CCP 03-08-1999 - Laserfiche WebLink

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., . CITY OF ARDEN mLLS MEMORANDUM DATE: March 5, 1999 TO: Brian Fritsinger, City Administrator Terrance Post, City Accountant@ Community Services Fuud FROM: SUBJECT: . BacklITound When the City of Arden Hills adopted Ordinances in 1989, and in 1990, related to the regulation oflawful gambling within the City, one of the regulations was the creation of a Lawful Gambling Fund into which licensed organizations contribute ten (10) percent of their net profit. A September 21, 1989, memorandum from City Attorney Filla, to then City Administrator Berger, advised "the proceeds of the fund would have to be used for lawful purposes which include public improvements and public services" (Attachment A). However, as Attorney Filla points out in a recent memorandum on the subject, "between 1990 and 1998 the definition of Lawful Purpose was amended a number of times (Attachment B.) Of the traditional kinds of services the City of Arden Hills normally engages in, the only types included in the current Lawful Purpose definitional category are; 1) construction or maintenance of recreational, community and athletic facilities intended primarily for persons under 21 years of age; and 2) police, fire and emergency services. Use of Fund Proceeds The only regular, planned use of Community Services Fund proceeds in the last several years has been an operating transfer to the Recreation Fund to subsidize operating losses of program activities. While this is a Lawful Purpose type of use, the subsidy need has been substantially less than the annual revenues of the Community Services Fund. This situation has resulted in a preliminary 1998 year-end fund balance of approximately $300,000. New State ReportinlZ OblilZation Beginning with calendar year ending December 31,1998, the legislature included a reporting obligation on Cities or Counties, which had the 10% net profit dedication requirement, to identify the manner in which the 10% dedication funds have been used and, if a positive end-of-year fund balance, a brief explanation of why the budget balance will be maintained. This reporting must be completed and submitted to the Gambling Control Board by March 15, 1999. .