13-10750r RESOLUTION NO. 10750
RESOLUTION APPROVING THE
PUBLIC PURPOSE EXPENDITURES POLICY
FOR FISCAL YEAR 2013
WHEREAS, the City Council finds it necessary to annually review and approve a
policy to clearly determine the public purpose for expenditures; and
WHEREAS, the City Council has determined that in order to attract, recruit, retain and
motivate employees and community volunteers, the City wishes to recognize hard work and
service through other than monetary payment; and
WHEREAS, the City Council has further determined certain expenditures for typical
business costs are necessary for the effective delivery of public service; and
WHEREAS, the City Council has reviewed and discussed the Public Purpose
Expenditures as detailed in Exhibit 1.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Richfield
approves Exhibit 1, entitled, "Public Purpose Expenditures Policy," for fiscal year 2013.
Adopted by the City Council of the City of Richfield, Minnesota this 8th day of January
2013.
i ',1
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs; ity Clerk
PUBLIC PURPOSE EXPENDITURE
CITY OF RICHFIELD
CITY POLICY
DATE: January 10, 2012
SUBJECT: Public Purpose Expenditures
Background
Pursuant to provisions of the Richfield City Charter and the statutes and laws of the State of Minnesota,
which permit and require the expenditure of public funds for public purposes, the City of Richfield
believes it necessary and appropriate to provide assistance and guidance to the officials, employees and
representatives of Richfield to aid in the determination of when public funds may be spent for a public
purpose.
Definition
A public purpose expenditure is one which relates to the purpose for which the City of Richfield exists
and the duties and responsibilities of Richfield, its elected and appointed officials, employees and other
representatives.
Public Purpose Guidelines
A. Training and development programs for Richfield 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 City is responsible.
B. Payment of employee work-related expenses, including travel, lodging and meal expenses, serves a
public purpose when those expenses are necessarily incurred by Richfield 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 Richfield has responsibility.
C. Appropriate safety and health programs for Richfield employees serve a public purpose because they
result in healthier and more productive employees and reduce certain costs to the City and the
taxpayers of Richfield, including various costs associated with workers' compensation and disability
benefit claims, insurance premiums and lost time from employee absences.
D. Public expenditures for appropriate Richfield 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 result in
higher morale and productivity among all Richfield employees and volunteers, and therefore help the
City to fulfill its responsibilities efficiently and more cost effectively.
E. Public expenditures for food and refreshments associated with official Richfield City functions serve a
public purpose when the provision of food or refreshments is an integral part of the function and is
deemed necessary to ensure meaningful participation by the participants.
F. Public expenditures for appropriate community and customer outreach and similar activities serve a
public purpose when those expenditures are necessary for Richfield to ensure the efficient operation
of its programs/services, promote the availability and use of City resources, and promote
coordinated, cooperative planning activities among and between the public and the private sectors.
Specific Programs and Expenditures
Every City of Richfield expenditure must be valid based upon the public purpose for which it is
purchased. The following items are deemed to meet the Council definition of public purpose
expenditures.
A. Employee Recognition Programs
The Richfield City Council recognizes the hard work and service performed by the employees
of the City through a formal Employee Recognition Program. The City Council 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.
The Employee Recognition Program is considered "additional compensation"for work
performed by employees but is entirely dependent on receiving funding from year-to-year. No
provisions of this policy, or its administration, shall be subject to review under the grievance or
arbitration provisions of any collective bargaining agreement.
The Program may include:
1. City employees completing 5, 10, 15, 20, 25, 30, and 35 years of service may receive a
service award not to exceed $150 in value, as determined by the City Manager.
2. Annually, in conjunction with the presentation of service awards, the City may sponsor an
Employee Recognition event for City employees.
3. Annually, the City may sponsor a Volunteer Recognition Dinner(s) to promote teamwork
and coordination among the City Council, Department Directors, Commission/Committees,
and employees. This dinner and a token gift for invited participants and their guests also
serve as de minimus compensation for the service provided by the volunteers.
4. Annually, the City may sponsor a Holiday Party for City employees. In lieu of a Holiday Party,
the City may sponsor an annual employee event, such as Rootbeer Float Day.
5. The City supports other events that are planned and paid for by employees. Examples of
such events include holiday gatherings, golf and/or bowling tournaments.
6. The City supports recognition plaques and up to $50 for a cake in recognition of long-time
service or retirement for employees, volunteers and elected officials.
