Agenda Packets - 2009/12/07 - Laserfiche WebLink

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Item No: 1 Meeting Date: December 7, 2009 Type of Business: Work Session Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Desaree Crane, Assistant City Clerk - Administrator Item Title/Subject: Discuss Charitable Gambling Code Amendment Introduction: At the September Work Session, Staff and the City Council reviewed a draft of an ordinance creating a new chapter in the City Code regulating lawful gambling. Corrections and revisions were made, and a first reading is currently scheduled for the December 14, 2009, City Council Meeting. Staff contacted the two lawful gambling organizations in the City after the September Work Session, and discussed the revisions in the City Code in regard to lawful charitable gambling. Both organizations, Lake Regional Hockey Association and the Spring Lake Park Lions, are requesting to speak to the City Council about the new requirement for lawful charitable gambling organizations to contribute 10% of their net profits to the City. According to Lake Regional Hockey Association and the Spring Lake Park Lions, profits have been steadily decreasing, and therefore, it is becoming more difficult for them to raise money for their organization. The City Council also requested information on the state requirements in regard to raffles at the September Work Session. Attached is the information on raffles from the Minnesota State Gambling website. Discussion: Many cities require charitable gambling organizations to contribute net profits to a City Fund. Attached is a report from the City of Blaine October Work Session, which discusses their Charitable Gambling City Fund. It appears that the City of Blaine is projecting another decrease in revenues due to trends in low gambling activity. Staff is not clear what the potential contribution revenue would be for the City. If the City Council wishes to continue with the revision requiring lawful charitable gambling organizations to contribute 10% of their net profits to the City, then Staff would report to the City Council periodically on the revenue of this fund. If the report shows that administrative costs are not being covered due to low gambling revenues, then the City Council could direct Staff to revisit this requirement, and possibility make further revisions to this section of the City Code.