Agenda Packets - 2002/01/28 - Laserfiche WebLink

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Item No. 7B Meeting Date: January 28, 2002 Type of Business: CB WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Givonna Reed, Assistant City Administrator Item Title/Subject: Review of Proposed Ordinance 691, Amending Chapter 502 (Intoxicating Liquor) and Chapter 503 (3.2 Percent Beer) of the Municipal Code as They Relate to Charitable Gambling Date of Report: January 24, 2002 At the December 3, 2001 Work Session the Council staff gave direction to amend Chapters 502 and 503 of the municipal code as they related to charitable gambling. The intent of the amendments was to open the charitable gambling market in Mounds View to local organizations that do not necessarily have their headquarters in Mounds View, and to require charitable gambling to donate 10% of its net profits to the City. At the January 14, 2002 Work Session, the Council asked for information regarding: • Whether organizations that have more than one charitable gambling site are required to track which site profits were generated from. o The Gambling Control Board has indicated that organizations with more than one site are required to complete a Schedule A which requires that profits and donations be broken out by site. • How to ensure that licensed organizations spend a certain percentage of their funds in Mounds View rather than in other cities within the trade area. o The Gambling Control Board has advised that state statute does not allow cities to require charitable gambling organizations to expend a certain percentage of funds within a city, only within a city’s trade area. A culmination of requirements (such as a 3% tax and 10% fund) will discourage outside organizations with no substantial interest in Mounds View from seeking a license from the City. • How Roseville justifies having a 3% tax and the 10% fund. o Roseville uses funds from the 3% tax to cover the City’s administrative and law enforcement costs in regulating charitable gambling.