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<br /> <br /> STAFF REPORT <br /> <br /> <br />TO: Mayor Fischer and Members of City Council <br /> <br />FROM: Laura Linehan, Assistant City Administrator/Community Relations Manager <br /> Sam Magureanu, Finance Director <br /> Heidi Heller, City Clerk/HR Manager <br /> <br />DATE: September 10, 2025 <br /> <br />RE: 10% Fund Discussion <br /> <br />ACTIONS TO BE CONSIDERED: <br />For information and discussion purposes only. Staff is requesting City Council feedback on the 10% <br />Fund, with formal policy adoption following direction at an upcoming City Council meeting. <br /> <br />BACKGROUND: <br />Little Canada Charitable Gambling and the 10% Fund Background <br />Charitable gambling occurs within the City of Little Canada. Charitable gambling is a “form of <br />incentivized giving” where a charity or non-profit group, rather than a municipality or private casino, <br />oversees gambling activities such as bingo or lotteries and uses the proceeds to further its activities. <br /> <br />Three organizations in Little Canada operate charitable gambling (pull tabs and bingo) at various <br />locations in the city: the Little Canada Fire Department, the Little Canada Recreation Association, and <br />Canadian Days. The city’s charitable gambling locations are at Mama T’s Castle Tap, Hoggsbreath, <br />Gordies Place, Twin Cities Billiards, Little Canada Bingo Hall, and a booth during Canadian Days. <br /> <br />The city collects 10% of the gambling profits, which are kept in the city's “10% Fund (Fund 408), <br />which is classified as a Capital Project Fund. This fund is used to account for the amounts received and <br />related to the city's charitable gambling contributions. These funds may only be used for expenditures <br />identified in Minnesota Statutes, section 349.12, Subd. 25. <br /> <br />10% Fund Revenues and Expenses <br />Historically, the city conservatively budgets an anticipated annual revenue of $22,000 for 10% of <br />charitable gambling profits. However, actual revenues have been over $30,000 since 2017, except <br />once: <br /> <br />• 2016 actual revenue: $33,029.05 <br />• 2017 actual revenue; $34,632.60 <br />• 2018 actual revenue: $46,137.89 <br />• 2019 actual revenue: $35,292.77 <br />• 2020 actual revenue: $37,008.34 <br />• 2021 actual revenue: $33,388.14 <br />• 2022 actual revenue: $29,472.43 <br />• 2023 actual revenue: $48,522.47 <br />• 2024 actual revenue: $56,094.44 <br />• 2025 Jan-July revenue: $34,786.26 <br />