Gillespie Center asks Minnetrista for $25,000; council asks for financial details and legal guidance

The council heard an appeal from a Gillespie Center representative for a $25,000 contribution and engaged in an extended discussion about the center’s services, past city support and the legal and budgetary limits on municipal grants to nonprofit organizations.

A Gillespie Center board member, Rhonda, urged the city to “give them $25,000,” saying the center serves 50–60 people daily, provides wheelchairs and walkers and other services that, she argued, reduce calls for city services. Rhonda framed the request as modest relative to the city’s levy, calling $25,000 “0.35 percent of our levy.” She also noted recent program revenue and fundraising progress, saying the center’s endowment stood at about $2.5 million and that the center had secured an $85,000 recurring contract for facility use.

City staff and legal counsel cautioned that any expenditure to a private nonprofit must meet a public‑purpose test and be budgeted. A city legal advisor said, “There is a statute that says that a city may appropriate money to support the facilities, programs, and services of a public or not for profit senior citizen center or youth center,” but added that such an appropriation still requires that the council budget and expend levy dollars for the purpose. The mayor reiterated legal and political constraints, saying the city cannot simply give money for rent or general administration and asked for clarity on exactly which services the city would be funding.

Council members were split on timing and source. Some argued the amount is modest relative to overall budgets and could be considered for early 2025 if unallocated surpluses appear after year‑end; others said that adding $25,000 would require cutting or reallocating planned items or increasing the levy, and recommended waiting until the 2026 budget conversation. Several council members requested a breakdown of what Minnetrista residents receive (for example, tax-preparation services and equipment loans) and the Gillespie Center's detailed financials, including the composition of the center’s $330,000 annual expense figure and the status of its endowment.

The council did not approve immediate funding. Staff said they will close the city’s books for 2024 and return with precise surplus/deficit figures and, at the council’s direction, a possible early-year donation if funds are available. The expectation is to revisit the request in early 2025 (first quarter) after year-end closing and audit work is sufficiently advanced.

Data cited in the discussion: a staff estimate of the center’s endowment at about $2.5 million (the center had previously reported an expectation of $3.0 million), council members’ recollection that the city had contributed roughly $34,000 annually over a prior 10‑year period (which a council member estimated would total about $340,000 and, with a hypothetical 3% annual interest calculation, roughly $460,000), and a recent $85,000 contract signal that the center is generating some program revenue.

Next steps: the council asked the Gillespie Center to provide detailed financials and a services breakdown for Minnetrista residents; staff will report year‑end figures and bring the item back for council consideration in early 2025. No appropriation was made at the meeting.