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HomeMy WebLinkAboutCL 10-02 CUt¡ o~ 19 REPORT TO COUNCIL FROM: Bruce Taylor, AMCT, CMM City Clerk DATE: April 2, 2002 - REPORT NUMBER: CLlO-02 SUBJECT: Increased Lottery Licence Fees. RECOMMENDATION: 1. That the Clerk's Report CL10-02 regarding the increase in Lottery Licence Fees be received; and 2. That the by-law attached to Clerk's Report CLIO-02 be enacted. ORIGIN: Motion made by the Committee of the Whole at its meeting of December 10, 200 I to refer the Clerk's Report CL51-01 back to staff for further information. AUTHORITY: - By-law 44/74, as amended (Lottery Licencing) FINANCIAL IMPLICATIONS: 2002 projected based on existing fee structure - $20, 100 2002 projected based on proposed fee structure (ffom date forward) - $46, 582 2003 projected based on proposed fee structure - $70, 785 EXECUTIVE SUMMARY: At its meeting of December 10,2001, the Committee ofthe Whole considered the Clerk's Report CL51-01 recommending an increase in Lottery Licence Fees to more accurately recover costs of providing the service to our community. This Report was referred back to staff with the direction that staff work with the Bingo Association members to determine an acceptable increase. BACKGROUND: - Council passed By-law Number 44/74 on April 22, 1974 to licence lotteries. Schedule "A" of this by-law established the licence fees for licenced lottery events. On February 3, 1992 Council passed by-law 3929/92 which amended by-law 44/74 by replacing Schedule "A" with a new Schedule which increased the licence fees. At its meeting of December 10, 2001, the Committee of the Whole considered Clerk's Report CL51-0 1 which requested an increase in lottery licencing fees which would more accurately recover costs for providing the licencing service to our community. Council referred this report back to staff with the direction that staff work with the 36 Charities which are members of the Mayfair Bingo Association. Report to Council CL 10-02 Date: April 2, 2002 "0" c., Subject: Increased Lottery Licence Fees Page 2 - Staff met with the three Executive members of the Mayfair Bingo Association on February 21, 2002 to discuss the City's need to increase our lottery licensing fees in an effort to recover administrative costs and to provide a more equitable formula for collecting licencing fees. Discussions concluded with an agreement by all parties for a .75% per event fee. The Executive members agreed to present this offer to their Association membership at its meeting of March 20, 2002. Based on approximately 1716 bingo events per year, the licencing revenue for the City would be approximately $70,000. The current licencing fees for bingos is approximately $20,000. Although this proposed rate of .75% is less than the 1%, which was originally presented to Council in the Clerk's Report CL51-0 1, it is a rate that offers a fair compromise. In addition to meeting with the Association, staff also discussed the proposed .75% fee with the Manager of Delta Bingo.' Appendix B to this report is a letter of acceptance from the Mayfair Bingo Association. The Association accepts this new fee proposal of .75% per bingo event, which results in an increase in licencing fees, with the condition of a five-year moratorium on any further increases. Although we recognize that such a commitment may not be guaranteed with a future Council, staff agrees with this request in principal. Based on the foregoing, I would strongly recommend that Council enact the new by-law. ATTACHMENTS: """" 1. Draft by-law to replace Schedule "A" of By-law Number 44/74, as amended. 2. Letter dated March 25,2002 from Mayfair Bingo Association. 3. Clerk's Report to Council CL51-01 dated December 3,2001 Endorsed By: é -.......-. Anne Greentree, --" Supervisor, Legislative Services Attachments Recommended for the consideration of Pickering City Council d - "'l'TACHI~'¡i.¡\r'¡' ¡"'\ Ie:,,; , "","" "'.."", REPO¡\T#~_~_Jó- D'1..-- 21 THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. ... Being a by-law to amend By-law 44/74 and repeal By-law 3929/92 (Lottery Licencing) to provide for increased lottery licence fees. WHEREAS the Council of the Corporation of the Town of Pickering enacted By-law Number 44/74 on April 22, 1974 to licence and regulate lotteries; and WHEREAS the Council ofthe Corporation ofthe Town of Pickering enacted By-law Number 3929/92 on February 3, 1992 to increase lottery licence fees; and WHEREAS Section 23 of the Order-in-Council 2688-93 effective October 27, 1993, increased the maximum prize values and maximum licence fees; and WHEREAS it is deemed expedient to amend By-law Number 44/74, as amended, to standardize the fees for the various classes lotteries and increase fees for some classes of lotteries; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: 1. Schedule "I" to By-law 3929/92 is hereby deleted and Schedule "AA" attached hereto is substituted therefore. -. BY - LA W read a first, second and third time and finally passed this day of , 2002. Wayne Arthurs, Mayor Bruce Taylor, Clerk -.. /'TT AC H ¡V¡ ,), R"r:POiY"" c.t. I ô- 0"'1.,..