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23-033 (05-16) Adopt Updated Public Purpose Expenditure Policiy and Update Employee Handbook RESOLUTION NO. 23-033 RESOLUTION ADOPTING PUBLIC PURPOSE EXPENDITURE POLICY UPDATE WHEREAS, the City of Golden Valley is committed to ensuring that expenditures adhere to the Minnesota Public Purpose Doctrine under Minnesota State Constitution, Article X, Section 1, which allows cities to spend funds to further a public purpose and as authorized by the City Council through the adoption of the City of Golden Valley’s annual budget; and WHEREAS, the City Manager, as the chief purchasing agent for the City of Golden Valley, regularly reviews the City’s Public Purpose Expenditure Policy; and WHEREAS, the City Manager recommends an update to the Public Purpose Expenditure Policy to align with Minnesota State laws, provide clarity for employees and supervisors, and ensure transparency of permitted and prohibited City expenditures; and WHEREAS, the City Council believes the benefits of attracting, retaining and motivating employees through programs that supports employee job satisfaction result in excellence in customer service and thereby serves the interests of the community members; and WHEREAS, the City Council recognizes the commitment and contributions to the community by its elected and appointed officials ; and WHEREAS, the City Council adopted the original policy with Resolution No. 04-87 on December 21, 2004 and approved further amendments with Resolution No. 16-65 on October 18, 2016, Resolution No. 17-20 on June 20, 2017, and Resolution No. 18-19 on March 6, 2018. NOW THEREFORE BE IT RESOLVED, that the City Council for the City of Golden Valley adopts the updated Public Purpose Expenditure Policy attached hereto as Exhibit A. Adopted by the City Council of Golden Valley, Minnesota this 16th day of May 2023. _____________________________ Shepard M. Harris, Mayor ATTEST: _____________________________ Theresa Schyma, City Clerk DocuSign Envelope ID: 415D7981-BC28-48BB-9AD7-11771D8BEB1C Public Purpose Expenditure Policy I. Purpose The City of Golden Valley is committed to ensuring that expenditures adhere to the Minnesota Public Purpose Doctrine under Minnesota State Constitution, Article X, Section 1, which allows cities to spend funds to further a public purpose. Furthermore, the City recognizes that public funds may be spent if the expenditure meets a public purpose and the expenditure relates to the governmental purpose for which the City was created. A “public purpose” is an activity that meets all of the following standards:  The activity will primarily benefit the community as a body.  The activity is directly related to functions of government.  The activity does not have its primary objective the benefit of a private interest. This policy is intended to provide guidelines regarding acceptable uses of public funds. II. Expense Process The City Manager is the responsible authority for overseeing City expenditures and is the chief purchasing agent for the City. The City Manager may delegate responsibility for administering this public purpose expenditure policy. All employees and elected officials whose responsibilities include making authorized purchases for the City must comply with this policy and the corresponding procedures. All permitted expenses listed within this policy are applicable only so long as they are approved by the City Council within the annual budget. No provisions of this policy, or its administration, shall be subject to review under the grievance or arbitration sections of any collective bargaining agreement or the City of Golden Valley employee handbook. A. Documentation All expenses allowed under this policy must be fully documented. The required documentation includes: dates, business reason, and the receipt for the purchase. Any expenditures for meals or refreshments which exceed $300 for one event must have prior, written authorization by the Department Head, before the purchase is made. Failure to obtain and furnish the necessary authorization and documentation may result in the denial of the expense. Prohibited expenses listed in Section VII will not be approved. III. Employee Recognition and Wellness Programs The Golden Valley City Council recognizes the hard work and dedicated services performed by City employees through its Wellness and Employee Recognition Programs. The City Council has established the Wellness and Employee Recognition Programs to achieve the following objectives: 1. Attract, retain, and motivate employees 2. Improve employee morale 3. Decrease employee turnover 4. Increase job satisfaction 5. Increase employee productivity 6. Ensure the safety and health of City employees DocuSign Envelope ID: 415D7981-BC28-48BB-9AD7-11771D8BEB1C Public Purpose Expenditure Policy 7. Promote belonging and inclusivity The City believes these programs increase work efficiency, enhance community public services, and reduce certain costs to the City and taxpayers, for example, costs associated with employee turnover and employment disputes. The items described below are necessary to achieve the objectives of these programs. In addition to the items described below, costs associated with these programs may include meals or refreshments as described in Section IV. A. New Employee Onboarding New employees with the status of full-time regular, part-time regular, and paid-on call firefighter will receive a welcome gift of de minimus value. New employees also attend full-day orientation, which includes meals and refreshments, purchased by the Human Resources department (Section IV). B. Years of Service Awards In recognition of years of service to the City, full-time/regular and part-time regular employees will receive a certificate of thanks and a gift card in the amount described below: 5 Years of Service: $25 gift card 10 Years of Service: $50 gift card 15 Years of Service: $75 gift card 20 Years of Service: $100 gift card 25 Years of Service: $200 gift card 30 Years of Service: $300 gift card 35 Years of Service: $400 gift card 40 Years of Service: $500 gift card Employee years of service recognition gift cards are given only after the employee’s anniversary date has passed. An employee’s anniversary date