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MINUTES <br />CITY COUNCIL <br />FEBRUARY 10, 1993 <br />Canada. Boss pointed out that in 1990 the Fire <br />Department has a 12.4% net profit. Net profits were <br />$195,000 and gross receipts were $1.6 million. In 1991 <br />the net profit was 7.7%, or $117,000, and gross <br />receipts at $1.5 million. Boss reported that there was <br />a decrease in net profit because the State enacted <br />combined receipts tax regulations, thus cutting into <br />profits. In 1992 the Fire Department had a 4.9% net <br />profit of $71,000 and gross receipts of $1.4 million. <br />Boss stated that there is no question that 1992 was a <br />down year, as was reported by charities across the <br />State. Reasons that net profits are down include the <br />increased competition from casino gambling, the <br />additional State and City taxes, and in the case of the <br />Fire Department, 1992 was a year with an unusually high <br />amount of the poorer nights on the rotation schedule. <br />Boss pointed out that the four year average for net <br />profit for the Fire Department was 9.7%, or $599,000 of <br />net profits 100% of which went to the betterment of the <br />citizens of Little Canada. Boss stated that the Little <br />Canada Fire Department's gambling operation is in <br />compliance with the State of Minnesota. <br />Boss then presented a second chart showing how the <br />average gambling dollar distribution for all 501c3 <br />charities in the State. This chart was prepared by the <br />Minnesota Coalition of Charities. The average for all <br />MN charities is 2.7% net profit. Boss pointed out that <br />the Little Canada charities have outperformed that <br />average by 5% or better. <br />Boss indicated again that 100% of the Fire Department's <br />net profits from gambling have been used to purchase <br />equipment or reduce costs that would otherwise have <br />been a burden to the taxpayers. Boss felt that it was <br />ludicrous to suggest that this amount of donation was <br />not important. Boss stated that he believes the <br />information he has provided shows the whole picture. <br />Boss also stated that the bingo hall is running well. <br />Boss stated that the charities do have concerns and <br />those include rents. Boss stated that the charities <br />are working on that issue. Another concern is <br />unnecessary government regulation, and the Fire <br />Department feels that this is what a gambling committee <br />would be. <br />Boss agreed that the charities did request that the <br />City put a gambling ordinance in place. The ordinance <br />is not without flaw, but the charities were glad to see <br />it put in place. Boss stated that City staff is well <br />Page 4 <br />