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ELK RIVER MUNICIPAL UTILITIES <br />PUBLIC PURPOSE EXPENDITURE POLICY <br />POLICY <br />Pursuant to the statutes and laws of the State of Minnesota which regulate the expenditure of <br />public funds for public purposes, the Elk River Municipal Utilities believes it is necessary <br />and appropriate to provide assistance and guidance to the officials, employees, and <br />representatives of Elk River to aid in the determination of when public funds maybe spent <br />for a public purpose. <br />To provide that assistance and guidance, the Elk River Municipal Utilities adopted these <br />public purpose guidelines for the establishment of operating policies and procedures and the <br />appropriate expenditures of public funds. Based on these guidelines, the Utility Commission <br />authorizes the Utilities Director, appointed officials and appointed department heads to <br />establish administrative policies and procedures that are consistent with these guidelines and <br />the adopted Utility policies which implement these guidelines. <br />De znition: A public purpose expenditure is one which relates to the purpose for which the <br />Elk River Municipal Utilities exists and the duties and responsibilities of Elk River, <br />appointed officials, employees, and other representatives. <br />PUBLIC PURPOSE GUIDELINES <br />1. Training and development programs for Elk River Municipal Utilities employees serve a <br />public purpose when those training and development programs are directly related to the <br />performance of the employees' job-related duties and are directly related to the <br />programs/services for which the Utility is responsible. <br />2. Payment of employee work-related expenses, including travel, lodging and meal <br />expenses, serves a public purpose when those expenses are necessarily incurred by Elk <br />River Municipal Utilities employees in connection with their actual work assignments or <br />official duties and those expenses are directly related to the performance of the <br />governmental functions for which Elk River has responsibility. <br />3. Appropriate safety and health programs for Elk River Municipal Utilities employees <br />serve a public purpose because they result in healthier and more productive employees and <br />reduce certain costs to the rate payers of Elk River, including various costs associated with <br />workers compensation and disability benefit claims, insurance premiums, and lost time from <br />employee absences. <br />4. Public expenditures for appropriate Elk River Municipal Utilities employee serve a <br />public purpose because formally recognizing employees who make significant contributions <br />and demonstrate their commitment during the performance of their duties results in higher <br />morale and productivity among all Elk River Municipal Utilities employees, and therefore <br />helps the Utility to fulfill its responsibilities efficiently and more cost effectively. <br />