09-24-2025 Council Packet - Laserfiche WebLink

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Expenses in the 10% Fund have historically been spent on the Canadian fireworks display, interfund services charges, and a transfer to the Capital Fund 400 for park improvement projects. At the end of 2024, the 10% Fund had a balance of $104,106. RESEARCH AND ANALYSIS: Staff reached out to neighboring communities that have historically been utilized when collecting best practice information to determine how charitable gambling funds are expensed by those cities with gaming. Of those who responded, only three had charitable gambling (North St. Paul, Shoreview, and Vadnais Heights) In all three instances, no “grants” are provided to organizations; however, in Shoreview, funds are contributed to community organizations that have historically received funding. Currently, the city is adopting the same approach as the City of Vadnais Heights, allocating 10% funds to support fireworks and parks-related expenses. MN State Statutes “Lawful Purposes” Statute 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 DISCUSSION: At the September 10 City Council Workshop, the City Council directed staff to develop a Community Support Program. Staff has drafted the program guidelines and application process, along with an overview of planned marketing and the program's launch. The City Council also provided direction on the use of the 10% Fund for a portion of NYFS expenses. These new uses of the 10% Fund would be in addition to the continued funding for the Canadian Days fireworks display.