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Trust Fund an amount equal to the unemployment benefits paid to its former employees. The <br />city should consider this ongoing cost when conducting the financial aysis of how many <br />employees at ghat salaries need to be laid off in order to make the budget balance. It is <br />Vmportant for the city to understand that laying an employee off will not immediately save the <br />city that employee's fu11 salary. <br />B. Estimate your employees$ potential benefit. <br />weekly benefit amount is calculated by first deternining the base period of employment. <br />The base period is typicality the first four of the rust five completed calendar quartm <br />preying the week in which are individual filed for unemployment benefits. The weekly <br />benefit amount is the higher of 50% of the individual's average weekly wage during either the <br />high quarter of the base period or the total base period. In general, the maximum amount of <br />benefit is the lesser of 26 tunes the individual's weekly benefit amount or 113 of the <br />individual "s total rase period wages. For more information, cities should consult the <br />Minnesota Employer's Unemployment Handbook available at www . or contact the <br />Minnesota Department of Economic Security. <br />What else should the city consider at this time? <br />A. Build a record. <br />Layoffs will inevitably result in reduced service levels. For cxannple a city may no longer <br />have the staff to inspect city sewers with the same frequency; or the ability to plow snow or <br />sand streets with the same regularity. These reductions in service may well result in an <br />increase in accidents and claims made against local governments. In order to help insulate the <br />city from potential liability, state law provides cities with statutory discretionary immunity for <br />many of these types of decisions. In the case of an employee layoff (and corresponding <br />reduced service levels), it is important for the city to create and preserve a good discretionary <br />immunity record. This can be accomplished in a number of ways. For instance if the city is <br />no longer going to inspect sewers at the same frequency, the city may want to adopt a revised <br />sewer inspection policy that sets forth new inspection procedures based on a reduced number <br />of public works employees. Similarly, if the city is going to change its snow plowing practices <br />so that it initiates plowing after 4 inches of snow rather than 2 inches, it should change its <br />snowplowing policy and explain how the budget and sta mg considerations have resulted in <br />the reduced service level. <br />If an actual policy decision is made, a resolution setting forth the policy or plan can be <br />prepared. The "'whereas" sections of such a resolution should document some of the social, <br />Political, economic, or other factors supporting the council's decision. Similarly, accurate and <br />complete minutes are also excellent records for showing a city council's exercises of <br />discredon. More information on building the statutory discretionary immunity record can be <br />found in the LMIT Risk Management formation: Exercising Discretion: Keeping <br />Records to Support Yminuuity. <br />5 {11 <br />