6.6. SR 02-08-1999
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ITEM #6.6.
MEMORANDUM
River TO:
FROM:
Mayor and City.~ouncil
Patrick D. Kl~tY Administrator
February 8, 1999
DATE:
SUBJECT: 2001 Arts Alliance Request for
Contribution
The 2001 Arts Alliance organization requested a city contribution of $5,000
for the June 26-27, 1999, Art Soup Festival. This request was made at the
January 19, 1999, meeting.
Attached for your information is the state law regarding city financial
support to artistic organizations. Also attached is an article from the state
auditor's report (fall of 1993) regarding municipal contributions. Finally,
attached is material from the Arts Alliance organization regarding the
upcoming festival and its request for financial support.
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State law allows a city contribution to this organization. The state auditor's
article provides guidance regarding other types of contribution requests
which are not covered by state law. It should be noted that the City Council
discussed a formal policy on gifts and contributions in the past, but has
chosen to evaluate the requests on a "case by case" basis, and essentially that
approach is the city policy.
It is recommended that the city contribute $5,000 to the 2001 Arts Alliance
for the June 26-27, 1999, Art Soup Festival. Money for this contribution
would come from the $2,000 designated in the budget for the community
theater (which is no longer active) and $3,000 from the City Council
Contingency Fund. It is assumed that if funds are requested for a future
festival, that it will be a request for a smaller amount, and that the request
will come while the City Council is still considering its upcoming annual
budget.
Recommendation
The City Council allocate $5,000 to the 2001 Arts Alliance organization for
the 1999 Art Soup Festival.
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13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
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Any ordinance adopted pursuant to sections 471.924 to 471.929 must be filed with the
county recorder. The county auditor shall file a certified copy of ~he ordinance for record.
History: 1985 c,289 s 13 .."
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471.929 ENFORCEMENT. " ,", " 1;, , ,
The duties of enforcing an ordinance adopted pursuant to this section ~tiall be imposed
by the county board upon the county sheriff's department. . ,," , '. '
, History: 1985 C 289 s 14 . J .'., (', '. , ., : ,I! ' 'I
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471.93 APPROPRIATIONS FOR HISTORICAL WORK BY MUNICIPALITIES.
In cities of the second, third or fourth class, and statutory cities at any regular'orproperly
called special meeting of the council, it may appropriate money for the purpose of collecting,
preserving, storing, housing, printing, publishing, distributing and exhibiting data and mate-
rial pertaining to the history of the city, for the purpose of commemorating the anniversary of
any important and outstanding event in such history, and to preserve such history data and
material for future generations. The amount appropriated shall not exceed $2,000 in anyone
year. '. I ' ",.
, 'Hist~ry: 1957 C 358 s'1;'1973 C 123 art 5 s 7; 1977 C 86 s 11 ".
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471.94 [Repealed, 1959 c 500 art 6 s 13] , , , ,0 "
471.941 APPRoPRIATMpJ,rort A:ttTl8TlG~.
For the purposes of this section, "artistic organization" means an association, corpora-
tion, or other group of persons that provides an opportunity for persons to participate in the
creation, performance, or appreciation of artistic activities which include but are not limited
to: music, dance, drama, folk art, architecture and allied fields, painting, sculpture, photogra-
phy, graphic and craft arts; costume and fashion design, motion pictures, television, radio,
tape and sound records, activities related to the presentation, performance, execution, and
exhibition of the art forms; and the study of the arts and their applic;ation to the human envi-
ronment. . ,', , ,: ' , ;!. ' " , ). .: Ii.,! . "
A county, statutory or home rule charter city, or town may appropriate money to support
artistic organizations. The appropriation may be divided among organizations in the propor-
tions that the county board, city council, or town board determines. .
History: 1989 C 39 s 1 ' .
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'471.95 PATIENTSIN PuBLIC HOSPITALS, EXTENSION OF CREDIT. .
,. .! ". The body or bodies authorized by law to levy taxes for the maintenance and oPeration of
any county, city, or town hospital, sanitarium, or nursing home; hospit~l district; or of any
. such facility operated jointly by any combination of county, city, or town, may authorize the
furnishing of care, treatment, and maintenance to the persons cared for in such hospital, sam-
, tarium, or nursing home without requiring that such services be paid for in advance.
Such body or bodies may authorize the employment of whatever legal and other ser-
vices which may be deemed necessary and appropriate to secure the collection of any ac-
counts unpaid and due the hospital, sanitarium, nursing home, or hospital district for services
'rendered to the persons cared for therein, 'and may compromise and settle said accounts fo~
such amounts as in their discretion may be collectible.
History: 1961 C 58 s 1; 1973 C 123 art 5 s 7
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471.96 MEMBERS OF CIVIC EDUCATIONAL ASSO~IATIONS.. ", ' .
