CR 06-043 Charitable Gambling Premises Permit Application for Hopkins AL Post 320
March 30, 2006
CR2006-043
CHARITABLE GAMBLING PREMISES PERMIT APPLICATION FOR
THE HOPKINS AMERICAN LEGION POST 320
Staff recommends approval of the following motion: Move that the Hopkins City Council
adopt Resolutions 2006-025, approving the charitable gambling premises permit for the
Hopkins American Legion Post 320 located at 10 - 12th Ave S.
Adoption of this resolution will allow the Hopkins American Legion to continue to run the
existing charitable gambling activities at the Legion hall.
Overview
. The Hopkins American Legion has requested a renewal of their gambling license
and premises permit. They conduct charitable gambling at the Legion hall only,
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 2006-025
. Legislative Policy 4-A, Lawful Gambling
. Financial Statement and Independent Auditor's Report, Years ending December,
2004 and 2003
. List of donations made by the Legion
. Gambling License Application available in the City Clerk's office
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Council Report 2004-044
Page 2
Alternatives
1, Approve Resolutions 2006-025, allowing the Hopkins American Legion to continue
the present gambling activities at the present locations,
2, Do not approve the resolutions with the result that the Hopkins American Legion
will no longer have gambling in the City of Hopkins,
3, Continue the item for more information,
Staff recommends alternative one.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2006-025
RESOLUTON APPROVING A GAMBLING
LICENSE FOR THE HOPKINS AMERICAN LEGION POST 320
WHEREAS, the Hopkins American Legion Post 320 has been an important
part of the City of Hopkins, and;
WHEREAS, the Hopkins American Legion Post 320 has applied for a renewal
of its gambling license to conduct lawful gambling, and;
WHEREAS, the Hopkins American Legion Post 320 has conducted its
gambling operation in accordance with the laws of the State of Minnesota and
Hopkins City Policy,
NOW, THEREFORE, be it hereby resolved that the City Council of the City of
Hopkins, Minnesota approves the Hopkins American Legion Post 320 Premises
Permit Renewal application to operate lawful gambling at the Hopkins American
Legion Post, 10 - 12th Avenue South,
Adopted by the City Council of the City of Hopkins this 4th day of April, 2006,
By
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 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
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.
2.1 0 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.
Established 11119/85 by Resolution 85-3218
Revised 10/511993
Revised 4119/94
Revised 12116/97
Revised 8/1912003
City of Hopkins
Legislative Policy Manual -- Chapter 4-A
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Lawful Gambling Fund of
Hopkins American Legion Post #320
(License #A-00225)
Statement of Assets, Liabilities and Fund Balance
Regulatory Basis
For the Years Ended December 31.2004 and 2003
ASSETS
2004
$ 64,310
4,370
68,680
Cash
Gambling Bank Account
Starting Game Banks
Total Cash
Inventories
Merchandise Prizes
Games
Total Inventories
Total Assets
4,228
1,956
6,184
$ 74,864
LIABILITIES
Accounts Payable
Board Fee Payable
State Taxes Payable
8.5% Tax Payable
Due to Game Vendors
Unearned Revenue
Total
$ 225
11,319
85
155
630
12,414
PROFIT CARRYOVER
Fund Balance
Profit Carryover
62,450
Total Liabilities & Profit Carryover
$ 74,864
See accompanying Notes and Auditor's Report
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2003
$ 40,265
4,800
45,065
2,486
2,374
4,860
$ 49,925
$ 268
13,641
310
270
14,489
35,436
$ 49,925