is defined as the month and day of initial hiring or promotion to regular status of employment. In accordance with IRS regulations, years of service recognition gift cards are considered compensation and must be reported on the employee’s W-2. An employee must be in good standing to receive their anniversary recognition service award. C. Annual Appreciation and Recognition Event Annually the City will sponsor Employee Appreciation and Recognition events, (i.e. full-time/part-time regular employee recognition, retirement recognition, seasonal staff recognition, national department recognition, such as “Public Works Week”). Annual service award certificates will be presented at such an event. The City Manager and Department Heads may also recognize other accomplishments of employees, departments, and the City at these events. Meals and refreshments may also be provided (see Section IV). The City Manager may also authorize events recognizing the completion of significant work-related projects. D. Wellness Activities The City supports activities and events that promote health and safety of employees. This includes trainings and programs offered during regular business hours. Incentives of moderate value may be DocuSign Envelope ID: 415D7981-BC28-48BB-9AD7-11771D8BEB1C Public Purpose Expenditure Policy provided to attendees of safety, health, and wellness programs. Meals and refreshments may also be provided (see Section IV). E. Retirements Regular full-time and part-time employees may be eligible for a retirement service award under the following criteria: 1. Receive a retirement annuity from a Minnesota Public Pension Plan, or 2. Receive a duty disability retirement benefit from a Minnesota Public Pension Plan Employees who meet criteria 1 or 2, and leave the City in good standing are eligible for: 1. A retirement service award payment as described below and 2. A personalized City of Golden Valley street sign Award amounts are described below: 10-14 years of service: $350 retirement service award 15-20 years of service: $500 retirement service award 21+ years of service: $650 retirement service award Retirement service awards are given only after the employee’s retirement from the City. Additionally, in accordance with IRS regulations, the retirement service award amount is considered additional compensation and must be reported as income on the employee’s W-2. Employees may choose to participate in a farewell gathering at which the City may provide refreshments (Section IV). F. Memberships and Dues The City will fund employee memberships and dues to professional associations and social and community organizations where the purpose is to promote, advertise, improve, or develop the City’s resources, and not for personal interest or gain. G. Committees, Employee Resource Groups, and Employee-Funded Activities  Committees The City supports employee committees representing various interests that enhance or further the City’s vision, mission, values, and welcome statement. Committees shall be formed by direction of the City Manager in consultation with Department Heads. Committees must include sponsorship of a Department Head and may only recommend to the City Manager use of funds for events and activities in accordance with the public purpose expenditure policy.  Employee Resource Groups An Employee Resource Group (ERG) is a group of employees who share a common diversity characteristic (I.e., gender, disability status, religion or belief system, ethnicity, race, sexual orientation, generation, or other shared identity), or allies of that group. To qualify as an ERG the group must have City approval. Formalized under a charter, an ERG supports its members, the employee demographic they represent, and the organization. ERGs differ from other employee forums or affinity groups because they: DocuSign Envelope ID: 415D7981-BC28-48BB-9AD7-11771D8BEB1C Public Purpose Expenditure Policy  work across the organization and are not limited to activity within or membership from a single department  are attached to a Management Team sponsor  have goals and activities defined and driven by the employee members to address a known disparity ERGs are not a substitute for existing departmental diversity, engagement, respect, or affinity committees. ERGs are to complement and partner with departmental committees and strengthen connections between and among employees within the City. Each approved ERG shall have an annual budget to promote wellness and belonging of employees.  Employee-Funded Activities The City supports events that are planned and paid for by employees, such as pot-lucks or before/after work voluntary activities. IV. Meals and Refreshments Use of City funds in reasonable amounts for meals and refreshments is permitted for situations in which City business needs to be discussed during or adjacent to meal hours. Additionally, City funds are permitted for public and City meetings and events in which reasonable refreshments may be necessary to create a more productive environment or to be responsive to participant schedules. The following items meet the definition of approved meals or refreshments as a public purpose expenditure: A. Meetings and Activities  City Council, Board, Commission, Task Force, or other official committee meetings adjacent to or held during a meal hour when it is the only practical time to meet. This does not include regularly scheduled Board, Commission, Task Force, or City Council meetings.  Annual Board/Commission/Task Force Recognition dinner, where each Board/Commission member and one guest are invited to attend.  Newly appointed City Council members swearing in ceremony and City Council members leaving office.  Employee meetings, trainings, or events, held adjacent to or during meal hours that meet at least one of the following criteria: o Have the purpose of discussing City business or are part of an employee training with a pre-planned agenda. This does not include routine staff meetings or regular training activities held at the worksite where employees are given sufficient time for breaks. o Scheduled during or adjacent to a meal hour when no other time is available. o Employees are required to be available and participate during meal or break periods.  