Step One. The Budget
The mayor submits a budget for council’s approval each year. The budget sets financial limits on spending in the city. By law, the finance director can’t issue a payment check unless there is money in the budget to pay for the goods/services that have been purchased.
Step Two. Approval of Requisitions & Vouchers
Proper approval is required before any city funds can be used to pay for goods/services provided to the city.
Highland Heights ordinances clearly spell out which city officials have authority to approve requisitions and vouchers. It's a pretty small list.. This is what our laws say:
(1) Service Director Thom Evans has to submit requisitions for labor and materials to Mayor Coleman "or other authorizing official“ for their signature (§ 172.02(b));
(2) Police Chief Cook and Fire Chief Turner have to submit requisition forms to Mayor Coleman for the labor and material that their departments need (§§ 131.04; 133.04); and
(3) Mayor Coleman and the head of the Park & Recreation Commission (Tony Valentino thru 2009; Rocco Dolciato in 2010) must both sign vouchers before any money can be spent using Park & Recreation funds (§ 139.03).
By law, only the individuals listed above have the authority to approve requisitions/vouchers. No other city administrator or city official does. For example, Recreation Director Dave Ianiro is not authorized to approve vouchers. If he needs goods or services for the park, he must ask the mayor and Park & Rec commissioner to sign a voucher for those goods/services.
Step Three. Approval of the Expenditure of Public Funds to Pay Approved Requisitions/Vouchers
After a requisition/voucher is signed by the proper city official(s), one more step is required before Finance Director Anthony Ianiro can pay it. Final approval to pay the bill must also be obtained. Who can give that final approval depends on who the goods/services are being purchased from.
Regular purchases
For regular purchases, either the mayor, council’s Legislative & Finance Committee (L&F) , or council as a whole must approve paying for the goods/services listed in the requisition/voucher.
Under our laws, Mayor Coleman generally has sole authority to approve expenditures up to $ 3,000. After that, approval by either L&F ($ 3,000 to $ 75000) or council as a whole ($ 7,500 - $25,000) is required. (§ 117.04(a)) Under state law, no one in the city can authorize payment of purchases over $ 25,000; those have to be put out to bid, using formal bidding procedures.
Purchases of Goods/Services From Elected or Appointed Officials
Highland Height law imposes special authorization requirements---regardless of the $$ amount involved -- when the services/goods at issue are being bought from, or provided by: (1) an elected or appointed official; (2) that official’s spouse; (3) that official's lineal ancestors/descendants; or (4) a business connected to that official/spouse/descendant. By law, only council is authorized approve such a transaction, and council must formally give its approval before any purchase is made or any money is paid out. § 117.04(b) states:
“No goods or services shall be purchased, and no payments shall be made from City funds, regardless of the amount of such purchase or payment, without prior approval of Council, acting on motion, ordinance or resolution at a regular meeting, if …The purchase is made from, or the payment made to any elected or appointed official of the Municipality, the spouse, lineal ancestors or lineal descendants of any such official, or any corporation, partnership, association or other business entity in which any person included in any of the foregoing categories has a direct or beneficial interest."§ 117.04(b) doesn’t outright forbid the city from purchasing goods/services from an official/spouse/descendant or affiliated business---after all, the city should be able to take advantage of a good business deal, if one is offered---but the law clearly requires, regardless of the amount of $$ involved, that the business transaction is disclosed to, and formally approved by, council ahead of time, before the services are purchased or paid for.
§ 117.04(b) is clear and straightforward. Anyone who tells you otherwise is pulling your leg.
Other Laws That Limit Financial Transactions Between the City and Elected & Appointed Officials
Our city’s financial ordinances aren’t the only laws that protect taxpayer money. While § 117.04(b) imposes a preapproval requirement for business transactions involving elected and appointed officials, state and local ethics and criminal laws may also apply to prohibit those transactions entirely.
Ethics Laws
Highland Heights’ ethics ordinances (§§107.01-107.99) borrow much of their language from, and closely resemble, state ethics laws. Our ordinances impose several different types of limits on officials. Violations of these laws constitutes misfesance or malfeasance in office---i.e. official misconduct. (§ 107.99).
(1) § 107.02(c) bars elected and appointed officials from participating in any transaction that directly affects/involves: the official; an immediate family member; a business entity in which the official/family member owns more that 5% interest; or a business entity with which the official/family member has done more than $ 1,000 in business in the preceding year unless the official first files a written acknowledgment with the council clerk disclosing his interest in the transaction;
(2) § 107.03(b) bars elected and appointed officials from selling or agreeing to sell, except through competitive bidding, any goods or services to the city or to any city department, board, commission or agency---but § 107.03(c) allows appointed officials (only) to sell goods/services if they file a detailed disclosure statement with the council clerk beforehand which states, among other things, the goods or services to be provided/purchased and declares that the official won't participate in any official capacity in the purchase of those goods/services.(Under § 117.04(b), council would also have to formally pre-approve the purchase of/payment for those goods/services ).
Criminal Laws
§ 525.10(a)(2) makes it a crime for an elected or appointed official to knowingly have an interest in the profits or benefits of a public contract with the city or with the agency/ instrumentality that the official is connected with.
§ 525.10(a)(3) makes it a crime for an elected or appointed official to knowingly have an interest in the profits or benefits of a public contract that is not let by competitive bidding, if required by law, and that involves more than $150.00.
Our financial, ethics and criminal ordinances work together to ensure that city officials don’t take advantage of their positions for their own personal gain. They also ensure that there is accountability, on the part of city administrators and officials, with regard to each penny that is spent from the public treasury.
Shouldn't this make you feel more secure about how your tax dollars are spent?
All of the ordinances are pretty clear and straightforward. See for yourself. They are available to read online.
http://www.highlandhts.com/city-council/ordiances-resolutions.php or http://www.conwaygreene.com/Hlandhts.htm
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