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ARDEN HILLS CITY COUNCIL - MARCH 8.1999 9 amount of grouting it is assumed that a certain percentage of the joints will fail and, for eacb . joint that fails, an estimate on how many gallons of grout will be needed is established. F or the most part, the larger, 15 inch diameter sewer lines have been running very well with an approximate 30 percent failure. In the cases that are failing, less grout is being needed to repair the joint than average. Tbe eight inch lines are running well under budget as well. Mr. Brown indicated that there is enough work to be accomplished that the project could continue indefinitely. Mayor Probst asked if tbe additional work would be more in the area of grouting or lining. Mr. Brown stated that tbe grouting and the sealing of manholes are much easier to accomplish on a moment's notice. Tbe in place lining is much more difficult and the Contractor may not agree to a request for additional lining work. Councilmember Malone asked ifby accomplishing tllis work tbe City's sanitary sewage flow and resulting treatment charges would go down. Mr. Brown stated that they should. Mayor Probst confirmed that the consensus of the Council was to continue the sewer rebabilitation work up to the maximum of the contract budget. F. Community Services Fund, Discussion . Mr. Post stated that this was an informational item for the City Council to discuss and no action is required. He explained that when the City of Arden Hills adopted Ordinances in 1989, and in 1990, related to tbe regulation of lawful gambling within the City, one ofthe regulations was the creation of a Lawful Gambling Fund #225 into which the licensed organizations contribute ten percent of their net profits. At that time City Attorney Filla had advised that the proceeds of the fund would have to be used for Lawful Purposes, which was a broad category. The philosophy of the City had been that it would not be prudent to supplement General Fund revenues witll ganlbling proceeds, as these funds may not always be available in the future. Over the years the Community Services Fund fund balance has grown. The only regular planned use of the Fund assets in the last several years bas been an operating transfer to the Recreation Fund to subsidize operating losses of program activities. In the last decade, the legislature bas been narrowing the focus in terms of what a Lawful Purpose is. Of the traditional kinds of services the City of Arden Hills normally engages in, the only types included in the current Lawful Purpose definition category are; construction or maintenance of recreational, community and athletic facilities intended primarily for persons under 21 years of age; and police, fire and emergency services. . Beginning with tlle calendar year ending December 31, 1998, the legislature included a reporting obligation on Cities or Counties, which had the 10 percent net profit dedication requirement, to identify the manner in whicb the 10 percent dedication funds have been used and, if a positive end-of-year fund balance exists, a brief explanation of why tbe budget balance will be remaining.