3.5 Interfund Transfer - Gambling
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Administrator/Finance Director Flaherty March 14, 2022
PRESENTER(s) REVIEWED BY: ITEM #:
Consent 3.5 – Interfund Transfer
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
X Is a strong organization that is committed to leading the community through innovative
communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council adopt a resolution approving transfer of funds.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
The City regulates lawful gambling operations to be permitted within the City. The City is authorized to
adopt such regulations under Minnesota Statute §349.213, with the respective regulations being outlined
in Title 4, Chapter 7 of the City Code.
In accordance with Statute, the City requires permitted organizations to contribute 10% of net profits
derived from lawful gambling to a fund administered by the City. To date, these contributions have been
receipted into the Parks Capital Equipment Fund (#205). The same Statutes that provide the authority to
regulate lawful gambling, also guide the expenditure of contributions received by the City.
City staff is recommending that a new, dedicated Fund be created to accumulate the contributions. This
separate fund will allow for improved administrative reporting to the State, development of a budget, and
improved tracking of expenditures.
Contributions accumulated from January 1, 2020 through the date of this recommendation, will be
transferred from the Parks Capital Equipment Fund into the newly created Lawful Gambling Fund. The
amount of this transfer will be $82,349.07. Contributions prior to, have been expended on lawful uses, and
have been reported to the State as such.
This information was reviewed with the Administrative Subcommittee at their March 9, 2022 meeting with
recommendation for inclusion on the City Council consent agenda.
SUPPORTING DOCUMENTS ATTACHED:
• Resolution 2022-22
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2022-22 approving transfer of funds.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
N/A
1
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2022-22
APPROVING TRANSFER OF FUNDS
WHEREAS, the City of Otsego regulates lawful gambling operations within the City in accordance with
Minnesota Statute §349.213, with the respective regulations being outlined in Title 4, Chapter 7 of the City
Code; and
WHEREAS, the City of Otsego requires permitted organizations to contribute ten percent (10%) of net profits
derived from lawful gambling to a fund administered by the City; and
WHEREAS, governmental accounting requires that monies dedicated to specific projects or activities are
accounted for within a separate fund of the City; and
WHEREAS, the Finance Director recommends that a new dedicated fund be created to accumulate the
contributions; and
WHEREAS, the newly created fund will allow for improved administrative reporting to the State of Minnesota,
development of a budget, and improved tracking of expenditures; and
WHEREAS, contributions accumulated from January 1, 2020 through the date of this resolution will be
transferred to the newly created fund; and
WHEREAS, contributions prior to, have been expended on lawful uses and have been reported to the State
of Minnesota as such; and
WHEREAS, the Otsego City Council has the responsibility to review such transfers of funds as part of their
financial oversight of the City’s resources.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. That a transfer of funds in the amount of $82,349.07 from the Parks Capital Equipment fund to the
newly created Lawful Gambling fund is authorized.
2. That the transfer of funds be recorded and reflected within the City’s 2022 financial records.
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ADOPTED by the Otsego City Council this 14th day of March, 2022.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk