CR 2003-156 Charitable Gambling Premises Permit Applications By The Rapberry Festival•
October 15, 2003 Council Report 2003 -156
Staff recommends approval of the following motion: Move that the Hopkins City
Council adopt Resolutions 2003 -94, approving a charitable gambling premises permit for
the Raspberry Festival.
Adoption of these resolutions will allow the Raspberry Festival to continue to run the
existing charitable gambling activity at the existing location in the City of Hopkins.
Overview
The Raspberry Festival has requested a renewal of the gambling license and premises
permits at Decoys, 1022 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
CHARITABLE GAMBLING PREMISES PERMIT APPLICATIONS BY
THE RASPBERRY FESTIVAL
• Resolutions 2003 -93
• Legislative Policy 4 -A, Lawful Gambling
• Financial Statement and Independent Auditor's Report, Years ending October
31, 2002 and 2001
• List of donations made by the Raspberry Festival
• Gambling License Application available in the City Clerk's office
Terry Obermaier, City Clerk
Council Report 2003 -156
Page 2
Alternatives
1. Approve Resolutions 2003 -93, allowing the Raspberry Festival to continue the
present gambling activities at the present location.
2. Do not approve the resolutions with the result that the Raspberry Festival will
no longer have gambling in the City of Hopkins.
3. Continue the item for more information.
Staff recommends alternative one.
ATTEST:
Terry Obermaier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2003 -93
RESOLUTION APPROVING A GAMBLING PREMISES
LICENSE FOR THE RASPBERRY FESTIVAL
AT DECOYS, 1022 MAINSTREET
WHEREAS, the Raspberry Festival has been an integral part of the Hopkins
Community, and
WHEREAS, the Raspberry Festival has applied for a gambling license to conduct
lawful gambling in 2004 and 2005, and
WHEREAS, the Raspberry Festival 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 Raspberry Festival's Premises Permit Renewal
application for Decoys, 1022- Mainstreet, Hopkins.
Adopted by the City Council of the City of Hopkins, Minnesota, this 21S day of October,
2003:
Eugene J. Maxwell, Mayor
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 has its principal or registered office, street address and zip
code within the City of Hopkins.
2.03 The organization defined in Section 2.02 must be engaged in its primary activities for
the benefit of the community within the City of Hopkins for at least five years on a
perpetual, continuous, uninterrupted basis and have at least 30 active members as
defined in Minnesota Statute Chapter 349.
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 permit or license to conduct bingo 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 Only one organization, as defined in Section 2.02, may conduct gambling within a
single owned, occupied or leased premise.
Legislative Policy Manual -- Chapter 4 -A 1
•
•
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 and 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 notice sent to the general membership announcing the meeting to authorize
gambling activities, and 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.
2.15 The City shall receive 10% of net profits from organizations conducting gambling in
leased premises.
Legislative Policy Manual -- Chapter 4 -A
Established 11/19/85 by Resolution 85 -3218
Revised 10/5/1993
Revised 4/19/94
Revised 12/16/97
Revised 8/19/2003
City of Hopkins
LAWFUL GAMBLING FUND OF
HOPKINS RASPBERRY FESTIVAL ASSOCIATION, INC.
(LICENSE #02297)
(MN ID# 3815795)
STATEMENT OF ASSETS, LIABILITIES AND PROFIT CARRYOVER
REGULATORY BASIS
OCTOBER 31, 2002 AND 2001
ASSETS
CASH
Gambling Bank Accounts:
Interest Bearing $ 91,534 $ 46,147
Cash - Games In Play 4,877 318
Starting Game Banks 10,000 8,800
Total Cash $ 106,411 $ 55,265
INVENTORIES $ 4,069 $ 2,099
Total Current Assets
LIABILITIES
ACCOUNTS PAYABLE
State Combined Receipts and 10% Tax $ 21,844 $ 9,931
Vendors Payable 7,379 4,187
Total Accounts Payable 29,223 14,118
Unearned Revenues - Games In Play 4,877 318
Total Current Liabilities $ 34,100 $ 14,436
COMMITMENTS AND CONTINGENCIES
• FUND BALANCE
FUND BALANCE
Profit Carry-Over $ 76,380 $ 42,928
Total Liabilities and Fund Balance $ 110,480 $ 57,364
See accompanying Notes to Financial Statements.
