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HomeMy WebLinkAbout2026-07-28-AGENDA PACKET_001Rick Elumbaugh, Mayor Jessica Davis, City Clerk Timothy Meitzen, Attorney • A HISTORIC TREASHRE p,� M ANSAS' OLDEST AGENDA' CITY OF BATESVILLE CITY COUNCIL 500 EAST MAIN BATESVILLE, AR 72501 July 28, 2026 5:30 P.M. 1. CALL TO ORDER 2. INVOCATION 3. ROLL CALL BY CITY CLERK 4. APPROVAL OF MINUTES 5. APPROVAL OF AGENDA 6. COMMENTS FROM CITIZENS 7. UNFINISHED BUSINESS None 8. NEW BUSINESS COUNCILMEMBERS Brittany Bennett Kyle Christopher Scott Fredricks Julie Hinkle Paige Hubbard Fred Krug Lackey Moody, Jr. Robb Roberts A) Water Administration Report B) Water Constructions Report C) Police Department funding request D) Ms. Crystal Johnson, CEO, Batesville Area Chamber of Commerce with an Economic Development update E) Consider an ordinance authorizing the use of electronic funds transfers and online banking. 9. COMMENTS FROM THE MAYOR 10. LIAISON REPORTS 11. COMMENTS FROM COUNCIL MEMBERS (by roll call) 12. ADJOURNMENT Batesville- My Hometown... Make it Yours! ORDINANCE NO. AN ORDINANCE AUTHORIZING THE USE OF ELECTRONIC FUNDS TRANSFERS AND ONLINE BANKING; AND FOR OTHER PURPOSES. WHEREAS, Ark. Code Ann. § 14-59-105 permits Arkansas municipalities to disburse funds via Electronic Funds Transfer (EFT) and Automated Clearing House (ACH), provided the City Council authorizes the system and adopts written internal accounting control policies; and WHEREAS, the Legislative Joint Auditing Committee requires municipalities operating electronic banking systems to implement written security and internal control procedures; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BATESVILLE, ARKANSAS: SECTION 1. Authorization: The City of Batesville hereby authorizes the use of Electronic Funds Transfers (EFT), ACH, wire transfers, and online banking for municipal disbursements, payroll, and collection activities. SECTION 2. Policy Adoption: The City of Batesville Electronic Banking Security Policy attached hereto as Exhibit A is hereby adopted as the official internal accounting control policy of the City. SECTION 3. Designated Disbursing Officers: The City Treasurer, Mayor, Payroll Clerk/ Finance Director and City Engineer/Manager (or designated authorized signers) are authorized to execute bank agreements necessary to implement online banking, subject to the dual -control provisions in Exhibit A. SECTION 4. Mandatory Incident Reporting: Pursuant to Ark. Code Ann. § 10-4-429, the City shall disclose any security or electronic banking incident to Arkansas Legislative Audit in writing within five (5) business days of discovery. SECTION 5. Severability & Effective Date: If any portion of this ordinance is held invalid, the remainder shall continue in effect. This ordinance shall take effect immediately upon passage. EMERGENCY CLAUSE: It is further found that, the City has had difficulty getting checks delivered its general contractor as construction is ongoing for the new water plant. And that the failure to timely transfer funds could slow down said project and adc to the costs of construction. Therefore, an emergency is declared to exist and this ordinance, being necessary for the preservation of the public peace, health and safety shall take effect from and after its passage and approval. PASSED AND APPROVED this _ day of 2026. ATTEST: Rick Elumbaugh, Mayor Jessica Davis, Clerk EXHIBIT A City of Batesville Electronic Banking Security Policy 1. Purpose & Legal Authority This policy establishes internal controls for electronic banking for the City of Batesville under A.C.A § i4-39-io5 and Arkansas Legislative Audit (ALA) Information Systems Best Practices. 2. Dual Control (Mandatory Segregation of Duties) a. Two -Person Rule: No single employee may initiate, approve, and release an electronic payment. b. Role Separation: i. Initiator Accounts Payable Clerk, Payroll Clerk/Finance Officer, Mayor, Engineer/Manager, Clerk/Treasurer, or their designee: Prepares the transaction or payroll batch in the bank portal. ii. Approver- Treasurer/Clerk, Payroll Clerk /Finance Officer, Mayor, City Engineer/Manager, or their designee: Independently verifies supporting documentation and authorizes the release. C. Portal Configuration: The bank portal permissions must enforce dual custody at the administrative level. 3. Payment Verification & Fraud Controls a. Out -of -Band Call -Back: Any request to change vendor banking/routing details must be verbally verified over the phone using a known, verified contact number —never the number provided in the change request email. b. Supporting Documentation: Every EFT must be backed by an approved purchase order, invoice, or payroll register prior to release. 4. Technical Safeguards a. Multi -Factor Authentication (MFA): Mandatory for all users accessing online banking systems. Credential sharing is strictly prohibited. b. Dedicated Hardware: Banking tasks must be conducted on secured municipal devices with auto -updates enabled. Banking on public/unsecured Wi-Fi is prohibited. 5. Audit Trail & Reconciliations a. Transaction Logs: The City must retain bank confirmation logs, ACH trace numbers, and written approval records for every transaction. b. Monthly Review: Bank reconciliations must be completed monthly and reviewed by an independent supervisor or official who does not initiate disbursements. 6. Mandatory Breach Reporting (Ark. Code Ann. § 10-4-429) In the event of a suspected or confirmed electronic banking breach or unauthorized transfer: a. Immediate Action: Notify management and contact the bank to freeze affected accounts. b. 5-Day Audit Notice: Submit a written initial report of the incident to Arkansas Legislative Audit within five (5) business days of discovery.