04-22-98 Council Minutes - Laserfiche WebLink

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MINUT~S CITY COUNCIL APRIL 22,1998 Historical Society Addition. Based on discussions with the Gambling Control Board, economic development is not a lawful purpose expenditure. 10% Funds can be used toward the Historical Society Addition, however, Statute limits this to $2,000 per year Sca]ze suggested that there may be ways to use 10% Funds toward the City's redevelopment efforts pointing out that there are components of the streetscape improvements which are youth-oriented. Morelan felt that the definition of lawful purpose was pretty clear. Fahey pointed out that 10% Fund could be used toward the Parks & Recreation Budget, fi~eeing up other City funds for economic development. Fahey indicated that he wants to comply with the letter of the law with re~ards to (awful purpose, although he does not agree with the spirit of that law. Fahey felt that if it were legal, the City should transf'er funds accordin~ly. Morelan pointed out that this is what the City did a couple of years ago, and he had no problem doing it again. Morelan suggested that the Council take a look at the 10% Fund guidelines to make sure that Parks & Recreation Budget items meet those guidelines. Fahey indicated that l~e did not want to see the 10% Committee look at the amount of money which is in the 10% Fund and spend the entire amount on wish-list items. The City Adminisfrator agreed that the 10% guidelines will have to be amended to allow for the funding of operating costs. LaValle asked for the definition of lawful purpose and whether or not it included Public Works expenditures. The City Attorney reviewed the defi~~ition with the Council. Sca(ze noted that the 10% Guidelines do not inc(ude the use of these funds for operating expenses. Morelan indicated that the Guidelines should be revised. Fal~ey agreed, and su~~ested that when the 10% Committee is reconvened, the Committee members be advised of the revision in the guidelines. Morelan asked if the Committee had been identified yet. Morelan also felt that the Guidelines should be defined for the Committee. Mr. Fahey introduced the following resolution and moved its adoption: 10