Professional association meetings, conferences, or external trainings where meals are included as part of the registration or program fee.  Employee recognition and wellness activities, including: o Annual employee recognition events o Healthy snacks of moderate value during wellness activities o New employee orientation with human resources o Farewell gathering for regular employees who have completed probation and resigned in good standing DocuSign Envelope ID: 415D7981-BC28-48BB-9AD7-11771D8BEB1C Public Purpose Expenditure Policy o Retirement gathering for regular employees who have completed probation, leave in good standing, and are retiring from the City Allowable amounts will be determined annually by resolution of the City Council. B. Special Events and Community Engagement  City-sponsored community engagement activities and events of community-interest, especially when deemed necessary to ensure meaningful participation by the participants or that support the strategic priorities of diversity, equity, and inclusion, including events intended to increase, broaden, and engage the participation of ethnically or racially diverse communities in City matters. Examples of such events include but are not limited to, National Night Out, Music in the Parks, Public Safety in the Parks, and City Commission-led events and activities, etc. C. Emergency Response and Extended Hours  Work activities requiring continuous service where breaks are not possible and the work day is extended, such as election days, water main breaks, emergency snow removal, and time sensitive public safety responses. V. City Council, Boards and Commissions Recognition The City recognizes the commitment and contributions to the community by its elected and appointed officials. Efforts by these individuals shall be recognized in the following ways: A. City Council Members  Newly appointed City Council Members will receive a City of Golden Valley welcome gift of de minimus value.  Exiting Council Members shall choose between an engraved award or a $150 gift certificate to the Three One Six Bar and Grill; and be given the option of a personalized City of Golden Valley street sign.  Exiting Mayor and Council Members who served as the Housing and Redevelopment Authority Chair shall receive an inscribed gavel plaque. The value of the gift certificate shall be treated as additional compensation and must be reported as income on the elected official’s W-2. B. Board and Commission Members  Newly appointed members shall receive a welcome gift of de minimus value.  All current and outgoing board and commission members plus one guest are invited to the annual recognition dinner.  Members who serve two or more terms shall receive a certificate of thanks and a $75 gift certificate to the Three One Six Bar and Grill.  Youth members who serve a full term shall receive a certificate of thanks and a $25 gift certificate to the Three One Six Bar and Grill for each year served. Awards shall be distributed at the annual Board/Commission recognition dinner. DocuSign Envelope ID: 415D7981-BC28-48BB-9AD7-11771D8BEB1C Public Purpose Expenditure Policy VI. Other Permitted Expenses Public expenditures for appropriate community engagement and outreach serve a public purpose when the expenditures are necessary to ensure efficient operations of its programs and services, and promote coordinated, cooperative planning amongst community members and City representatives. The following are permitted expenses:  Events, programming, and incentives of moderate value that support the strategic priorities of diversity, equity, and inclusion.  Clothing or apparel considered necessary for the safety and visible staff recognition by the public, including apparel consistent with department directives for community identification and recognition that is deemed to be important at City-sponsored or City-supported events.  Recognition events for volunteers and non-employees, such as a volunteer appreciation lunch.  In Memoriam donation of flowers up to $50 per person from the City for recognition of service to the City for the following: o Current employees o Past full-time regular or part-time regular employees o Immediate family of current employees o Current or past City Council Members o Immediate family of current City Council Members o Current or Past Board, Commission, or Task Force Members o Immediate family of current Board, Commission, or Task Force Members  Other expenses permitted by statute, including but not limited to public safety events, national night out, public art, and musical entertainment. For the purposes of this policy, immediate family is defined as “spouse, child, including step-child, parent, including step-parent, or sibling including step-sibling.” VII. Prohibited Expenses Use of City funds for the following expenses are prohibited:  Food and refreshments for routine work meetings  Alcoholic beverages  Fundraisers or donations  Food, beverages, or other items strictly for personal use or gain  Taking vendors out for meals or refreshments  Taking employees out for meals or refreshments, unless specifically permitted under Section IV and as approved by the City Manager  Employee bonuses  Participation in optional activities at conferences/seminars, unless included in conference registration fee (ie. golf rounds, concerts, sporting events, meals, etc.)  Expenditures that do not directly relate to functions of government or that have, as their primary objective, the benefit of a private interest  Expenditures that do not have a public purpose or that are not specifically authorized by state law DocuSign Envelope ID: 415D7981-BC28-48BB-9AD7-11771D8BEB1C Public Purpose Expenditure Policy This does not constitute an exhaustive list of prohibited expenditures. Employees should consult the Deputy City Manager or Finance Director regarding expenditures not specifically authorized under this policy. VIII. Permitted Use of City Assets All incidental and de-minimus permitted use of City Assets are outlined in the Employee Handbook, which is approved by the City Council annually. Adopted December 21, 2004 Amended October 18, 2016 Amended June 20, 2017 Amended March 6, 2018 Amended May 16, 2023 DocuSign Envelope ID: 415D7981-BC28-48BB-9AD7-11771D8BEB1C