(2)
2002 2001
$ 110,480 $ 57,364
LAWFUL GAMBLING FUND OF
HOPKINS RASPBERRY FESTIVAL ASSOCIATION, INC.
(LICENSE # 02297)
(MN ID# 3815795)
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN PROFIT CARRY -OVER
REGULATORY BASIS
FOR THE YEARS ENDED OCTOBER 31, 2002 AND 2001
2002 2001
AMOUNT PERCENTAGE AMOUNT PERCENTAGE
REVENUES
Pull -Tab Receipts $ 4,065,643 100.0% $ 2,592,587 100.0%
Raffle Receipts 0 0.0% 0 0.0%
Paddle Wheel Receipts 0 0.0% 0 0.0%
Interest Income 349 0.0% 419 0.0%
Revenues Collected $ 4,065,992 100.0% $ 2.593.006 100.0%
COST OF REVENUES
Pull -Tab Prizes $ 3,362,417 82.7% $ 2,128,495 82.1%
Paddle Wheel and Raffle Prizes 0 0.0% 0 0.0%
Cost of Revenues $ 3,362,417 82.7% $ 2,128,495 82.1%
GROSS PROFIT $ 703,575 17.3% $ 464,511 17.9%
ALLOWABLE EXPENSES $ 331,979 8.2% $ 270.631 10.4%
REVENUES IN EXCESS OF
ALLOWABLE EXPENSES $ 371,596 9.1% $ 193,880 7.5%
LAWFUL PURPOSE EXPENDITURES
Gambling Taxes:
Combined Receipts and Other Tax $ 171,666 4.2% $ 90,523 3.5%
State Ideal Gambling Taxes 82,389 2.0% 49,155 1.9%
Ideal Tax Refund (10,181 -0.3% (8.0911 -0.3%
Total Gambling Taxes $ 243,874 5.9% $ 131,587 5.1%
Audit Fees 4,000 0.1% 1,500 0.1%
Programs Expenditures 90,270 2.3% 69,441 2.6%
Board Approved 0 0.0% 0 0.0%
Total Lawful Purpose Expenditures $ 338,144 8.3% $ 202,528 7.8%
REVENUES IN EXCESS OF EXPENSES
BEFORE INCOME TAX $ 33,452 0.8% $ (8,648) -0.3%
INCOME TAX PAID
Federal $ 0 0.0% $ 0 0.0%
State 0 0.0% 0 0.0%
Total Income Taxes $ 0 0.0% $ 0 0.0%
REVENUES IN EXCESS OF EXPENSES $ 33,452 0.8% $ (8,648) -0.3%
PROFIT CARRY -OVER - Beginning of Year $ 42,928 $ 51,576
ADJUSTMENTS
PROFIT CARRY -OVER - END OF YEAR $ 76,380 $ 42,928
See accompanying Notes to Financial Statements.
