09-22-2004 Council Agenda - Laserfiche WebLink

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�'�y / r c:,n �g / 'T '4, (J „ •; 9 W4 anaek 515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766 -4048 www. ci.little- canada. tnn, us TO: FROM: DATE: MEMORANDUM Mayor Fahey and Members of the City Council Kathy Glanzer, Deputy Clerk September 16, 2004 RE: Little Canada Bingo Hall Compliance Issues for Charities MAYOR Michael I. Fahey COUNCIL Jim LaValle Matt Anderson Rick Montour 13111 Blesener ADMINISTRATOR Joel R. Hanson As part of the discussion relative to renewal of the Bingo License for Little Canada Bingo Hall, City staff looked at the issue of expense compliance for the charities operating at the bingo hall and the impact that the April ls` rent reduction has had. (Effective April 1, 2004, the Bingo Hall owners reduced the rent from $238.40 to $220.00 per session, thus reducing expenses for bingo hall charities.) While the reduction in rent has helped the charities with compliance in trying to meet expense limitations imposed under State Statute, as you can see from the figures below, rent levels are only a small part of an on -going problem. The other parts to the compliance problem may be that other expenses the charities have are too high and /or the expense limitations imposed by the State are too low. You will note from the figures below, that it is possible for a charity to make a net profit and yet still be over the State - imposed expense limitation. Millennium Charities Net Profit Compliance Jan. $48,793.77 Feb. $13,287.04 Mar. $11,584.53 April $4,573.40 May $327.15 June ($676.40) July $5,549.60 $37,623.40 $1,871.82 ($1,095.16) ($4,027.47) ($7,698.69) ($9,485.77) ($5,558.49) Historical Society Lake Owasso Net Profit Compliance $6,987.35 $12,309.97 $840.60 $5,219.28 $5,108.91 $3,406.93 $3,775.21 $500.91 $4,898.26 ($2,301.64) ($531.66) ($52622) ($778.42) ($1,990.88) Net Profit $2,105.09 (81,142.35) $7,911.25 $2,762.79 ($285.04) ($780.40) ($447.11) Compliance ($1,261.52) ($3,450.62) $2,714.58 ($854.08) ($2,781.85) ($3,672.86) ($2,989.43) 'While the landlord's continued cooperation in keeping rent level as low as possible is an important part of the solution to this problem, the charities need to continue to work to reduce all expenses. It would be staffs recommendation that the City and the charities lobby the State Gambling Control Board and State Legislature to raise the level of expense limitations. We have attempted to contact the bingo hall owners about their continued cooperation with the rent issue. We have not heard back from them as of yet. We hope to have their response by Wednesday's meeting. 1