09-10-2025 Workshop Packet - Laserfiche WebLink

Home Browse Search

MN State Statutes “Lawful Purposes” Statue governs how the city’s 10% fund can be spent. An all-inclusive list can be found online. Some examples of allowable expenses the city has historically used include: • any expenditure by or contribution to a 501(c)(3) or festival organization, as defined in subdivision 15c, provided that the organization and expenditure or contribution are in conformity with standards prescribed by the board under section 349.154, which standards must apply to both types of organizations in the same manner and to the same extent • recreational, community, and athletic facilities and activities, intended primarily for persons under age 21, provided that such facilities and activities do not discriminate on the basis of gender and the organization complies with section 349.154, subdivision 3a Additional examples not historically utilized by the city include: • a contribution to or expenditure for goods and services for an individual or family suffering from poverty, homelessness, or disability, which is used to relieve the effects of that suffering • a contribution to or expenditure on a public or private nonprofit educational institution registered with or accredited by this state or any other state • conducting nutritional programs, food shelves, and congregate dining programs primarily for persons who are age 62 or older or disabled Analysis In all three instances, no “grants” are provided to organizations; however, in Shoreview, funds are contributed to community organizations that have historically received funds. Currently, the city is mirroring how the City of Vadnais Heights spends 10% funds, supporting fireworks and parks-related expenses. Based on the “Lawful Purposes” listing in the state statute, staff believes the city’s 10% fund could be utilized for other purposes, in particular, supporting eligible 501(c)3 organizations, should the Council wish to expand the use of the fund. DISCUSSION: Staff has provided a few options for discussion around how to utilize the 10% Fund. Option 1: No changes • Continue using for fireworks display, and for possible park playground enhancements at a later date Option 2: Utilize 10% Fund for NYFS contribution (in addition to current uses) • The 2026 donation cost for Northeast Youth and Family Services is $25,808. As discussed in the 2026 budget workshops, this could be a possible reduction to the levy as this is currently paid from the general fund. o If the Council is interested in this approach, staff would recommend 50% of the NYFS donation is paid with 10% fund, not the entire amount. • Option 3: Develop an annual community support program for qualifying nonprofit organizations (in addition to current uses) o Staff would recommend an application process and council direction on types of initiatives that should be supported, should the Council be interested in this option. • Option 4: Combination of Options or Other Items from Lawful Purpose List