Administration - Alison Bong, Deputy Finance Director
Title
Title
Adopt 2023 Charitable Gambling Fund Budget
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Executive Summary
Pursuant to requirements to adopt annual budgets for all operating funds, Staff is bringing forward the proposed 2023 Charitable Gambling Fund Budget for Council consideration and adoption.
Background
Staff presented a proposed 2023 Charitable Gambling Fund Budget for discussion at the August 8, 2022 council workshop and November 21, 2022 workshop. Council reviewed the proposed budget and recommended funding all organization that have been awarded dollars in prior budget cycles at the same levels as prior years. Additionally, council recommended funding three new requesting organizations: Boy Scout Troop 3509, Minnesota 100 Club, and Way of the Lord Food Shelf.
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). Organizations participating in charitable gambling in 2022 are the Blaine Festival Committee, VFW - Sgt. John Rice, Blaine Youth Hockey, Centennial HS Football Boosters, Spring Lake Lions Club, SLP #16 Youth Hockey, and Spring Lake Park Youth Hockey. 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.
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.
2023 Proposed Budget
Charitable gambling revenues have continued to exceed budgeted amounts. Finance amended the 2022 projected contributions to $200,000 as revenues have exceeded the original budgeted amount of $175,000. Per best practice, Finance is continuing to conservatively budget revenues for 2023 and recommends appropriating $175,000 in charitable gambling contributions.
The attached proposed budget for 2023 has $176,500 in revenues and funds $194,500 in donations to charitable establishments and initiatives that benefit the community. The fund reserve more than adequately covers the recommended expenses for 2023.
Strategic Plan Relationship
Adoption of annual budgets contributes to the overall financial stability of the City.
Board/Commission Review
N/A
Financial Impact
The proposed budget, if adopted, allows the Charitable Gambling Fund to provide increased assistance to local charitable organizations while building a larger fund reserve to ensure continuing support for these organizations.
Public Outreach/Input
N/A
Staff Recommendation
Approve the 2023 Charitable Gambling Fund Budget through the adoption of the following resolution.
Attachment List
2023 Charitable Gambling Fund Budget Summary
Body
WHEREAS, the proposed Charitable Gambling Fund Budget for the fiscal year commencing January 1, 2023, 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 2023 appropriations and associated expenditures attached hereto are approved.
3. That the 2023 funding sources identified and attached hereto are approved.
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 19th day of December 2022.