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RELEVANT LINKS: <br />Minn. Stat. § 477A.011. <br />Minn. Stat. ch. 275. <br />• Payment of all estimated expenditures, including an allowance for a <br />Minn. stat. § 275.70, subd. 5. <br />reserve and the amount necessary to make all city contributions to the <br />Handbook, Chapter 22. <br />Public Employees' Retirement Association (PERA). <br />• Current expenditure liabilities the city cannot pay in the present year for <br />lack of current funds or that the city will pay through short-term <br />borrowing. <br />• Repayment of all tax anticipation certificates the city issued during <br />present and past years. <br />• An amount in anticipation of the reduction or loss of state aids, federal <br />revenues, or other undependable sources of revenue. <br />• For the payment of interest and repayment of principal on bond issues <br />before the bonds are delivered. (Bonds issued previously are already <br />funded by a portion of the city levy). <br />3. Gambling taxes and funds <br />Minn. stat. § 349.213, subd. <br />Cities may impose up to a 3 percent local gambling tax on licensed <br />3. <br />gambling organizations in order to cover the cost of regulating lawful <br />gambling. A city may not use these tax revenues for any other purpose. <br />Minn. stat. § 349.213, subd. <br />Cities may also require organizations conducting lawful gambling to <br />1(a). <br />contribute 10 percent of their net profits derived from lawful gambling to a <br />city -administered fund to be disbursed for lawful purposes. Note: state law <br />defines lawful purpose. Such funds cannot be used for the benefit of a <br />pension or retirement fund. <br />See LMC information memo, <br />For further discussion of lawful gambling expenditures and regulation, see <br />Lawful Gambling. <br />LMC information memo, Lawful Gambling. <br />B. Franchise fees <br />Minn. stat. § 216B.36. <br />Cities are authorized to impose a franchise fee on utility services, such as <br />47 U.S.C.A. § 542. <br />gas, electric, and cable television. Franchise fees for gas and electric utilities <br />"Minnesota city and Town <br />are subject to negotiation. Cable franchise fees are limited to no more than 5 <br />Accounting and Financial <br />Reporting standards uniform <br />percent of the cable operator's gross revenues over a 12 -month period. The <br />Chart of Accounts" office of <br />revenues from franchise fees can be useful in offsetting a city's costs to <br />the State Auditor, Feb. 2012. <br />regulate these businesses and maintain and protect the public right-of-way. <br />The state auditor classifies franchise fees as other taxes. <br />C. License and permit revenue <br />Additional Information on <br />Another source of revenue for cities come from license and permit fees. <br />Sources of Revenue. <br />Handbook, Chapter 11. <br />Cities should be conservative when estimating these amounts as they can <br />vary considerably from year to year. Municipal licensing should not be <br />viewed as a significant source of revenue. <br />League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 <br />Municipal Budgeting Chapter 211 Page 14 <br />