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MINUTES <br />CITY COUNCIL <br />MARCH 24, 1993 <br />Administrator did not want the City in a position of <br />having gambling enforcement expenditures without the <br />resources to cover those expenses. <br />Morelan stated that he understood the City <br />Administrator's recommendation to retain the 1992 <br />unspent balances, but pointed out that two of the <br />organizations which have paid those taxes are getting <br />out of the bingo business effective May 1, 1993. <br />Morelan felt that it would be more equitable to refund <br />a portion of the unused 3% tax monies to the <br />organizations who contributed those funds. <br />LaValle pointed out that these two organizations will <br />continue to operate pull-tab sites within the City. <br />LaValle stated that he did not support refunding the <br />unused balances, and shared the Administrator's concern <br />for unfunded gambling enforcement costs in the future. <br />LaValle pointed out that litigation expenses could eat <br />up those unused funds very quickly. LaValle felt that <br />the City should reduce the qambling tax to 2o and <br />carry-over the unused 1992 funds. LaValle pointed out <br />that charitable gambling should not be a burden to the <br />taxpayers of the City. <br />Morelan indicated that if there is any future <br />litigation he would anticipate that it would involve <br />the bingo hall, therefore, not the two charities which <br />are leaving. <br />Pedersen pointed out that the 3% enforcement tax is a <br />tax, and is to be spent by the City for gambling <br />enforcement expenses. <br />LaValle indicated that the City has two years to use <br />the enforcement tax money. LaValle stated that he <br />would like to hold the unused 1992 balance in escrow at <br />this time, and if it is not used, the City would be <br />mandated to return it. LaValle pointed out that this <br />tax was not imposed as a money-maker for the City, but <br />rather to defray costs incurred by the City associated <br />with charitable gambling. <br />Mrs. Scalze introduced the following resolution and <br />moved its adoption: <br />RESOLUTION N0. 93-3-79 - APPROVING THE REDUCTION IN <br />GAMBLING ENFORCEMENT TAX FROM 3% TO 2% EFFECTIVE MARCH <br />1~ 1993, AND AUTHORIZING THE CITY ATTORNEY TO PREPARE <br />AN ORDINANCE AMENDMENT TO THIS EFFECT IF ONE IS <br />NECESSARY <br />The foregoing resolution was duly seconded by LaValle. <br />Ayes (5) Scalze, LaValle, Hanson, Pedersen, Morelan. <br />Nays (O). Resolution declared adopted. <br />Page 10 <br />