Agenda Packets - 1989/02/06 - Laserfiche WebLink

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10: ` AYOR AND CITY COUNCIL L aa- i r ROM: CLERK -ADMINISTRATOR PAUL- JANUARY 25, 1989 SUBJECT: LEGISLATIVE ISSUES Two legislative proposals have recently come to the attention of City -toff �.hich :+^ `•eel should be brn,ight to vour attention prior to your discussion of�a legislative program at the February 6th Agenda Session. These issues and an analvsis of them is provided below for your consideration. I. Code of Ethics Senator Mart•: from Roseville has introduced a bill, S.F. 5, which is intended to establish a Code of Ethics for state and local government officials. Attached please fund a copy of the - legislation and a bulletin frorm the League of Minnesota Cities regarding the financial disclosure provision of the bill. Tne idea of a cede of ethics for government is not a new issue. Many levels of government throughout the U.S. and professional organizations have codes of ethics. The plan for the State to establish a code applicalbe to all uits of government smacks of big brother particularly when the code requires detailed personal - financial disclosure which is classified as public information. _ Senator Marty's bill has many good paints, but staff must take ii objection to the proposed financial reporting requirements. The contents of the LMC Bulletin has been reviewed with the City's Department Heads and the City Attorney. It was a unanimous feeling among these individuals, who may be individually impacted by this legislation, that these financial reporting requirements are an imposition of unnecessary requirements on local officials. At the present time, the State has in place certain laws, rules and regulations that require the performance of certain tests by our auditors during the annual audit to confirm that no conflicts Exist and the filing of statements from local officials regarding interests in contracts. Attached please find correspondence from the City's auditors outlining the current requirements and audit tests used to determine if any conflicts have occured. It was also felt by the staff members I discussed this with that the issue of a code of ethics and financial disclosures for local units of government should be the business of local government and not imposed on us by the State. Finally, the information that must be provided was felt to be overly broad, an invasion of the privacy of the officials personal lives, and could be used, if the information became public, by individuals to place pressure on officials whose personal finances might be stretched and are susceptible to being pressured. Also attached is an excellent letter from Rob Tautges of the City Auditor's office regarding current legal requirements and audit practices related to conflicts of interest. In the end, Mr. Tautges' statement that the desire to keep their personal finances private might discourage qualified individuals from seeking elective or appointed public office is well taken.