Lawful Gambling Fund of
Hopkins American Legion Post #320
(License #A-00225)
Statement of Revenues, Expenses & Changes in Profit Carryover
Regulatory Basis
For the Years Ended December 31.2004 and 2003
2004 2003
Amount % Amount %
REVENUES
Pulltab receipts $ 2,628,368 $ 3,010,763
Paddletickets 25,500 25,500
Interest Income 45
2.653.868 3.036.308
COST OF REVENUES
Pulltab Prizes 2,252,218 2,630,444
Paddletickets 14.500 12.750
2.266.718 2.643.194
GROSS PROFIT 387,150 100.0% 393,114 100.0%
ALLOWABLE EXPENSES 141.274 36.5 147.608 37.5
REVENUES IN EXCESS OF
ALLOWABLE EXPENSES 245.876 63.5 245.506 62.5
LAWFUL PURPOSE EXPENDITURES
Board Fee 2,654 .7 1 ,432 .4
State Combined Receipts Tax 98,347 25.4 117,851 30.0
State Net Receipts Tax 935 .3 1,084 .3
State Ideal Gambling Tax $ 57,191 $ 66,322
Less Refund 14.793 42,398 11.0 16.208 50,114 12.7
Federal Gambling Taxes 6,725 1.7 7,636 1.9
Utilities 28,214 7.3 30,855 7.8
Audit Fee 2,600 .7 2,500 .6
Real Estate Taxes 14,442 3.7 14,371 3.7
Program Expenditures 22.547 ~ 21.879 ~
218.862 56.6 247.722 63.0
REVENUES IN EXCESS OF EXPENSES 27,014 6.9% (2,216) ~%
Profit Carry-Over-Beginning of Year 35 .436 37.652
PROFIT CARRY-OVER END OF YEAR $ 62 450 $ 35.436
See accompanying Notes and Auditor's Report
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Lawful Gambling Fund of
Hopkins American Legion Post #320
(License #A-00225)
Games Used - Regulatory Basis
For the Years Ended December 31.2004 and 2003
2004 2003
Number Number
Amount of Games Amount of Games
PULL TABS
Cost of Games Used:
Beginning Inventories $ 2,345 55 $ 2,296 57
Purchases 35.404 808 40.732 934
37,749 863 43,028 991
Less Ending Inventories (1.895) Jill (2.345) JM.)
Subtotal 35.854 818 40.683 936
Games Reported
on Schedule B-2 818 936
Difference 0 0
PADDLETICKETS
Cost of Games Used:
Beginning Inventories 30 2 105 7
Purchases 304 19 192 --1.f.
334 21 297 19
Less Ending Inventories (60) ~ (30) ~)
Subtotal 274 17 267 17
Games Reported
On Schedule B-2 .J.l .J.l
Difference 0 0
Cost of Games Used $ 36.128 $ 40.950
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Lawful Gambling Fund of
Hopkins American Legion Post #320
(License #A-00225)
Analysis of Maximum Allowable Expenses
As a Percentage of Gross Profit
Regulatory Basis
For the Years Ended December 31.2004 and 2003
2004 2003
Amount % Amount %
REVENUES $ 2,653,868 $ 3,036,263
COST OF REVENUES 2,266,718 2,643,194
387,150 393,069
INTEREST INCOME 45
GROSS PROFIT 387,150 100.0% 393,114 100.0%
ALLOWABLE EXPENSES
Cost of Games Used 36,128 9.4 40,950 10.4
Compensation &
Payroll Taxes 86,846 22.5 91,525 23.2
Legal & Accounting 10,031 2.6 9,075 2.3
Advertising 290
Office Supplies, Bank Charges, Misc. 2,107 .6 3,166 .8
Licenses & Bond 700 .1 281 .1
Cash Shortage 1,243 .3 1,185 .3
Equipment and Maintenance 3,989 1.0 1,426 .4
Total Allowable Expenses 141,274 36.5% 147,608 37.5%
Maximum Allowable Expenses
by Minnesota Statute 212,932 216,213
Excess of Maximum Allowable
Expenses-Current Year $ 71,658 $ 68,605
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Lawful Gambling Fund of
Hopkins American Legion Post #320
(License #A-00225)
Reconciliation of Profit Carry-Over
Regulatory Basis
For the Years Ended December 31.2004 and 2003
ADDITIONS
Cash in Gambling Bank Account
Cash in Savings Account
Ending Inventories - Games
Ending Inventories - Prizes
Taxes Payable
Board Fee Payable
Due to Game Vendors
Unearned Revenue
Unpaid Prizes
Total Additions
2004 2003
$ 24,045 $ 14,246
1,742 2,486
2,322 1,115
43
155 323
660
907
28,307 19,737
430
21,658
418 27
268
360
85
1,293 21,953
27,014 (2,216)
35,436 37,652
62,450 35,436
60,542 35,236
$ 1,908 $ 200
SUBTRACTIONS:
