CR 05-131 Jaycees gambling
September 15, 2005
Council Report 2005-131
Approve Lawful Gambling Premises permits for the Hopkins Area Jaycees
Staff recommends approval of the following motion: Move that the Hopkins City Council
adopt Resolutions 2005-88, 89, and 90, approvinQ the charitable QamblinQ premises permits
for the Hopkins Jaycees.
Adoption of these resolutions will allow the Hopkins Area Jaycees continue to run the
existing charitable gambling activities at the existing locations in the City of Hopkins.
Overview
The Jaycees have requested a renewal of their gambling license and premises permits at the
following locations:
. Mainstreet Bar and Grill, 814 Mainstreet
. Lindees, 919 Cambridge Street
. Hopkins Tavern on Main, 81 7-81 9 Mainstreet
Primary Issues to Consider
. Does this organization meet the criteria of the City's gambling policy?
Yes
. Has the organization conducted its past gambling operations in accordance with
state and local laws?
Yes
Supporting Documents
. Resolutions 2005- 88, 89, and 90
. Legislative Policy 4-A, Lawful Gambling
. Statement of Revenues, Expenses and Changes in Profit Carry-over for the years
ended December 31, 2004 and 2003
. Complete Financial Statement and Independent Auditor's Report, Years ending
December 31, 2004 and 2003 is available in the City Clerk's office
. List of donations made by the Jaycees
. Gambling License Application available in the City Clerk's office
. Copies of Premises Lease Agreement available in City Clerk's office
Terry Obermaier, City Clerk
Council Report 2005-131
Page 2
Alternatives
1. Approve Resolutions 2003-79, 2003-S0 and 2003-S1 allowing the Jaycees to
continue the present gambling activities at the present locations.
2. Do not approve the resolutions with the result that the Jaycees will no longer have
gambling in the City of Hopkins.
3. Approve some of the resolutions with the result that only those approved locations
will be able to continue gambling operations.
Staff recommends alternative one.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2005-89
RESOLUTION APPROVING A GAMBLING
LICENSE FOR THE HOPKINS AREA JAYCEES
WHEREAS, the Hopkins Area Jaycees have been an integral part of
the Hopkins Community, and
WHEREAS, the Hopkins Area Jaycees have applied for a gambling
license to conduct lawful gambling in 2006 and 2007, and
WHEREAS, the Hopkins Area Jaycees have conducted gambling
activities in accordance with state law and Hopkins City Policy,
NOW, THEREFORE, be it hereby resolved that the City Council of the
City of Hopkins, Minnesota, approves the Hopkins Area Jaycees Premises
Permit Renewal application for Mainstreet Bar & Grill, 814 Mainstreet,
Hopkins.
Adopted by the City Council of the City of Hopkins, Minnesota, this 20th day
of September, 2005.
Eugene J. Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY , MINNESOTA
RESOLUTION 2005-88
RESOLUTION APPROVING A GAIII!BLlNG
LICENSE FOR THE HOPKINS AREA JAYCEES
WHEREAS, the Hopkins Area Jaycees have been an integral part of
the Hopkins Community, and
WHEREAS, the Hopkins Area Jaycees have applied for a gambling
license to conduct lawful gambling in 2006 and 2007, and
WHEREAS, the Hopkins Area Jaycees have conducted gambling
activities in accordance with state law and Hopkins City Policy,
NOW, THEREFORE, be it hereby resolved that the City Council of the
City of Hopkins, Minnesota, approves the Hopkins Area Jaycees Premises
Permit Renewal application for Hopkins Tavern on Main, 819 Mainstreet,
Hopkins.
Adopted by the City Council of the City of Hopkins, Minnesota, this 20th day
of September, 2005.
