01-27-93 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL FEBRUARY 10, 1993 advise the City on gambling issues. Boss stated that he hoped to convince the Council that a committee was not necessary. Boss began by informing the Council that he was very angry that he and his family and the families of other fire fighters were slandered by Fred Clasen at the last workshop meeting. Boss indicated that he was disappointed that the leaders of the Council did not make an effort to curtail the comments that were made, and felt that no one should be treated the way he and others were at a public meeting. As to the issue at hand, the establishment of a gambling committee, Boss indicated that it appears from the comments made at the last meeting that some of the Council Members felt a committee was appropriate because of public concerns, and based on financial and salary information Clasen provided. Boss felt that the information provided by Clasen was distorted and inaccurate and was not based on generally accepted accounting principles. Boss indicated that the figures Clasen used as Gross Profit, were actually Gross Profits after taxes. Secondly, Clasen used 10-month figures from 1992, when there were complete figures available from the State for all years that the charities have been in operation. Boss indicated that Clasen's graphs were too limited in scope. Boss stated that comparing salary expense to the figures that Clasen used is not a measure of efficiency of an organization. Boss felt that Clasen's analysis was used to mislead the Council into thinking that the charities are not operating as they should. Boss stated that he believed it was prudent for an organization to control salary costs, but salary costs cannot be looked at in isolation of any other expenses. Boss felt that what was important to look at is net profit after expenses. Using net profit figures, Boss indicated that the charities at the bingo hall do well, and the Fire Department does particularly well. Boss presented a chart which compared the net profits of all four charities to total gross receipts for the years 1989 through 1992. Boss reported that the figures presented on the chart are supported by year end financial statements and tax returns that the four charities have filed. Boss explained the chart pointed out that for the year 1989, the Fire Department had a 13.9% net profit of $216,000. Gross receipts in that year were $1.6 million. Boss pointed out that all of the money raised by the Fire Department goes to the betterment of the City of all citizens of Little Page 3