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Charitable Gambling Report <br />July 6, 2009 <br />Page 2 <br /> <br />If the City Council supports such a code amendment, a determination would need to be <br />made on how the contributions would be subsequently distributed. One example would <br />be to dedicate the proceeds to the Festival in the Park. The law is fairly clear that the <br />contributions cannot simply be used for general fund City operation. <br /> <br />MN Statutes 349.213: <br />A city may adopt “an ordinance requirement that such organizations must contribute ten percent <br />per year of their net profits derived from lawful gambling conducted at premises within the city's <br />or county's jurisdiction to a fund administered and regulated by the responsible local unit of <br />government without cost to such fund, for disbursement by the responsible local unit of <br />government of the receipts for (i) charitable contributions as defined in section 349.12, <br />subdivision 7a, or (ii) police, fire, and other emergency or public safety-related services, <br />equipment, and training, excluding pension obligations…” <br /> <br />A full list of allowable charitable contributions can be found on the next page and <br />thereafter. <br /> <br />Conclusion: <br /> <br />Given the loss of state aid and other reductions in revenue sources, the City Council <br />may want to consider adopting an amendment to require the charitable gambling <br />organizations to contribute ten percent of their net gambling profits to the City. It should <br />be noted however that charitable gambling revenues have decreased consistent with <br />the economy and the charitable gambling organizations have less revenue with which to <br />fund their own priorities. <br /> <br /> <br />Respectfully submitted, <br />Desaree Crane