Heads and
Records Liaison Officers, shall prepare Records Retention and Disposition Schedules on a
department -by -department basis that describe and establish the retention periods for all City
records created or received by each department. The schedule should list the periods of
time that the records are to remain in the original department, the records center, as well as
the ultimate disposition. (Microfilm, scan, or transfer to archives, or destroy.)
Any Records Retention and Disposition Schedule, amendment to a schedule, or request for
destruction of a record that contains general terms such as "miscellaneous" and "various" to
describe any record identified in such a document may not be submitted to the Records
Management Officer for consideration.
Each Records Retention and Disposition Schedule must be monitored and amended as
needed by the Records Management Officer on a regular basis to ensure that the schedule
is in compliance with Records Retention and Disposition Schedules issued by the State and
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City of Milton Financia/ Management Program
that the schedule continues to reflect the record keeping procedures and needs of the
department and the Records Management Program of the City.
Records may not be destroyed prior to the time periods stated, however, they may be
retained for longer periods for sufficient reason.
The Georgia Department of Archives and History publishes a Retention Schedule for Local
Government Records. The City shall comply with the retention timelines as outlined within
this schedule. A copy of the entire retention schedule is included within this policy for
reference purposes.
http://www.sos.state.2a.us/archives/retsched/EntireResults.asD
J. IMPLEMENTATION
The Director/Division/Head and Records Liaison Officer of a department for which a
Records Retention and Disposition Schedule has been approved shall implement the
schedule in accordance with the requirements, policies, and procedures of the Records
Management Program, this chapter, and State law.
A City record whose retention period has expired on an approved Records Retention and
Disposition Schedule must be destroyed unless an Open Records Request is pending on
the record; the subject matter of the record is pertinent to pending litigation or a pending
audit; the Director/Division/Head requests to the Records Management Officer in writing that
the record be retained for an additional period, which request must clearly state the reason
for the continued retention; or the Records Management Officer sends written notification to
a Director/Division/Head that the records must be held pending review for historical
appraisal.
K. DESTRUCTION OF RECORDS
The Records Management Officer shall approve City records proposed for destruction on a
regularly scheduled basis, according to the maximum retention and records disposition
guidelines provided in the manual. No original record shall be destroyed without the review
and concurrence of the Records Management Officer and the appropriate
Director/Division/Head. The Records Management Officer is directed to supervise the
destruction of records approved for final disposition on a regularly scheduled basis. Any
City record, the subject matter of which is in litigation, shall not be destroyed until such
litigation is final.
Destruction Of Original Records That Have Been Duplicated - Original paper records
that have been duplicated on microfilm, microfiche, data processing, or word processing
equipment may be destroyed prior to the retention period specified in the records schedule
without further approval provided the following three conditions are met:
(1)The duplicate copy of the information contained in the original record is maintained for
the specified time.
(2)The original paper record has not been scheduled for permanent preservation.
(3)The Records Management Officer has agreed to the destruction of the original paper
record and the destruction is recorded.
Unscheduled Records - A City record that is obsolete or that has not been identified on an
approved Records Retention and Disposition Schedule may be destroyed if its destruction
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City of Milton Financia/ Management Program
has been approved in the same manner required by this chapter, and the Records Retention
Officer has approved a request for destruction authorization.
L. RECORDS CENTERS
The Records Centers serve as centralized records storage facilities for all departments for
the storage of non-current City records and is under the direct control and supervision of the
Records Management Officer. The Records Management Officer shall establish policies and
procedures regulating the operations and use by City departments. The City Hall Records
Center (Archive Room), shall serve as the repository for current -permanent City records that
are transferred to the Records Management Officer by all departments. Additional off-site
locations are designated by the City Manager for storage of records of less importance.
Fireproof storage systems shall be utilized and serve as repository for current records of the
City Treasurer's Office and permanent and historical records of the City Clerk only.
M. MICROFILMING/DIGITAL STORAGE OF CITY RECORDS
City records may be microfilmed, scanned, or digitally stored in accordance with the Records
Management Program. Every Director/Division/Head shall coordinate the microfilming,
scanning, or digital storage of a City record with the Records Management Officer. The
Records Management Officer shall periodically review each department's electronic storage
programs as to cost-effectiveness, administrative efficiency, and compliance with the Record
Management Program.