Eugene J. Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY , MINNESOTA
RESOLUTION 2005-90
RESOLUTION APPROVING A GAMBLING
LICENSE FOR THE HOPKINS AREA JAYCEES
WHEREAS, the Hopkins Area Jaycees have been an integral part of
the Hopkins Community, and
WHEREAS, the Hopkins Area Jaycees have applied for a gambling
license to conduct lawful gambling in 2005 and 2006, and
WHEREAS, the Hopkins Area Jaycees have conducted gambling
activities in accordance with state law and Hopkins City Policy,
NOW, THEREFORE, be it hereby resolved that the City Council of the
City of Hopkins, Minnesota, approves the Hopkins Area Jaycees Premises
Permit Renewal application for Lindees, 919 Cambridge Street, Hopkins.
Adopted by the City Council of the City of Hopkins, Minnesota, this 20th day
of September, 2005.
Eugene J. Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk
POLICY 4-A
LAWFUL GAMBLING
1. PURPOSE
1.01 The purpose of this policy is to establish rules and procedures for lawful gambling in the City of
Hopkins.
2. REGULATIONS
2.01 Except as otherwise enumerated herein, the provisions of Minnesota Statute Chapter 349 relating to
the definition of terms, licensing and restrictions of gambling are adopted and made a part of the
statement of policy promulgated by the City of Hopkins as if set out in full
2.02 An applicant for a license shall be a registered Minnesota nonprofit corporation or an organization
which is designated as exempt from the payment of income taxes by the Internal Revenue Code and
whose principal location or office is within the City of Hopkins.
2.03 The organization defined in Section 2.02 must be engaged in its activities for the benefit of the
community within the <;;ity of Hopkins for at least five years on a perpetual, continuous,
uninterrupted basis and have at least 30 active voting members.
2.04 Gambling allowed by the city shall be carried on only within premises owned, occupied or leased
by the organization except such activities permissible under M.S. 349.166.
2.05 No application for a premises permit will be approved for any organization to conduct gambling on
any premises other than the premises of an on-sale liquor licensee or the premises of a fraternal,
veterans or other non-profit organization. In order for a fraternal, veterans, or other non-profit
organization to conduct gambling on their premises, such premises must have been continuously
owned and occupied for a period of at least five years. No application for premises permit shall be
approved for any organization for a site established for the primary purpose of conducting
gambling. This section shall not apply to any organization which is exempt from the requirement
for a gambling license according to M.S. 349.166.
2.06 A Class A license will only be approved for an organization that is licensed pursuant to Minnesota
Statute, section 349.16, and that conducts gambling on premises that it owns and operates.
2.07 More than one organization, as defined in Section 2.02, may conduct gambling within a single
owned, occupied or leased premise. More than one organization may jointly conduct a lawful
gambling game at one location. However, two or more organizations shall not separately conduct
the same game at the same time at one location.
2.08 The operation of gambling devices and the conduct of bingo and raffles licensed or approved
pursuant to the authority granted to the City of Hopkins shall be carried on under the supervision of
a gambling manager designated by the organization. The gambling manager shall be responsible
for the operation of the gambling activity and the receipts imd profits generated from the operation.
2.09 The gambling manager shall be an active member of the organization issued the license and shall
qualify under state law.
2.10 Organizations seeking approval for a premises permit, that are not currently conducting gambling in
the City, must provide the City, in addition to the application forms, a copy of the minutes of a
general membership meeting, where a quorum was present, wherein the organization approved a
motion authorizing the gambling activities.
2.11 Participants in raffles, paddlewheels, pull tabs and tip boards shall be restricted to individuals who
have attained the legal drinking age. This restriction only applies to premises where liquor, wine,
beer or 3.2 beer is served. Where intoxicating beverages are not served the age shall be eighteen.
2.12 Organizations wishing to renew a gambling license must provide the City with a financial audit of
its lawful gambling activities and funds for the previous two years. The audit(s) must be performed
by an independent accountant licensed by the state of Minnesota.
2.13 In addition, such organizations must provide the City with information on all expenditures of lawful
gambling funds during the previous two years. Such information must include at a minimum the
name of the recipient, the amount of the expenditure or contribution, and a brief description of how
the expenditure or contribution meets the definition of "lawful purposes" as defined in M.S. 349.12.
The City reserves the right to require additional documentation from licensed organizations, or
organizations seeking licenses, as it deems necessary.
