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CR 03-179 Charitable Gambling Premises Permit Application for the Hopkins Elks LodgeLJ ,,~ December 8, 2003 Council Report 2003-179 CHARITABLE GAMBLING PREMISES PERMIT APPLICATION FOR THE HOPKINS ELKS LODGE 2221, 30 - 8~' Ave S Staff recommends approval of the following motion: Move that the Hopkins City_Council ad^ opt Resolutions 2003-109, a rovin the charitable, arnblin remises. ermit for the Ho kins Elks Lod e.2221., located at 30 - 8th Ave S. Adoption of this resolution will allow the Hopkins Elks to continue to run the existing charitable gambling activities at the Elks Club. Or-er~'rew The Hopkins Elks Lodge has requested a renewal of their gambling license and premises permit. The Elks Lodge conducts charitab[e gambling at the Elks Club location only. Primar 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 2003-109 • Legislative Policy 4-A, Lawful Gambling • Financial Statement and Independent Auditor's Report, Years ending March 31, 2003 and 2002 • List of donations made by the Elks • Gambling License Application available in the City Clerk`s- office erry Ob aier, City Clerk r: Council Report Page 2 Alternatives 1. Approve Resolutions 2003-109; allowing the Hopkins Elks Lodge to continue the present gambling activities at the present location. 2. Do not approve the resolutions with the result that the Hopkins. Elks Lodge will no longer have gambling in the City of Hopkins. 3. Continue to the next meeting for rrrore information. Staff recommends alternative one. • • • CITY O~ HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2003-109 RESOLUTION APPROVING A GAM131wING PREMISES LICENSE RENEWAL FOR THE HOPKINS ELKS LODGE, AT 30 -8T'~ AVENUE SOUTH WHEREAS, the Hopkins Elks Lodge 2221 has been.an integral part of the Hopkins Community, arlcl WHEREAS, the Hopkins Elks Lodge 2221 has applied for a gambling license to conduct lawful gambling in 2004 and 2005, and WHEREAS, the Hopkins Elks Lodge 2221 has 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 Elks Lodge 2221 Premises Permit Renewal application far The Hopkins American Legion Hall at 30 -Stn Avenue South. Adopted by the City Council of the City of Napkins, Minnesota, this ~ 6th day of December, 2003. Eugene J. Maxwell, .Mayor ATTEST: Terry Obermaier, City Cierk • POLICY 4-A LAWFUL GAMBLING 1. PURPOSE 1.01 The purpose of this policy is to establish .zuIes 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 def nition of terms, licensing and restrictions of gambling are adapted 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 Iocation 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 City of Hopkins for at least f ve 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-prof t 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 frani the requirement f~. 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 garribling 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 Legislative Policy Manual -- Chapter 4-A 1 • • the receipts and profits, generated fronx 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 sha11 be .restricted to individuals who have attained the legal drinking age. This restriction only applies to premises where liquor, wine, beer yr 3:2 beer is served. Where intoxicating beverages are not served the .age sliall tie 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 far 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 ©rganizations 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. Established 11/19/85 by Resolution $5-3218 Revised 4119194 Revised 12/16/97 City of Hopkins • Legislative Policy Manual -- Chapter 4-A 2 LAWFUL GAIVIBLING FUND OF HOPKINS ELKS LODGE NO. 222 -- (License #B-00365) ~` ~ (Minnesota ID No. 9099423) j RECONCII.IA'I'~ON OF GA~1'IES USED - _ REGULATORY BASIS FOR THE YEAR ENDED MARCH 31, 2003 and 2002 PULIrTABS Cost of Games Used Beginning Inventories Purchases Returns Subtotal Less: Ending Inventories . Total Gust of Games Used Reconciliation of Garnes Used Games Used Per Books Above Games Used and Reported Per Gross Revenues