N. ELECTRONIC RECORDS - STORAGE AND DESTRUCTION
The creation, maintenance, preservation, electronic document imaging, and storage of the
electronic records of the City must comply with the Records Management Program, this
chapter, and State law. All operational procedures of document imaging and electronic
systems are under the supervision of the Manager of Information Systems.
Destruction of Data Processing Records - Computer printouts and other data processing
input/output may be destroyed without specific authorization and recording provided the
following conditions apply:
(1) The information is retained on magnetic media (e.g., magnetic tape, diskettes, etc.),
and the media is scheduled in a Records Retention and Disposition Schedule.
(2) The output copy is not specifically listed and scheduled in this Records Retention and
Disposition Schedule.
O. ELECTRONIC MAIL
The City of Milton provides E-mail services to help its employees conduct business
effectively. E-mail is a public record and should be used for City business. It is intended to
expedite communications, reduce paperwork, and automate routine office tasks; thereby
increasing productivity and reducing costs. The same discretion should be used in
maintaining and storing E-mail messages as you would maintain any other city produced
record. The policies and procedures for E -Mail are further explained in other publications of
the City of Milton.
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City of Milton Financia/ Management Program
P. GENERAL GUIDELINES AND PROCEDURES FOR STORAGE IN RECORD
CENTERS
A. The Department's Record Liaison, appointed by and under the direction of the
Director/Division/Head, will be responsible for the coordination of the
Department/Division's records storage in conjunction with the guidelines and procedures
outlined in the Records Management Policy. The Records Management Officer (City
Clerk) will witness receipt and approve all record storage deposits into the Records
Center (Archive Room).
B. The Record Liaison for each department will be responsible for inventory and
coordination of filing and records management in their department's storage and filing
facility in conjunction with the rules and regulations of this policy and State of Georgia
records retention requirements.
C. Type of Storage Box — All records must be stored in one cubic foot size boxes
(10"x12"x15 W). Any larger boxes are hard to handle and dangerous! Large boxes will
not be accepted in the Records Centers.
D. Packing of Box - Records must be categorized by date and item description.
Disposition of records will be by year and type record. Please store records in similar
categories and dates (years).
E. Packing of Box - Leave room equivalent to "one hand's width" (about % inch) in each
box when packing. Do not over pack the box.
F. Paperwork submittal — An entry form must be completed with record descriptions and
signed by Department/Division Head and Record Liaison.
G. Receipt of Records - All boxes of records for deposit in the records center (Archive
Room) must be inventoried, reviewed for retention schedule assignments, and logged in
through the City Clerk's Office by appointment.
H. Entry into Record Center —All employees must sign in and receive a key prior to
entering the ground floor records center. The key and sign in sheet are available in the
City Clerk's Office. The Records Center should be locked at all times.
I. Record Disposition - A Disposition notice in compliance to the retention schedule will be
sent to the Department/Division Head and Records Liaison prior to any destruction of
records.
J. Disposition of records must be approved by Department/Division Head and Records
Management Officer (City Clerk) and in compliance with State Records Retention
Regulations.
K. Any Permanent Records converted to computer based scanning programs must also be
saved in microfilm format or as paper.
L. Surplus items or unused office items are not allowed in Records Centers. These centers
are for records only.
M. Finance Department Record Center — This center is for the City Treasurer's Office and
City Clerk's use only. The City Treasurer's Office Records Liaison appointed and under
the direction of the City Treasurer, will be responsible for the coordination of the City
Treasurer's Office Record Center.
N. Permanent Records (e.g. deeds and minutes), located in the Records Center must be
stored in a locked file cabinet at all times. Access to these records require the signing
out of a key and supervision of the Records Manager Officer (City Clerk).
O. The doors of all Records Centers must be closed at all times. All entries into this
Records Center, other than authorized employees, must have permission and/or
supervision from the City Clerk before entering.
Page 10 of 10
� � City of Milton
georgia
FINANCIAL MANAGEMENT PROGRAM
REVENUE ADMINISTRA TION
POLICIES
Developed under the Authority
of the City Council by the
City Manager's Office, and
Approved by ordinance no.
