Agenda - Council Work Session - 06/28/2022

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RELEVANT LINKS: Minn.Stat.§471.895,subd. A"local official" is defined as an elected or appointed official of a city, or I(d), of an agency, authority, or instrumentality of a city. The gift prohibition clearly applies lies to all members of a city council and to appointed officials on city boards, commissions, and committees. However, it is not clear whether city employees like city managers and administrators would also be considered local officials under the gift law. Because so many city employees can be involved in a city's decision-making process, some cities have decided that the safest course of action is to assume that the gift law applies to all city employees. Minn.Stat.§471.895,subd. ` An"interested person"is a person or a representative of a person or association with a direct financial interest in a decision the local official is authorized to make. An interested person under the gift law likely includes anyone who may p goods oods or services to a city, such as engineers, attorneys, fiscal advisors, contractors, and sales representatives. In addition,virtually every resident of the city and anyone doing business in the city could at some time have a direct financial interest in a decision a city official is authorized to make and thus could qualify as an interested person. The followingpossible examples where a resident or business owner's financial interested could be affected: • The levying of property taxes. • The levying of special assessments. • The valuation of property for tax purposes. • The issuing of a license. • The zoning of property • The granting of a land-use permit. As a result, any person doing business or residing in the city is potentially an interested person as far as a city council member is concerned. whether a resident or business owner is an interested person, as far as members of boards and commissions are concerned, depends on the types of decisions or recommendations the boards or commissions are authorized to make. It is important to note that under the gift law the decision or recommendation a city official is authorized to make does not have to be =- pending. If an individual could at any time have a direct financial interest '= in a decision or recommendation that a city official would be authorized to mare,that individual would likely be considered an interested person. Minn.Stat.§471.895,subd. There are a few limited exceptions to the gift law. For example,the 3.Minn.Stat.§211 A.0 1, subd.5.See MN Campaign following types of gifts are permitted under the gift law: F% Finance and Public Disclosure Board relating to some of these exceptions. League of Minnesota Cities Handbook for Minnesota Cities 6/7/2622 Elected officials and Council Structure and Role Chapter 6 Page 10