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88-984 N�HITE - C�TV GLERK PINK - FINANCE G I TY O SA I NT PA LT L Council �.,,[/ EANARY - DEPARTMENT /4) � ' {- 9l.UE � MAVOR File �O. `� � �� � Counc 'l Resolution �� , Presented By �� Referred To 1 � L ° Committee: Date � � � k'ra � Out of Committee By Date Whereas, The Saint Paul City Council ha established a special fund for the administration and distribution of the proceeds contributed by charitable gambling in on-sale liquor e tablishments as specified in Chapter 409 of the Legislative Code, an Whereas, The Mayor pursuant to Section 0.07.1 of the Charter of the City of Saint Paul , does certify that t ere are available for appropriation, total revenues in excess of those estimated in the 1988 Budget, and Whereas, The Mayor recommends that the ollowing additions be made to the 1988 Budget. Financing Plan Department of Finance & Management Servi ces Division of Accounting Current Amended 715 - Trust Fund Budget Changes Budget 715 00000 9890 Fund Balance 0 30,274 30,274 Spending Plan Department of Finance & Management S rvices Division of Accounting Current Amended 715 - Trust Fund Budget Changes Budget 715 50060 0537 Transfer Out 0 30,274 30,274 Total 0 30,274 30,274 COUNCIL MEMBERS Requested by Department of: Yeas Nays Dimond Lo� In Fa or Goswitz Rettman ��;�� Again t BY s�� wa�� Form Appr v d by City Attorne Adopted by Council: Date v�'=�l- Certified Passed by Counci( Secretary B3' By� ` t#pproved by Mavor: Date _ Appr y Mayor for Sub ' ouncil By wH�7e - ciTr CLERK COtlt1C1I ��/y�/y.� �����/y6/.�/ �UERV�MAVORT ENT GITY O SAINT PAUL /j/�� %J� 7 File N 0. �+��_,t.c� Counc 'l Resolution Presented By Referred To Committee: Date Out of Committee By Date Financing Plan Department of Community Services Division of Parks and Recreation Current Amended 339 Youth Athletic & Sports Assista ce Budget Changes Budget 339 33179 7399 Transfer-In 0 30,214 30,274 Total 0 30,274 30,274 Spending Plan Current Amended Budget Changes Budget 339 33179 0299 Misc. Contracted Servi e 0 30,274 30,274 Total 0 30,274 30,274 Resolved that the City Council of the ity of Saint Paul does approve these changes to the 1988 Budget. � �l ����x``� COUNCIL MEMBERS Requested by Department of: Yeas Nays Dimond �ng In Fav r Goswitz / Rettman � � �;�. _ Agains �seeae� Wilson Adopted by uncil: Date AUG —� �(7� Form Approv by City Attorney Certified Ya-s d ouncil t BY — ��/ sy- " t�ppr by 1�lavor: D _ � — 8 App y Mayor for ub ' s uncil PU�I.IStiED AJ G 1 � 1988. � ♦ i 1 1 � . v� � _ I +. . � � 111� 1 G � Commus�ity Seryices DBPA�TIlBNT . - - - - - - L�►aa `�o1fE CQIiTitiCT NAME '� e 292-7428 P�i01dS � � 3/4/�$8 DATB . ASSIGR pU!ffiER FOR ROtJTIt)ti ORDER: (See re erse side.) �` � q'� ,� Dapartment Director 4 Mayor (or Assistant)� 1` �'�`"� Finance at►d Msnagement Services Direc or 6 City Clbrk irect,a�-.--� 5 City Council City Attorney 7 hief Acconntant TOTAL NUI�iBER Og SIGNATURE PAGES: (C ip all location o �gnature.) ? (Purpcse/Rationale) , Budget Authority will be established f r the Operation of the Yauth At etics and Sports Assistance Program for the year 1988. RF�E�� ��C�i�a ED _ ��,�f �� 19 APR 2 91988 a1AYpR 88 Comm;mitv Services , c aN s �S OFF��E Youth Athletic and Sports Fund will p vide grant/loan opportunities for a�hle�ic groups Who have limited financing. T re is no cost to the City Gen�ral Tax Levy. � Counci0 Research Center. uncE c D J UN 0 7 ��8� (Mayor's signature not required if under $10,000.) Total Amaunt of Transgction: $30,274 Activity Number: 33179 50060 � Fundi�g Source: Charitable Gamblfng R venues ATTAC'HliENTS: (List and nwnber all atta ents.) �C� Council Resolution. �Qx S 1988 ' 6UD(i�T 4fFICE AAi�INISTRATIVE PROCEDURES _Yes _No Rules, Regulations, P ocedures, or Budget Amendment required? _Yes _No If yes, are they or t metable attacheS? AEPARTMENT REVIEW CITY ATTORNEY.xSVIEW x Yes _�io Council resolution requ red? Resolution required? `Yes _No _Yes g No Insurance reqaired? Insurance sufficient� _Yes �No �Yes ?� �To Insurance attached? � �� � ���= 9�'� �..