The cost of the elements of the Employee Recognition Program will be included in the City of
Richfield Annual Budget. This item will be approved annually by the City Council as a part of
the overall budget approval process which includes a public hearing on the proposed budget.
B. Employee Wellness and Safety Programs
The City Council recognizes the importance 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 an Employee Wellness Program, which
has been designed to educate employees on fitness/health issues.
The Employee Wellness Program is considered "additional compensation"for work performed
by employees, but is entirely dependent on receiving funding from year-to-year. No provisions
of this policy, or its administration, shall be subject to review under the grievance or arbitration
provisions of any collective bargaining agreement.
The cost of an Employee Wellness Program will be included in the City of Richfield Annual
Budget. This item will be 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 Employee Safety Program is funded by the Self-Insurance Fund. The City supports
programs created by the Human Resources Division and the Safety Committee to promote and
retain a safe work environment. Safety incentive programs such as Richfield's Safety Bingo,
which provide the opportunity for cash prizes for accident/injury-free work days, is an example of
such programs. Such safety incentives shall be included in the City of Richfield Annual Budget.
C. Meeting Food/Meals
The City Council recognizes that situations in which City 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 be necessary to create
a more productive environment and to be responsive to participants' time schedules. The
following items are deemed to meet the Council definition of public purpose expenditures in
regards to food and meals.
1. Meals and refreshments are allowed at City meetings and events that have a purpose of
discussing City issues. These meetings would normally have a pre-planned agenda.
2. Meals and refreshments are allowed at employee meetings and events that have a purpose
of discussing City issues or are a part of employee training. These meetings would also
normally have a pre-planned agenda. These meetings could include new employee
receptions to introduce new employees to existing employees, provide an orientation to the
City, and promote teamwork and cooperation. This does not include routine staff meetings.
3. Meals and refreshments are allowed when they are part of a breakfast/lunch/dinner meeting
for official City business when it is the only practical time to meet. Usually these meals
involve meeting with City Council members, Committee/Commission members, business or
civic organizations. Payment for fees relating to a special event, such as a Chamber of
Commerce event, may also be allowed when approved by the City Manager and when
attendance is deemed to meet the public purpose guidelines for community or customer
outreach and marketing of the City.
4. Meals and refreshments may be provided during official meetings of the City Council, City
Council committees, advisory boards/commissions, and taskforces that have purpose of
discussing City business. These meetings would normally have a pre-planned agenda.
5. Travel expenses for employees as outlined in the Richfield Travel Reimbursement Policy.
6. Meals and refreshments are allowed where employees or volunteers are participating in a
City-sponsored special event, participating in an outside event as an official representative of
the City, or working additional hours and where the Department Director deems appropriate
as recognition of efforts above those normally required. Because emergency personnel are
often called to perform for extended periods of time and duties where refreshments are
important to duty performance, emergency response personnel may be provided
refreshments or food when it is deemed appropriate by the City Manager or Department
Director to assure the delivery of quality emergency response service.
7. No purchase of alcoholic beverages is allowed at any time.
The cost of these meals or fees is included in the departments' travel/conferences line-item in the
City of Richfield Annual Budget. These 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.
D. Membership, Dues, and Donations
The City Council has determined that the City will fund memberships and dues (individual or
organization) in professional organizations and City social and community organizations when the
purpose is to promote, advertise, improve or develop the City's resources and relationships and
not personal interest or gain.
The cost of memberships/dues is included in the departments' dues and subscriptions line-item
in the City of Richfield Annual Budget. These 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.
All donations must be approved by the City Council during the annual budget process and/or by
City resolution. Donations provided by the City must be for programs that serve our citizens and
are deemed to meet the public purpose guidelines.
E. Education Reimbursement
The Personnel Policy contains guidelines for a Richfield Employee Education Program (REEP).
Job related advanced education meets the public purpose guidelines of this policy. The amount
available for this program shall be considered annually. The cost of this program is contained in
the City of Richfield Annual Budget.
F. Clothing and Other Sundry Items
Employees may receive T-shirts, and other sundry items of nominal value ($10.00) when these
items; are made available to the general public or if these items are determined by the City
Manager to be important to the successful involvement of employees in special City-sponsored
or City-supported events (i.e. National Night Out, etc.). Employees may be supplied with
uniforms, clothing, boots and other gear necessary for the performance of their job. The cost of
these items for City-sponsored or City-supported events shall be contained in the City of
Richfield Annual Budget.
Conclusion
The Richfield City Council has determined that the above expenditures are valid and serve a public
purpose.
Approved: /s/ Steven L. Devich
City Manager