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HomeMy WebLinkAboutCOW 2018-10-22 Item 4E - Ordinance - 2019 Gambling TaxGOUNcIT AGENDA SYNOPSIS 10/22/18 VC 1/05/18 VC ITEM INFORMATION : VICKY CARLSEN Adopt ordinance increasing gambling tax on card rooms by 1% ITEM No. 4.E. 18 e 11/5/18 d m-'L»aw,m 0/22/181W�tt; I..tCr Council is being asked to approve an ordinance that incre rooms from 10% to 110/0. Dr\nI l : 10/16/18 s he gambling tax on card cc Cot. 3aa . J Public S Parks Comm. CUMM:I`rn E CHAIR: OUINN RECO MENDATIONS: SPoNS: R/_1l)UIN. Finance CYC'aryI1 I I II No recommendation; Forward to Committee of the Whole COST IMPACT / FUND SOURCE AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments.: MTG. DATE RECORD OF COUNCIL ACTION TG. DATE ATTACHMENTS 10/22/ 18 Informational Memorandu dated 8/ 10/ 18 Draft Ordinance 5 Attachment A: Summary o House -Banked Card Room Financials 2016 8E 2015 nutes from the Finance Committee meeting 10/ 16/ 18 139 140 TO: City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Finance Committee FROM: Rachel Bianchi, Deputy City Administrator Vicky Carlsen, Deputy Finance Director BY: Aaron Williams, Fiscal Coordinator CC: Mayor Ekberg DATE: August 10, 2018 SUBJECT: Proposed increase to city's gambling activities tax Updated from September 5, 2018 Finance Committee meeting and September 10, 2018 Committee of the Whole meeting ISSUE The City Council is being asked to modify the Tukwila Municipal Code (TMC) to increase the gambling activities tax on cardrooms by 1%. BACKGROUND In 2011 the City Council adopted ordinance 2349, which set the most recent tax rates for gambling activities, which include bingo games, raffles, amusement games, punchboards, pull - tabs and cardrooms. The ordinance set a rate for each of these, with a three -tiered rate structure for tax rates associated with card rooms: • An initial rate of 10% • When more than five are open the rate moves to 15% • If more than six, the rate moves to 20% Currently, there are five -four cardrooms in Tukwila, resulting in a 10% tax on the gross receipts of each establishment. The City collected $3.8 million in gambling taxes in 2017. DISCUSSION The Administration proposes to raise the rate associated with cardrooms by 1%. Per the TMC, gambling taxes are used primarily for public safety. Public Safety accounts for more than 56% of the City's general fund. State law caps the tax on cardrooms at 20%. Jurisdictions in the county vary as to how they regulate and tax card rooms, and many ban such establishments all together. The City of Auburn has one of the lowest rates at 4%, and according to staff research, the City of Redmond has the highest at 12%. Both the City of Kent and King County levy the 11% rate. Staff estimates that a 1% increase in the tax levied on cardrooms would generate approximately $38.8400 $350,000 in additional revenue in 2019. The City heads into the 2019/2020 budget process with the reality that projected revenues will not meet expenditures. The Administration has directed departments to reduce expenditures in the next biennium by 3% (except for Police and Fire, who were held at a 1.5% reduction), but additional resources are needed in order to provide the current level of City services. A small increase in the gambling tax is an opportunity to help align revenues with expenditures in the coming biennium. 