2.14 A fee of $100.00 shall be charged to all organizations submitting a Premises Permit Application or
Applications for approval by the City.
LAWFUL GAMBLING FUND OF
HOPKINS JAYCEES, INC.
(LICENSE # 02298)
(MN ID #7063456)
STATEMENT OF ASSETS, LIABILITIES AND PROFIT CARRYOVER
REGULATORY BASIS
DECEMBER 31, 2004 and 2003
CASH
Gambling Bank Accounts
Cash - Start Banks
Total Cash
ASSETS
2004. 2003
$ 4,483 $ 10,689
11,252 15.056
$ 15,735 $ 25,745
INVENTORIES
Pull-Tabs
Paddle Wheels
Prizes
Total Inventory
$
$
2,380 $ 2,655
900 1,667
1,520 1,550
4,800 $ 5,872
20,535 $ 31.617
Total Current Asseffi
$
LIABILITIES AND FUND BALANCE
ACCOUNTS PAYABLE
State Combined Receipts and 10% Tax $ 18,862 $ 22,545
Vendors Payable 7,040 7,682
Total Accounts Payable $ 25,902 $ 30.227
UNEARNED REVENUE
Games in Play $ 4,252 $ 6,124
Total Current Liabilities $ 30,154 $ 36.351
COMMITMENTS AND CONTINGENCIES
Profit Carry-Over $ (9,619) $ (4.734)
Total Liabilities and Profit Carry-Over $ 20,535 $ 31,617
See accompanying Notes to Financial Statements.
(2)
LAWFUL GAMBLING FUND OF
HOPKINS JAYCEES, INC.
(LICENSE # 02298)
(MN ID# 7063456)
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN PROFIT CARRY-OVER
REGULATORY BASIS
FOR THE YEARS ENDED DECEMBER 31, 2004 and 2003
2004 2003
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
REVENUES
Pull~Tab Receipts $ 4,515,112 79.5% $ 5,345,453 80.1%
Raffie Receipts 22,510 0.4% 0 0.0%
Paddle Wheel Receipts 1,142,440 20.1% 1,325,880 19.9%
Interest Income 0 0.0% 0 0.0%
Revenues Collected $ 5,680,062 100.0% $ 6,671.333 100.0%
COST OF REVENUES
Pull-Tab Prizes $ 3,766.488 66.3% $ 4,453.461 66.8%
Raffle Prizes 20,700 0.4% 0 0.0%
Paddle Wheel Prizes 1.012,632 17.8% 1,182.506 17.7%
Cost of Revenues $ 4.799,820 84.5% 5.635.967 84.5%
GROSS PROFIT $ 880,242 15.5% $ 1,035,366 15.5%
ALLOW ABLE EXPENSES $ 565.247 10.0% $ 663.793 9.9%
REVENUES IN EXCESS OF
ALLOWABLE EXPENSES $ 314.995 5.5% $ 371.573 5.6%
IJ\WFUL PURPOSE EXPENDITURES
Gambling Taxes:
State 10% and Combined Receipts Tax $ 211,439 3.7% $ 252,404 3.8%
State Ideal Gambling Taxes 97,597 1.7% 116,747 1.7%
Ideal Tax Refund (29.916) -0.5% (29.330) -0.4%
Total Gambling Taxes $ 279.120 4.9% $ 339.821 5.1%
Board Approved Expenditures $ 20,000 0.4% $ 9,000 0.1%,1
Program Expenditures 18.760 0.3% 34,329 0.5%
Prior Year Audit 2.000 0.0% 4.050 0.1%
Total Lawf~1 Purpose Expenditures $ 319.880 5.6% $ 387.200 5.8%
EXPENSES IN EXCESS OF REVENUES
BEFORE INCOME TAXES $ (4,885) -0.1% $ (15,627) -0.2%
INCOME TAXES 0 0.0% 0 0.0%
EXPENSES IN EXCESS OF REVENUES $ (4.885) -01% $ (15,627) .0'%
PROFIT CARRY-OVER BEGINNING (4.734) 10.893
PROFIT CARRY-OVER - ENOING $ fQ619) $ (47::t4)
See accompanying Notes to Financial Statements.
