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!' �.,•��' 'f S� � �:. : Clt�• o� ORONO l • RESOLUTION OF THE CITY COUNCIL � NO. 215]. • - • • , • R�3SOLUTION TO PROVIDE FOR FUNDING OF THE CITY OF ORONO'S SEVERENCE PAY POLICY WHEREAS, the State of Minnesota does provide under M.S. 465.72 that a city may pay severence pay to its employees and promulgate rules for the payment of severence pay to an employee who leaves employment on or before or subsequent to normal retirement date, and WHEREAS, The State of Minnesota does also stipulate in M.S . 465.72 that the severence pay: A. ) Shall be excluded from retirement deductions . B.) Shall be paid in the manner mutually agreeable to the employee and employer over a period not to exceed five years . C.) Shall be paid to a named beneficiary, or to the employee's estate if no beneficiary is named, in the • event of the death of the terminated or retired employee before all of the severence pay has been disbursed. D.) Shall not in any event exceed an amount equal to one year ' s pay of the employee leaving employment, and WHEREAS , the State - of Minnesota in M.S. 465.721 does require full funding of the severence pay policy; and WHERI3AS, the City of Orono does have a severence benefit plan as stated in Administrative and Personnel Policies, Section 318a and 318b, adopted November 25, 1985 by Resolution Number 189P1. NOW, THI3R�3FORE, BE IT R�3SOLVED, by the City Counci 1 of the City of Orono, Minnesota that for those employees employed by the Enterprise Funds , Liquor Operating , Water Operating, Sewer Operating or Golf Course Operating, the severence liability shall be recognized as of December 31 , 1986 with an adjustment of the fund equity, Retained Earnings, with the annual changes reflected each year through the current operating expenses of each effected fund. •