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ARDEN HILLS CITY COUNCIL - MARCH 8. 1999 10 . This reporting must be completed and submitted to tbe Gambling Control Board by March 15, 1999. From a policy standpoint, tbe City of Arden Hills bas not previously defined the use of these funds. Although the City is allowed to maintain a fund balance, it must be specific in informing the Gambling Control Board what the intended uses are for the accumulated funds. The use of the current fund balance and any future surpluses must fall into two different categories. One is essentially a Parks and Recreation use and the other is emergency services of police or fire. The 1999 Budget assumes that a portion of the TCAAP implementation planning phase would be funded via an operating transfer from tbe Community Services Fund. Under Minnesota Statutes, this budgeted use does not appear to fall within the list of Lawful Purpose activities. As Council recently reaffirmed its commitment to 1999 TCAAP planning at the recent retreat, another funding source should be identified for these planning activities. The General Fund balance could be used and the PIR Fund had also been identified to be used for these TCAAP planning activities. . Councilmember Malone stated that when the City of Arden Hills reluctantly agreed to allow lawful gambling within the City, it was believed that the Lawful Purpose included most all activities the City would be involved in. He indicated that, in reading the Statute on Lawful Purposes, he was not sure the Statute section provided to the Council applies to the City. It would appear that the Statute applies to the gambling organizations. Mr. Post explained that the Statutes apply equally to cities and gambling organizations. Councilmember Malone pointed out that any money spent by the City is for Lawful Purposes. He suggested all or a portion of the funds could be dedicated to the Fire and Capital Equipment Revolving Fund, and the remainder to the Parks and Recreation Fund. He noted that, over the long-term, the City will need additional money for fire protection. Mayor Probst confirmed that as long as there is a clear dedicated llse oftbe money, the City does not necessarily have to spend it. Mr. Post concurred. Mayor Probst suggested the funds be dedicated to the Parks and Recreation Fund as part of the TCAAP project. He indicated that once permission is granted to proceed witb tbe four-city recreation complex, the City of Arden Hills will not have the capital funding source to be involved with the project. Councilmember Malone asked the Mayor if he was suggesting all the funds be dedicated in this way. Mayor Probst stated that this was something tbat would need to be discussed. . Mr. Post stated that the 1999 Budget contains a $200,000 operating transfer from Fund 225 to Fund 229. He reiterated that there is no problem with reporting a fund balance, however, the City must be specific in terms of what the balance is being held for, which has not been a past policy.