(3)
LAWFUL GAMBLING FUND OF
HOPKINS JAYCEES, INC.
(LICENSE # 02298)
(MN ID# 7063456)
RECONCILIATION OF GAMES USED - PULL-TABS AND PADDLE WHEELS
REGULATORY BASIS
FOR THE YEARS ENDED DECEMBER 31, 2004 and 2003
(SEE INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTARY INFORMATION)
(UNAUDITED)
2004 2003
NUMBER OF NUMBER OF
PULL-TABS AMOUNT GAMES AMOUNT GAMES
cost of Games Used
Beginning Inventories $ 2,655 59 $ 3,198 72
Purchases 75,740 1,594 90,380 1,880
Total Games Available for Use $ 78,395 1,653 $ 93,578 1,952
Less: Ending Inventories $ (2.380) (52) $ (2,655) (59)
Games Used $ 76,015 1,601 $ 90,923 1,893
Average Cost Per Game Used $ 47,48 $ 48.03
Reconciliation of Games Used
Games Used Per Books Above 1,601 1,893
Games Used and Reported Per Gross
Revenues (Receipts) by Month (Schedule B) 1.601 1,893
Differences or Possible Unreported Games 0 0
2004 2003
NUMBER OF NUMBER OF
PADDLE WHEELS AMOUNT GAMES AMOUNT GAMES
Cost of Games Used
Beginning Inventories $ 1.667 154 $ 1,132 118
Purchases 20,788 2,163 25,597 2,611
Total Games Available for Use $ 22,455 2,317 $ 26,729 2,729
Less: Ending Inventories $ (900) (102) $ (1,667) (154)
Games Used $ 21,555 2,215 $ 25,062 2,575
Average Cost Per Game Used $ 9.73 $ 9.73
Reconciliation of Games Used
Games Used Per Books Above 2,215 2.575
Games Used and Reported Per Gross
Revenues (Receipts) by Month (Schedule B) 2,215 2.575
Differences or Possible Unreported Games 0 0
(7)
LAWFUL GAMBLING FUND OF
HOPKINS JAYCEES, INC.
(LICENSE # 02298)
(MN ID# 7063456)
ANALYSIS OF MAXIMUM ALLOWABLE EXPENSES AS A PERCENTAGE OF GROSS PROFIT
REGULATORY BASIS
FOR THE YEARS ENDED DECEMBER 31,2004 and 2003
(SEE INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTARY INFORMATION)
(UNAUDITED)
2004 2003
GROSS PROFIT $ 880,242 $ 1,035,366
ALLOWABLE EXPENSES
Cost of Games Used $ 97,570 $ 115,985
Compensation 308,475 347,958
Bank Charges, Supplies and Services 60,312 119,712
Gambling Equipment and Maintenance 3,024 2,336
Rents 72,861 51,440
Bonds, Licenses and Insurance 1,992 968
Acco~nting 8,400 10.698
Cash Shortages (Long) 10,356 11.809
Advertising 2,258 2.265
Utilities 0 622
Total Allowable Expenses $ 565,247 $ 663,793
MAXIMUM ALLOWED EXPENSES BY
MINNESOTA STATE STATUTE
Gambling Activity, Plus Miscellaneous Income, Excluding
Cash Shortages x allowed percentage $ 484,133 $ 569,450
Maximum Allowable Expenses by
Minnesota State Statute $ 484,133 $ 569,450
Excess of Maximum Allowable Expenses in Excess (81,114) (94.343)
of Allowable Expenses - Current Year
Beginning Cumulative Maximum Expenses in
Excess of Allowable Expenses $ 737,429 831,772
Ending Cumulative Maximum Allowable Expenses in
Excess of Allowable Expenses $ 656,315 $ 737,429
(8)
LAWFUL GAMBLING FUND OF
HOPKINS JAYCEES, INC.
