Minutes - Council Work Session - 05/12/2015

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The Council agreed with the suggestion of Mayor Strommen to next consider Case 2.03. 2.03: Amend City Funds Policy and Excess Revenue Transfer Policy Finance Director Lund reviewed the staff report and recommendation to update the City Funds Ordinance that outlines the respective sources and uses for each fund currently utilized and to amend the Excess Revenue Policy by removing Park Maintenance Fund and replacing it with Park Improvement Fund. She explained this is coming forward to clean up the funds, some that were depleted, and to address the Charitable Gambling Fund and its use. Finance Director Lund referenced Pages 3 and 4, Lawful Charitable Fund, and suggested additions to Subsection (c) (2) and (4). She stated this language still narrows the scope to park related activities, youth, and certain police services. Councilmember Riley questioned the wording of Subsections (1) and (2) indicating: `...provided that such facilities and activities do not discriminate on the basis of a gender...' Mayor Strommen asked if language that is more inclusive should be added beyond gender discrimination to include other factors. Finance Director Lund stated this is language from the past policy but it can be revised. Councilmember Riley suggested removing that wording. Finance Director Lund stated she will also renumber the formatting. Councilmember Johns asked if Subsection (4) is only one option or if the contribution has to be to a 501(C) (3) corporation. Finance Director Lund explained it does not have to be a 501(c) (3) corporation and those other organizations would be included in Subsections (5) and (6). Councilmember Kuzma stated the Ramsey Foundation goes to the same groups each year to raise funds for the concerts at The Draw and asked if something can be added to cover staff time towards those events. He is concerned about what would happen should the Foundation default. Mayor Strommen stated the Ramsey Foundation is a 501(C) (3) so it would be covered under this language. Finance Director Lund referenced Pages 9 and 10 relating to the Park Improvement Fund and explained how it can be used for capital items but not for maintenance since the source of the funds is developers. She explained that in 2003, the City was placed under levy limits and the market value credit and LGA were taken away so franchise fees were instituted. Then there were additional park costs without a way to fund those costs so the Park Maintenance Fund (reflected on Pages 12 and 14) was created. At that point, it was determined this Fund was needed to put dollars towards park maintenance. Finance Director Lund explained that because City Council Work Session / May 12, 2015 Page 7of11