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State law does not allow the city any authority on what specific lawful purpose expenditures must be <br />made. This authority rests with the gambling organization. Fire relief associations can conduct gambling <br />for lawful purposes. The proceeds may be used for general fund expenditures of the relief association or <br />may be donated to a city in addition to various other uses set by statute. The City of Zimmerman is <br />included in Elk River's trade area. <br />The Zimmerman Fire Relief Association currently holds two premises permits within Sherburne County <br />and had the following violations from the GCB during the past two years. <br />November 2009 <br />^ Cited $250 by the Gambling Control Board for failure to file their Annual Financial <br />Summary with the Board. <br />January 2010 <br />Cited $50 by Gambling Control Board because they paid a citation with lawful gambling <br />funds. <br />Attachments <br />^ Resolution for Denial <br />Elk River City Code Article V., Legalized Gambling <br />Map of contiguous cities <br />Schedule C Lawful Purpose Expenditures of the Zimmerman Fire Relief over that past year <br />Action Motion by Second by Vote <br />Follow Up <br />S:\Public Bodies\Council\Council RCA\Licensing\Gambling\2010\7immerman Fire Relief.doc <br />