Minutes - 2002/01/28 - Laserfiche WebLink

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Mounds View City Council January 28, 2002 Regular Meeting Page 18 • Assistant City Administrator Reed explained this item was before Council at the December 3, 2001 work session and Staff was asked to amend the Ordinance to allow other Mounds View Organizations to conduct charitable gambling in the City and create a 10% fund. She then explained that several issues had been raised by the Lions and she had attempted to answer those questions. Assistant City Administrator Reed explained that the organizations are required to fill out a form to send to the state listing profits from each site. She then explained that the City is not able to restrict organizations to spending the majority of profits in the City. Assistant City Administrator Reed explained the 3% in the Roseville ordinance is used for regulating the organizations. Bob Wharton of 7462 Spring Lake Road explained that the reporting mentioned by Staff is for gross income minus prizes and expenses to establish net income from that site. He then explained that after that is where the big bucks come into play. He further commented that combined profit is not shown for the entire organization on that form it is only income from that site after expenses. Mr. Wharton indicated the Lions were not opposed to the 75% as they already meet that • requirement but would prefer that the 10% and 3% be eliminated. He also commented that he agreed with Council Member Thomas' comment when she asked why the City would want to get into administrating this. He then asked Acting Chief Brennan if there have been any instances where law enforcement has been necessary to administrate the gambling or investigate the operations. Acting Chief Brennan indicated that the Police Department conducts background investigations as part of the licensing requirements but stated he was not aware of any investigations necessary. Mayor Sonterre explained the 3% tax can only be collected if it is necessary to cover the costs to regulate costs. He then asked what the process would be to return the overage if it is not used for regulating the organizations. Assistant City Administrator Reed suggested exploring whether or not Council could designate the overage to be used for a specific purpose within the City, such as the Community Center. Gretchen Wallbridge of 8072 Long Lake Road addressed Council and indicated she would become the gambling manager on February 1, 2002 and explained that the 3% needs to be used for law enforcement. Assistant City Administrator Reed indicated that changing the ordinance may open the market up to other organizations and there may be a higher demand for investigating applications.