6.1. ERMUSR 06-14-2005Elk River
Municipal
13069 Orono Parkway
Elk River, MN 55330
June 3, 2005
To: Elk River Municipal Utilities Commission
Jerry Takle
John Dietz
Jim Tralle
From: Bryan Adams
Subject: Public Purpose Expenditure Policy
~ phone: 763.441.2020
Fax: 763.441.8099
The City is looking at adopting a Public Purpose Expenditure Policy. This proposed
policy addresses proper expenditures of public funds for employee train development and
volunteer recognition. This policy addresses some of the concerns of the state auditors.
The Elk River Municipal Utilities should also adopt such a policy.
Attached for your review is the City's proposed policy with the changes necessary to
make it appropriate to the Elk River Municipal Utilities. The deleted items are
underlined and the added items are in bold.
ities
I would recommend we adopt this policy after the City adopts their policy so we can
include any changes they may make.
DRAFT
CITY OF ELK RIVER ELK RIVER MUNICIPAL UTILITIES
PUBLIC PURPOSE EXPENDITURE POLICY
POLICY
Pursuant to the statutes and laws of the State of Minnesota which regulate the expenditure of
public funds for public purposes, the Elk River City Council Elk River Municipal Utilities
believes it is necessary and appropriate to provide assistance and guidance to the officials,
employees, and representatives of Elk River to aid in the determination of when public funds
may be spent for a public purpose.
To provide that assistance and guidance, the Elk River City Council Elk River Municipal
Utilities adopted these public purpose guidelines for the establishment of operating policies
and procedures and the appropriate expenditures of public funds. Based on these guidelines,
the Cit~Council Utility Commission authorizes the City Administrator General Manager,
elected appointed officials and appointed department heads to establish administrative policies
and procedures that are consistent with these guidelines and the adopted City policies which
implement these guidelines.
De znition: A public purpose expenditure is one which relater to the purpose for which the Cit~of Elk Rz'ver
Elk River Municipal Utilities exists and the duties and responsibilities of Elk Raver, its elected and
appointed o~cials, employees, and other representatives.
PUBLIC PURPOSE GUIDELINES
1. Training and development programs for Elk River Elk River Municipal Utilities employees
serve a public purpose when those training and development programs are directly related to
the performance of the employees' job-related duties and are directly related to the
programs/services for which the C~ Utility is responsible.
2. Payment of employee work-related expenses, including travel, lodging and meal expenses,
serves a public purpose when those expenses are necessarily incurred by Elk River Elk River
Municipal Utilities employees in connection with their actual work assignments or official
duties and those expenses are directly related to the performance of the governmental functions
for which Elk River has responsibility.
3. Appropriate safety and health programs for Elk River Elk River Municipal Utilities
employees serve a public purpose because they result in healthier and more productive
employees and reduce certain costs to the City and the tax avers rate payers of Elk River,
including various costs associated with workers compensation and disability benefit claims,
insurance premiums, and lost time from employee absences.
4. Public expenditures for appropriate Elk River Elk River Municipal Utilities employee and
volunteer recognition programs serve a public purpose because formally recognizing employees
and volunteers who make significant contributions and demonstrate their commitment during
the performance of their duties results in higher morale and productivity among all Elk River
Elk River Municipal Utilities employees and volunteers, and therefore helps the C~ Utility
to fulfill its responsibilities efficiently and more cost effectively.
5. Public expenditures for food and refreshments associated with official Elk River Elk River
Municipal Utilities functions serve a public purpose when the provision of food or
refreshments is an integral part of an official Elk River Elk River Municipal Utilities function
and the provision of food or refreshment is necessary to ensure meaningful participation by the
participants.
6. Public expenditures for appropriate community and customer outreach and similar activities
serve a public purpose when those expenditures are necessary for Elk River Elk River
Municipal Utilities to ensure the efficient operation of its programs/services, promote the
availability and use of C~ Utility resources, and promote coordinated, cooperative planning
activities among and between the public and the private sectors.
