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MINUTES <br />CITY COUNCIL <br />March 25, 1992 <br />Graczyk reported that the 3% gambling tax being <br />collected by the City is hurtinq the Fire Department, <br />and was not anticipated at the time the Department made <br />the commitment to purchase the new fire truck. <br />Fahey reported that State Statute allows the City to <br />collect the 3% tax to cover costs in regulating <br />gambling. The City is required to file a form with the <br />State Gamblinq Board by March 15th reporting on how <br />these funds were used. <br />The Administrator stated that the City must file the <br />report with the State by March 15th for the preceding <br />year. The City did not begin collecting this tax until <br />January 1st of this year. <br />Fahey reported that the Fire Department would like a <br />copy of that report when it is prepared. Fahey <br />reported that the 3% must be used for regulatory <br />purposes or else returned to the charitable <br />organizations. <br />Glanzer outlined the City's expenses for gambling <br />regulation in 1992, as well as legal expenses incurred <br />in conjunction with gambling in 1991. These expenses <br />total $18,912.95. For January, 1992, the 3% tax <br />collected from the 5 charities operating at the Little <br />Canada Bingo Hall totaled $6,736.90. <br />The Administrator reported that expenses include some <br />up-front costs, such as the cost of a computer and <br />computer program for monitoring gambling financial <br />reports. The Administrator stated that there is no <br />doubt that the 3% will generate a lot of money. <br />Aowever, the first year the City is incurrinq some up- <br />front costs. The Administrator suggested that the 30 <br />tax be evaluated at the end of the year, with the <br />possibility that there could be some adjustments in <br />that tax. <br />Fahey disputed the City's right to apply the tax to <br />expenses incurred in 1991. Fahey also disputed the <br />purchase of a computer with these funds if that <br />computer was not going to be used exclusively to <br />regulate charitable gambling. <br />The Administrator pointed out that the legal costs <br />incurred during 1991 were for drafting of the City's <br />gambling ordinance. The Administrator reported that <br />the City does not need the additional computer to <br />operate anything else. The Administrator stated that <br />he would argue, however, that if the computer is <br />purchased, it wouldn't make sense to let it sit and not <br />Page 3 <br />