Public Purpose Expenditures
Department of Administration
. Memorandum
To: Hopkins City Council
From: Jim Genellie
Date: November 5,2002
Subject: Public Purpose Expenditures
In July 2002 the Office of the State Auditor issued a repOli criticizing expenditures made by the City
of Brooklyn Park. Among the expenditures the Auditor questioned were annual employee social
events; employee gifts; and meal and food expenditures for city employees and officials.
The Auditor's report did not say that the expenditures made by Brooklyn Park were illegal. The
Auditor questioned whether all the city expenditures served a public purpose. According to the
Auditor, "The courts have generally constmed 'public purpose' to mean 'such an activity as will
serve as a benefit to the community as a body and which, at the same time, is directly related to the
functions of government. " ,
The Auditor used a very strict interpretation of "public purpose" throughout her report. Relying on a
. number of court cases and Attomey General opinions, the Auditor took the position that an
expenditure does not serve a public purpose unless the expenditure is "absolutely necessary."
Both the League of Minnesota Cities and the attorney for the City of Brooklyn Park have cballenged
this interpretation. Tom Gmndhoefer, LMe General Counsel, wrote, "The courts have recognized
that the detennination of what is a valid public purpose is an evolving concept and that great
deference will be given to a local goveming body's decision that a particular expenditure is for a
public purpose."
Jim Thomson, City Attomey for Brooklyn Park, references comi cases which indicate that "a public
expenditure is 'necessary' if the expenditure is 'reasonably necessary or convenient.' Absolute
necessity is not required."
The proposed Public Purpose Expenditure po !icy serves as a comprehensive list of these
expenditures as well as a justification for the expendihlres. This policy will ensure that these
expenditures have the explicit approval of the Hopkins City Council.
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\Publ~c Purpose memo.doc
. Public Purpose Expenditures
Every City of Hopkins expenditure must be valid based upon the public purpose for which it is
purchased and the specific or implied authority for the expenditure found in the City Charter and
state statutes.
The following items are deemed to meet the Council definition of public purpose expenditures,
i.e. an expenditure authorized by law which is reasonably necessary and convenient in
accomplishing the functions of the City.
1. Meals and Ref.'esbments.
The City Council recognizes that situations in which City business needs to be discussed
can and do occur during meal hours (e.g. luncheon meetings). In addition, there are
public and employee meetings and events in which reasonable refreshments may add to
the success of the meeting andlor event and create a more productive work force. The
following items are deemed to meet the Council definition of public purpose expenditures
in regards to food and meals.
a. City business meetings in which the character of the meeting would involve
predominately non-city employees.
b. When they are part of a breakfast/lunch/dinner meeting for official city business
. when it is the only practical time to meet and when it involves non-city employee
participants (Le. business developers or business representatives). Only the
expenses incuned by city employee(s) may be reimbursed. The City Manager
may allow exceptions when deemed in the interest of the City.
c. During non-routine, official meetings of the City Council, Commissions or
Committees.
d. When they are part of the structured agenda for a conference, workshop, seminar,
or meeting in which the City Manager or a department director has authorized the
employee to attend (this does not include routine staffmeetings).
e. For depmiment-sponsored meetings, conferences or workshops where the
majority of invited pmiicipants are not city employees.
f. At department-sponsored events where registration fees are charged and the
majority of invited participants are not city employees.
0- At meetings consisting ptimarily of city employees when the refreshment and/or
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meals are an integral pati of the event and are necessary to sustain the flow of the
meeting and to retain the captive audience, and if the meeting is one of the
following:
1) A division-wide annual/quarterly staff meeting for all employees;
2) A non-routine senior staff or organizational meeting;
3) With the exception of structured training sessions, for the purpose of this
policy, the meetings desClibed shall be held no more frequently than
. once per qumier. All meetings shall be scheduled to minimize inclusion
of meals.
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. h. During official meetings of the City Council, council committees, advisory
boards/commissions, and task forces, when they are of a non-routine basis or
when special events are held (i.e. as retirements or recognition).
1. Snacks and a dinner meal to be allowed for staff during perfonnance of election
related duties on election day.