---' .. r\ tt ---.... 22 SCHEDULE "AA" TO BY -LAW NUMBER SCHEDULE "A" LICENCE FEES - The following shall be the prescribed per-event lottery scheme licensing fees under this by-law: a) Bingo Lottery Licence A fee equal to .75% of the total value of prizes to be awarded. b) Media Bingo Licence A fee equal to .75% of the total value of prizes to be awarded. c) Break Open Ticket Licence A fee equal to .75% ofthe total value of prizes to be awarded. d) Bazaar Licence A fee equal to .75% of prizes for a bingo, and A fee equal to .75% for a raffle, and $10 per wheel of fortune per day e) Raffle .... A fee equal to .75% of prizes - ~~gE'VED REPORT # ~~.!:_J (), () '-' PICKERING 23 MAR 2 8 2002 .. CLERK's Mayfair Bingo Assocl9fY~N. . c/o Delta Bingo 975 Dillingham Rd., Pickering, Ontario L J W 382 (905)831-1215 2-- March 25, 2002 - Ms. A Greentree, Supervisor, Legislative Services, Clerk's Division, Administrative Dept., City of Pickering, One The Esplanade, Pickering, Ontario L I V 7K7 Dear Ms. Greentree, When we met ill February to discuss Bingo license fees, you agreed to allow us time to consult with our membership. . At our regular meeting on March 20, 2002 member charities were apprised of our discussion and invited to comment. The consensus was generally accepting of the increase and gratified that our collective contribution to the City of Pickering has been recognized. There was also an understanding of the City's desire to offset the cost of monitoring the increased paperwork that has resulted from the new reporting process. Although a few of our members have not yet responded, there is an agreement to endorse a license fee of. 75% of prize board/session (i.e. $41.25/session) provided the City of Pickering concede a five-year moratorium on further increases. The City stands to gross approxiinately $70,000 annually within this structure. The ability of our members to continue delivering their programmes will ~ot be severely compromised. Are we COITect in sunnisil1g that the license fee increase will come into eftèct as of July 2002? Please advise us as to the date this issue will be presented to Council. Yours truly, ¿a.. MAYFAIR BINGO (pICKERING) ASSOCIA nON ?~ .. BG/s (Mrs.) Betsy Gummow, Secretary Treasurer. Copyto:- Anna Hawe, Manager, Delta Bingo Bruce Taylor, City Clerk Tom Quinn, Chief Administrative Officer Wa}ne Arthurs, Mayor . Dave Ryan, Local Councillor, Ward I Maurice Brenner, Regional Councillor, Ward 1 Bill McLean, Local Councillor, Ward2 Mark Holland, Regional Councillor, Ward 2 David Pickles, Local Councillor, Ward 3 Rick Jolmston, Regional Councillor, Ward 3 .-.. .> <:::1.. (0"°1- REPORT TO COUNCIL FROM: Bruce Taylor, AMCT, CMM City Clerk DATE: December 3,2001 REPORT NUMBER: CL51-01 - SUBJECT: Increase Lottery Licence Fees RECOMMENDATION: 1. That the Clerk's Report CL51-01 regarding the increase in Lottery Licence Fees be received; and 2. That the by-law attached to Clerk's Report CL51-01 be enacted. ORIGIN: Recommendation of the Supervisor, Legislative Services to more accurately recover costs of providing the service. AUTHORITY: -- By-law 44/74, as amended (Lottery Licencing) FINANCIAL IMPLICATIONS: I" )Jased on"" existing evcnt Unsed on "cancelling 9: 1Sam"" :" Y CUI' :. "schcdul"c" . "atuj 3:30 "þni bingos" , ". ____n_."___-." "-- .~-~"~-"-_. (lLs~in~~tcd "1.7 J 6 "cvcô!~~t~ J.~~tim~!~!!_"JJt~~~~lents!y!j--~".." 2001 $20,100 (projected revenues based on existing fee structure) 2002 (at 1 % of prize board) 2003 (at 2% of prize board) . 2004 and beyond (at 3% of prize board which is the"maximum allowed) $94,380 $60,060 $188,760 $120,120 $283,140 $180,180 - EXECUTIVE SUMMARY: The draft by-law attached to this Report replaces the existing Schedule "A" to By-law 44/74 to increase Lottery Licencing Fees in to maximum allowable as regulated by the Gaming Control Commission. For Bingo eveÌ1ts conducted as a series, the draft by-law allows for phasing in the fee increase over a three year period. " Report to Council CL51-01 J Date: December 3, 2001 t:: (. I ()... 