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MINUTES <br />CITY COUNCIL <br />OCTOBER 23, 1991 <br />LaValle asked for a clarification of Section 815.030 <br />asking if the City's 10% required contribution is based <br />on net profits or gross receipts after prizes. <br />The City Attorney reviewed State Law and replied that <br />the Law requires that the 10% contribution be based on <br />net profits. Net profits is defined as gross receipts <br />less lawful expenses. State Law requires the 3% which <br />can be required by the City for enforcement be based on <br />gross receipts, which is defined as gross after prizes. <br />The City Attorney reported that if the City decides to <br />impose the 3% enforcement tax, the mechanics of <br />administering that £und will need to be worked out. <br />Blesener asked if State Law requires that an <br />organization have its accounting done by a certified <br />public accountant. <br />The City Attorney replied that the State does not make <br />this requirement. <br />Scalze felt that the City should require that charities <br />have a CPA for accounting, since reports would probably <br />be easier to review if they are prepared by a <br />State-licensed accountant. <br />Blesener pointed out that at the workshop meeting, the <br />Council discussed a 10% penalty for late payments. <br />This provision has not been included in the ordinance. <br />The City Attorney reported that the maximum the City <br />can require from a charity is 10%, and he did not feel <br />the City had the authority to require a 10% late <br />penalty in addition to the 10% maximum. <br />It was pointed out that other cities have a penalty for <br />late payments. <br />The Attorney replied that a late penalty can be <br />included in the ordinance, but whether it was <br />enforceable or not is another question. <br />The Council discussed this and decided that rather than <br />a late penalty provision, the Ordinance contain a <br />provision stating that the Council may revoke a <br />gambling license for failure to pay fees. <br />Blesener stated that he had concern with the wording of <br />the trade area provision. <br />The City Attorney suggested that the words "and <br />locations" be removed from Section 815.015 (Aj. <br />Page 9 <br />