141 INFORMATIONAL MEMO Page 2 Follow up after September 5, 2018 Finance Committee and September 10, 2018 Committee of the Whole Staff was asked to perform outreach to the four card rooms located in Tukwila and provide an update at a subsequent Finance Committee meeting, The following represents the responses from the outreach to the card rooms as well as provides additional research and statistics gathered during the process, OUTREACH City staff members met with representatives from all four card rooms in Tukwila to discuss the proposed increase in gambling tax from 10%© to 11%. During these meetings there was also a general discussion of what services the City provided and staff answered various questions and concerns from the card room representatives. Here are some of the general comments made from the various business owners. • Most owners and managers expressed concerns about their profitability with an additional increase in the gambling tax. They all discussed how competitive their market is and that their costs are rising due to salary, benefits, payouts, and marketing There was not as much concern expressed with the change in business license fees. Two of the businesses appreciated the balanced approach to the budget process, that the City was proposing 3% ongoing reductions as well as new revenue sources. Many representatives discussed how the current state regulations, which limit the number of tables to 15 er card room and the maximum bet at 300 make it difficult to be successful. At least two owners discussed the number and demographics of the jobs provided. Some stated that dealers can gross almost $100,000 per year. It was also stated that 70% of their staff are earning minimum wage, although the average wage with tips ran es from 36 to 46 er hour. One owner stated that many of these jobs do not require_a college degree and some don't require a high school diploma. There was also concern expressed that the rising cost of the minimum wage, the change in family leave and medical leave, was not keeping pace with the increase in gross gambling receipts. • One of the card rooms located on Interurban Ave made a request for a cross walk to be installed to improve safety and improve connections between the card rooms in that area. • Parking was a concern for another card room, stating that the lack of parking in the area a negatively affects their patronage and has asked to work with the City to utilize City - owned ro ert next door, This same card roam also ex rased the need for cross walk to accommodate pedestrians crossing the street between casinos,. According to the Washington State Gambling Commission there are approximately 49 card rooms in the state. Based on the published financial reports the number of card roomEmporting a net loss has ran ed from 29% in 2014 to 18% in 2016. In 2016 the most recent ublished data online. there were five card rooms listed within Tukwila. Since then, the Palace Tukwila has closed. In 2016, three of the card rooms were operating at a net profit and were in the top ten card rooms in the state. Based on net income, the Macau Casino was ranked #1, the Riverside Casino was #6 and the Great American Casino was ranked #8. The Palace Tukwila. and the Fortune Casino were both shown as operating at a net loss and were the lowest performing card rooms in the state. 142 INFORMATIONAL MEMO Page 3 In discussions with the Fortune Casino, they stated that there was an ownership chanqe in 2017 and early results show that the card room is operating near break-even for 2017; a significant improvement over 2016, which saw a loss of $1.08 million. The Table below uses information from Tukwila's Business License and the Washington State Gambling Commission. Attachment A includes the detailed financial summaries for fiscal years 2016 and 2015. 