Subdivision 1, Dues, expenses. The governing bodies of ci~es, counties, and towns are
hereby authorized to appr~priate necessary funds to proyidemembership of th~ir ~~spective
~~"
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A PUBLICATION FOR LOCAL GOVERNMENTS
Volume 2
Fall 1993
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Number 3
?:GENERAL COUNSEL "':' ::.
Local units of government are often ap-
proached for contributions to various worth-
while events and causes. A governing board
must evaluate these requests in light of the
State constitutional requirement that ~leXll
penditures of public money be for a publf
purpost. '
The analysis of public purpose for gifts to
an il,dividual or organization must involve a
determination of whether the primary object is
to promote a private end. If the primary object
is to benefit a private objective, the expendi-
ture cannot meet the test even if there is inci- '
dental public benefit Conversely, if the pri-
1m.!)' objective is to meet a public purpose, an
incidental benefit to private individuals does
not disqualify the expenditure.
Therefore, a direct contribution to an in-
dividual citizen or organization for sponsor-
ship or support of an undertaking that prima-
:ily benefits the individual or organization
c:mnot be supported on the theory that the
Alic beneiits when individuals gainfully
~sue enterprises. The general public must
benefit. While public purpose should be con-
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'::., New board promotes::::.:'~~:.~:.:.~:::: ,.,:'.;,:' '
,:JnnC?y.atio~ !~ gov~rf)~~n~,..pag.e~,~~: '.':
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. .,'00 your-gifts have a"::_;~;":':,"... ".7':~-' '..:- .'
:~ ":~~.~IiC p~rp.~~e? '::: ';: >',::: .::" page 4
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,:>. Spotlighton:..Mi:H~.~a~o .".., p'age 7..
':/;j.(.f.>~'.::.'~:~:>':';';:?~,~~2::~~::t.:,;:: ",,~;::,~., :' - .
Gifts versus promotional costs
strued in light of modem life the test cannot b4
met by theoretical assessments of what miglJ
be good for the public. It should be reasonabt'
libly that a direct benefit to the public 'till
OCCU\
Consequently. aJocal unitof govemme.
cannot donate funds to improve a church 1*>-
gram, nor may they donate funds to the Clllm-
ber of Commerce, Boy Scouts. Red Criss,
Rotary, Kiwanis and other kindred gr&ps. See
Op. Atty. Gen. September 28, 1933; Op. Atty.
Gen. 59-A-3,luly 10, 1946.
The Minnesota standard is stated in Burns
v.Essling, 156Minn 171 (1923). The court on
page 174 says, .. The wisdom or expediency of
a proposed expenditure of taxpayers' money
...is to be determined solely by the legislature
or by local authorities to whom legislative
powers have been delegated. It is well settled
that. if the priml!:.r;)'PQjeclof an expenditure 01
municipaJ funds is to SubsWl!'ll ~ p&-
pose. the expenditure is legal. It is equally wej
settled that. if the primary object is to prOrnbte
some private end. the expenditure is illegaf..'
The Attorney General has determined
that general powers to expend funds by eilher
a charter city or a statutory city are not suffi-
cient to allow gifts which do not meet the above
standard. See Op. Atty. Gen. September 28,
1933; Op. Atty. Gen. 59-A-3,luly 10, 1946.
The guidance above wOl,.lld be sufficiem :f
DOt for the prom~onal activities perfo~d by
many of the abo~ referenced organiz3uons.
While a general gift to the Rotary is. without
authority, a contribution by a city to help sp$n-
sor an annualma.rlUbon.or festival to promote
a city may qualify.
In light of the gray area between promo-
tional expe1l<liwm ana gifts, it is our advice
that a local unit of government develop apolic)<
or procedure lOlmIU'te that aU expenditures o~
this narure ve,ey~~teG prior .10 commitment
offuno...ln the caso<>fcharter citJ:s. the charter
should be evaluated to determine whether spe-
cific reference is present to provide authority
for gifts which do not meet the general stan-
dard. If the charter is silent, the general stan-
dard should be followed.
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Feb~uary 1, 1999
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.. The arts festival is a mgan~ of cultural development and ultimately will help generate
support for an arts center in our community. The arts c~nter with space.for performing,
~xhibiting, and creating art has, b~en identified repeatedly over ,the years as apriority,need
in the Elk River area community.
