HomeMy WebLinkAboutCRPS-07-044 - Heat Pump Project at the Kitchener Memorial AuditoriumReport To: Councillor B. Vrbanovic, Chair and Members of the Finance
and Corporate Services Committee
Date of Meeting: April 2, 2007
Submitted By: R. Gosse, Director of Legislated Services/City Clerk
Prepared By: Patricia Harris, Manager of Licensing
Ward(s~ Involved:
Date of Report: March 26, 2007
Report No.: CRPS-07-045
Subject: LICENSING FEES FOR BINGO EVENTS
RECOMMENDATION:
That a flat fee of $90.00 per bingo event be charged to organizations conducting bingo at K-W
Gaming Centre, 501 Krug Street and Kitchener Bingo Country,1356 Weber St. E. and further,
That the licence fee be reviewed in March 2008 and a report be submitted to the Finance and
Corporate Services Committee in April 2008.
BACKGROUND:
In 2005, the Alcohol and Gaming Commission of Ontario began a process to review the rules
and regulations regarding all types of lotteries in the Province. One of their key priorities was
reviewing the current bingo revenue model and making improvements. This new revenue
model will come into effect in the Province of Ontario on May 1, 2007. This revenue model is a
significant shift from the current model. One component of this revenue model is that each
charity operating bingo will be required to obtain two licences; once from the municipality, the
other from the Province. Municipal licence fees will no longer be based on a percentage of the
prize board, but a flat rate for each bingo event will be permitted up to a maximum of $165.00.
REPORT:
Under the current model for bingos, licence fees are based on a percentage of the prize board.
The City of Kitchener had capped the bingo halls prize boards at $3,000.00 per event with the
option of each hall holding 6 bingo events with a prize board of $5,500.00. Therefore, the
maximum licence fee that was being charged was $90.00 per session with an increase to
$165.00 for any $5,500.00 prize boards. Not all prize boards were at the maximum, so licence
fees could vary anywhere from $67.50 to $165.00 per session depending on the prizes offered
in the hall.
Under the current model of having the City's fees tied to a percentage of the prize board, the
City has in fact seen net revenues fall over the years. The fees charged have not increased due
to the maximum prize allowed and the maximum percentage of 3% under the regulations and
yet, expenditures have continued to climb due to salary increases and inflation. Under the new
model, the City will be in a position of ensuring the fees remain in line with expenditures.
When determining the flat rate licence fee, staff took into consideration several factors.
The average licence fee currently charged by the City over the past few years is $85.00
per session;
Staff believe that the $90.00 fee is fair, will maintain the City's net revenue for bingo
licences and will not cause undue financial hardship on the charities.
Maintaining close to the current average will allow the charities to budget accordingly
and should fees change following the one-year review and report, it is not anticipated
that any change will be far off of the proposed fee of $90.00.
Although a full cost recovery analysis has not been completed at this time due to the short time
frame that the Province has given the municipalities to issue new licences, the $90.00 licence
fee should help to cover a significant portion of the costs entailed by the City. Amore detailed
analysis will take place over the next year as staff will be able to track financial details of the
new model.
Over the next several months, there will be further reports coming to Council with respect to the
new bingo revenue model. Council Policy I-875 which deals with bingo regulations will be
required to be amended significantly due to new Provincial regulations.
FINANCIAL IMPLICATIONS:
A flat $90.00 licence fee per each bingo session will result in a budget increase of approximately
$16,700.00 over predicted lottery revenue for 2007 and should help to stabilize lottery licensing
revenue which has seen a significant decrease in the past few years.
(MRS) PATRICIA HARRIS
MANAGER OF LICENSING
FINANCIAL IMPLICATIONS
COMMUNICATIONS:
(MRS) PATRICIA HARRIS
MANAGER OF LICENSING