HomeMy WebLinkAbout4.A. City Financial Participation in Derby Days Activities y. A .
CITY OF SHAKOPEE
Memorandum
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: Derby Days Participation
DATE: July 31, 2012
Comment:
ACTION SOUGHT:
A motion to authorize payment of $10,500 to be used as a donation to the 2012 Derby
Days fund to finance fireworks.
BACKGOUND:
At its meeting of July 17, the Council heard a report by Derby Days President Jack
•
McGovern that contributions towards the Derby Days Celebration (August 1 -5) have
fallen significantly short of goals for 2012. In response, Council asked what
contributions the City could make to help, and directed that a report be made.
I was subsequently advised that cities are limited by state law and by various State
Auditors' opinions as to the type of participation monetary support of community -wide
celebrations. In general, unless specifically authorized, the contributions must be used
for items which are of a community -wide benefit - -i.e. portable toilets (for public health)
and public safety expenditures.
If the Council does want to lend support with tax dollars, one option would be to fund the
Derby Days' fireworks display on Sunday, August 5th. Fireworks are one of the
activities specifically authorized in State Law to be able to be financed by City
contributions. Derby Days reports that it has raised to date only $1000 of the $11,500
budgeted for the 2012 display.
Therefore, if the Council wants to participate financially in this year's event, it could
make up the $10,500 shortfall in the fireworks budget.
BUDGET IMPACT:
Funding for this would come from the unallocated line item of the 2012 budget. There is
approximately $18,600 remaining in that line item for this year.
RECOMMENDATION:
If the Council wants to participate in funding the Derby Days activities for 2012, the Staff
recommendation would be to fund the fireworks shortfall of $10,500.
As an alternative, Council could contribute towards other allowable expenses (portable
toilets, or funding of police overtime). If that happens, it is possible that the Derby Days
fireworks display would have to be cancelled.
The Council should also be aware that staff has been working with Derby Days on a
concept which would extend electrical service throughout Huber Park, which would
allow Derby Days to not have to rent diesel generators in the future. That will be brought
to a future City Council meeting for consideration, as it will not be possible to complete
any such work in time for the 2012 celebration.
RELATIONSHIP TO VISION:
This supports goal D, "Maintain, improve and create strong partnerships with other
public and private sector entities."
ACTION REQUIRED:
If Council concurs, it should, by motion, direct staff to make a payment to the 2012
Derby Days Committee in the amount of $10,500, to be earmarked for the Sunday
evening fireworks display at Derby Days.
VALf 4 -A
Mark McNeill
MM:en City Administrator
° , STATE OF MINNESOTA
�o . , OFFICE OF THE STATE AUDITOR
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a 525 PARK STREET (651) 296 -2551 (Voice)
REBECCA OTTO SAINT PAUL, MN 55103 - 2139 state.auditor ( 296-4755 (Fax)
or�a,osa.state.mn.us (E -mail)
STATE AUDITOR 1- 800 - 627 -3529 (Relay Service)
Statement of Position
Public Expenditures: Donations and Dues
Public entities are often asked to give funds to support various groups and activities.
While the causes may be worthwhile, public entities need to be cautious when making
any fmancial commitments involving public funds.
In most circumstances, public entities have no authority to give away public funds as
donations. Generally, in order to spend money on something, a public entity must have
authority to do so. Authority for an expenditure may be specifically stated in a statute or
charter, or it may be implied as necessary to do what an express power authorizes. In
addition, the expenditure must be for a "public purpose."
Gifts/Donations to Private Individuals /Organizations
Following these general principles, donations to people, non - profits, charities, or other
groups are not permitted unless they are based upon specific statutory or charter
authority. For example, the Minnesota Attorney General's Office has issued opinions
finding that cities have no authority to donate city funds to organizations such as the Red
Cross or the Boy Scouts. The assumption is that a gift of public funds to an individual
or private entity necessarily serves a private rather than a public purpose.
Before a public entity makes a contribution, it is important for that entity to determine
that it has specific authorization to make the expenditure. Here are some examples of
specific, statutorily authorized appropriations:
• Artistic Organizations. A county, city or town may appropriate money to
support artistic organizations.
• Historical Causes. A town or city may annually appropriate a specified amount
to a county historical society so long as the society is affiliated with, and
approved by, the Minnesota Historical Society. Cities have express authority to
commemorate important and outstanding events in city history, and to appropriate
money to collect, preserve and distribute its history data for future generations.
See, for example, Op. Att'y Gen. 59 -A -3 (May 21, 1948).
2 Minn. Stat. § 471.941.
3 Minn. Stat. § 138.053.
4 Minn. Stat. § 471.93.
Reviewed: June 2012 2007 -1017
•
Revised: June 2012
This Statement of Position is not legal advice and is subject to revision.
An Equal Opportunity Employer
The Attorney General's Office recognizes that a city can advance money to a
nonprofit to sponsor a centennial celebration.
• Prevention of Cruelty to Animals. A county may appropriate money for
maintenance and support of the local society for the prevention of cruelty to
animals.
• Food Shelves. Cities and counties may donate funds in the form of grants to food
shelves providing food to the needy without charge.