2018 Em .loyees Full -Time Part -Time Fortune Casino ** 54 Great American Casino * 11 Macau Casino 42 Riverside Casino 66 Golden Nugget Casino ** Palace Tukwila 105 0 112 125 FY 2014-2016 Net Income or Loss 2014 2015 ($640,5,29 $1.44 M $1.6 M $1.93 M $2.4 M $685,000 $1.2 M ($380,432 $296,239) 2016 ($1.08 M) $2.25 M $4,34 M $2.68 M ($785,040) * While researching these statistics it was discovered that Great American Casino may likely be under -reporting number of employees; staff will be looking into this issue. ** Fortune Casino took the place of the Golden Nugget Casino in 2015. HISTORICAL REVENUES FROM CARD ROOM GAMBLING TAX City staff reviewed historical gambling tax collections between 2011 through second quarter 2018 and an estimate for the second half of 2018. Projected year-end for 2018 is slightly lower than 2017 due to an incident at one of the card rooms earlier this year. Revenues from card room gambling tax has increased from $1.68M in 2011 to $3.8 M for 2017. 4,300,600 4,000,000 3,509,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 I. 2011 • F ortune Gambling Tax - Historical Revenues 2011-2018 (estimated) 2012. 2013 2014. 2015 2015 2017 Goiden Nugget Palace Macau Riverside la Great America:1 2018 Estimate 2018 t, 143 INFORMATIONAL MEMO Page 4 CURRENT GAMBLING TAX RATES FOR DIFFERENT JURISDICTIONS As a corn arisen below are current card room arnblin tax rates for some of the surrounding jurisdictions. Local tax rates for card roort s City of Tukwila City of Seattle 10%o (0-5 card rooms) 15%© (6 card rooms) 20% (more than 6) King County (unincorporated) City of Redmond * City of Auburn ** Not permitted 11%© 12% City of Kent 4% City of Kirkland City of Renton City of SeaTac City of Shoreline City of Lakewood 11% 11% * The City of Redmond currently does not have any card rooms ** The City of Auburn lowered their rate from 12% to 4% in 2010 due to economic conditions, there have been recent discussions about raising the rate. RECOMMENDATION Council is being asked to forward this item to the October 22, 2018 Committee of the Whole meeting and subsequent November 5, 2018 Regular Meeting for adoption to approve the rate increase effective January 1, 2019. This will allow sufficient time for notification to affected businesses. ATTACHMENT Draft ordinance Attachment A: Summary of House -Banked Card Room Financials 2016 2015 144 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NOS. 2349 §2 AND 1809 §1 (PART), AS CODIFIED AT TUKWILA MUNICIPAL CODE SECTION 3.08.030, "TAX RATES," TO INCREASE THE TAX ON CERTAIN GAMBLING ACTIVITIES; REPEALING ORDINANCE NOS. 2230, 2.150 AND 1891; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the social card rooms operating in Tukwila generate significant gambling tax revenues for the City; and WHEREAS, there is a cost to patrol and enforce City codes related to gambling; and WHEREAS, the more card rooms operated as a commercial stimulant, the more City costs increase; and WHEREAS, pursuant to the City Council's power to tax certain activities for revenue purposes as set forth in RCW 9.46.110, the City Council now desires to increase the tax levied on any social card room operated as a commercial stimulant, upon certain conditions, by amending Tukwila Municipal Code (TMC) Section 3.08,036.A.4; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 3.08.030, "Tax Rates," Amended. Ordinance Nos. 2349 §2 and 1809 §1 (part), as codified at TMC Section 3.08.030, are hereby amended to read as follows: A. Pursuant to RCW 9.46.110 and RCW 9.46.120, as amended by the Laws of Washington, effective July 27, 1997, there is levied upon all persons, associations and organizations who have been duly licensed by the Washington State Gambling Commission, as authorized by law, the following tax: W: Word Pr©cessin RB:bjs 0 s\G Wing tax increase 8-10•18 Passe a 145 1. Bingo games and raffles: To conduct or operate any bingo games and raffles, a tax rate of 5% of the gross revenue received therefrom, less the actual amount paid by such person, association or organization for or as prizes. 