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CCP 04-19-2004
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CCP 04-19-2004
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<br />. <br /> <br />. <br /> <br />. <br /> <br />spending decisions. In fact, the Court has made clear that "this presumption necessarily makes <br />the seope of review of such governmental decision-making extremely narrow and a reviewing <br />court should overrule a legislative determination that a particular expenditure is made for a <br />public purpose only if that determination is manifestly arbitrary and capricious." Accordingly, <br />as discussed above, the question of what constitutes a public purpose is largely a matter of eity <br />council discretion. <br /> <br />City authority <br /> <br />With regard to the "authority test," a Minnesota municipal corporation has only such powers as <br />are expressly conferred upon it by statute or its charter, or necessarily implied there from. In <br />looking at the question of city authority, a distinction exists between eharter cities and statutory <br />cities. Many home rule charter cities have an "all powers" provision, which reads something like <br />"A city shall have all powers which may now or hereafter be possible for a municipal <br />corporation in this state to exercise in harmony with the constitution of this state and of the <br />United States," This broad grant of power under city charters has been interpreted as including <br />"all those powers which are generally reeognized as powers which may properly be given to and <br />be exercised by, munieipal corporations." State ex reI Zien v. City of Duluth. 134 Minn. 355, <br />159 N.W. 792 (1916). In eonstruing municipal charter authority, the Minnesota Supreme Court <br />in City ofSt. Paul v. Whidby. 295 Minn, 129,136203 N.W.2d 823, 827 (1972) (citing Park v. <br />City of Duluth 134 Minn. 296, 298,159 N.W. 627, 628 (1916)), enunciated the parameters of <br />such authority: <br /> <br />"Municipal corporations are ereated by state law. , , their legislative authority is <br />conferred upon them by the constitution and the laws of the state and, as to matters of <br />munieipal concem, they have all the legislative power possessed by the Legislature of the <br />state, save as such power is expressly or implicitly withheld. . ." <br /> <br />Aceordingly, for a charter city with an "all powers" clause, the scope of municipal authority is <br />probably greater than that allowed for statutory cities. <br /> <br />With regard to statutory cities, municipal authority has to be found in the statutes or be <br />necessarily implied from that statutory authority. The question of what constitutes a valid <br />implied power is the subject of some debate and ereates much of the "gray area" assoeiated with <br />the analysis of particular expenditure practices. <br /> <br />The remainder of this memorandum will not specifically differentiate between charter city <br />authority and statutory city authority. However, individual cities should pay partieular attention <br />to the fact that on the authority question, charter cities may be able to argue a greater levcl of <br />municipal discretion, <br /> <br />Employee Recognition Events <br /> <br />The League of Minnesota Cities has often been asked whether it is valid to spend municipal <br />funds on employee recognition events. The League has historieally taken the position that cities <br />ean 8ponsor and pay for employee recognition programs if they are structured so that they <br /> <br />3 <br />
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