ADMINISTRATION - Joe Huss, Finance Director
Title
ADOPT 2021 CHARITABLE GAMBLING FUND BUDGET
Background
The city’s charitable gambling fund was established in 1993 to account for the proceeds of a 10 percent contribution that charitable gambling organizations operating within Blaine are required to submit to the city (Code Section 22-384). The organizations participating in charitable gambling in 2020 are the Blaine Festival Committee, Blaine Youth Hockey, Centennial HS Football Boosters, VFW - Sgt. John Rice, the SLP #16 Youth Hockey Association, and Spring Lake Lions Club. These organizations are required to submit 10 percent of their net profits to the city within 15 days of the end of a calendar quarter.
Charitable gambling proceeds significantly declined in 2020, due to the onset of the COVID-19 pandemic and the resulting shutdown of the venues hosting gambling activity. The full impact is not yet known, and it is reasonable to expect that proceeds will rebound as hosting venues are allowed to reopen. Finance is tentatively projecting a decline in proceeds from the budgeted $150,000 to just under $97,000.
As it is unknown what long-term effect the pandemic will have on charitable gambling activity, Staff is recommending holding 2021 budgeted revenue to the same amount as 2020.
Expenditures from this fund are at the city council’s discretion, provided that they fall within the guidelines established by Minnesota Statute 349.12 subdivision 25. Specifically allowable contributions include donations to:
• 501(c)(3) organizations; and 501(c)(4) festival organizations
• Relieve the effects of poverty, homelessness, or physical or mental disabilities
• Treatment of post-traumatic-stress syndrome or compulsive gambling
• Public or private accredited nonprofit educational institution
• Scholarship funds
• Recognition of humanitarian or military service
• Activities and facilities that benefit youth under the age of 21
• Support police, fire, or other public safety-related services, equipment, and training
• Wildlife management projects
• Maintenance of snowmobile and/or ATV trails
• Support nutritional and congregate dining programs, and food shelves
• Community arts programs.
For 2020, the city appropriated donations totaling $150,300. However, the COVID-19 pandemic forced some donations to be withheld. Priority was given to support social services, so $50,000 was expensed to Alexandra House, $9,350 to each of three food shelfs, and $10,000 each to three family and youth support groups. A previously committed allocation of $10,000 to the Blaine Historical Society was fulfilled. The fund is expected to end 2020 with a fund reserve of about $85,500.
Council has set the fund reserve target at $85,000. Should legislation be adopted by the State of Minnesota that would limit or end the city’s ability to continue to fund this program, the higher fund reserve would allow for one final year of charitable gambling funds to be distributed before ending the program, albeit at much lower funding levels.
The 2021 Charitable Gambling Fund Budget as originally proposed at the October 12, 2020 Council Workshop included allocations to the three food shelves, high school senior parties, Civil Air Patrol, the three family/youth service groups, and the annual fireworks display. The city appropriated $50,000 in CARES funding to Alexandra House in 2020, as a pre-payment of intended 2021 funding. Hope for the Community Food Shelf was also appropriated CARES funds ($10,000). Because the other two food shelves were not eligible for CARES funding, the Council recommended providing an additional $10,000 of CARES funding to Hope or the Community and allocate the amount originally appropriated in the Charitable Gambling Fund ($9,350) to the other two food shelves.
In addition to the above, the Council also requested restoring an appropriation of $2,500 for Beyond the Yellow Ribbon. The attached proposed budget reflects those changes.
• Total Revenue budgeted for 2021 equals $99,950, a $51,000 decrease compared to the 2020 Adopted Budget.
• Total expenditures equal $100,300. Specific allocations for both 2020 and 2021 are as follows:
|
|
2020 |
2021 |
|
Alexandra House |
$ 50,000 |
$ -0- |
|
Food Shelves |
|
|
|
Salvation Army |
$ 9,350 |
$ 14,025 |
|
Centennial Food Shelf |
$ 9,350 |
$ 14,025 |
|
Hope for the Community |
$ 9,350 |
$ -0- |
|
High Schools (3) |
$ -0- |
$ 2,250 |
|
SBM Fire (Fireworks) |
$ -0- |
$ 35,000 |
|
Blaine Historical Society |
$ 10,000 |
$ -0- |
|
Beyond/ Yellow Ribbon |
$ -0- |
$ 2,500 |
|
Civil Air Patrol |
$ -0- |
$ 2,500 |
|
Family Promise, Anoka Co |
$ 10,000 |
$ 10,000 |
|
Hope 4 Youth |
$ 10,000 |
$ 10,000 |
|
Stepping Stone Housing |
$ 10,000 |
$ 10,000 |
|
|
$118,050 |
$100,300 |
Recommendation
By motion, approve attached resolution.
Attachments
2021 Charitable Gambling Fund Budget
Body
WHEREAS, the proposed Charitable Gambling Fund Budget for the fiscal year commencing January 1, 2021 has been prepared by the City Manager; and
WHEREAS, the City Council has examined, studied, and reviewed said proposed Charitable Gambling Fund Budget; and
WHEREAS, the City Council has, after due consideration and deliberation, made such amendments and adjustments in the proposed Charitable Gambling Fund Budget as they consider necessary, desirable, or expedient.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine as follows:
1. That the proposed Budget for the Charitable Gambling Fund attached hereto is approved.
2. That the 2021 appropriations and associated expenditures attached hereto are approved.
3. That the 2021 funding sources identified and attached hereto are approved.
4. That the City Manager is authorized and directed to implement and to administer, within the budgetary funding limits and within adopted City policy and relevant State and City laws and regulations, said approved Charitable Gambling Fund Budget.
PASSED by the City Council of the City of Blaine this 16th day of November 2020.