2. Amusement game: To conduct any amusement game, a tax rate of 2°/© of the gross revenue received therefrom, less the actual amount paid by such person, association or organization for or as prizes. 3. Punchboards or pulltabs: For the conduct or operation of any punchboards or pulltabs, a tax rate of 5% of the gross receipts from such activities for commercial stimulant operators (taverns, restaurants, etc.); and a tax rate of 10% on the gross receipts less the amount paid out as prizes for charitable or nonprofit. organizations. 4, Social card games: a, For the conduct or operation of any premises or facility used to play social card games, a tax rate of 4Q% 11 % of the gross receipts received therefrom; provided that when the number of card rooms in the City exceeds five, the tax rate shall increase to 15% of the gross receipts received therefrom. Additionally, when the number of card rooms exceeds six, the tax rate shall increase to 20% of the gross receipts received therefrom. b. For purposes of this provision, an operating business is defined as: a business open to the public and engaged in the business of operating a social card room for a period of 30 days. For purposes of this section, the 30 days are not required to be consecutive days. After the 30 days of operations, which triggers the increased tax rate, the Finance Director or his or her designee, shall notify the social card rooms of the increased rate and that rate shall be paid thereafter by all card rooms in this tax category, starting the financial quarter after notification. B. Non -Profit Organizations. 1. No tax shall be imposed under the authority of TMC Chapter 3.08 on bingo or raffles when such activities or any combination thereof are conducted by any bona fide charitable or nonprofit organization as defined in RCW 9.46.0249, which organization has no paid or management personnel, and has gross income from bingo and raffles, or any combination thereof, not exceeding $5,000 per year, less the amount paid for or as prizes, 2. The Finance Director may waive the tax due each quarter from a bona fide charitable or nonprofit organization as defined in ROW 9.46.0209. This waiver may occur only if the charitable or nonprofit organization demonstrates by clear and convincing documentation that an amount equal to at least 70% of the tax due the City, as computed pursuant to TMC Section 3.08.030, will be donated to charitable nonprofit organizations serving the City whose purpose is to provide programs or facilities for meeting the basic health, education, welfare, or other needs of the residents of the City, Failure to donate at least 70% of the tax due the City will result in revocation of the waiver and the disqualification of the bona fide charitable or nonprofit organization to receive a waiver for future tax payments. W. Word Processfnglordinance 146 RB:bps a b6%n° tax increase 8-10-18 Page 2 of 3 Section 2. Repealer. Ordinance Nos. 2230, 21 © and 1891 are hereby repealed in their entirety. Section 3. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 4. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 5. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force January 1, 2019. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWI A, WASHINGTON, at a Regular Meeting thereof this day of , 2018. ATTEST/AUTHENTICATED: Christy O"Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processinglordinances\Gambping tax increase 8-10-18 RB: bjs Page 3of3147 Attachment A. Licensee MACAU CASINO/TUKWILA GREAT AMERICAN CASINO/EVERE I I THE PALACE/LACENTER CASINO CARIBBEAN/KIRKLAND ROMAN CASINO RIVERSIDE CASINO CRAZY MOOSE CASINO/PASCO GREAT AME.RICAN CASINO/TUKWILA SILVER DOLLAR CASINO/SEATAC SILVER DOLLAR CASINO/RENTON COYOTE BOB'S CASINO CARIBBEAN/YAKIMA Summary of House -Banked Card Room Financial Sta For the Fiscal Years Ending in 2016 (Sorted by Licensee Net Income or (Loss)) City Tukwila Everett LaCenter Kirkland Seattle Tukwila Pasco Tukwila SeaTec Renton Kennewick Yakima -a---2016 REVENUES -__ - Card Room Other Revenue Revenue FREDDIE'S CLUB/RENTON Renton SILVER DOLLAR CASINO/MILL CREEK Mill Creek ROYAL CASINO Everett GOLDIE'S SHORELINE CASINO Shoreline BUZZ INN STEAKHOUSE/EAST WENATCI East Wenatchee LAST FRONTIER SLO PITCH PUB & EATERY HAWKS PRAIRIE CASINO MACAU CASINO/LAKEWOOD PALACE CASINO/LAKEWOOD RED DRAGON CASINO IRON HORSE CASINO/AUBURN ROXY'S BAR & GRILL CARIBBEAN CARDROOM WIZARDS CASINO LaCenter Bellingham Lacey Lakewood Lakewood Mountlake Terrace Auburn Seattle Kirkland Burlen JOKERS CASINO SPORTS BAR & FIESTF Richland CRAZY MOOSE CASINO/MOUNTLAKE TE Mountlake Terrace BLACK PEARL RESTAURANT & CARD RC Spokane ZS RESTAURANT AT ZEPPOZ Pullman LILAC LANES & CASINO Spokane CLUB HOLLYWOOD CASINO Shoreline LUCKY 21 Woodland LANCER LANES RESTAURANT AND CAS Clarkston ACES CASINO ENTERTAINMENT Spokane ALL STAR CASINO PAPAS CASINO RESTAURANT & RC'S NOB HILL CASINO CHIPS CASINO/LAKEWOOD GREAT AMERICAN CASINO/LAKEWO WILD GOOSE CASINO CLEARWATER THE GETAWAY CASINO UBET NEW PHOENIX PALACE TUKWILA FORTUNE CASINO Silverdale OUNGI Moses Lake Sunnyside. Yakima Lakewood Lakewood Ellensburg Wenatchee Walla Walla Longview LaCenter Tukwila Tukwila Total Total Net Income Revenue Expenses ar (Loss) (1) (2) (3) (4] $1ti,739,617 1,854,217 512,593,834 $8,249,964 54,343p870 $10,063,312 2,148,703 $12,212,015 $8,340,122 $3,871,693 $14,485,800 2,707,636 $17,193,438 $13,764,844 $3,408,594 $6,189,549 1,758,967 59,946,516 $6,736,429 53,212,087 517,995,374 481,932 $18,477,306 $15,683,158 $2,794,146 $11,069,498 1,161,210 $12,230,708 $9,548,054 $2,682,654 $7,616,741 2,350,808 $9,967,549 $7,417,695 $2,549,854 $10,330,422 3,458,612 $13,789,034 511,536,301 $2,250,733 $6,709,333 1,784,293 $8,493,626 56,308,659 $2,164,966 $6,915,907 1,482,656 $8,398,563 56,727,460 $1,671,103 64,663,728 870,543 $5,534,271 $3,996,549 51,535,723 $4,922,565 1,975,755 56,898,320 $5,510,546 $1,337,774 $7,505,167 1,808,140 $9,373,307 $8,092,205 $1,281,102 $4,695,632 992,342 $5,687,974 $4,466,982 $1,218,991 $5,654,124 1,098,390 $6,752,514 $5,707,001 $1,045,513 $7,309,285 1,025,471 $8,334,756 $7,335,561 $999,195 $2,536,207 2,335,126 $4,871,333 $3,911,748 5959,585 $11,206,536 1,976,656 $13,183,192 $12,370,350 5812,842 $2,477,818 2,065,869 54,563,687 $3,308,660 $755,027 $4,433,767 940,247 $5,374,014 $4,641,904 $732,110 $6,076,088 1,666,145 $7,762,833 $7,098,647 5664,186 $6,110,632 585,824 $6,696,456 $6,106,934 $569,522 $3,750,846 736,736 54,517,582 $4,067,946 $449,637 56,237,804 1,440,926 57,678,730 $7,283,222 $395,506 $2,905,364 2,405,857 $5,311,221 $4,917,047 $394,174 $1,732,383 669,942 $2,402,325 $2,054,691 $347,634 $4,714,717 2,635,655 57,350,372 $7,003,256 $347,114 51,836,167 2,857,967 54,694,134 $4,370,939 $323,195 $4,052,309 $893,635 $4,945,944 54,657,638 $288,105 $4,1303,425 893,516 $5,696,941 $5,444,540 $252,401 $1,139,145 1,806,956 $2,946,101 62,704,617 5241,484 $1,807,795 1,686,175 $3,493,970 53.271,291 $222,679 $5,069,112 1,438,514 56,507,626 56,297,027 $210,600 $5,718,834 3,147,461 $8,866,295 58,651,993 $204,302 $1,001,900 880,109 $1,882,009 $1,680,516 $201,493 $1,395,737 $336,413 51,732,150 $1,562,298 5169,862 53,262,189 4,458,000 $7,720,189 57,604,857 $115,332 52,363,842 3,966, 97 $6,330,239 55,443,138 $112,899 $902,545 532,874 51,435,419 51,333,140 $102,279 $2,629,666 