CCP 03-15-1999 - Laserfiche WebLink

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. . . CITY OF ARDEN IllLLS MEMORANDUM DATE: March 11, 1999 TO: Brian Fritsinger, City Administrator Terrance Post, City Accountant @ Community Services Fund Discussion FoUow-up FROM: SUBJECT: Background At the regular City Council meeting of March 8,1999, the subject of the Community Services Fund No. 225 was generally discussed as a new business agenda item. An outcome of the discussion was to give staff specific direction on reporting Community Services Fund No. 225 December 31, 1998 fund balance future uses (Le., 58% Parks and 42% Fire). Council also raised questions concerning (1) if Minnesota Statutes, Section 349.12, Subd. 25 was the relevant statutory cite to define allowable City "lawful purpose" expenditures from a 10% contribution fund; and (2) how could the 1999 budgeted $200,000 revenue source from the Community Services Fund for TCAAP implementation planning be replaced. Statutorv "Lawful PUlpose" E~enditures for Cities Confusion occurred at the Council meeting when the Oambling Control Board Form L051 0 instructions "A-lO - expenditures for services, equipment and training" was compared to Miunesota Statutes, Section 349.12, Subd. 25 (10), "a contribution to the United States, this state or any of its political subdivisions, and any agency or instrumentality thereof other than a direct contribution to a law enforcement or prosecutorial agency," and found not to be consistent. The explanation lies in reviewing Minnesota Statutes, Section 349.213, Subd. I (a), ".....the ten percent fund .... for disbursement by the responsible local unit of govemment of the receipts for (i) lawful purposes, or (ii) police, fire, and other emergency or public safety-related services, equipment, and training, excluding pension obligations, is not considered an expenditure to the City or County, nor a tax under Section 297E.02, and is valid and lawful." This addition to "lawful purposes" was legislatively added in the 1998 session. The upshot is that "lawful purposes" are the same for both organizations and cities with the sole exception being the "police, fire, emergency" available for cities but not organizations. Also the Gambling Control Board instruction form -does not give the correct cite for "A-IO."