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RELEVANT LINKS: <br />League of Minnesota Cities Information Memo:8/1/2019 <br />Public Purpose Expenditures Page 16 <br />g. Severance pay <br />Minn. Stat. § 465.72. <br />LMC Research and <br />Information Services at (800) <br />925-1122 or (651) 281-1200. <br />Cities may pay severance pay to their employees and adopt rules for the <br />payment of severance pay to employees who leave employment. <br />Severance pay cannot exceed the equivalent of one year of pay. Severance <br />pay does not include compensation for accumulated sick leave or other <br />payments in the form of contributions by an employer toward premiums <br />for group insurance policies for former employee. The city must pay <br />severance pay in a manner mutually agreeable to the employee and the <br />employer and must pay it over a period of not more than five years from <br />retirement or termination. For more information regarding the <br />requirements for these types of severance pay situations, contact the <br />League. <br />h. Vacation leave <br />Minn. Stat. § 471.66.Any city council may grant paid or unpaid vacations to its regularly <br />employed employees and officers. The city council may adopt vacation <br />policies by ordinance or resolution, including determining the terms and <br />conditions of vacations. No elected official may receive monetary <br />compensation for unused vacation or sick leave accruals. <br />2. Miscellaneous items <br />Cities often ask if it is proper to spend money on the following <br />miscellaneous items for their officers and staff: <br />a. Official Performance Bonds <br />Minn. Stat. § 415.18. <br />Minn. Stat. § 412.111. <br />City councils may pay to provide fidelity or faithful performance bonds <br />for city officers and employees who, by statute, must furnish them. <br />b. Flowers <br />Minn. Stat. § 471.895.No specific authority exists for purchasing flowers for a staff member or <br />city official who is ill or has lost a family member. <br />Additionally, even if employees contribute their own money towards <br />flowers, potential problems could arise if purchased for a supervisor under <br />the state’s gift law. <br />LMC information memo, <br />Official Conflict of Interest.The gift law prohibits a person from giving a gift to an elected or <br />appointed official if the official has the power to make a decision that <br />could impact a financial interest of the person giving the gift. <br />Attachment 5 - LOMC Public Purpose Doctrine - Extract