(3)
•
Contribution Report
HOPKINS RASPBERRY FESTIVAL
For All Sites
From 11/1/2001 to 10/31/2003
O
•
ate Check
Written Number Payee
For
11/5/2001 5046
2/28/2002 UNSOLD
6/11/2002 5202
7/2/2002 5223
10/14/2002 5306
11/1/2002 5323
11/12/2002 5330
12/1/2002 5356
1/14/2003 5405
2/28/2003 UNSOLD
4/17/2003 5481
For 10
12/14/2001 5068
For 5
8/20/2003 5610
WI For A - 1
1/12/2001 5048
1/14/2002 5091
3/11/2002 5129
4/22/2002 5159
5/23/2002 5176
6/19/2002 5211
7/19/2002
7/25/2002
8/27/2002
9/9/2002
10/14/2002
11/4/2002
11/12/2002
11/12/2002
12/1 /2002
2/10/2003
3/12/2003
4/15/2003
5/28/2003
6/30/2003
7/7/2003
7/9/2003
7/17/2003
5236
5239
5263
5280
5305
5325
5331
5332
5357
5423
5452
5479
5522
5554
5565
5575
5576
For A - 12
4/23/2002 5162
5/29/2002 5185
University of Minnesota -Mank
Tax Credit/Refund from Form
Grafe Auctions
Citizens Independent Bank
St. Louis Parktacular
Spencer Smith
St.Louis Parktacular
Hamline University
John Hamer
Tax Credit/Refund from Form
St.Louis Parktacular
Total of
Citizens Independent Bank
Total of 10
U.W. -Stout
Total of 5
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Winona State University
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Hopkins Raspberry Festiva
Multiple Sclerosis Soc.
Hopkins Raspberry Festiva
Total of A -1
Deanna Anderson
Deanna Anderson
A
A
A
A
A
A
A Donation to Festiva
A Donation to Festiva
A Donation to Festiva
A Donation to Festiva
A Donation to Festiva
A Donation to Festiva
A
Description
Melissa Specken 00655855
25 2 -way radios for use during festival eve
Savings Bonds for 2002 Junior Royalty
Donation to Festival Org.
Donation to Festival Org.
Sr.King Award
Donation to Festival Org.
Savings Bonds for 2000 Junior Royalty
Schol. J.Larson
Donation to Festiva Org.
Donation to Festiva Org.
Donation to Festiva Org.
Donation to Festiva Org.
Donation to Festiva Org.
Donation to Festiva Org.
Donation to Festiva Org.
Donation to Festiva Org.
Donation to Festiva Org.
Donation to Festiva Org.
Donation to Festiva Org.
Donation to Festiva Org.
Donation to Festiva Org.
Donation to Festiva Org.
Donation to Festiva
Annual Audit
Annual Audit
Org.
Org.
Org.
Org.
Org.
Org.
Org.
Page 1
Total
2500.00
- 10180.71
2370.50
200.00
5000.00
100.00
5000.00
2500.00
500.00
- 16047.37
3000.00
- 5057.58
200.00
200.00
2000.00
2000.00
6000.00
1000.00
6000.00
5000.00
3000.00
20000.00
10000.00
3000.00
15000.00
6000.00
5000.00
3000.00
5000.00
25000.00
2000.00
3000,00
2500.00
10000.00
5000.00
10000.00
25000.00
100.00
5000.00
175600.00
3000.00
1000.00
Minnesota Gambler
Contribution Report Page 2
HOPKINS RASPBERRY FESTIVAL
For All Sites
From 11/1/2001 to 10/31/2003
ate Check
Written Number Payee Description Total
4/17/2003 5480 Depot Coffee House 500.00
4/18/2003 5487 Deanna Anderson Annual Audit 3000.00
4/24/2003 5502 Dept. of Revenue 1111.00
Total of A -12 8611.00
For A -2
1/14/2003 5404 Lorraine Beversdorf Sr.Queen Award 500.00
Total of A -2 500.00
For A -4
6/14/2003 5541 Hopkins Area Little League 1000.00
Total of A -4 1000.00
For A -5
2/11/2003 5424 University of Minnesota Brittany Balder Scholarship 2000.00
8/20/2003 5611 Normandale Community College Schol. J.Enzenauer 2000.00
Total of A -5 4000.00
For A -8
4/24/2003 5501 I.R.S. 990T 1779.00
6/11/2003 5540 I.R.S. 990T 4300.00
Total of A-8 6079.00
Total of Organization 192932.42
Minnesota Gambler