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MINUTES <br />CITY COUNCIL <br />JANUARY 27, 1993 <br />and the rumors he has heard with everyone from the <br />Attorney General, various gambling commissions, down to <br />the City Council. Clasen felt that if the rumors are <br />true, the problems should be corrected, otherwise the <br />rumors should be proven false and everyone will know <br />things are on the up and up. <br />Clasen presented to the Council an analysis of the <br />financial data that the four charities have submitted <br />to the City. Clasen pointed out that these four <br />charities operate as four private corporations, and his <br />analysis was done considering them as such. The first <br />graph presented compared the four charities' <br />profitability at the Little Canada Bingo Hall. Clasen <br />noted that North Suburban Youth showed a 32.38% net <br />profit as a percentage of gross revenues for the first <br />10 months of 1992, while St. Joe's was at 11.03%, <br />Little Canada Fire Department at 5.53% and Little <br />Canada Charities Plus at 3.44%. Clasen's next graph <br />compared the four charities profitability of all <br />gambling operations within Little Canada. North <br />Suburban Youth has a 32.38% net profit as a percentage <br />of gross revenues for the first 10 months of 1992, <br />while St. Joe's was at 14.97%, Little Canada Fire <br />Department at 14.20%, and Little Canada Charities at <br />8.10%. Clasen's final graph compared payroll and <br />accounting expenses to Gross Profit at the Little <br />Canada Bingo Hall. North Suburban Youth has a 34.430 <br />payroll/accounting expense to gross profit, while St. <br />Joe's was at 56.97%, Little Canada Fire Department at <br />59.03%, and Little Canada Charities at 58.55%. <br />Clasen pointed out that the City has the authority to <br />put an ordinance in effect that would regulate <br />charitable gambling salaries. Clasen stated that all <br />four charities are in non-compliance with the State. <br />Clasen pointed out that the charities have been <br />complaining about the amount of rent they are paying at <br />the Little Canada Bingo Hall, and the effect that this <br />rent is havinq on their compliance status. Clasen felt <br />that the charities should be looking at salaries and <br />other expenses as well in order to address their <br />compliance status. <br />Clasen stated that if a review is done on who holds the <br />jobs within the charities' gambling operations, it is <br />members of the City's famous families. Clasen felt <br />that charitable gambling has been good to these famous <br />families. Clasen questioned where else someone could <br />get part-time jobs that pay from $16 to $100 per hour. <br />Clasen felt that it did not matter if 3 people or 8,000 <br />people had concerns. Clasen felt that the City will <br />Page 3 <br />