<-s��_�°�:� CIT�� OF SAINT PAUL .aStiO� ��� . . . �; ��, OFFICE OF 7HE CITY ATTORNEY ?,� iiii��ii�ii �� o-.. --�� CDWARD P. STARR, CITY ATTORNEY '��•,;,_:�n^�ri><=` 647 City Hali, Saint Paul, Minnesota 55102 612-298-5121 GEORG� LATIMER MAl'OR April 21 , 1988 Ms . Lynn Wolfe Department of Community Serv' ces 3rd Floor City Hall Annex Dear Ms . Wolfe : Our office has been asked t review and approve a budget transfer for the purpose of provid'ng funds to the Community Services Department to administer he . Youth Athletic and Sports Fund. The attached green sheet explains that the proposed spending plan includes salary costs for staff responsible for monitoring costs , developing contrac s , mailing out flyers , publicity, meeting notices , screening applications and providing guidance ta advisory board. In t lking to Lynn rJolfe , I am advised that of the proposed fund transfer of $30 , 274, $23 , 500 is to be actual grants to eli ible youth athletic organizations , and the balance of $6 , 774 is to be used for the administrative expenses for the "city-wi e organization" established by the City Council to administe the funds . It is my opinion that the City is not permitted by Minnesota Statutes , Chapter 349 , to use the monies received rom charitable gambling organizations , pursuant to section 409 . 2 of the Legislative Code , for such administrative expenses . The conduct of charitable gambling in Minnesota is regulated generally by Chapter 349 o the Minnesota Statutes . The City' s authority to also regula e charitable gambling is restricted by the same provisions . he relevant provision of the statute to the question presented above is § 349 . 213 , subdivision l , which provides as follows : Local Regulation. statutory or nome rule city or county has the a thority to adopt more stringent regulation of any orm of lawful gambling within its jurisdiction, in luding the prohibition of any form of lawful gam ling within its jurisdiction, including the prohibit ' on of any form of lawful gambling, and may require a pe mit for the conduct of gambling exempt from licensin under section 349 . 214. The fee for a permit i sued under this subdivision may not exceed $100. T e authority granted by this sub- division does not i clude the authority to require a license or permit t conduct gambling by organizations � �v. - ��q� Lynn Wolfe Page Two Rpril 21 , 1988 or sales by distribu ors licensed by the board. The authority granted by this subdivision does not include the authority to require an organization to make specific expe ditures of more than ten per- cent from its net profi s derived from lawful gambling. For the purposes of his subdivision, net profits are profits less amou ts expended for allowable ex- penses . A statutory or home rule charter city or county may not requi e an organization conducting lawful gambling within its jurisdiction to make an expenditure to the city or county as a condition to operate within th t city or county, except as authorized under sect ' on 349 . 16 , subdivision 4, or section 349 . 212. The City Council , in enacti g section 409. 22 of the Legis7.ative Code , provided that cert in charitable organizations wnich were permitted to conduct lawful gambling ir, bars must pay 10% of the net proceeds der' ved from such gambling to the city. The funds paid to the city ould be distributed to youth athletic organizations selected by a "city-wide organization" established by the City Council and we e required to be expended only for such lawful purposes as p rmitted by Chapter 349 , Minnesota Statutes . It is my opinion hat this ordinance is not in conflict with section 349. 213 becau e the city is permitted to require the licensed gambling organ' zation to make specific expenditures of not to exceed 10% of ' ts net gambling proceeds , which is accomplished by the requir ments in section 409 . 22 that such proceeds be donated to yo th athletic organizations selected by the city-wide organizati n, and further because the ordinance does not require that the 1 % net gambling proceeds be "expended to the city as a condition t operate within the city" . The city-wide organization established by the City Council determines which youth at letic organization should receive funding from the proceeds of the fund contributed to by the licensed charitable organiza ions . The effect of these ordinance provisions is to "require g mbling organizations to make specific expenditures" for lawful pur oses and we believe is in compliance with the provisions of secti n 349. 213 . However , it is my opinio that the proposed expenditure of a portion of these proceeds for administrative expenses incurred by the city or by the ci -wide organization in administering the program established b the City Council constitutes an "expenditure to the city" , and is prohibited by the provisions of 349 . 213 . - � �--�- y� Lynn Wolfe Page Three April 21 , 1988 Based on the above , I cann t approve the forrr� of the proposed budget transfer as it applies to the use of the 10% proceeds for city administrative ex enses . However , the City Council may allocate funds from oth r sources for these administrative expenses while still allocating the proceeds for di��ect contri- butions to the youth athle ic organizations . I am returning the resolution unsigned and request that you make the necessary revisions to bring the propos 1 into compliance with this opinion. Yours very truly, J 0 E J . 