Minnetonka City Council — Transcript

Saturday, March 15, 2025

Story

Minnetonka Council explores allowing gambling at bars and restaurants

Director Budget Presentations

Votes (2)

Charitable Gambling for Liquor License Establishments

Consensus to consider, no formal vote taken during study session.

Dissent: No notable dissent; general consensus to move forward with consideration.

The council reviewed a report on allowing charitable gambling in Minnetonka's liquor-licensed establishments, currently prohibited. Staff provided historical context, state regulations, and options for city control over local taxes (up to 10% of net profits for charitable uses, up to 3% of gross receipts for administrative costs), residency requirements for non-profits, and defining a 'trade area' for fund distribution. Concerns were raised about potential staff burden, addiction, and crime, but these were largely mitigated by the fact that the state handles enforcement and neighboring cities already allow it. There was a strong desire to level the playing field for Minnetonka businesses and support local charities. The council agreed to continue exploring the option, requesting more detailed financial pro forma data and planning for public input during future ordinance introduction and adoption.

Director Budget Presentations

Informational item, no vote taken.

Miranda Dodds (Assistant City Manager), Julie Wishart (Community Development Director), Darren Nelson (Finance Director), Karine Heisig (City Attorney), Will Manchester (Public Works Director), and Kelly O'Day (Recreation Director) presented their departmental updates. Key highlights included successful project implementations (Marsh reopening, Campus Way Finding signs, Minnetonka Boulevard Trail), significant achievements (40 consecutive years of GFOA award for Finance), and ongoing challenges. Common challenges across departments were rising costs (healthcare, technology, materials), recruitment and retention of staff, managing increased data requests (e.g., body-worn cameras), adapting to new technologies (AI, social media demands), and navigating complex regulations (GASB standards, state legislation). Future goals often centered on technology upgrades (ERP, utility billing, drone tech), efficiency improvements, talent development, and maintaining core services amidst growing demand and limited resources.

Notable Quotes (6)

the definition of charitable gambling and this is under the state law is really um the operation of any lawful gambling activities by an organization that is eligible for a licens or from the state gambling control board to conduct such activities so basically um that's the premise of charitable gambling

Julie Wishart, Community Development Director [0:04:14]
Charitable Gambling for Liquor License Establishments

It's interesting when I was doing the research for kind of what was happening in Minot tonka's history and why this kind of never has has seen the light of day as far as um uh something allowed in the city code in the um 1980s um the state abolished local licensing regulations for gambling um and it allowed the city to have some Authority and there was some pressure at that time and I was Finding quite a few requests to do gambling um and they actually voted down every single application

Julie Wishart, Community Development Director [0:05:43]
Charitable Gambling for Liquor License Establishments

the only thing I can kind of think of is occasionally you hear about a rogue employee who is skimmed off the top or something but right I think um and that's really really a function of the state and so there's a couple of different Departments of the state that are involved in gambling so um let's just say that happened in our community and some uh gambling manager went rogue and something was illegally Done Right city is actually not the enforcement arm for that to U be rectified it's really the gambling um control board as well as the uh there was another agency I mentioned in the report that has the control over that so we would not there's not enforcement activity

Julie Wishart, Community Development Director [0:10:49]
Charitable Gambling for Liquor License Establishments

I think this is a way that we can do two things we can help make the put put restaurants and bars on the same equal footing in this regard as our neighbors and I think that we can help raise money for the community and maybe this is you know the 20 bucks that somebody has in their pocket that they might have otherwise bought a lottery ticket with and keep some of that money in the community

Rebecca Shut, Ward One [0:23:44]
Charitable Gambling for Liquor License Establishments

I feel like some judgments were made maybe in the past on the morality of certain activities that maybe it's not my place to make those judgments that you know what I might or might not do personally I don't know that that's that that it's the job of the council to sort of put that on on establishments and in our residents because you know we we allow we allow alcohol consumption and we allow gambling but we're saying you can't do them at the same time

Kimberly Wilburn, Ward Four [0:26:45]
Charitable Gambling for Liquor License Establishments

the question is do we think it should be considered I think we should and I think we should have a debate and I think we should hear from residents and have their perspectives and then and then vote and and decide as a council uh whether we want to join the rest of our neighboring communities or if we want to be a standalone because um our standards are different than theirs and and uh and we're comfortable with that

Mayor Kathy Koplitz [0:27:32]
Charitable Gambling for Liquor License Establishments

Ordinances & Resolutions (28)

Section 605Ordinance

City ordinance section dealing with business and licensing regulation, specifically the preventative part for gambling.

Premises PermitPermit

Required permit from the state gambling control board for each location where gambling is conducted, needing local approval.

Liquor LicensePermit

Existing license for establishments where charitable gambling is proposed to be allowed.

Minnetonka MattersPlan

City platform for ongoing success and community engagement via social media.

Erp HCM softwareOther

Enterprise Resource Planning and Human Capital Management software being implemented as a joint effort between HR and Finance.

Agenda Management SoftwareSoftware

Software hosted by Sissa Faul that improved city council packet processes.

DEI Commission OrdinanceOrdinance

Ordinance for the establishment of the Diversity, Equity, and Inclusion commission.

Non-Union Compensation PlanPlan

A new compensation plan for non-union city employees.

ESS PolicyPolicy

State-mandated Earn Sick and Safe Time policy implemented by the city.

Local 49 and Police Sergeants ContractsOther

Successfully negotiated labor contracts.

Climate Action PlanPlan

Sustainability plan coming to fruition and requiring implementation.

Minimize ProgramProgram

Minimize Your Waste and Energy for Businesses program in collaboration with the county.

Rental RegistryRegistry

New system for registering rental properties, launched in February.

Zone CoOther

Consultant doing zoning research, requiring significant staff time.

Metro Transit contractContract

Contract needing to be dealt with, alongside a transit evaluation document.

Assessment Report (2024)Report

City Assessor's first report for the approval of the 2024 assessment effective January 1, 2024.

Certificate of Achievement for Excellence in Financial ReportingAward

Award received for 40 consecutive years from the GFOA.

GASB 87Standard

Governmental Accounting Standards Board standard for lease accounting, impacting antenna leases.

GASB 94Standard

Governmental Accounting Standards Board standard for public-private and public-public partnerships.

GASB 96Standard

Governmental Accounting Standards Board standard for subscription-based IT arrangements.

Utility Billing Software UpgradeSoftware

Planned upgrade for the utility billing system.

ADA Transition PlanPlan

Updated plan for Americans with Disabilities Act compliance, not updated since 1993.

Title Six PlanPlan

Non-discrimination plan required for Federal Transportation projects.

Extreme Risk Protection Orders (ERO) StatuteStatute

Legislation reviewed by the Legal Department, leading to development of an internal response plan.

Public Safety Master PlanPlan

Plan whose implementation began in 2023 for the fire department.

Standards of CoverPlan

A project for the fire department to develop and present to city council.

Recycling Organics ProgramProgram

RFP process for this program to come due at the end of the year.

Community Facility StudyStudy

Study to be discussed at an April study session, impacting future recreation facilities.

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