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. . . ARDEN HILLS CITY COUNCIL - MARCH 8.1999 12 Councilmember Larson asked if the funds would qualify as a Lawful Purpose simply by transferring it from one fund to another. Mr. Fritsinger stated that he bad specifically posed this issue to Attorney Filla and was ensured that it would meet tbe intent of the State law. Councilmember Larson asked if. once the funds are transferred from one fund to another, is the City free to use the money for whatever it wants, even if it is not expended on a park facility or law enforcement. Mr. Fritsinger stated that the City is required by State Statute to identify where tbe money is to be spent. Mr. Post stated that within the Capital and Special Revenue Funds there are expenditures that more clearly match the requirements of a Lawful Purpose. Tbe General Fund is a pot of revenues which does not necessarily match up with expenditures such as police or fire protection. Mayor Probst asked if; in terms of the fund balance, it is a matter of deliberately defining what the money will be spent on. Mr. Post explained that up until now, the City has utilized the funds primarily to subsidize the Recreation Program. Beyond that tlle balance has been allowed to accrue and build over the years. Now the City has a substantial balance and is being asked to explain the intended use of the funds. Councilmember Larson asked why the State is interested is indiscouraging the City to build up a balance of funds. Mr. Post stated tbat carrying a balance is acceptable, tbe concern is that the balance must be tied to a specific purpose. Mr. Fritsinger indicated that this issue had also been raised by the gambling organizations contributing the money. Councilmember Aplikowski stated that the whole idea behind charitable gambling is tbat tbe money is to be used to improve the community. She suggested tbat the more this is done for the people oftbe community, the more people of the community will gamble. Councilmember Malone suggested that the funds be split 30 percent to the Parks and Recreation Fund, 40 percent to fire protection and the remaining 30 percent to park operations. He asked what the park deficit is each year. Mr. Post stated that it is approximately $40,000 this year. Councilmember Malone noted that this would take approximately 50 percent oftbe funds each year. Councilmember Aplikowski asked if any of the City's revenues are used to pay for residents to attend the Sheriff Academy. Mr. Fritsinger stated tbat the City does not pay for this type of activity. Mayor Probst asked how much money is received each year from charitable gambling. Mr. Post stated that tbe City receives approximately $80,000 per year. Mr. Fritsinger noted that the City has the ability to change the fund commitments each year. The only requirement is that the City specify tbe intended use of the funds. Mr. Post stated that the intent is to document the intended uses by the local jurisdiction.