Cash in Game Banks
Cash in Savings Account
Unpaid Prizes
Ending Inventories - Games
Board Fee Payable
Due to Game Vendors
Unearned Revenue
Taxes Payable
Total Subtractions
Profit Carry-over
Current Year
Profit Carry-over
Beginning of Year
Profit Carry-over From
Financial Statements
Profit Carry-over from
Department of Revenue
Variance from Balance
Analysis of Variance
Cash Over/Short
Inventory Adjustment
$ 1,842
66
$ 1,908
200
$ 200
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Lawful Gambling Fund of
Hopkins American Legion Post #320
(License #A-00225)
Lawful Purpose Program Expenditures - Regulatory Basis
For the Years Ended December 31. 2004 and 2003
2004 2003
TAXES
Federal Excise Taxes $ 6,725 $ 7,636
State Net Receipts Tax 935 1,084
State Ideal Gambling Taxes 57,191 $ 66,322
Less Refund 14,793 42,398 16,208 50,114
Combined Receipts Taxes 98,347 117,851
Real Estate Taxes 14,442 14,371
Subtotal 162,847 191,056
Audit Fees 2,600 2,500
Board Fee 2,654 1 ,432
Utilities 28,214 30,855
GRANTS
Families in Need 500 400
American Diabetes Association 100
Make A Wish 100
Minnesota VFW (60) 60
Hopkins Fire Dept. 350
Youth Sports 5,054 6,923
Children's Events 3,183 1,334
Veterans Funds 1,412 449
American Cancer Society 100
Liberty Day Program 65
Courage Center 100
School Programs 950 622
Color Guard 1,170 2,020
Scholarships 5,600 4,950
Scouting 584 272
School Patrol 640
Helping Paws MN 100 50
Hopkins Boosters 300
Homeward Bound 100
Ms America 50
Multiple Sclerosis Walk-a-thon. (250) 250
Loyalty Day Program 75
Boys State 1,220 325
Special Olympics 250 100
March of Dimes 50
11
Muskies, Inc.
Hearing & Service Dogs
Hospitals
Memorial Day Program
MN Council on Compulsive
Gambling
MN Girls State
WWII Memorial
Flag Programs
Total
Total Lawful Purpose Expenditures
12
50
200
150
100
199
100
250
100
1,109
22,547
$218.862
2,670
21,879
$ 247.722
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Lawful Gambling Fund of
J Hopkins American Legion Post #320
(License #A-00225)
J Lawful Purpose Program Expenditures - Regulatory Basis
For the Years Ended December 31.2004 and 2003
2004 2003
TAXES
J Federal Excise Taxes $ 6,725 $ 7,636
State Net Receipts Tax 935 1,084
J State Ideal Gambling Taxes 57,191 $ 66,322
Less Refund 14,793 42,398 16,208 50,114
Combined Receipts Taxes 98,347 117,851
J Real Estate Taxes 14,442 14,371
Subtotal 162,847 191,056
] Audit Fees 2,600 2,500
Board Fee 2,654 1 ,432
Utilities 28,214 30,855
] GRANTS
Families in Need 500 400
] American Diabetes Association 100
Make A Wish 100
Minnesota VFW (60) 60
J Hopkins Fire Dept. 350
Youth Sports 5,054 6,923
Children's Events 3,183 1,334
] Veterans Funds 1,412 449
American Cancer Society 100
Liberty Day Program 65
J Courage Center 100
School Programs 950 622
Color Guard 1,170 2,020
J Scholarships 5,600 4,950
Scouting 584 272
School Patrol 640
J Helping Paws MN 100 50
Hopkins Boosters 300
Homeward Bound 100
J Ms America 50
Multiple Sclerosis Walk-a-thon. (250) 250
Loyalty Day Program 75
J Boys State 1,220 325
Special Olympics 250 100
March of Dimes 50
J 11
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Muskies, Inc.
Hearing & Service Dogs
Hospitals
Memorial Day Program
MN Council on Compuisive
Gambling
MN Girls State
WWII Memorial
Flag Programs
Total
Total Lawful Purpose Expenditures
12
50
200
150
100
199
100
250
100
1,109
22,547
$218.862
2,670
21,879
$ 247.722
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An emergency foodshelf and
f"mancial assistance agency
serving the seven west metro
communities of Minnetonka,
Hopkins, Excelsior,
Deephaven, Shorewood,
Woodland, Greenwood
ICA MISSION
To assist our neighbors in
meeting emergency needs.