06-11-05 on November 21, 2006.
Page 1 of 3
City of Milton Financia/ Management Program
REVENUE ADMINISTRATION
The City levies, collects and records certain taxes, license and permit fees, intergovernmental
revenues, charges for service, investment income, fines and forfeitures, and other miscellaneous
revenues and financing sources. This policy provides direction in the application, acceptance and
administration of revenues the City receives.
-_�91W4*111aW-111IIC I,V-11:111PIFc1-314It�'
All revenues have particular characteristics in terms of stability, growth, sensitivity to
inflation or business cycle effects, and impact on the tax and ratepayers. A diversity of
revenue sources can improve a City's ability to handle fluctuations in revenues and
potentially help to better distribute the cost of providing services.
The City shall strive to maintain a diversified and stable revenue structure to shelter it
from short-term fluctuations in any primary revenue source. When possible, the revenue
mix shall combine elastic and inelastic revenue sources to minimize the effect of
economic downturns.
The City will work towards diversifying its revenue base in order to reduce its
dependence upon property taxes.
B. CONSERVATIVE REVENUE ESTIMATES
As part of the annual budget process, an objective analytical process will estimate
revenues realistically and prudently. The City will estimate revenues of a volatile nature
conservatively.
C. USER BASED FEES AND CHARGES (Exchange Revenue)
The level of user fee cost recovery should consider the community -wide versus special
service nature of the program or activity. The use of general-purpose revenues is
appropriate for community -wide services, while user fees are appropriate for services that
are of special benefit to easily identified individuals or groups.
The City will strive to keep a simple revenue system that will result in a decrease of
compliance costs for the taxpayer or service recipient and a corresponding decrease in
avoidance to pay.
The City's revenue system will strive to maintain equity in its structure. That is, the City
will seek to minimize or eliminate all forms for subsidization between entities, funds,
services, utilities, and customers. However, it is recognized that public policy decisions
may lead to subsidies in certain circumstances (e.g., senior citizen partial tax abatement).
Fees will be reviewed and updated on an ongoing basis to ensure that they keep pace
with changes in the cost -of -living as well as changes in methods or levels of service
delivery.
For services associated with a user fee or charge, a fee shall offset the costs of that
service, where possible. Costs of services include direct and indirect costs such as
operating and maintenance costs, administrative costs, and charges for the use of capital
(e.g., depreciation and/or debt service).
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City of Mi/ton Financia/ Management Program
D. ALTERNATIVE REVENUE SOURCES
The City shall seek alternative funding sources whenever possible to reduce the required
revenue from non-exchange transactions (e.g., property taxes). Such alternative sources
include private and public grants, federal or state assistance, and public and private
contributions.
E. REVENUE COLLECTION
The City will follow an aggressive policy of collecting revenues, consistent with state and
federal laws. This policy includes charging of penalties and interest, revoking City
licenses, and providing for the transferring and assignment of tax executions.
F. RATES AND CHARGES
The City Council shall approve all revenue rates, charges, and processes in association
with receipted funds that are deposited by the City in conjunction with the annual financial
plan, (fiscal year budget) and revenue handbook (see below).
G. REVENUE HANDBOOK
A revenue handbook will be established and updated annually as part of the budget
process. This handbook will be utilized to adjust all fees, user charges, and applicable
taxes or other revenue sources. The handbook will include at least the following
information:
• The revenue source
• Legal authorization
• Method of collection
• Department responsible for collection
• Rate or charge history
• Total revenue history
Page 3 of 3
City of Milton
georgic
FINANCIAL MANAGEMENT PROGRAM
TRA VEL AND MEAL
EXPENDITURE POLICY
Developed under the Authority
of the City Council by the
City Manager's Office, and
Approved by ordinance no.
06-11-05 on November 21, 2006.
Page 1 of 5
City of Milton Financial Management Program
TRAVEL AND MEAL EXPENDITURE POLICIES
This section provides guidance on
authority of the City Manager, Mayor
incurred for travel and meal expenses
who travels on City related business.
and meal expenses shall be issued
necessitate City Council approval.
