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MINUTES <br />City Council <br />Jan. 14, 1987 <br />Bingo Masman reported that expenses are over what was originally antic~pated, <br />(Cont.) in the form of rent as well as site improvements. Now the issue of <br />Federal and State taxes on profits has arisen. Masman reported <br />that until this issue is resolved, they will not be releasing any <br />money from the operation. <br />Masman also reported that each of the charities involved put up <br />funds to get the bingo operation going. These monies have now <br />been repaid. <br />Fahey asked if there were any private parties that put up funds to <br />get the operation running. <br />Masman replied that there were not. The only funds received were <br />from the charities now operating the bingo hall. <br />Masman also reported that the operation recently had to change <br />accountants, and this is the reason for the delay in submitting <br />a financial report. <br />Masman pointed out from the financial report that the bingo hall's <br />liability due the City of Little Canada is $23,275,80 through <br />November, 1986. However, this money will not be released until <br />the tax issue has been resolved. <br />Mr. Blesener asked about the differences in profit shown for each <br />charity on the financial report. <br />Masman replied that this is due to the particular night of the <br />week that the individual charity is operating. Obviously, Friday, <br />Saturday and Sunday nights are the most profitable. <br />Masman also explained that a bingo package costs $10. Of the $10, <br />$2 goes to the Hall Association and the other $8 towards the <br />charity operating that particular night. The money collected by <br />the Hall Association can be used for promotions as well as advertising. <br />Scalze questioned the amount of wages shown on the financial <br />association. <br />Masman replied that the bingo hall employees 70 people. <br />Fahey pointed out that given the State Statute requirement on <br />expenses, the bingo hall is not in compliance. <br />Masman agreed and commented that this is due to initial start-up <br />costs. The State allows a bingo operation a year to get within <br />compliance standards. <br />Masman also reported that hopefully by next month the hall will <br />know if expense requirements can be met once the tax situation is <br />resolved as well as lease concerns resolved. <br />Page -10- <br />