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515 Little Canada Road, Little Canada, MN 55117-1600 <br />(651) 766 -4029 / FAX: (651) 766 -4048 <br />www.ei.little- canada.mn.us <br />MEMORNADUM <br />TO: 1VlayorFahey and Members of the City Council <br />FROM: Kathy Glanzer, Deputy Clerk <br />DATE: February 20, 2004 <br />RE: 10% Required Contribution from Gambling Organizations <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Jim LaValle <br />Matl Anderson <br />Rick Montour <br />Bill Blesener <br />ADMINISTRATOR <br />Joel R. Hanson <br />Attached is Section 815.030 of the City Gambling Ordinance which requires that gambling <br />organizations operating within Little Canada pay 10% of their net profits to the City. As our <br />subcommittee (Mayor Fahey, Council Member LaValle, and the City Administrator) has been <br />looking at issues related to charitable gambling, the issue of the 10% contribution has come up from <br />for two reasons: <br />10% contributions are collected on a monthly basis. Current practice is to collect the 10% <br />contribution on a pure monthly basis. By this I mean, 10% is collected on all profitable <br />months, and no credit is given for months that have losses. The subcommittee discussed the <br />possibility of collecting the 10% contribution each month, with adjustments made in <br />December of each year to reconcile at the year -end net profit figure (factoring in net losses <br />over the course of the year). <br />C. Charities that are out of compliance during the course of the year and buy -back compliance <br />with non - gambling revenue end up paying a 10% contribution on these non - gambling revenue <br />dollars. The subcommittee discussed factoring out non - gambling revenues from 10% <br />contribution requirements when those dollars are used to offset higher than allowed expenses. <br />If the consensus of the Council is to back one or both of the adjustments outlined above, staff can <br />either prepare the appropriate ordinance amendment or policy statement. <br />1 <br />