• Senior/Youth Centers. A county, city or town may appropriate money to
support the facilities, programs, and services of a public or private, not - for - profit
senior citizen center or youth center.
• Public Recreation Programs. Counties, cities, towns and school districts may
spend funds to operate programs of public recreation, recreational facilities, and
playgrounds. These programs may be conducted independently or with any
nonprofit organization.
• Promotion. A city or urban town may appropriate up to $50,000 annually to an
incorporated development society or organization of this State, for promoting,
advertising, improving, or developing the economic and agricultural resources of
the city or urban town. A city may appropriate money to advertise the city and
its resources and advantages. Similarly, a county may appropriate funds to a
similar entity for promoting, advertising, improving or developing the economic
and agricultural resources of the county." The county statute does not contain an
annual spending limit.
• Employee Recognition. Towns may spend funds to recognize volunteers, service
efforts, and retiring town officers. Counties may spend funds for preventive
health and employee recognition services.
• Community Celebrations. Towns may spend funds to host or support a
community celebration. Cities may spend funds Memorial Day observances,'
county fairs, and centennial and historical celebrations.' Statutory cities may
spend funds to provide free musical entertainment.' " The authority to purchase
fireworks seems to be implied.'
5 See Op. Att'y Gen. 59a -3 (Jan. 18, 1968) (citing Minn. Stat. § 471.93).
6 Minn. Stat. § 343.11.
7 Minn. Stat. § 465.039.
8 Minn. Stat. § 471.935.
9 Minn. Stat. §§ 471.15 to .1911 and 471.16, subd. 1.
1° Minn. Stat, § 469.191. In addition, Economic Development Authorities (EDAs) have authority to
conduct activities advancing the city and its economic development, and to carry out other public relations
activities to promote the city and its economic development. See, generally, Minn. Stat. §§ 469.090 -.1081
and.1082 (county EDAs).
" Minn. Stat. § 469.189.
12 Minn. Stat. § 365.10, subd. 12 (but electors must approve).
13 Minn. Stat. § 15.46.
14 Minn. Stat. § 465.50.
15 Minn. Stat. § 38.12.
16 Minn. Stat. § 471.93.
17 Minn. Stat. § 412.221, subd. 15.
18 Minn. Stat. § 624.22, subd. 1(a)(2) (A municipality may stage a fireworks display after obtaining a
permit.).
Reviewed: June 2012 2 2007 -1017
Revised: June 2012
The Attorney General's Office recognizes that a city can advance money to a
nonprofit to sponsor a centennial celebration.
• Prevention of Cruelty to Animals. A county may appropriate money for
maintenance and support of the local society for the prevention of cruelty to
animals.
• Food Shelves. Cities and counties may donate funds in the form of grants to food
shelves providing food to the needy without charge.
• Senior/Youth Centers. A county, city or town may appropriate money to
support the facilities, programs, and services of a public or private, not - for - profit
senior citizen center or youth center.
• Public Recreation Programs. Counties, cities, towns and school districts may
spend funds to operate programs of public recreation, recreational facilities, and
playgrounds. These programs may be conducted independently or with any
nonprofit organization.
• Promotion. A city or urban town may appropriate up to $50,000 annually to an
incorporated development society or organization of this State, for promoting,
advertising, improving, or developing the economic and agricultural resources of
the city or urban town. A city may appropriate money to advertise the city and
its resources and advantages. Similarly, a county may appropriate funds to a
similar entity for promoting, advertising, improving or developing the economic
and agricultural resources of the county. The county statute does not contain an
annual spending limit.
• Employee Recognition. Towns may spend funds to recognize volunteers, service
efforts, and retiring town officers. Counties may spend funds for preventive
health and employee recognition services.
• Community Celebrations. Towns may spend funds to host or support a
community celebration. Cities may spend funds Memorial Day observances,
county fairs, and centennial and historical celebrations. Statutory cities may
spend funds to provide free musical entertainment.' 7 The authority to purchase
fireworks seems to be implied.
5 See Op. Att'y Gen. 59a -3 (Jan. 18, 1968) (citing Minn. Stat. § 471.93).
6 Minn. Stat. § 343.11.
7 Minn. Stat. § 465.039.
8 Minn. Stat. § 471.935.
9 Minn. Stat. §§ 471.15 to .1911 and 471.16, subd. 1.
10 Minn. Stat, § 469.191. In addition, Economic Development Authorities (EDAs) have authority to
conduct activities advancing the city and its economic development, and to carry out other public relations
activities to promote the city and its economic development. See, generally, Minn. Stat. §§ 469.090 -.1081
and.1082 (county EDAs).
11 Minn. Stat. § 469.189.
12 Minn. Stat. § 365.10, subd. 12 (but electors must approve).
13 Minn. Stat. § 15.46.
14 Minn. Stat. § 465.50.
15 Minn. Stat. § 38.12.
16 Minn. Stat. § 471.93.
17 Minn. Stat. § 412.221, subd. 15.
18 Minn. Stat. § 624.22, subd. 1(a)(2) (A municipality may stage a fireworks display after obtaining a
permit.).
Reviewed: June 2012 2 2007 -1017
Revised: June 2012