6"7..- 25 Subject: Increase Lottery Licencing Fees Page 2 BACKGROUND: Council passed By-law Number 44/74 on April 22, 1974 to licence lotteries. Schedule" A" of this by-law established the licence fees for licenced lottery events. On February 3, 1992 Council passed by-law 3929/92 which amended by-law 44/74 by replacing Schedule "A" with a new Schedule which increased the licence fees. - Effective October 27, 1993, Section 23 of the Order-in-Council 2688-93 increased the maximum allowable licence fees. By-law 44/74 was never amended to reflect this allowable increase. To properly administer and manage lottery licencing activities it takes approximately two fuIl- time staff members. The bulk of the work is directly related to the bingo licences which are issued to the 36 charitable organizations who run bingos out of the Delta Bingo Hall. In total, approximately 1716 bingo events are held at the Hall in a year. Our current licencing fee structure for "a series of bingo events" is 3 % of the prize board for the first event plus $5 for each additional event licenced on the same licence. The majority of the licences are for 26 events (ie. $165 + $125 for a total of $290). The maximum licence fee as regulated by the Gaming Control Commission is 3% per event. Based on a 26-event licence, this would translate to a $4,290 licence fee. Several municipalities within the,GTA were contacted and confirmed that they charge the full 3% per event. The average receipts per organization per, month is approximately $2,000. ' Staff met with the Manager of Det1a Bingo Hall to discuss the need for the City to review the current licence fee structure. Although the Manager was not pleased to hear of a possible fee 'increase, she did acknowledge that our fee structure was unusually low compared to other municipalities. The Manager also noted that the increased licence fees would directly impact her business, and as such, may necessitate cancelling the 9:30 a.m. and 3:30 p.m. time slots. .-. Our existing fee structure does not enable the City to adequately fund the service. An increase in fees is required. Recognizing that it is charitable organizations who are required to pay this licence fee, it would be appropriate for the City to implement ,the increase over three years (ie. 1 % per each event in 2002, 2% in 2003 and 3% in 2004 and beyond). Based on the foregoing, I would strongly recommend that Council enact the new by-law. A IT ACHMENTS: 1. Draft by-law to replace Schedule "A" of By-law Number 44/74. '\ Approv~ ílorsed ~ - Attachments Copy: Solicitor for the City Recommended for the consideration of Pickering City Council " II ..~'~'¡"A C" 1'1/",-" ""'.' ::, ./.\1 rld:!"J1;{,,_......,.. ?6 THÉ CORPORATION OF THE CITY OF PICKERING BY-LAW NO. Being a by-Jaw to amend By-law 44/74 and repeal By-law 3929/92 (Lottery Licencing) to provide for increased lottery licence fees. - WHEREAS the Council of the Corporation ofthe Town of Pickering enacted By-law Number 44/74 on April 22, 1974 to licence and regulate lotteries; and WHEREAS the Council of the Corporation of the Town of Pickering enacted By-law Number 3929/92 on February 3, 1992 to increase lottery'licence fees; and WHEREAS Section 23 of the Order-in-Council 2688-93 effective October 27, 1993, increased the maximum prize values and maximum licence fees; and . WHEREAS it is deemed expedient to amend By-law Number 44/74, as amended, to increase the fees for the various classes of lotteries; . NOW THEREFORE THE COUNC~ OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: 1. Schedule "f' to By-law 3929/92 is hereby deleted and Schedule "AA" attached hereto is substituted therefore. , ~. BY-LAW read a first, second and third time and finally-passed this day of , 2001. Wayne Arthurs, Mayor Bruce Taylor, Clerk - 3 tl_~.f:. I Ó.. 1>"1.... SCHEDULE "AA" TO BY - LAw NUMBER ?7 SCHEDULE "A" LICENCE FEES Bingo Lotteries - series covered by one licence .- Effective January 1,2002 Fee A fee of 1% of the total value of all prizes to be awarded within the operation of each bingo lottery. A fee of2% ófthe total value of all prizes to be awarded within the operation of each bingo lottery. . The fee shall be the maximum permitted by regulations of the Gaming Control Commission, as amended from time to time, for each bingo lottery. . Janurary 1, 2003 January.1,2004 All other Licenced Lottery Events The fee for licences issued under the provisions of this by-law shall be the maximum permitted by regulatio~s of the Gaming Control Commissio~ as amended trom time to time. .- .-..