(1) The city or town council may cancel municipal warrants and checks that have remained outstanding and unpaid for a period of 1 year or longer.
(2) The city or town clerk shall:
(a) enter on the record of warrants or checks, opposite the entry of each instrument, the date when it was canceled;
(b) make a list of the canceled instruments, specifying the number, date, and amount and the person to whom it was payable; and
(c) enter the list in the minutes of the city or town council proceedings.