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I I I Council Meeting Minutes April 26, 1988 of the net proceeds which must be used to regulate charitable gambling and which must be reported to the state on an annual basis. Benke noted the amount of contributions seems to be a very low percentage; Johnson explained the Eagles and the American Legion have given a lot back to their respective organizations for their building which are lawful purpose expenditures. Benke expressed concern that the implication is the organizations are using charitable gambling to support normal operations; Kelley stated it is possible that an organization could raise money from charitable gambling and then transfer it to its General Fund for general purposes. Benke stated the Eagles are growing and building now and maybe some day they will give more money to the community; doesn't see a need to raise questions at this time. Williams stated it is better for them to make a donation to the community rather than requiring them to donate a given percentage. Benke stated we need to understand the nature of their business; we could transmit a copy to the Managers of the organizations to see if we are interpreting the numbers correctly; and at some point we would like to receive char~table donation~. Brandt would like to see every group be required to give us the same reports they are required to send to the State; it may moti- vate them to take a look at how they are spending their funds. Kelley indicated the Roseville ordinance talks about an investiga- tive fee which then requires a duplicate copy of the State report to the city. Williams stated the Chamber of Commerce has donated, or pledged, a major amount to Stockyard Days. Brandt would like to share Johnson's report with the five organi- zations; Kelley agreed. Benke asked Kelley to informally ask the organizations to provide us with a copy of the annual report they send to the State. (No action r~quired, no action taken) Egan reviewed the staff report concerning the 1988 water and sewer user rates. Benke commented that raising the rates from $.80 to $1.40 at this point would be financial, and practically speaking, suicide; and believes we can afford to internally fund it. Benke stated we need to explain what we are doing so residents understand why they are not getting refunds (we have been absorbing the cost of this program by funding the cost from other sources and that the check Page 19 Water/Sewer Rates 1988 Report 88-133 Resolution 88-43