by Month Difference or Possible Unreported Games TIPBOARDS Cast of Games Used Beginning Inventories Purchases Subtotal Less; Ending Inventories Total Cost of Games Used Reconciliation of Games Used Games Used Fer Boobs Above Games Used and Reported Per Gross Revenues by Month Difference ar Possible Unrepnrted Games PADDLETICIiETS Cost of Games Used Beginning Inventories Purchases Subtotal Less: Ending Inventories Total Cost of Games Used Reconciliation of Games Used Gaines Used Per Books Above Games Used and Reported Per Gross Revenues by Month Difference or Possible Unreported Games 3131/03 3131102 NUMBER NITMBER AMOUNT OF GAMES AMOUNT OF GAMES 1,013.66 26 784.06 22 11,123.23 260 12,525.65 282 0.00 0 0.00 0 12,136.89 286 13,309.71 304 730A9 22 1,013.66 26 11,406.80 264 12,296.05 278 264 2~g 264 278 0 0 NUMBER - NUMBER AMOUNT OF GAMES AMOUNT OF GAMES 0.00 0 9.00 3 0.00 0 431.32 ~ 108 0.00 0 440.32 111 o.oo 0 0.00 0 0.00 0 440.32 111 0 111 0 111 0 0 NUMBER NUMBER AMOUNT OF GAMES AMOUNT OF GAMES 0.00 0 0.00 0 126.12 12 0.00 0 126.12 12 0.00 0 0.00 0 0.00 0 126.12 i2 OAO 0 12 0 12 0 0 0 ~.- ~~ LAWFUL GAMBLING FUND OT HOPKINS ELKS LODGE NO, 2221 (Licease #$-00365) ANALYSIS OF ALLOWABLE EXPENSES AS A PERCENTAGE OF GROSS PROFIT REGULATORY BASIS FOR THE YEARS ENDED MARCH 31, 2003 AND 2002 J Grass Profit Allowable Expenses Cost of Games Used Compensation and Payroll Taxes Accounting and Legal Services Advertising Bank Charges &, Supplies Gambling Equipment and Repairs _~ Investigative Fee License Renewals Penalty & Interest Rent Utilities '. Reimbursement of Excessive Cash Shortages Cash 5hariages . __ Total Allowable Expenses Maximum Allowable Expenses by Minnesota State Statutes Excess of Maximum Allowable Expenses in Excess of Allowable Expenses -Current Year Beginning Cumulative Maximum Expenses in Excess of Allowable Expenses Ending Cumulative Maximum Allowable Expenses in Excess of Allowable Expenses 3131/43 3131102 91,298.91 1fl7,048.51 12,264.18 12,733.66 37,948.79 35,235.35 1,742.00 1,200.00 527.74 737.40 2,486.5 4,278.43 1,726.90 1,517.63 a.oa o.oo 0.00 800.00 0.00 0.00 1,256.70 1,781.92" OAO 0.00 6.00 0.00 l,fl4s.oo 752.oa 59,006.$6 59,036.39 50,214.40 58,876.65 -8,792.46 -159.71 76,477.30 76,637.32 67,684.84 " 76,477.61 • i Y ,~ • LAWFI3L GAMBLING FUND OF HOPKINS ELKS LODGE N0.2221 {License #B-0036 RECONCILIATION OF PROFIT CARRYOVER REGULATORY BASIS FOR THE YEARS ENDED MARCH 31, 2003 AND 2002 ADDITIONS: Cash in gambling bank accounts Cash in starting banks Ending inventory . Cash receipts not deposited from games closed and reported on schedules B Required reimbursement for excess cash short 7430 Refund Raffle Ticket Expense Mdse Prizes paid for, not awarded TOTAL ADDITIONS SUBTRACTIONS: Tax to be paid to department of revenue Net cash receipts from games in play and unreported at month end Net loans included in bank statement balance above Unpaid invoices included in ending inventory Unpaid invoices included in cost of goads sold Other TOTAL SUBTRACTIONS 3131103 3131102 27,801.37 24,387.90 4,100A0 4,100.00 730.09 1,013.66 0.00 0.00 0.00 0.00 2,064.58 2,206.94 296.00 0.00 285.00 45.00 35,277.04 31,753.54 20.40 36.98 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 o.©o a.oo 20.40 36.98 Profit Carryover from Financial Statements Profit. Carryover from Tax Report 35,256.64 31,716.52 35,256.64 31,716.32 OAO 0.00 G1 Schedule F Gambling Fund Reconciliation Organization Name License Number Month and year reported { Hopkins EIks Lodge No. 2221 B-00365 3131/03 • Your gambling checking account L 1) End-of--month bank balance from bank statements 1 29,379.10 2) Total Checking~account..» ......................................................»...........................................».».......................»..............................»............._....».................. deposits in Transit 2 589.00 r ......» ............................................».................»....»..._.._._..._..........................»...........................................»...».............................................................».................... 