SPECIFIC PROGRAMS AND EXPENDITURES
Every City of Elk River Elk River Municipal Utilities expenditure must be valid based
upon the public purpose for which it is expended. These line-items are approved annually
by the City Council as a part of the overall budget approval process which includes a public
hearing on the proposed budget. The following items are deemed to meet the Council
definition of public purpose expenditures.
MEETINGS: FOODIMEALS/REFRESHMENTS
The City Council Elk River Municipal Utilities recognizes that situations in which C~
Utility business needs to be discussed can and do occur during meal hours (i.e. luncheon
meetings). In addition, there are public and employee meetings and events in which
reasonable refreshments may add to the success of the meeting and/or event and create a
more productive workforce. Meals are allowed at training or meetings only when they are
part of a meeting or training involving official ci utility business and when it is the only
practical time to meet.
The following items are deemed to meet the Council's Utility Commission definition of
public purpose expenditures in regards to food/meals/refreshments.
1. Allowed at C~ Utility meetings and events that has the purpose of discussing C~
Utility issues. These meetings would normally have apre-planned agenda and would
involve predominately non-ci utility employees.
2. Allowed when they are part of the structured agenda for an offsite conference, workshop,
seminar, training session, or meeting in which the City Administrator General Manager
or a department head has authorized the employee to attend for training and development
purposes. This does not include routine staff meetings.
3. Allowed when they are part of a breakfast/lunch/dinner meeting for official ci utility
business when it is the only practical time to meet and when it involves non-ci utility
employee participants (i.e. business developers or business representatives). Payment for
fees relating to a special event, such as a Chamber of Commerce event, may also be
allowed when approved by the City Administrator General Manager and when
attendance is deemed to meet the public purpose guidelines for community or customer
outreach and marketing of the Ci ~ Utility.
4. Allowed during non-routine, official meetings of the City Council Utility Commission,
council utility committees, advisory boards/commissions, and taskforces.
5. Allowed where employees or volunteers are participating in a Cam'- Utility
sponsored special event or in an outside event as an official representative of the
C~ Utility.
6. Allowed at the annual City Volunteer Recognition Program.
7. Allowed for department sponsored meetings, conferences or workshops where
the majority of invited participants are not ci utility employees.
8. Cookies and coffee allowed for Ci ~ Utility employees' monthly safety meetings
sponsored by the Safety Committee.
9. A dinner meal to be allowed for staff during performance of election related duties
on Election Dav.
10. Coffee is provided by the ci utility for employees and guests at ci utility
buildings.
ALCOHOLIC BEVERAGES
The City of Elk River Elk River Municipal Utilities will not purchase or reimburse any
employee, Councilmember Commission member, volunteer, or agent for the purchase
of alcoholic beverages.
EMPLOYEE RECOGNITION PROGRAM
The City of Elk River City Council Elk River Municipal Utilities Commission
recognizes the hard work and service performed by the employees of the City of Elk River
Elk River Municipal Utilities through a formal Employee Recognition Program. The
City Council Utility Commission believes the benefits of attracting, retaining and
motivating employees through an Employee Recognition Program support employee job
satisfaction, which in turn impacts cooperation and productivity. The result is to provide
excellent public and customer service to better serve the interests of the citizens of the
community.
No provisions of this policy, or its administration, shall be subject to review under the
grievance or arbitration provisions of andcollective bargaining agreement.
The Program will include:
1. Longevity Gifts -Utility will present to employee of 5 year, 10 year and 20 year
employment interval gifts, recognizing their employment intervals and contributions.
1. Annual Employee Recognition Celebration. Annually the City will sponsor an Employee
Recognition Celebration for City employees. Refreshments will be provided at a modest
expense with prior City Administrator approval.
2. Recognnition Plagues. The C~ Utility supports recognition plaques in recognition of
retirement. The employee shall recei~-e a plaque thanking them for their dedicated years of
service to the community.
VOLUNTEER RECOGNITION PROGRAM/EVENTS
The City of Elk River City Council recognizes the hard work and service performed by the
volunteers of the City of Elk River through a formal Volunteer Recognition Program. This
Program promotes teamwork and coordination amongst the City Council staff,
Board/Commission members. Police Reserves, CERT and Parks and Recreation volunteers
The Program will include:
their guests. This dinner and a token gift for the volunteers will serve as de minimus
compensation for the service provided by the volunteers.