ICA VISION
To educate, focus and encourage
the giving spirit within
congregations, organizations,
businesses and individuals
in the communities.
To share the ongoing work
of assisting our neighbors
as they strive for self-sufficiency.
"I Can Assist"
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Intercongregation Communities
Association
Minnetonka Site
3909 Williston Road
Minnetonka, MN 55345
Phone: 952-938-0729
Fax: 952-938-7822
ICA@emergencyfoodshelf.org
Open 9 AM to 4 PM
Tuesday through Friday
or by appointment
Excelsior Site
339 Third Street
Excelsior, MN 55331
Phone: 952-470-0692
Fax: 952-470-0692
Open 9AM to 1 PM
Monday through Friday
Annette Marie Poeschel, Executive Director
Web Site: ICAFoodshelf.org
July 2005
ICA is a commttty-based program organized
and principally supported by:
Adath Jeshurun Congregation
All Saints Lutheran Church
Bahai's ofMinnetonka
Bethlehem Lutheran Church
Bet Shalom Congregation
Congregational Church of Excelsior
Cross of Glory Baptist Church
Excelsior Covenant Church
Excelsior United Methodist Church
Fairview Lutheran Church
Faith Presbyterian Church
Gethsemane Lutheran Church
Grace Evangelical Lutheran Church
Hopkins United Methodist Church
Immaculate Heart of Mary Catholic Church
Minnetonka Community Church
Minnetonka Lutheran Church
Minnetonka United Methodist Church
Mizpah United Church of Christ
Mount Calvary Lutheran Church
Northern Oaks Community Church
Oak Knoll Lutheran Church
Our Savior Lutheran Church
Ridgewood Baptist Church
Shepherd of the Hills Lutheran Church
St. David's Episcopal Church
St. John the Baptist Catholic Church
St. John the Evangelist Catholic Church
St. Joseph's Catholic Church
St. Luke Presbyterian Church
St. Paul's Lutheran Church
St. Therese of Deephaven Catholic Church
Trinity Episcopal Church
Zion Lutheran Church
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What is ICA '? What Can You Do'? Facts about Bunger in Minnesota
(From Minnesota FoodShare)
Your local emergency food shelf and . Be aware of the needs in your community.
emergency financial assistance agency. lCA You can help by supporting the efforts of . 1.5 million individuals visited food
serves residents of Minnetonka, Hopkins, lCA in assisting those who are hungry, shelves in Minnesota in 2004. And the
Excelsior, Deephaven. Shorewood, Greenwood facing the possibility of being homeless, numbers continue to increase.
and Woodland. andl or strUggling to attain self sufficiency. Nearly half of the hungry who visit food
.
At different times in our lives, many of us . Financial donations provide ICA with shelves are children. Hungry children
will face an emergency. It could be job loss, the ability to assist those in financially have difficulty learning and have more
unexpected expenses, illness, car repair, no stressful situations. Financial donations medical problems and absenteeism.
health insurance, losS of wages due to illness of also provide lCA with flexibility to buy . More than 20% of food shelf clients are
a family member, etc. That's when lCA steps perishable foods, ethnic foods, and food for elderly.
in. Our c()Jllllli.tted staff and volunteers work those with special dietarY requirements.
to assist those in need. Food donations help feed . More than half of food shelf clients work,
. children, but do not make enough to cover basic
{ami,lies, seniors and other individuals in
your community. needs. Low wages and skyrOcketing ex-
penses make working individuals and
. Volunteer _ Many opportunities are avail- families more vulnerable to hunger.
What does ICA provide'? able. . Cuts in the state budget have decreased
. Hope programs for those who do quality for
state assistance.
. EmergencY food In 2004, lCA distributed over 255,000
.
. Emergency financial assistance for basic pounds of food serving over }3,000
needs individuals.
. Holiday assistance Facts about Bomelessness in Minnesota
. Transportation to medical appointments Volunteer John Kok.esh -- sleeping on the job.. Up to 1000 individuals are turned away
.
. Referrals to other service agencies Call1CA at 952-938-0729 or 952-470-0692 from shelters on a winter night.
to make a taX_deductible contribution, . 60% of homeless families are working.
drop off food, or volunteer. . In 2004, over 6,000 individuals received
over $126,000 in financial assistance.
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