J. Lunch for all members of oral board for candidate interviews when held.
k. Police Depm1ment Command Staff Meetings and yearly staff retreat- food costs
for meals and occasionally lodging if held out of area.
I. Emergency Response Team-food and beverage during training once a month.
Also. because emergency persOlmel are often called to perfonn for extended
periods of times where refreshments are impOltant to duty perfonnance,
firefighters, police officers and other emergency response personnel may be
provided refreshments or food when it is deemed appropriate by the City Manager
or Depmtment Director to assure the delivery of quality emergency response
servIce.
2. Community Recognition Events/Purchases.
Community Image A wards (Plaque and gift certificate) - As part of its ongoing efforts
and redevelopment, the City has undeltaken a program to recognize residents and
businesses that make significant improvements to their propelties. These propeIty
. owners are awarded a plaque and a gift ceJtificate.
3. Employee Recognition Events/Purchases.
The City of Hopkins City Council recognizes the hard work and service perfonned by
the employees of the City through a fonnaL Employee Recognition Program. The
City Council believes the benefits of attracting, retaining and motivating employees
tlrrough 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 oftbe community.
The Employee Recognition Program is considered "additional compensation" for
work perfonned by employees but is entirely dependent on receiving funding from
year~to-year. No provisions ofthis policy, or its administration, shall be subject to
review under the grievance or arbitration provisions of any col1ective bargaining
agreement.
a. As refreshments for recognition or special one-time or once-per-year events when
provided at modest level with prior City Manager approval, such as:
I) Annual Employee Picnic
2) Annual Holiday Pal1y
3) Annual Employee Recognition Celebration
4) Police Department Recognltion diJll1er. Includes meals for all HPD
. employees and a guest, City Manager, Mayor and Council.
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. b. AlUmal Employee Recognition Awards
1) Years of service awards for regular full and part-time employees
recognized at 5-year intervals and are awarded at the Annual
Recognition Event. Recognition gift purchases must be at a nominal cost
not to exceed $175.00 depending on the number of years an employee
has been with the City.
4. V olunteer Recognition events
a. City Board and Commission Recognition - Expenditures include food and simple
gifts.
b. Police Reserve Dinner includes meals for reserve and a guest, coordinators, City
Manager, Mayor and Council. Associated costs for awards that are presented.
5. Special Events
a. Such as Raspberry Festival, National Night Out, and other events that involve or
invite participation by the general public.
b. Expenditures for meals and participation fees are allowed, and representative staff
members may pmiicipate in events that directly benefit the marketing of the City.
Such expenditures will be approved by the Hopkins Redevelopment Authority as
Public Relations Expenditures pursuant to Minnesota Statute 469.101, Subd. 16.
6. Employee Training
. Expenditures are allowed for reasonable registration, tuition and travel expenses for
conferences, seminars, workshops, tuition and approved City employment-related
course work in accordance with City of Hopkins PerSOlU1el Policy.
7. Employee Wellness Program
The City Council recognizes the impOliance of employee fitness and health as it
relates to the overall work and life satisfaction of the employee and the overall impact
on the City's health insurance program. As such, the City Council supports the
Employee Wellness Program, which has been designed to educate employees on
fitness/health issues.
The cost of the Employee WeIlness Program will be included as a separate line item
in the City Budget. This line-item will be approved annually by the City Council as a
pmi of the overall budget approval process which includes a public hearing on the
proposed budget.
8, Memberships and Dues
The City Council has determined that the City will fund memberships and dues in
professional organizations and City social and community organizations when the
purpose is to promote, advertise, improve or develop the City's resources and
. advantages and not for personal interest or gain.
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. The cost of memberships/dues is included in the departments' memberships/dues
line-item in the Hopkins Budget. These line-items are approved annually by the City
Council as a pmi ofthe overall budget approval process which includes a public
hearing on the proposed budget.
9. 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
detennined by the City Manager to be impOliant to the successful involvement of
employees in special city-sponsored or city-supported events (i.e. National Night Out,
Raspberry Festival, etc.). Employees may be supplied with unifonns, clothing, boots
and other gear necessmy for the perfonnance of their job.
10. Alcoholic Beverages
The purchase of alcoholic beverages is not allowed.
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