Review Charitable Gambling Contributions to Non-Profit Organizations

The purpose of this case is to consider whether the Charitable Gambling Fund policy should be revised to broaden its use to other community service organizations.

The city has been funding a couple of organizations - Juvenile Diversion and Youth First for the past several years from its Charitable Gambling Fund.  A summary of programs and funding source is attached.

The city has been approached by Family of Promise and Ramsey Heart Safe about also making a donation to their respective organizations.  Family of Promise provides emergency housing assistance to local families in need.  The Ramsey Heart Safe program is a community wellness initiative that has a goal of increasing the survival rate of sudden cardiac arrest victims in Ramsey.  With reductions in funding from other sources, some cities have broadened their policies to include this type of community service organization.  Based upon a strict interpretation, neither project could be funded under the current policy.

The Charitable Gambling Fund can be used for the following expenditures per the city's current fund policy:

1. Expenditures for recreation, community and athletic facilities, as adopted in the annual Capital Improvement Program, intended primarily for persons under age 21, provided that such facilities and activities do not discriminate on the basis of a gender; and
2. Expenditures for community programs and/or services, intended primarily for persons under age 21, provided that such programs and/or services do not discriminate on the basis of gender; and
3. On an annual basis, at least seventy (70) percent of the funds in the Lawful Gambling Fund shall be allocated for expenditures for recreation, community and athletic facilities; and
4.  Requests for fund expenditures, and donations toward fund expenditures,  received during the prior calendar year will be considered by the Park and Recreation Commission and authorized by the Council Finance Committee on a case by case basis; and
5. Capital purchases of $1,000 toward which donations are received and to which no City expenditures are required may occur after review and approval by the Park and Recreation Commission.

Expanding the use of the fund will increase the funding options for some valuable community programs, however, this will result in a reduction in already insufficient park facility funding options.
 

20-30 minutes

The Charitable Gambling Fund is funded with the 5% monthly contribution from lawful gambling proceeds as provided from Anoka Area Ice Arena, Climb Theater and Ramsey Lions.  The respective cash flow of the fund is attached.

City Administrator and Finance Director.

Review Charitable Gambling Fund Policy and to consider whether the policy should be revised to broaden its use to fund other community service organizations.