A. APPROPRIATION
authorized expenditures for all departments under the
and City Council. This section shall cover those costs
by any elected official, City employee, or board member
Operating guidelines and procedures for procuring travel
under separate cover(s) as they do not constitute nor
In conjunction with the annual budget process, the City Council shall authorize
department appropriations for travel and meal expenses consistent with the annual
adopted operating budgets. Departments shall not incur travel expenditures unless an
appropriation is available, or budget amendment has been completed.
B. EXPENDITURE APPROVAL
All expenditures relating to travel and meals shall be processed consistent with
procurement/purchasing guidelines. Once the City Treasurer's Office receives the proper
documentation from the incurring departments, the execution of payment shall occur.
The City Treasurer's Office shall only process transactions for payment based upon the
proper approval for the dollar amount of the expenditure, including adequate
documentation, received either electronically or in writing.
C. SETTLEMENT OF DISPUTED REIMBURSEMENT CLAIMS
The City Treasurer's Office shall review expenditure documents for compliance and
appropriateness with all City policies and procedures. Expenditure reimbursement
requests that are not in compliance with these policies and procedures shall be returned
to the originating department with recommendations for changes (e.g., travel issues,
cellular phone use). In the event the department does not agree with the
recommendations, the City Manager shall make the final decision regarding whether to
authorize the reimbursement.
D. TRAVEL EXPENSES
The City shall reimburse/pay expenses incurred by elected officials and employees for
travel relating to official City business. Official business shall be deemed that which has
been approved prior to the expenditure being incurred on a City of Milton Travel
Authorization form. Travel authorization forms are required for any travel exceeding 50
miles of the employee's place of work.
Lodging: hotel/motel charges shall qualify for reimbursement when they
exceed a 50 mile radius of the employee's place of work. All traveling
personnel shall minimize the expense associated with hotel/motel costs by
procuring a government rate for qualified stays. Lodging expense shall be
benchmarked against the U.S. General Services Administration (GSA)
approved per -diem rate of reimbursement. When the GSA rate is exceeded
by 20% or more, additional justification shall be required from the traveler.
When traveling in the State of Georgia, all travelers must use the hotel/motel
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City of Milton Financia/ Management Program
tax-exempt status form. Sales and occupancy taxes charged for lodging
within the State of Georgia do not qualify as eligible reimbursable travel
expenses under this policy. Per diem rates can be found at
http://policnorks.gov/oro/main/mt/homepage/mtt/perdiem/perd03d. htm I.
Hotel accommodations for travel less than a 50 mile radius from Milton must
be approved by the employee's department head.
Elected officials, the City Manager, Department Directors, and Management
of the City shall be allowed hotel accommodations for travel less than a 50
mile radius from Milton, based upon meeting schedules and attendance
needs.
Transportation: approved modes of transportation include vehicle, air, rail, or
taxi and public transportation. The method selected by the traveler shall be
subject to the most economically feasible, taking into consideration the value
of time. If a City vehicle is available, it should be used in lieu of a personal
vehicle. Generally, the City will not reimburse for the use of a personal
vehicle within 10 miles of an employees official headquarters and/or
residence.
i. Mileage: miles traveled in personal vehicles shall be reimbursed at
the rate designed by the Internal Revenue Service. Mileage shall be
calculated using the employee's place of work as the origination
point, so long as the employee reported to work prior to departing to
the destination. In the event the employee does not report to work
prior to traveling to the destination, mileage shall be reimbursed from
the employee's origin, less their normal commute to the workplace.
Expenses associated with employee's vehicles such as fuel, oil,
tires, etc. (deemed normal wear and tear) shall not be subject to
reimbursement and will be the responsibility of the traveler. Miles
traveled in City owned vehicles shall not be subject to
reimbursement to the traveler. However, expenses associated with
the travel in City vehicles such as fuel, oil, tires, etc. shall be the
responsibility of the City, and necessary purchases should follow
normal purchasing guidelines and processes.
ii. Rental Cars: Expenses associated with rental cars, i.e. rental
expense and fuel will be paid at cost, with receipts provided.