5,�'G�L l�ssistant City Attorney ,�V JJS :cg Encl . � � ' . .�,�i��-�'�`�- � CITY OF SAINT PA.UL - � :i����E��.,� � o�zc� o� Ts� ciz� cornvcu. - . � Ca '�tee Report - � - �`: ance �iana�e ea & Personnel Committee. . � . Ju y 25, 1988 .. _,-�. ...:_ _ _�....___.M___m _._,._. _.. __.___ -_ : _.._ ......__�.__.� __ 1:30 1. Approval of minutes of Jul 11 meet�ng. • - - F I NANCE E MANAGEi1ENT • ------- _._ _---__ . - . _�_- _. �----Y-. ---- --- - - _---- ------- _, / 1:30 �2. Reso l.ut i on 8$-984 - afnend i g the 1988 budget by � `' �� � ; adding $30,274 to the Fin cing and Spending . - _ _ � Plans for Finance � Manag ent Services-Division ' _ of Accounting and the C nity Services Department I for the Youth Athletics a d Sports Assistance �� Program. (Referred from ouncil June 16, laid ) over July 18) _/ �.._ .__----_____---------- ,/1:40 3. Resolution 88-1142 - amen ing the 1988 6udget by Approved ' , adding $6, 100 to the Fina cing and Spending Plans for Traffic Maintenance P ojects. (Referred from � Council July 14) �� 1:45 4. Resolution 88-950 - setti g date of hearing ta Approved consider sewer service 'ch rges. (Referred from Council June 14, laid ove July 18) 1:50 5. Resolution 88- 5 - setting guideli�es for specfific Sent to Council without P ro,�ects fo use or $14,4 2,000 sewer revenue bond recatmendation. proceeds. (Referred fr Council July 19) 2:15 6. Resolution 88-�1 0�- ame ing the 1987 capitaT Approved with amendment: improvement b�dget by ad ing $1,000,000 to the Flood Wall Design and rel ted projects and establishing a design ad isory committee to work with the Division of Par s and Recreation to design development plans for pr jects related to Harriet ' Island Park. (Referred rom Council July 19) � . (continued� CITY HALL � SEVEN FLOOR SAINT PAUL,MINNFSOTA SSI02 '�;° WHITE - CITV CLERK ` COI1fIC1I PINK - FINANCE , G I TY O SA I NT . PA U L CANARV - DEPARTMENT BLUE - MAVOR FilC NO. �' � - Counci Resolution Presented By Referred To Committee: Date Out of Committee By Date Whereas , The Saint Paul City Council has established a special fund for the administration and distribution of the proceeds contributed by charitable gambling in on-sale liquor establishments as specified in Chapter 409 of the Legislative Cod and Whereas , The Mayor pursuant�.�� Se ion 10 . 07 . 1 of the Charter of the City of Saint Paul , does certify hat here are available for appropriation , total revenues ' n ess of those estimated in the 1988 Budget , and Whereas , The Mayor reco ds tha the ol owing additions be made to the 1988 Budget . Financing Plan Department of Finance & Ma ageme rvices Division of Accounting Current Amended 715 - Trust Fund Budget Changes Budget 715 00000 9890 Fund Balance 0 30 , 274 30, 274 Spending Plan � � Department of Finance & Manage ent S vices Division of Accounting Cur n Amended 715 - Trust Fund dget Changes Budget 715 50060 0537 Transfer Out 0 30, 274 30, 274 Total 0 30, 274 30 , 274 COUNCIL MEMBERS Requested by Department of: Yeas Nays Dimond �� [n Favor Goswitz Rettman scne�ne� _ Against Sonnen - Wilson Form Approved by City Attorney Adopted by Council: Date Certified Yassed by Council Secretary BY gy, A►pproved by Ylavor: Date _ _ Approved by Mayor for Submission to Council By BY .' • _ wNiTE — ciTV CLERK COUt1C11 n/�• PINK - FINANCE G I TY O SA I NT PA LT L Y `�/ CANARV - DEPARTMENT C/l//�/ BLUE - MAVOR File NO. , ^ •r' - Counci Resolution Presented By Referred To Committee: Date Out of Committee By Date � �-,ti.��c���. P��1�,� �� Department of Community Servi es Division of Parks and Recreat on Current Amended 339 Youth Athletic & Sports A sistant Budget Changes Budget 339 331� 7399 Transfer- In 0 30 , 274 30, 274 o/ Total ,�3��� 0 30 , 274 30, 274 / Spending Plan Current Amended Budget Changes Budget 0 , -43-5��--- 0 �''SUU-� �"Q— r i n i n g 0 '�"3� --- � 339 33179 0299 Mi sc . Contracted Servi ce 0 '`3�►�7� 23 , 500�,��� 23 , 500 . . —���5--_ ___ Total 0 30, 274 30, 274 Resolved that the City Council o the City of Saint Paul does approve these changes to the 1988 Budget /� � �.J , COUNCIL MEMBERS Requested by Department of: Yeas Nays Dimond �� [n Fav r coswitz Rettman '� s�6e;n�� _ Against Sonnen Wilson Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY — g�. Approved by INavor: Date _ Approved by Mayor foc Submission to Council By - BY