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STAFF REPORT <br />DATE: December 2, 2025 <br />Regular <br />TO: Mayor & Council <br />FROM: Nina Kraemer, Finance Coordinator <br />Sarah Sonsalla, City Attorney <br />AGENDA ITEM:Lawful Gambling City Code Update and Revenue Spending <br />REVIEWED BY: Clarissa Hadler, Finance Director <br />CORE STRATEGIES: <br />☐ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services <br />☒ Responsive, transparent, adaptive governance ☒ Balanced Finances now and future <br />☐ Managed Growth ☐ Resilient Infrastructure <br />BACKGROUND: <br />The city clerk received a phone inquiry from one of our charitable gambling organizations requesting <br />information on the City’s 10% gambling donations. This inquiry prompted a review of the current city <br />ordinance, the nature of the 10% donations, applicable state requirements, and the City’s existing <br />processes. Through this review, several areas for improvement were identified. <br />City Code Chapter 11.04-III: Bingo, Other Lawful Gambling, and Video Games of <br />Chance regulates lawful gambling within the City of Lake Elmo. Originally adopted in 1997, the <br />ordinance imposes additional requirements beyond those found in state statute for organizations licensed <br />by the Minnesota Gambling Control Board. It was determined that the ordinance required updates to align <br />with current state laws and best practices. <br />Following research into recommendations from the League of Minnesota Cities (LMC), a review of other <br />local ordinances, and input from the City Attorney, the following updates have been made: <br />1.Definitions and Trade Area: A new definitions section has been added, including a clear <br />definition of the City’s trade area. <br />2.Eligibility Requirements: The ordinance previously required organizations to maintain an <br />address within the City, which is more restrictive than state statute. This has been amended to <br />align with Minnesota Statute eligibility requirements. <br />3.Premises Permit Application: Updated to reflect current requirements and remove the provision <br />for law enforcement inspections, which are the responsibility of the Minnesota Gambling Control <br />Board. <br />4.Liquor Sales and Gambling: Section 11.04.200, which addressed liquor sales and lawful <br />gambling at on-sale establishments, has been removed, as it is not currently enforced and is not <br />required by law. <br />5.Gross Receipts Requirement: The ordinance previously required a 3% contribution of gross <br />receipts for law enforcement and administrative purposes. This requirement has been removed.