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RESO 25-106 - Approving Updated Public Purpose Expenditure PolicyRESOLUTION NO. 25-106 RESOLUTION ADOPTING AN UPDATED PUBLIC PURPOSE EXPENDITURE POLICY 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, and Resolution No. 23-033 on May 16, 2023. 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 this 5th day of November 2025. Roslyn Harmon, Mayor ATTEST: Theresa J. Schyma, City Clerk Docusign Envelope ID: 8EB3F376-B179-4545-AC6B-7569F0B2B431 Exhibit A Page 1 O FFICIAL C ITY P OLICY C ITY OF G OLDEN V ALLEY General Information Policy Title: Public Purpose Expenditure Policy Department: Finance Policy Owner (job title): Finance Director Policy ID: 25-XXX Council Approval Date: November 5, 2025 Resolution Number: 25-106 Effective Date: November 5, 2025 ☐ New ☒ Updated Policy Overview Policy Description: This policy describes the types of expenditures that are considered legitimate and permissible uses of public funds. Purpose & Scope: 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. The City recognizes that public funds may be spent only if the expenditure meets a public purpose and the expenditure relates to the governmental purpose for which the City was created. This policy is intended to provide guidelines regarding which expenditures are for public purposes and authorized in accordance with the City’s annual budget process, and which expenditures are not considered to fall within the public purpose definition and are therefore not allowed. Definitions: 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. The definition of “public purpose” is regularly interpreted by the courts. Employees with questions about whether a purchase qualifies as a public purpose should consult their supervisor or the finance department. Related Documents, Materials & Resources: None at this time. I. Policy Expenditures of public funds must comply with the public purpose standards defined above and all employees and elected officials whose responsibilities include making authorized purchases for the City must comply with this policy and the corresponding procedures. Failure to comply with this policy may result in denial of reimbursement and disciplinary action. Policy Docusign Envelope ID: 8EB3F376-B179-4545-AC6B-7569F0B2B431 Exhibit A Page 2 A. Responsibility The City Manager is responsible 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. B. Reasonable Cost When reviewing an expenditure to verify the cost is reasonable , the City Manager, or their designee, must consider: • whether the activity or purchase will benefit the community as a whole; • whether the activity is related to the functions of the City; • whether the cost is proportionate to the benefit received; • whether the primary objective of the activity is public or private; and • the reasonableness of the cost including comparison to similar expenditures and consideration of alternatives as well as whether the expenditure reflects prudent use of public funds. For example, for events, the City Manager should consider the time of day the event is held, the business purpose of the event, whether the event was intended to attract non-City employees, the frequency of the event, and the reasonableness of the cost. The following guidelines address specific examples of public expenditures, but examples are not meant to be all-inclusive. All permitted expenses listed within this policy are allowed only so long as they fall within the City’s approved 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. C. 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. II. Examples of Permitted Expenditures for 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. Finally, public expenditures for appropriate volunteer recognition programs serve a public purpose because formally recognizing volunteers who make significant contributions and demonstrate their commitment during the performance of their duties results in higher morale and productivity and helps the City fulfill its responsibilities to the community more efficiently and cost effectively. The following items meet the definition of approved meals or refreshments as a public purpose expenditure when approved by the Department Head: Docusign Envelope ID: 8EB3F376-B179-4545-AC6B-7569F0B2B431 Exhibit A Page 3 • Employee Meetings o 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. o Annual Board/Commission/Task Force Recognition dinner, where each Board/Commission member and one guest are invited to attend. o Newly appointed City Council members swearing in ceremony and City Council members leaving office when held adjacent to or during a meal hour. o Employee meetings, trainings, or events, held adjacent to or during meal hours that meet at least one of the following criteria:  Have the purpose of discussing City business or are part of employee training with a pre- planned agenda. This does not include routine staff meetings, social events, or regular training activities held at the worksite where employees are given sufficient time for breaks.  Scheduled during or adjacent to a meal hour and no other time is available.  Employees are required to be available and participate during meal or break periods. o Professional association meetings, conferences, or external trainings where meals are included as part of the registration or program fee, or in accordance with the City’s travel policy. • Special Events and Community Engagement o Food and refreshments associated with City-sponsored community engagement activities and events of community-interest when the provision of food and refreshments is deemed necessary to ensure meaningful participation by the participants. 