Employees shall rent mid-size or smaller vehicles, or an appropriate
vehicle size based upon the number of employees needing
transportation. Expenses associated with exceeding this car class
will be the responsibility of the traveler. Employees should decline
additional insurance coverage offered by rental car companies since
the City's insurance coverage is applicable to car rentals.
iii. Air/Rail: transportation provided by major airlines or railroads shall
be paid at cost to the traveler. Travel will be limited to
coach/economy classes of service. In the event the traveler chooses
a class higher than coach/economy (business or first class) or to
extend the trip and change departure or arrival dates, the difference
of the expense shall be the responsibility of the traveler. Any
reduction in the expense associated with transportation costs as a
result of extended or modified travel dates for personal benefit shall
not be provided back to the traveler.
iv. Taxi/Shuttle: expenses associated with local transportation will be
deemed eligible expenses as long as receipts are provided with point
to point explanations for this mode of transportation. Such
documentation should accompany receipts.
Page 3 of 5
City of Milton Financial Management Program
2. Meals/incidentals: expenses associated with meals (breakfast, lunch and
dinner) and incidentals (snacks, tips, miscellaneous) shall be administered
on a per diem basis by city. Per diem amounts will be derived from the U.S.
General Services Administration (GSA), which can be found at
http://policnorks.gov/org/main/mt/homepage/mtt/perdiem. Per diem will be
advanced to the employee prior to travel. Receipts will not be required on
incidental or meal expenses. Overages of meal expenses will be the
responsibility of the employee, while any savings may be retained by the
employee.
Alcoholic beverages are not allowable reimbursable expenses, and will not
be reimbursed pursuant to the City's Personnel Policies. Expenses incurred
for meals when travel has not included overnight stay shall be reimbursed
under Section E of this policy.
3. Program/Seminar/Conference Fees: charges relating to the traveler's
attendance to the particular event (training, conference, seminar, etc) shall
be paid by the corresponding department, subject to the provisions identified
for expenditures in the City's Expenditure and Purchasing Policies.
4. Telephone/Long Distance: telephone, fax, long-distance, Internet, and
communication expenses (including postage) shall be reimbursed when
relating to the traveler's employment. Expenses for business communication
shall be limited to $10.00 per day.
5. Laundry/Dry Cleaning: when travel is scheduled for more than five
consecutive days, reimbursement for laundry and dry cleaning expenses will
be allowed. Expenses shall be paid at the cost of the services provided.
Each traveler shall pay for expenses associated with travel on a personal credit
card, with the exception of meals or incidental expenses. Travel advances for
meal/incidental expenses shall be provided to the employee prior to travel by the
City Treasurer's Office.
Dependents/spouses accompanying employees on official business shall not be
eligible for reimbursed expenses by the City. If a dependent or spouse
accompanies an employee on an authorized business trip, only those expenses
that can be directly attributed to the employee will be reimbursed. Per diem used
for expenses other than those directly attributable to the employee will be
allowed; however, the per diem amount will not be increased because of
dependent/spouse travel.
The Mayor, City Council, City Manager, Department Directors and management
of the City shall be allowed to conduct official City business while on travel. The
submission of expenses related to such official business will be required in order
to receive reimbursement. Such items may include expenses associated with
meetings or business meals outside of the scope of the purpose of travel.
Employees on official business shall follow the City's workers' compensation
policies in the event of any on-the-job injury.
E. NON -TRAVEL MEALS
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City of Milton Financial Management Program
Expenses related to the furnishing of meals, snacks, or food should be limited to the
following circumstances:
1. Meetings hosted by the City Council or City Manager;
2. A meeting during regularly scheduled business hours required by law or
authorized by a department director which is anticipated to last more
than four (4) hours and which, is scheduled through normal meal times;
3. A business meal with someone other than another City official or
employee in order to discuss a specific item of City business; and
4. Meals that are an integral part of a scheduled meeting at which the
individual is required to attend.
Receipts provided for meals within this category should detail the nature of the meeting
and the people who were present for discussion.
F. SUBMISSION OF EXPENSES
All expenses relating to travel shall be submitted to the City Treasurer's Office no later
than 10 days after return from the trip. Non -travel meals shall be submitted no later than
7 days from the date of occurrence.
G. EMPLOYEE BREAK ROOMS
City facilities equipped with break rooms shall be furnished with potable water, coffee,
tea, hot cocoa, creamer, sugar, and cups/stirrers at the expense of the City. Vending
machines will also be available for the use of elected officials and staff.
Page 5 of 5