(LICENSE # 02298)
(MN 10# 7063456)
RECONCILIATION OF PROFIT CARRy-oVER
REGULATORY BASIS
FOR THE YEARS ENDED DECEMBER 31, 2004 and 2003
(SEE INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTARY INFORMATION)
(UNAUDITED)
2004
2003
ADDITIONS
Cash in Gambling Bank Accounts
$
4,483
$
10,689
Cash in Starting Banks
11,252
15,056
Ending Inventory
4,800
5,872
Total Additions
$
20,535
$
31,617
SUBTRACTIONS
Accrued Liabilities
$
18,862
$
22,545
Vendors Payable
7,040
7,682
Net Cash from Games in Play
and Unreported at Month End
4,252
6,124
Total Subtractions
$
30,154
$
36.351
PROFIT CARRY-OVER $ (9,619) $ (4.734)
PROFIT CARRY-OVER FROM
FINANCIAL STATEMENTS $ (9.619) $ (4,734)
PROFIT CARRY-OVER FROM TAX REPORT $ (9,619) $ (4,734)
Variance from Balance $ 0 $ 0
(9)
Contribution Report
HOPKINS JC'S
For All Sites
I: 7/1/2003 to 6/30/2005
ate Check
Written Number Payee
Description
Page 1
f/i Total
For
8/15/2003 5635
8/20/2003 5639
8/20/2003 50621
TARGET STORES
CITY OF HOPKINS
CITY OF HOPKINS
1/15/2004 6062 CITY OF HOPKINS
4/8/2004 5775 MUSIC. .,
4/8/2004 5776 MUSIC
4/20/2004 50752 LAKE SHORE WEEKLY
5/20/2004 6150 SMOKE SCREEN
5/20/2004 6151 KRUSH
5/20/2004 5797 VOGELS EXOTIC ANIMALS
5/20/2004 50770 DAKOTA WILD ANIMALS
5/20/2004 50772 MOORE MAGIC
5/20/2004 50773 MIKE MANN
5/20/2004 50774 CLOWNS
5/28/2004 5804 DEAN DOWNS
.1/2004 6187 ARM INC
6/2004 6189 CHRISTOPHER SMITH FUND
7/16/2004 6193 ARM INC
8/1/2004 6194 ALL AREA PRODUCTIONS
9/22/2004 5867 ALZHEIMERS
10/1/2004 5881 U OF KANSAS
10/25/2004 6289 DUSTIN KLOEMPKEN
11/30/2004 5919 GCB
12/2/2004 5925 DAWN M AN KANEY FUND
12/15/2004 50911 VISA
3/21/2005 6441
5/19/2005 6494 VOGELS EXOTIC ANIMAL SHOW
5/1 9/2005 6497 MIKE MANN
5/19/2005 6498 DYNOMITE ENT
5/31/2005 6059 VENTURING CREW
6/16/2005 6065 CITY OF HOPKINS
6/20/2005 5505 NATIONAL PHILANTHROPIC TRUST
6/20/2005 5506 NATIONAL PHILANTHROPIC TRUST
6/21/2005 6521 HBCA
6/21/2005 6522 CITY OF HOPKINS
6/30/2005 6078 MONTEREY ARTISTS
Total of
For 1
6/15/2004 50789 AMERICAN CANCER SOCIETY
6/21/2005 6520 AMERICAN CANCER SOCIETY
Totalof 1
For A 1
BACK TO SCHOOL
Fund administered by local
Fund administered by local
govemme
governme
'I
500.45
3835.72
2919.76
1000.00
500.00
200.00
120.00
800.00
1600.00
1200.00
100.00
300.00
225.00
240.00
500.00
2000.00
200.00
2500.00
500.00
50.00
250.00
100.00
900.00
200.00
96.33
1200.00
250.00
300.00
200.00
940.28
500.00
500.00
50.00
940.28
2750.00
11J..i/l~t,8j,
100.00
200.00
MUSIC C- II t
MUSIC (:,~;J nt.\.n
ADV EGG HUNT
MUSIC
MUSIC
KIDS ENT
KIDS EVENTS
KIDS EVENTS
KIDS STORY TELLER
KIDS EVENTS
MUSiC
)1} cd n si1ed'
Po.Y'5
BAND DEPOSITS - Ro.5{>be.rt'1/ rest
DONATION I
~~~DS Rll>~k.fry ~5}
DONATION
SCHOLARSHIP
SCHOLARSHIP
LICENSE FEES
DONATION
XMAS TOYS
YOUTH ACTIVITY > WI " 1/__ +-
KIDS STORY TELLER I 'l {:l,/ n 5"/01 WV
YOUTH ACTIVITY I>C\,VS
YOUTH GROUP 9:e,NATION " .
