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Mounds View City Council September 14, 2009 Regular Meeting Page 8 tax is lower the first few months of the license year so the net profit is higher. However, as net 1 proceeds increase there is a much higher combined receipts tax so they usually have a loss during 2 the last four months of their license year. She asked the Council to consider a credit for the 3 months they post a loss, as done by the City of St. Paul. 4 5 Council Member Mueller noted the payment is being made once annually so she assumed 6 profitable and loss months would be offset. She asked whether the annual $100 fee covers staff 7 costs for the inspection and background check. Assistant City Clerk-Administrator Crane stated 8 it depends on whether the background investigation takes place in Minnesota or out-of-state. 9 Council Member Mueller asked whether activities like a quilt auction or bingo, and youth 10 organizations will need such a permit. Assistant City Clerk-Administrator Crane answered in the 11 affirmative, noting it is a yearly application process. 12 13 Clerk-Administrator Ericson asked for direction on the local permits (exempted by State Statute) 14 being approved by the City Council and the 10% fund. He advised that sometimes scheduling a 15 local permit (i.e., quilt auction) for Council consideration caused a time constraint. 16 17 Council Member Stigney questioned whether a local investigation is needed. Assistant City 18 Clerk-Administrator Crane stated it may not be needed but investigations are conducted and the 19 fee covers that cost. Council Member Stigney questioned what other cities do with regard to 20 investigation of local permits. 21 22 Council Member Mueller asked if there is a dollar threshold in the City Code that would preclude 23 the need for a local permit. Assistant City Clerk-Administrator Crane stated for raffles it is a 24 $50,000 top prize and the other threshold is $1,500. Clerk-Administrator Ericson stated the 25 Council could adopt a dollar threshold for raffles under which a local permit is not required. Or, 26 all local permit approvals could be eliminated and only require a registration so the Council is 27 informed of the event. 28 29 Mayor Flaherty stated he does not want to require a $100 permit for local churches to raffle a 30 quilt as a fundraiser. He stated he does not think it is unreasonable to establish a 10% fund to do 31 business in Mounds View but, perhaps, 5% is more palatable. 32 33 Clerk-Administrator Ericson suggested staff conduct additional research to obtain answers for 34 Council’s questions. 35 36 MOTION/SECOND: Stigney/Mueller. To Postpone Consideration of Ordinance 835, 37 Amending Title 500 of the Mounds View City Code by Creating a new Chapter 518 regulating 38 Lawful Gambling and amending Title 500, Section 502.13 and 503.09, to be consistent with the 39 new Chapter 518 for further staff research and discussion at the October Work Session. 40 41 Ayes – 5 Nays – 0 Motion carried. 42 43 H. First Reading and Introduction of Ordinance 834, Amending Chapter 504 of 44 the City Code about Transient Merchants, Peddlers and Solicitors. 45