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Mound council delegates payment authority to city manager to speed vendor payments
Summary
The council approved Resolution 26-22 to delegate authority to the city manager to pay certain claims, a change staff says will allow invoices to be paid within legal net-35 requirements and reduce vendor late fees; council retained oversight via check-register reporting and procurement thresholds.
The Mound City Council on March 10 approved Resolution 26-22, delegating authority to the city manager to pay certain claims so the finance department can meet net-35 legal payment windows and reduce vendor late fees.
Lindsay Erdman, the city's newly introduced finance director, told the council she has identified staffing and process shortfalls after her first 30 days and proposed shifting the finance director's role toward strategic leadership while adding a part-time accounting technician to handle day-to-day accounting work.
Erdman said the current process requires council approval for all payments, which can delay vendor payments when council meeting schedules and invoice timing conflict. "The delegation of authority will allow the finance department to pay invoices within the legal time constraints of the net 35 days," Erdman said.
City staff and council members discussed internal controls and procurement limits during a prolonged question-and-answer period. City manager (speaker 12) and Erdman said the council would continue to receive the check register for oversight and that larger purchases and bid thresholds remain in place: invoices over $5,000 require two written quotes or an RFP under current procurement policy, and expenditures over $100,000 require a council resolution.
Council members asked whether delegation would remove meaningful checks on payments; staff replied that payments associated with large public-works projects (pay requests) will still come to council and that departmental review and contract controls remain in place. The city manager added that many day-to-day claims are currently delayed by the existing approval cycle, hurting vendors such as Harbor Wine and Spirits and others that expect timely payments.
After discussion, a council member moved to approve Resolution 26-22 and it passed on a voice vote. The council did not change procurement thresholds at the meeting; staff said they will return with quarterly financial reporting and further detail on revised processes.
Next steps: the finance director will work to catch up past-due invoices, implement the delegation if administratively approved, and present quarterly budget and cash-flow reports to council; staff also mentioned a likely software/budget request for 2027 to improve systems and automation.