DONATION - FV/ic.e.
CANCER DONATION
CANCER DONATION
MUSIC IN THE PARK
DONATION - Police.
RASP FESTIVAL PERFORMERS
DONATION TO 501 C 3
DONATION TO 501 C 3
300.00
16:13: 9 91712005 Minnesota Gambler
Contribution Report
HOPKINS Je's
Page 2
For All Sites
t: 7/1/2003 to 6/30/2005
ate Check
Written Number Payee
Description
Total
7/30/2003 5918
9/22/2003 5970
10/1/2003 5987
12/15/2003 5716
1/15/2004 6063
9/22/2004 5868
12/15/2004 50914
COLORADO COLLEGE-AMY L1SBERG
PHEASANTS FOREVER
AMERICAN DIABETES ASSN
HOPKINS RESOURCE CENTER
MISSING CHILDREN OF MN
DIABETES INSTITUTE
PHEASANTS FOREVER
Total of A 1
SCHOLARSHIP
DONATION
DONATION
DONAITON
DONATION
DONATION
DONATION
500.00
1000.00
50.00
500.00
1000.00
100.00
1000.00
4150.00
For A2
1/15/2004 6064 HOPKINS ACTIVITY CENTER DONATION 100.00
5/20/2004 50771 STERLING SILVER KIDS MUSIC 100.00
8/16/2004 6229 HOPKINS FAMILY RESOURCE CENT BACK TO SCHOOL 100.00
Totalof A 2 300.00
For A5
9/2/2003 5967 UNIVERSITY OF MN SCHOLARSHIP 500.00
10/1/2004 5880 UNIVERSITY OF MN SCHOLARSHIP 250.00
Totalof A 5 750.00
For A 6
9/22/2003 5661 REACH INC. DONATION 1000.00
10/1/2004 5882 REACH INC. DONATION 1000.00
Total of A 6 2000.00
For A 7
7/1/2003 5611 STATE OF MN GM MGR 100.00
7/24/2003 5916 JESSICA KREBS DONATION 163.14
8/20/2003 5942 MADD 150.00
9/12/2003 5652 STATE OF MN LICENSES 800.00
10/1/2003 5984 STATE OF MN LICENSES 100.00
3/18/2004 5765 BOY SCOUTS DONATION 250.00
3/18/2004 5766 BOY SCOUTS DONATION 250.00
4/8/2004 5777 WONDER WEAVERS EGG HUNT 580.00
4/8/2004 5778 HOPKINS PAVILLON RENT FOR EGG HUNT 150.00
5/20/2004 50769 JAZZ BERRIES KIDS MUSIC 100.00
8/17/2004 6236 LITTLE LEAGUE DONATION 99.00
3/14/2005 6434 BRENDA SADWOSKI EGG HUNT 166.70
3/31/2005 6443 WONDER WEAVERS EGG HUNT 225.00
3/31/2005 6444 BRENDA SADWOSKI EGG HUNT 204.71
.11/2005 51002 STATE OF MN LICENSES 100.00
16:13: 9 91712005 Minnesota Gambler
Contribution Report
HOPKINS Je's
Page 3
For All Sites
tlm 7/112003 to 6/30/2005
ate Check
Written Number Payee
Description
Total
5119/2005 6495 Jt>;ZZ BERRIES
5/1 9/2005 6496 FUN CHARECTERS
Total of A 7
KIDS MUSIC
YOUTH ACT.
100.00
240.00
3778.55
Total of Organization
$' 3Q,Il/b.37
16:13: 9 9/712005 Minnesota Gambler