Agenda

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City Council Regular Meeting

Meeting Date:

08/27/2019

BACKGROUND

On January 16, 1982 citizens of Schertz voted to legalize Bingo in the City and collect fees on the activity. This was passed by Ordinance 1983-T-11 and was effective September 6, 1983.

The first charitable bingo license in the state was issued in 1982. Bingo is the oldest form of legalized gambling in Texas and was approved in all or part of 226 out of 254 counties. The original state "Bingo Enabling Act" was meant to provide organizations the opportunity to raise funds for charitable purposes by conducting bingo.

Currently, the Texas Lottery Division, Charitable Bingo Division is responsible for sending the City its share of the prize fees on charitable bingo activity in Schertz. Pursuant to House Bill 914, enacted b the 86th legislature, in order to continue to receive a share of bingo prize fees after January 1, 2020, Council must affirmatively vote to do so and submit proof of that vote to the Texas Lottery Commission by November 1, 2019. If no vote to continue is received, the bingo organizations will keep that share for themselves to fund their charitable purposes.

If a bingo game is conducted and more than $5 is awarded as a prize, 5% of that is kept by the organization that organized the game as a prize fee. 50% of that fee is submitted to the state and the remainder is shared between the county and City in which the game was held. If only one entity has voted to continue the fee, they will receive the remainder of the fee and if both entities voted to continue the fee it is split between them. If no entity voted to continue the fee, it is held by the organization that conducted the game to be used in its general charitable fund.

Since the Bingo Hall opened up outside the City on Interstate 35, not much bingo has been held in the City of Schertz. While this fee does not generate much of a revenue stream for the City, if Council does not vote to keep this fee there will not be another chance to reenact it later without the state changing the statue.

The original citizen vote detailed on Ordinance 82-E-2 included language for the City to collect the fee when it legalized bingo within the city limits.

GOAL

To adhere to the requirements of House Bill 914 and hold a vote to continue or discontinue collecting bingo tax fees.

COMMUNITY BENEFIT

By receiving a portion of the prize funds, the City can track the number and location of bingo events in the City. Any revenue received can add additional services to the community.

SUMMARY OF RECOMMENDED ACTION

Staff recommends approving resolution 19-R-106 to continue to collect bingo fees.

FISCAL IMPACT

Since FY 2013-14, Bingo Taxes have averaged $33.53 annually. Before 2011, the annual tax revenue was closer to $5,000 - $6,000 annually but the construction of the new bingo parlor on Interstate 35 moved the regular games to the new location outside the City.

RECOMMENDATION

Staff recommends approving resolution 19-R-106 to continue to collect bingo fees.

Attachments
Resolution 19-R-106
Letter from the Texas Lottery Commission