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State of Minnesota • Gambling Control Board <br />March 14, 1997 <br />Joel Hanson, City Administrator <br />City of Little Canada <br />515 Little Canada Rd <br />St. Paul, MN 55117 <br />Dear Mr. Hanson: <br />RECEIVED , <br />Suite 300 South <br />1711 W. County Road B <br />Roseville, MN 55113 <br />612/639 -4000 <br />Cities are allowed under Minnesota Statutes 349.213 Subd 1(a) to require organizations that <br />conduct lawful gambling in their jurisdiction to contribute gambling profits to a fund established <br />and administered by the city for lawful purpose expenditures. Enclosed is a copy of the statutory <br />language regarding the fund, and a copy of the Board's May 1996 newsletter which addresses the <br />10% fund administered by a city. <br />We received an allegation regarding the city of Little Canada's administration of a charitable <br />gambling fund in violation of Minnesota Statutes 349.213 subd. 1(a). <br />The following expenditures were listed under the city's budget as made from the 10% fund. <br />1995 Amount <br />Rice Street Development $46,000.00 <br />City Center Information Sign and Landscaping $ 413.00 <br />Audit Service $ 500.00 <br />1996 <br />Economic Development <br />City Center Information Sign and Landscaping <br />Audit Service <br />TOTAL `95 -'96 <br />$47,084.00 <br />$ 7,087.00 <br />$ 500.00 <br />5101,584.00 <br />Please respond to the following: <br />1. Explain how each of the above expenditures qualify as lawful purpose expenditure as <br />authorized in Minnesota Statutes 349.12 Subd. 25 (a). <br />2. Explain why audit service costs are charged to the fund? <br />Please respond in writing within 30 days of the date of this letter. In advance, thank you for your <br />cooperation. <br />Sincerely, <br />Harry W. Baltz, <br />Executive Dire• • <br />HB:gd <br />An eg <br />Page 49 <br />