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<br /> <br />Item 5.6. <br /> <br />MEMORANDUM <br /> <br />TO: Mayor and City Council <br /> <br />FROM: Lori Johnson, Finance and Administrative Services Director <br /> <br />DATE: June 13, 2005 <br /> <br />SUBJECT: Public Purpose Expenditure Policy <br /> <br />As you know, cities are only allowed to make expenditures as authorized by state statute or <br />charter. All expenditures of public funds must have a public purpose. Additionally, it is in <br />the city's best interest to have a written policy defining the items that it considers to be <br />qualified public purpose expenditures. In order to formalize the city's practices related to <br />public purpose expenditures, City Clerk Joan Schmidt drafted a resolution for the Council to <br />consider that adopts a public purpose expenditure policy. This policy has been discussed at <br />two department head meetings, and input from department heads has been incorporated <br />into the attached proposed policy resolution. The policy has also been reviewed and <br />approved by both City Attorney Peter Beck and Auditor Steve McDonald. <br /> <br />Many of the interpretations of public purpose that were used as a guide for determining <br />what qualifies as a public purpose expenditure have come from the Attorney General's office <br />in the form of advisory opinions and from the Office of the State Auditor. The League of <br />Minnesota Cities' legal council has advised in a memo to cities that "any decision to depart <br />from the recommendations made by the State Auditor or the Attorney General ought not be <br />taken lighrly, given the potentially sensitive nature of the decision. Any such decision should <br />be carefully considered and based on justifiable reasons." <br /> <br />Staff will be prepared to walk through the policy in detail at Monday's worksession. As I <br />stated earlier, most of the policy simply puts in writing current practice; however, there are a <br />few changes, such as the bereavement or sympathy gift section, and additional stipulations <br />addressing public safety concerns have been added to the section authorizing the purchase <br />of parade candy. <br /> <br />Following discussion and input from the City Council at the work session, this resolution <br />with Council's changes will be placed on the June I 20 consent agenda for adoption. <br />I <br /> <br />s: \ Council\Lori\2005 \publicPurposeWksn.doc <br />