HomeMy WebLinkAboutResolution 2151 !'
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• RESOLUTION OF THE CITY COUNCIL
� NO. 215].
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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.
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• RESOLUTION OF THE CITY COUNCIL
� NO. 2151
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BE IT FURTHER RESOLVED, that for those employees
employed by the Governmental Funds, General Fund, the severence
liability shall be recognized as of December 31 , 1986 by
inclusion in the General Long Term Debt Account Group and with an
adjustment of the General Fund Undesignated Fund Balance by
establishing the Fund Balance, Designated for severence, with the
annual changes reflected each year by an adjustment of the Fund
Balance, Designated for severence.
Adopted by the City Council of the City of Orono,
. Minnesota, at a regular meeting held March 17 1987 .
Jame�R. Grabek, Mayor
ATTE .
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Dorothy M a in, City Clerk
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