1,188,366 53,818,034 53,739,234 578,800 $5,210,471 559,388 $5,769,859 55,769,928 (669) $5,869,699 1,611,747 $7,481,446 $7,506,355 ($24,909) 5730,431 205,596 5935,027 5964,936 ($28,909) $1,794,909 783,461 52,573,370 52,651,007 (572,637) $1,016,593 789,004 51,805,597 $1,921,320 0115,723) $2,732,384 736,172 $3,468,556 $3,686,971 ($218,415) $5,491,280 934,098 56,426,378 $6,855,653 ($430,475) 5161,952 111,290 5273,242 $1,058,282 ($785,040) $4,303,347 1,339,351 55,642,698 $6,721,467 ($1,078,769) 148 *REVISED AS OF JANUARY 10, 2017* Summary of House -Banked Card Room Financial Statements For the Fiscal Years Ending in 2015 (Sorted by Licensee Net Income or (Loss)) -----2©15 REVENUES - -,- - Card Room Other Total Total Net Income Revenue Revenue Revenue Expenses or (Loss) Licensee City (1) (2) (3) 14) GREAT AMERICAN CASINO/EVERETT Evorell $9,021,113 $2,260,632 $11,231,745 $8,420,640 52,86 CASINO CARIBBEAN/KIRKLAND Kirkland $7,412,902 $1,709,514 $9,122,416 $6,283,657 $2,838,759 ROMAN CASINO Seattle $16,807,443 $537,189 $17,404,632 $14,562,606 $2,822,026 MACAU CASINO/TUKWILA Tukwila $7,752,299 $1,624,944 $9,377,243 56,946,850 $2,430,385 CRAZY MOOSE CASINO/PASCO Pasco $7,246,133 $1,455,759 $8,701,092 $6,569,222 $2,132,670 SILVER DOLLAR CASINO/SEATAC SeaTac $6,564,357 $1,164,644 $7,729,001 $5,711,500 $2,017,501 CHIPS CASINO,/LAKEWOOD Lakewood $7,680,793 $1,826,007 $9,506,000 $7,777,915 $1,728,885 GREAT AMERICAN CASINO/TUKWILA Tuknviia $9,422,189 $1,890,097 $11,312,286 $9,690,428$1,621,856 COYOTE BOB'S Kennewick $4,653,169 $531,205 $5,184,374 $3,701,056 $1,483,288 GOLDIE'S SHORELINE CASINO Shoreline $8,023,756 $2,046,819 $10,070,575 $8,641,564 $1,429,011 CASINO CARIBBEAN/YAKIMA Yakima $4,960,841 $1,618,731 $6,779,572 $5,369,326 $1,410,246 RIVERSIDE CASINO Tukwila $8,223,560 $2,369,806 $10,593,366 $9,421,189 $1,172,177 BUZZ INN STEAKHOUSE/EAST WENATCI East Wenatchee $2,644,141 $2,283,233 $4,927,374 $3,822,936 $1,104,438 SILVER DOLLAR CASINO/RENTON Renton $6,273,365 $510,417 $7,083,782 $6,093,628 $990,154 THE PALACEiLACENTER LaCenter $10,049,140 $2,139,483 $12,189,623 511,325,914 $862,709 SILVER DOLLAR CASINO/MILL CREEK MITI Creek $4,272,684 $579,432 $4,052,116 $4,024,508 $827,608 SLO PITCH PUB & EATERY Bellingham $2,388,074 $2,090,227 $4,478,301 $3,726,988 $751,313 HAWKS PRAIRIE CASINO Lacey $4,630,278 $901,031 $5,531,309 $4,999,265 $722,044 FREDDIE'S CLUB/RENTON«} Renton $6,754,628 $1,880,166 $8,634,794 $7,972,055 5662,739 PALACE CASINO/LAKEWOOD Lakewood $6,023,668 $1,449,412 $7,473,020 $6,560,090 $512,930 BLACK PEARL RESTAURANT & CARD RC Spokane $4,249,179 $767,636 $5,016,015 $4,543,691 $473,124 IRON HORSE CASINO/AUBURN Auburn $5,825,785 $1,997,804 $7,823,589 $7,374,636 $448,953 ROYAL CASINO Everett $4,586,119 $529,632 $5,115,751 $4,733,788 $376,963 CARIBBEAN CAR©ROOM Kirkland $1,628,729 $582,562 $2,211,291 $1,874,452 $336,329 CRAZY MOOSE CASINO/MOUNTLAKE TE Mountlake Terrace $4,349,187 $530,147 $4,879,334 $4,598,340 $280,994 NEW PHOENIX LaCenter $7,540,716 $1,135,700 $8,676,496 $6,429,482 $247,034 LUCKY 21 Woodland $7,028,052 $4,199,155 $11,227,207 $10,994,329 $232,878 RC'S Sunnyside $1,041,881 $595,376 $1,637,257 $1,423,510 $213,747 CLUB HOLLYWOOD CASINO Shoreline $5,386,990 $752,746 $6,139,736 $5,938,499 $201,237 MACAU CASINO/LAKEWOOD Lakewood $4,800,250 $1,577,110 $6,377,360 $6,178,237 $199,123 ALL STAR CASINO Silverdale $3,109,715 $4,343,459 $7,453,174 $7,263,540 5189,634 ROXY'S BAR & GRILL Seattle $2,678,382 S2,317,060 $4,995,442 $4,837,839 $157,603 JOKER'S CASINO SPORTS BAR & FIEST/ Richland $1,556,487 $2,667,404 $4,223,891 $4,083,603 $140,288 NOB HILL CASINO Yakima $2,841,273 $1,145,540 $3,986,813 $3,851,345 5135,468 LILAC LANES & CASINO Spokane $1,625,615 $1,665,620 53,291,235 $3,168,474 $122,751 LANCER LANES RESTAURANT AND CAS Pullman $997,818 $900,649 51,898,467 $1,779,736 $118,731 LAST FRONTIER LaCenter $9,180,331 $1,873,415 $11,054,246 510,941,276 $112,970 CLEARWATER SALOON AND CASINO Wenatchee $1,478,969 $775,644 $2,254,613 $2,206,473 $48,140 WILD GOOSE CASINO Ellensburg $723,064 $211,111 5934,1.75 $922,693 $11,482 ZS RESTAURANT AT ZEPPOZ Pullman $997,404 $1,669,158 $2,666,562 $2,695,560 ($28,996) ACES CASINO ENTERTAINMENT Spokane $1,111,689 $316,370 51,426,059 $1,488,478 ($60,419) WIZARDS CASINO Burien $5,007,370 $2,753,496 57,760,666 $7,860,809 ($99,943) PAPAS CASINO RESTAURANT & LOUNG Moses Lake $2,115,973 $3,793,585 55,909,558 $6,117,455 (5207,907) UBET Longview $2,684,316 $622,925 $3,307,241 S3,51.8,540 (5211,299) GOLDEN NUGGET CASINO Tukwila $2,254,306 $450,199 $2,704,505 $3,000,744 ($296,239) LUCKY BRIDGE CASINO Kennewick $2,407,722 $717,408 S3,125,130 $3,465,598 (5340,463) GREAT AMERICAN CASINO/ICENT Kent $858,085 $157,377 $615,462 $1,450,178 (5634,716) RED DRAGON CASINO Mountlake Terrace $2,966,931 $599,415 $3,566,346 $4,079,712 (5513,365) FORTUNE CASINO Tukwila $913,181 $293,046 $1,206,227 $1,846,756 (5640,529) GREAT AMERICAN CASINO/LAKEWOOD Lakewood $5,296,343 $876,731 56,173,074 $7,043,982 (5870,908) 149 150 ity •f Tu ila City Council Finance Committee FINANCE COMMITTEE Meeting Minutes October 16, 2018 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: De'Sean Quinn, Chair; Dennis Robertson, Kate Kruller Staff: David Cline, Rachel Bianchi, Peggy McCarthy, Vicky Carlsen, Erika Eddins, Jeff Friend, Bruce Linton, Aaron Williams, Derek Speck, Wynetta Bivens, Gail Labanara, Cindy Wilkins, Tami Eberle -Harris, Chris Flores, Laurel Humphrey CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:30 p.m. . PRESENTATIONS II. BUSINESS AGENDA A. Cashiering System Purchase Staff is seeking Council approval to purchase a new cashiering system for the Finance Department and the City Clerk's Office in the amount of $43,395. The current point of sale cashiering system was implemented in 2009 and is no longer being support by the vendor, nor does it comply with a new secure encryption protocol. The proposed new system from Tyler Technologies has been vetted by the TIS Department and Finance staff. With the savings in maintenance fees, staff expects the system to pay for itself in less than eight years. The implementation phase will include staff training. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 22, 2018 COMMITTEE OF THE WHOLE. B. Ordinance: Gambling Tax Staff is seeking Council approval of an ordinance that would increase the gambling activities tax on cardrooms from 10% to 11%. There are currently four cardrooms in Tukwila generating $3.8 million in gambling taxes in 2017. Staff estimates that the 1% increase will generate $350,000 in additional revenue in 2019, which will help the City balance the budget and maintain the current level of services. Councilmember Robertson expressed support for the proposal. Councilmember Kruller referenced an email the Council received from Evergreen Gaming opposing the proposed increase and asked if there was danger of losing any of the businesses. Staff met with representatives from the four cardrooms, who expressed concerns about profitability in a competitive market. Chair Quinn mentioned the request for parking and pedestrian improvements by two of the card rooms an encouraged staff to continue those discussions in the spirit of partnership with stakeholders. The Committee requested that staff make a recommendation on how this revenue will specifically be spent if approved by Council. NO RECOMMENDATION. FORWARD TO OCTOBER 22, 2018 COMMITTEE OF THE WHOLE. 151