2. Police Reserves/CERT/Parks and Recreation Volunteers. Annually, the City will sponsor an
event or picnic for invited participants and their guests.
OTHER EVENTS
The C~ Utility supports other events that are planned and paid for by employees. Examples
of such events include holiday gatherings and monthly birthday recognition.
REFRESHMENTS AND FOOD FOR EMERGENCY RESPONSE STAFF
Because emergency personnel are often called to perform for extended periods of time where
refreshments are important to duty performance, firefighters, police officers, and other
emergency response personnel inay be provided refreshments or food when it is deemed
appropriate by the City Administrator General Manager or Department Head to assure the
delivery of quality emergency response service.
EMPLOYEE TRAINING
The Ci Council Utility Commission supports employee training and allows for
reasona le reimbursement of registration, tuitnon and travel expense for conferences,
seminars workshops and approved city employment-related course work in accordance
with the City of Elk River Elk River Municipal Utilities Personnel Policy.
The Personnel Policy also contains guidelines for an education reimbursement program.
Job related advanced education meets the public purpose guidelines of this policy.
EMPLOYEE WELLNESS AND SAFETY PROGRAMS
The City Council Utility Commission recognizes the importance of employee fitness and
health as it relates to the overall work and life satisfaction of the employee and the impact on
the Ci 's Utility's health insurance program. As such, the City Council Utility Commission
supports the Employee Wellness Program, which has been designed to educate employees on
fitness/health issues. Also, in an effort to promote wellness, the city maintains a fitness room
equipped with exercise equipment that is available to all staff 24/7.
The C~ Utility also supports programs that provide discounts to employees when
participattng in Parks and Recreation wellness related activities.
The Employee Safety Program and programs created by the Safety Committee to promote and
retain a safe work environment are sup orted by the City of Elk River Elk River Municipal
Utilities. Defer to Meetings: Food/Mealr~Refre.rhmentr
MEMBERSHIP AND DUES
The City Council Utility Commission has determined that the C~ Utility will fund
memberships and dues for the Ci ~ Utility, Council Members Commission Members and its
employees in professional organizations and C~ Utility social and community organizations
when the primary purpose is to promote, advertise, improve or develop the Ci 's Utilities
resources and advantages and not personal interest or gain. Said memberships shall be
approved by the Department Head and City Administrator General Manager.
MEMBERSHIP IN THE LOCAL CHAMBER OF COMMERCE
The C~ Council Utility Commission has determined that it serves a public purpose for the
Economic Development Authority (EDA) to maintain membership in the Elk River Chamber
of Commerce as a means of promoting, advertising, improving, and developing the economic
resources and advantages of the C~ Utility.
DONATIONS TO ORGANIZATIONS
The City Council Utility Commission has determined that it serves a public purpose for the
City of Elk River Elk River Municipal Utilities to donate to the Elk River Area Chambers of
Commerce for the Annual 4`h of July Celebration wherein the Chamber of Commerce
advertises and promotes the resources and advantages of the C~ Utility.
The City Council Utility Commission has determined that it serves a public purpose for the
City of Elk River Elk River Municipal Utilities to purchase candy for distribution during the
local high school homecoming and county fair parades.
CLOTHING AND OTHER SUNDRY ITEMS
Employees may receive T-shirts, and other sundry items of nominal value ($5.00) when these
items are made available to the general public or if these items are determined by the City
Administrator to be important to the successful involvement of employees in special Citv
sponsored or City supported events ~i.e. National Night Out, etc.~Employees ma~pplied
with uniforms, clothing, boots and other gear necessary for the performance of their job.
TRINKETS OR MARKETING ITEMS
The City Council Utility Commission has determined that it serves a public purpose for the
City of Elk River Ells River Municipal Utilities to distribute items of a nominal nature for the
purpose of educating or promoting C~ Utility provided programs such as recycling, our local
Cable Channel ERtV, and educating children to call 9-1-1.
CONCLUSION
The Elk River City Council Elk River Municipal Utilities has determined that the above
expenditures are valid expenditures and serve a public purpose.
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