3) Add Lines 1 and 2 3 2S,9S8.10 4)~ Total of ohecks..........»..........» ....................»»......»»....».......».......»..»..»...............................».........................-»....................».....-..................».........».....» outstanding ... .................»..............................»....,.....................................................................................».».......»....»...........»...»..;.4 2,166.73 5) Subtract tine 4 from line 3. This is the reconciled bank balance. 5 27,801.37 Additions: other gambling funds not included in your checking account fi) Start banks per books iJnreimbursed losses sa 4,1oo.a0 fib 0.00 End-of-month cash balance in starting banks for games (6a - 6b) . 6 4,100.00 i 7) Dollar amount of your .ending inventory 7 730.09 ., 8) Cash received but not deposited during the month, 8 0.00 9) Total of amounts in all savings and investment accounts .......................»..................»... .... .... .»... .............. ' ....................».........,»... .............................. 9 ..»..... 0.00 ...... . . . . 1 D) Amount of required reimb for excess cash short (line.34 G :~ ~...»..........» ................................».»..»........................ ..»................ ....... ...........» » ...»~ D 0.00 11) Fund Losses 11 a 0.00 ' lJnsold ticket refunds Merchandise prizes awarded 11b 11c 2,064.58 0.00 Merchandise prizes paid for, not awarded 11 d 285.00 Other additions (attach explanation) 11 a 296.00 ......»Total.» ................._.»................................»....».....................»......................................... ..................................... .............................. ....11 2,645.58 12) Add lines 6 through 11 12 7,475.87 93) Add line 5 and line 12. Thls is your gambling fund bat B14 sub. 13 35,277.fl4 Subtractions: unpaid obligations and receipts from games not closed 14) Total of tax listed an tine 13 of a!I ° forms G-l that remains unpaid » ......................................»........................................ 14 ......................................................_.......................... 20.40 151 Total receipts deposited from Barnes still in play at end of mo. ......................................................».............»........... 15 .............._...........»..................................................... 0.00 1t3) Total loans payable from any source at end of month. 16 0.00 171 Total COGS unpaid includng sales tax at end of the month. 17 0.00 18) Total of other subtractions 18 0.00 f 91 Add lines 14 through 18 19 20.40 ~Reconciliatian_ .................................................... 20) Subtract line 19 from line 13 This is the gambling fund balance 2D 35,255.64 21) Amount of your profit carryover (from tine 44 of this month's G-1) 21 35,255.64 22) If line 2D is > line 21=Overage ....................................».................................................................................................................................................. 22 O.Ofl If line 20 is < fine 21 =Shortage ~ SchP303 10!28103 LAWFUL GAMBLING FUND OF ~.-..... HOPS EL~{S LODGE N0.222i (License # B-00365} Statement afAssets, Liabilities and Fund Balance _ _ REGULATORY BASIS March 31, 2003 and 2002 ASSETS Year Ended Year Ended 3/31103 3131/02 CURRENT ASSETS: CASH: Cash on Hand -Site Banks 4,100.0{) 4,100.00 Cash in Bank -Checking 27,801.37 24,387.90 Total Cash 31,901.37 28,487.90 INVENTORIES: Inventory 730.09 1,013.66 Total Inventories 730.09 1,013.66 Total Current Assets 32,631.46 29,501.56 OTHER ASSETS: Merchandise Prizes Not Awarded 285.00 45.00 Raille Ticket Expense 296A0 0.00 2% Tax Refund - G-7430 2,064.58 2,206.94 Total Other Assets 2,645.58 2,251.94 Total Assets 35,277.04 31,753.50 LIABILITIES CURRENT LIABILITIES Accrued State Taxes 20.40 36.48 Deposits from Games Still in Flay O.OD 0.00 Other Liabilities 0.00 0.00 Total Current Liabilities 20.40 36.98 Total Liabilities 20.40 36.98 FUND BALANCE Profit Carryover Beginning of