Agenda - Council Work Session - 04/15/2008

Home

CITY COUNCIL WORK SESSION Topic Report: Discussion of Lawful Gambling Fund -City Code 3.40.02 By: Heidi A. Nelson, Asst. City Administrator Background: Staff would like to discuss the amendments that were made to the City Code with regard to the Lawful Gambling Fund at the end of 2007. As Council will recall, the uses of the Lawful Gambling Fund were changed to allow for expenditures for community programs and/or services. Historically, the fund has been dedicated to recreation, community, and athletic facilities, except for the annual contribution to the Anoka Aquatics Center. After considerable staff discussion, staff is seeking direction from Council with regard to establishing a percentage to be dedicated to capital projects and to community programs/services. The current balance of the Lawful Gambling Fund IS: $200,509. In 2007; as a part of the budget amendment process, $47,544 of community programs (Community School, Juvenile Diversion, and Youth First) were funded from the Lawful Gambling Fund. In 2008, $21,300 of community programs (Juvenile Diversion, Alexandra House, and Youth First) were funded from the Lawful Gambling Fund. Staff has researched whether or not the smoking ban has impacted Lawful Gambling revenues as was recently reported in the Star Tribune regarding some communities in Minnesota. It appears that we have not been affected by the smoking ban with regard to Lawful Gambling revenues provided to the City. It should be noted that the percentage required to be paid to the City by Lawful Gambling organizations increased from 3% to 5% mid-year 2007. For example, In January and February of 2007, if we had been collecting the same 5% we are now collecting, we would have received $5,269. For the same two months in 2008, we have received $6,974; or an increase of$I,705 over last year when the ban was not in place. Lawful Gambling organizations have operated in Ramsey since 1988 and the organizations have been contributing to the City since that time (percentages have changed from time to time). As mentioned earlier in this report, the city's lawful gambling fund (contributions from lawful gambling organizations) has been used for parks capital expenditures exclusively, (exception is Anoka Aquatics Center coritributions for the past ten years) since the time that the - fund was established. Action Statement: Staff is seeking direction with regard to a maximum annual percentage to be dedicated to capital projects and a percentage to be dedicated to community services/programs. In addition, it will need to be determined whether the percentage shall be applied to the balance of the account as well as the annual revenue generated and interest earnings on the account. J(6W Reviewed By: City Administrator: .. I CCWS: 04/15/08