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Mike Ericson <br />From: <br />Sent: <br />To: <br />Subject: <br />Paul Steffel <psteffel@farmersagent.com> <br />Wednesday, May 10, 2017 12:54 PM <br />Mike Ericson <br />FW: Public Purpose Memo <br />From: Smith, Chris [mailto:CSmith@lmc.org] <br />Sent: Wednesday, May 10, 2017 12:51 PM <br />To: Paul Steffel <br />Subject: Public Purpose Memo <br />Paul, <br />Here is a link the league's Public Purpose Expenditures Memo: <br />https://www.Imc.org/media/document/1/pubiicpurposeexpenditures.pdf?inline=true. <br />Page 1 of the memo states: <br />In order for an expenditure of public funds to represent a lawful expenditure, it should meet both of the following <br />standards: <br />• Public purpose. A public purpose for the expenditure must exist. <br />• Authority. Specific or implied authority for the expenditure must arise out of a statute or from the city's charter. <br />The meaning of "public purpose" constantly is evolving. The Minnesota Supreme Court has followed a liberal approach, <br />generally finding a "public purpose" when the activity in question meets all of the following: <br />• The activity will benefit the community as a body. <br />• The activity directly relates to functions of government. <br />• The activity does not have, as its primary objective, the benefit of a private interest. <br />Regardless of whether there is a public purpose, the activity of setting up the stage will be covered by the city's LMCIT <br />coverage, i.e., the city employees will be covered by workers' comp if they get injured and the city and the employees <br />would be covered by the city's liability coverage. <br />Chris <br />Christopher Smith I Risk Management Attorney <br />Tel: (651) 281-1269 1 Fax: (651) 281-1296 <br />csmithCcD-lmc.org I www.imc.org <br />League of Minnesota Cities <br />145 University Ave. West I St. Paul, MN 55103 <br />Connecting & Innovating Since 1913 <br />Stay connected with the League of Minnesota Cities: <br />14 Web 11 Facebook fi`` Twitter 0 Bloa <br />AThink Green: Keep it on the screen! <br />