09/08/2009 Council Packet (2) - Laserfiche WebLink

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expenditure of funds for ballot issue advocacy. The Auditor's concern statement would appear to . apply to the entering into contracts for the production and -disc ibution of-materials for ballot issue advocacy. As clearly noted on the materials, the flyer and lawn signs indicate that they were prepared and paid for by the Lino Lakes Charter Commission. PAYMENT OF CHARTER COMIVIISSION'S EXPENSES The City Council also asked for direction regarding the charter commission expenses for which it is obligated to pay. The sole applicable provision of Minnesota law is: Minn. Stat. § 410.06 Compensation; expenses The members of such commission shall receive no compensation, but the commission may employ an attorney and other personnel to assist in framing such charter, and any amendment or revision thereof, and the reasonable compensation and the cost of printing such charter, or any amendment or revision thereof, when so directed by the commission, shall be paid -by such city. —The amounrofreasonable and- necessary- charter - commission expenses that shall be so paid by the city shalt not exceed in any one year the sum of $10,000 for first class city and $1,500 for any other city; but the council may authorize such additional charter commission expenses as it deems necessary. Other statutory and charter provisions requiring budgeting of, or limiting, expenditures do not apply to charter commission expenses. The . council may levy a tax in excess of charter tax limitations to pay such expenses. The first sentence of this statute provides authorization for the charter commission to employ an attorney and other personnel to assist in framing the charter and any amendment. This sentence also provides that the reasonable compensation and cost of printing the charter shall be paid by the city when so directed by the charter commission. The second sentence of the statute caps the City of Lino Lakes' liability for the charter commission's reasonable and necessary expenses at $1,500.00 per calendar year; but it allows the City of Lino Lakes to authorize the payment of additional legitimate charter commission expenses as the City Council deems necessary. Minn. Stat. § 410.06 has not been the subject of any reported lawsuits .3 However, the section has been the subject of interpretation by state agencies and most recently by the Dakota County District Court. The interpretations can be distilled as follows: • The City (Lino Lakes) has no obligation to pay any charter commission expenses in excess of $1,500.00 per year. • Should the Council decide to pay charter commission expenses in excess of $1,500.00 per year, the Council must deem such expenditures as necessary. • The reasonable amount of any compensation paid to an attorney or other personnel is a determination to be made by the charter commission. 3 Published cases by the Minncsota Court of Appeals or the Federal Court System. 5