Year 31,716.52 32,656.93 Revenues in Excess of Expenses 3,540.12 0.00 Expenses in Excess of Revenues 0.00 -1,001.13 Profit Carryover 35,256.64 31,655:80 Variance 0.00 60.72 Fund Balance End of Year .35,256.64 31,716.52 Total Liabilities and Fund Balances 35,277.04 31,753.50 {See accompanying Notes to Financial Statements) LAWFIIL GAMBLING FUND OF HOPKIlVS ELKS LObGE N0.2221 (License B-003bS} ~~ Statements of Revenues, Expenses and Changes in Profit Car ov ry er REGULATORY BASIS t_: For the Years Faded March 31 , 2003 and 2002 Year Ended 3132103 Year Ended 3131102 -- REVENUES Amount % - Amount - ' Pull-Tab Receipts 657,787.00 98.31°10 661 073:OD " 98 56% r Bingo Receipts 2,452.76 0.37% , 3 099.60 . 46% 0 Raffle Receipts 2,347.00 0.35°/a , 0 00 , 0 00° /0 Paddietickets 6;480.00 0.97% . 3,030.00 , . 0 45% Tipboard Receipts 0.00 0.00% 3 558A0 . 0 53% Interest Income OAO 0.00% , 0_DO . 00% 0 Revenues Collected 669,066.76 1p0.p0%° 670,760.60 . IOO.OD% COST OF REVENUES Pull-Tab Prizes 556,276.00 83.14% 559 012.00 83 34% Bingo Prizes 1,260A0 0.19% , 1,506.09 . 0 22% Raffle Prizes 416.53 0.06% 0.00 . 0 00% Paddleticket Prizes 3,340.00 0.50% 1 515.00 . 0 23% Tipboard Prizes _ _ 0.00 0.00% , 1 667,00 . 0 25% Cost of Revenues 561,292,53 $3.89% , 563 700 09 . $4 04% , . , GROSS PROFIT 107 774.23 16.11% .107,060.51 96% . . 15 ALLO . WABLE EXPENSES 59,006.86 $.$2% 59,036.39 8.80% REVENUES IN EXCESS OF ALLOWABLE EXPENSES 48,767,37 7.29% 48,024,12 7. i6% APPROVED AD3USTMENT 0.00 0.00% 0.00 O OD% . LAWFUL PURPOSE EXPENDITURES Gambling Taxes: State Combined Receipts Tax 2,991.90 0.45% 2,913.61 0 43% State Ideal Gambling Tax 12,951.05 1.94% 13,60?.25 . 2 03°/a State Ideal Gambling Tax Refund -2,077.33 -0.31% -2,245.19 . -0 33% Other State Taxes 532.37 0.08% 264.22 . 0 04% Total Gambling Tares 14;397.99 2.15% ~ 14,539.89 , 17% 2 Audit Fees 967.D0 O.i4% 1,933.05 . 0 29% Program Expenditures 29,862.26 4,46% 32 552.30 . 4 85% Total Lawful Purpose Expenditures 45,227.25 6,76% , 49,025.24 . 7.31% REVENUES IN EXCESS OF EXPENSES BEFORE INCOME TA3~S 3,5$0.12 0..53% =I 001 12 -0 15% . , . INCOME TAXES 0.00 ~ 0.00% ~ 0.00 0,00% Revenues in Excess of Expenses 3,540.12 0.53% 0.00 0 00% Expenses in Excess afRevenues 0.00 0.00% -1,001.12 , -0.15% Profit Carry-over -Beginning of year 31,716.52 32,656.93 Profit Carry-over -End of Year 35,256.64 31,655.81 (See accompanying Notes to Financial Statements} 2002 Charitable And Lodge Contributions From Gaming Real Estate Taxes $1 p, g g g, 0 0 • MN Elks Youth Camp 5,469.00 • Scholarships 6,000.00 • Raspberry Weekend Events 3,226.00 • Teenager of Manth Scholarships 1,868.00 Allied Charities Membership & Conv. 6U0.00 • Hopkins Community Christmas Tree 900.00 • Hopkins Schools - (Various} 425.00 • Hopkins Litt€e League 500.00 MN Special Olympics 500.00 • Boy Scouts 750.00 Elks National Foundation 3,345.00 • Twin City Girls Basketball 265.00 • Babe Ruth Baseball 300.00 • Suburban Law Enforcement School Patrol 25.00 • Hopkins Family Resourse 235.Ofl • Crime Stoppers 100.fl0 ~• San#a Breakfast 174.00 • Girl Scouts 200.00 Helping PAWS of MN 150.fl0 • Chapel View Christmas Tree-Emp#y Bow€s-Teens Alone 195:fl0 Prism 200.00 . $36,225.00 • DIRECT BENEFIT TO HOPKINS COMMUNITY $20,457.00 Note: ENF Donations include almost $'i ;;00.00 raised by Bruce Yorks and crew from October Turkey Fry! Thanks Bruce 2003 Charitable And lodge Contributions From Gaming • • [7 Gaming Monies Disbursed Through October 2043 Real Estate Taxes ~` Local College Scholarships '~ MN Elks Youth Camp '~ City of Hopkins Defibrillator ~` Hopkins High School Teenager of the Month ~ Raspberry Days Kids Rides * Hopkins Little League Boy Scouts Girl Scouts * Music in the Park Heroes and Dream Fund * Hopkins Girls Softball * Teens Alone * Alice Smith School ~` Hopkins Fire Department Open House * Hopkins Resource Genter ~ Hopkins High School Choral Crime Stoppers 11,225.42 7,000.00 5,931.00 2,255.00 1,200.00 968.00 500.00 500.00 450.80 400.00 350.00 200.00 200.04 175.00 15o.oa 100.00 100.00 100.00 $32,204.42 * DIRECT BENEFIT 70 HO-PKINS AREA - $19,379.00