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. o Events, meetings, programming, and non-monetary incentives 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. • Emergency Response and Extended Hours o 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. III. Wellness and Recognition A. Employee Wellness and Recognition Public expenditures for appropriate City employee wellness and recognition programs serve a public purpose because formally recognizing employees who make significant contributions and demonstrate their commitment during the performance of their duties results in higher morale, longer employee retention, and higher productivity. These outcomes help the City fulfill its responsibilities to the community more efficiently and cost effectively. In addition, appropriate safety, health, and wellness programs for City employees serve a public purpose because they result in healthier, more productive employees that may reduce certain employee related costs to the City and taxpayers. Docusign Envelope ID: 8EB3F376-B179-4545-AC6B-7569F0B2B431 Exhibit A Page 4 The City’s wellness program activities are consistent with statute and are continually reviewed and managed by the City’s Human Resources division, with approval by the City Manager. B. Volunteer & Elected Official Wellness and Recognition Public expenditures for appropriate volunteer recognition programs serve a public purpose because formally recognizing volunteers who make significant contributions and demonstrate their commitment during the performance of their duties results in higher morale and productivity and helps the City fulfill its responsibilities to the community more efficiently and cost effectively. The following items are deemed to meet the definition of public purpose expenditure for volunteer/elected official recognition: • City Council Members o Newly appointed City Council Members will receive a City of Golden Valley welcome gift of de minimus value. o Exiting Council Members will receive an engraved award and a personalized City of Golden Valley street sign. o Exiting Mayor and Council Members who served as the Housing and Redevelopment Authority Chair may request to receive an inscribed gavel plaque. • Board and Commission Members o Newly appointed members shall receive a welcome gift of de minimus value. o All current and outgoing board and commission members plus one guest are invited to the annual recognition dinner. o Members who serve at least one full term shall receive a certificate of thanks. IV. Examples of other Permitted Expenditures Public expenditures for appropriate community and customer outreach and similar activities serve a public purpose when those expenditures are necessary for the City to ensure the efficient operation of its programs and services and to promote coordinated, cooperative planning activities among and between the public and the private sectors. The following items are deemed to meet the definition of public purpose expenditure under this section, with City Manager approval: • Uniforms, clothing, or apparel that is considered necessary for safety or for visible staff recognition by the public, including uniforms as required by labor agreements (e.g. safety footwear and eyewear for maintenance personnel, shirts purchased to identify staff leadership status at events). • Apparel consistent with Department directives for community identification and recognition that is determined to be important to the successful involvement of employees in special City-sponsored or City-supported events. • Staff time and equipment use for City-sponsored employee events as approved by City Council and/or City Manager as allowed by state statute, or city charter or code (e.g. set- up for annual employee picnic). • Items of de minimis value when these items are made available free of charge to the general public (e.g. t-shirts, water bottles, mugs, pens). Docusign Envelope ID: 8EB3F376-B179-4545-AC6B-7569F0B2B431 Exhibit A Page 5 • Tips and gratuities no greater than 20% of the pretax bill. • Other expenses permitted by statute, including but not limited to public safety events, national night out, public art, and musical entertainment. • Employee and elected official memberships and dues to professional associations and social and community organizations that are not otherwise prohibited by law, and where the purpose is to promote, advertise, improve, or develop the City’s resources, and not for personal interest or gain. V. Examples of Expenditures Authorized by Other City Policies Expenses authorized by other City policies are deemed to meet the definition of public purpose expenditure. Examples include but are not limited to: • Expenses allowed under the Travel Policy and Employee Wellness Program • Employee Service Awards (Employee Handbook) VI. Prohibited Expenditures Use of City funds for the following expenses are prohibited: • Food and refreshments for routine work meetings. • Food and refreshments during routine training if not included with the registration fee (see also Travel Policy). • Food and refreshments outside of City-sponsored community engagement events or events of community-wide interest (e.g., coffee meeting between staff and community members) • Alcoholic beverages (exception only for Police Department for purposes of Standard Field Sobriety Training). • Fundraisers or donations. • Food, beverages, or other items strictly for personal use or gain. • Taking vendors or community members out for meals or refreshments. • Taking employees out for meals or refreshments, unless specifically permitted under Section IV and approved by the City Manager • Employee bonuses. • Employee functions or celebrations that are solely social in nature (e.g., birthdays, holiday luncheon, ice cream social, barbeque). • Participation in optional activities at conferences/seminars, unless included in conference registration fee (ie. golf rounds, concerts, sporting events, meals, etc.) • Funeral flower arrangements upon death of an employee, elected official, or one of their immediate family members. • 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. This does not constitute an exhaustive list of prohibited expenditures. Employees should consult their Department Head regarding expenditures not specifically authorized under this policy. Docusign Envelope ID: 8EB3F376-B179-4545-AC6B-7569F0B2B431