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Enclosure: DRAFT of estimated operating budget
Post P f fie e 'B 0 x 43,3 <> E f k R i vel" I 'M inn e sot q
<>
55330-2506
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ArtSoup Budget
.Iaries & Wages
Revised 1-14-99
Time (hours)
Maintenance & Sanitation
4 Elk River Police
Community volunteers
32
32
400
Totals
Artistic Fee, Contracts and Honoria
Irish Dancers (Mooncoin Ceili Dancers)
Chad Briggs (Dave & Tony Falbo Trio)
Heart of the Beast Puppeteers
Irish Musicians
How to talk Minnesotan (plus church rental)
Writers Workshop
Art Show Judges
Totals
PLANNING & ORGANIZATION
Insurance
Arts Alliance Booth
Setup & Decoration
Tickets for Events
Photography
Videotaping
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Totals
Supplies and Materials
Art in Bloom
Face/Hand Paint and Arts in Bloom
Festival Insurance
Dance Floor Rental
Copies of Literary magazines (writers workshop)
Totals
Travel. Transportation and Subsistence
'her
Transportation for Artists
Catering (donuts & coffee)
Shuttle Service To downtown
Artist setup assistance
Artist hospitality
Totals
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uW I -fobt'U'Pfpved_
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Amount Totals
$320.00
$960.00
$2,000.00
$3,280.00 $3,280.00
$400.00
$150.00
$600.00
$450.00
$3,800.00
$500.00
$300.00
$6,200.00 $6,200.00
$600.00
$100.00
$500.00
$150.00
$1,350.00 $1,350.00
$150.00
$100.00
$600.00
$500.00
$1,700.00
$3,050.00 $3,050.00
$300.00
$450.00
$300.00
$300.00
$300.00
$1,650.00 $1,650.00
Artist Recognition event
. Artist Coffee gatherings (Oct, Jan, Mar)
Elk River Ice Arena
5 Portable Toilets
Benches
3 Rental Signs
Tent Rental
Sound Systems
PROMOTION COMMITTEE (see attached)
YOUTH COMMITTEE (see attached)
Stage Rental
HUMAN RESOURCE COMMITTEE (See attached)
Generator & Gas
$300.00
$150.00
$1,000.OC
$700.00
$100.00
$100.00
$800.00
$1,200.00
$16,574.99
$10,826.00
$500.00
$1,030.00
$550.00
Totals
$33,830.99 $33,830.99
$49,360.99
Total Project Expences
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PROJECT REVENUE
Cash Sources
Cash on Hand
Totals
Grant Sources
3 Rivers foundation
Individual Contributions
Community Organizations - anticipated
Central Minnesota Arts Board
City of Elk River - anticipated
Target Stores - .~.fl~i.illl~'~
Business donations - anticipated
Totals
Earned Income
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Gate Receipts from Ice Arena Concert $5@300 patrons
Gate Receipts from 'How to Speak Minnesota
Artis & Craft Booth Rentals (75@$90)
Art Show Entry fees (100 @ $15.00)
Totals
In-Kind Contributions
Community Volunteers @ $5/Hr (400 Hrs.)
Other (see Promotion)
Totals
Total Project Revenue
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$528.00
$528.00 $528.00
$1,500.00
$3,000.00
$3,000.00
$3,000.00
$5,000.00
$2,500.00
$13,541.99
$31,541.99 $31,541.99
$1,500.00
$4,600.00
$6,750.00
$1,500.00
$14,350.00 $14,350.00
$2,000.00
$941.00
$2,941.00 $2,941.00
$49,360.99
ArtSoup Budget PROMOTION COMMITTEE
.erburne County Fair In Kind Cost
Booth Rental in kind $75.00
Adissions for workers $3.00 @ 6 $18.00
Flyers 2,000 $86.00
Honoraria
Logo design $150.00
Incidental Postage 100@.32 $16.00 $16.00
ArtSoup Festival Posters
18X24" Three Color 2000
Imprint 100 of 10 diferent Type
11X17" Three Color 7000
Imprint 500 each of 10 copy changes
$691.90
$685.00
$1,075.00
$310.00
ArtSoup Brochures
3 Color print 14000
Imprint 500 each of 3 copy changes
$1,000.00
$381.00
Envelopes. White, 1 Ox13, for sponsor kits
500
$31.89
ArtSoup Bank Statement Stutters
10000
$225.00
estival Buttons
Festival T-Shirts
7000
$400.00
100
$500.00
News Paper Advertising
Ads to attract artists
Ads Prior to Event
Week of Events
41/4 page adds
41/4 page adds
Full page
$1,121.40
$1,121.40
$1,121.40
$150.00
Community Ed Ads
ArtSoup Festival Directory
Typseting
16 pages, 5-1/2x8-1/2 3 color
Totals
$500.00
$2,500.00
$3,890.00
$300.00
$160.00
$50.00
$941.00 $15,633.99
$16,574.99
Street Banners, 2x4' 3 color log 50
Information Kiosk - Downtown 1
Black Stock Tank "Cauldron" 6'
Plywood cut-outs arts symbols
Total of cost and IN-Kind
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.rtSoup YOUTH COMMITTEE
Young Artists Unite
(Y.A.U.)
Buttons
$300.00
$175.00
Prizes for Y.A.U. contests
Art Supplies
$50.00
Documentation for Y.A.U.
$75.00
Postage and Copying
$176.00
Misc.
$50.00
Totals
$10,000.00
$10,826.00
Mural on wall of Cinema Proffesional Building
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ArtSoup Budget
Human resource Committee
Supplies
Copying
Postage
Volunteer Recognition
Volunteer Hospitality
$50.00
$105.00
$225.00
$500.00
$150.00
Totals
$1,030.00
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