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6.6. SR 02-08-1999 rCI ---'\) ( )j !ll< 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. . 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 Money for this contribution would come from the $2,000 designated in the budget for the community theater (which is no longer active) and $3,000 from the City Council Contingency Fund.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. . 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 ... I ~.-'_u .,.....'-" ....,.."a......-.J,." v. . 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 .." .', ; ~ 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 . , ; 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 ". i. ..;,1 ;,,' ,! 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 ' . . . . '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 j t . 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 ~~" . A PUBLICATION FOR LOCAL GOVERNMENTS Volume 2 Fall 1993 . 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- r"_ _...-..~.I..!- . . . . . ., ..::' I NSI D E :~:::::~:.~: - .~ ....... : _....:-...~,: . ....>.-..::..-~ '::., New board promotes::::.:'~~:.~:.:.~:::: ,.,:'.;,:' ' ,:JnnC?y.atio~ !~ gov~rf)~~n~,..pag.e~,~~: '.': ~.:""':'~:~.',"~:':",,':' ...... .v:;.".=."-,:"::,, .:~~<:.; "_:::.:::: .-:'. ')';:' ;-':.:_:' :::. :', ~. ~.:.. . . .,'00 your-gifts have a"::_;~;":':,"... ".7':~-' '..:- .' :~ ":~~.~IiC p~rp.~~e? '::: ';: >',::: .::" page 4 ".1. . ,:>. 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. .' Feb~uary 1, 1999 I . . , , .. 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. " ' .: , 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 , , 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 . 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 I', . ~ uW I -fobt'U'Pfpved_ ,--- - 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 . . . 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 . 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 . $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 . .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 . 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 .