CITY OF HAMILTON · Whereas the thousands of charitable organizations are at risk of expiring as a direct result ... 1 Super Jackpots, Table Board Jackpots Progressive Bingos etc

CITY WIDE IMPLICATIONS

CITY OF HAMILTON

CORPORATE SERVICES DEPARTMENT

Budgets & Finance Division Report to:

Chair and Members Corporate Administration Committee

Submitted by:

Joseph L. Rinaldo, General Manager

Date: December 6, 2005 Prepared by: Tony Tollis, ext. 4549

Carmen R. Bian, ext 2187 Chris Felker, ext. 2567 Judy Downey, ext. 6108

SUBJECT: Impact of Closure – Bingo Central (FCS05132) (City Wide) RECOMMENDATION:

(a) That staff continue to work with those agencies impacted by the recent closure of Bingo Central and assist them in relocating to an alternate Bingo Hall if possible;

(b) That those bingo licences from organizations outside of the boundaries of the City of Hamilton impacted by the closure of Bingo Central not be renewed;

(c) That, as of January 1, 2006, a six-month moratorium be placed on the Bingo licensing of all organizations located outside of the boundaries of the City of Hamilton with the intention of evaluating the availability of Bingo events;

(d) That a moratorium be placed on the number of events that can be undertaken by organizations currently holding bingo licences until the status of all organizations impacted by the closure of Bingo Central currently on bingo hall waiting lists is confirmed;

(e) That up to $100,000, funded from the 2005 Corporate Surplus, be made available through the Grants Sub-Committee in order to address requests for one-time emergency funding from organizations who can demonstrate that they have been negatively impacted by the closure of Bingo Central;

(f) That applicants requesting emergency funding, through the Grants Sub-Committee related to the closure of Bingo Central, be limited up to the maximum amount of funding received in 2004 from bingo revenue and that funds are used in a manner consistent with the bingo licence guidelines;

SUBJECT: Impact of Closure – Bingo Central (FCS05132) (City Wide) - Page 2 of 13

(g) That staff report back to the Corporate Administration Committee in June 2006,

to provide councillors with an update as to the impact, if any, of Bingo Central.

Joseph L. Rinaldo, General Manager Finance and Corporate Services EXECUTIVE SUMMARY:

Bingo Central closed its doors on November 10, 2005. In 2004, Bingo Central provided over $1.6 million in funding to 43 charitable organizations across the region and was licensed for another 1,800 events in 2005. Overall in 2004, the City of Hamilton’s four Bingo Halls funded 185 organizations for almost $5 million in funding. From 2003 to an annualized 2005, funding to charitable organizations from Bingo revenues has declined by 7.6%. Staff have been requested to provide Council with a report that will provide an overall review of the current situation for bingo revenues within the City of Hamilton. The report is also to contain the following specific information in relation to the impact of the closure of Bingo Central:

The overall impact of bingo revenue on charitable organizations in the City of Hamilton

The number of agencies affected by the closure of Bingo Central and their current status

To report on trends such as the ratio between bingo revenue and slots revenues Identification of funding opportunities within the City to assist charitable

organizations, including the Community Partnership Program, with lost revenues and include impacts, costs, implications and a time frame for a solution, including Arts Hamilton

Although staff from licensing will continue to work with organizations displaced by the recent closure of Bingo Central to find an alternate bingo hall location, there may be organizations within the City experiencing significant hardship due to declining bingo revenues. Since these organizations would not normally be eligible for funds under the current eligibility criteria of the Community Partnership Program, a $100,000 one-time emergency fund is being recommended to be set up through the Grants Sub-Committee to assist these organizations. The emergency fund will be funded from the 2005 Corporate Surplus. An application process has not been formalized to date, but applicants for these funds will not be allowed to request funds exceeding the total revenue received from bingo


revenues in 2004 and must also use these funds in a manner similar to the requirements of their bingo licence. BACKGROUND:

At the Social and Public Health Services Sub-Committee meeting on November 8, 2005, Item 9 was approved as follows: 9. Whereas the Province of Ontario has created a Casino Industry in Ontario;

Whereas the Bingo Industry has been negatively impacted in Ontario as a direct result of the prevalence of Casinos; Whereas the thousands of charitable organizations are at risk of expiring as a direct result of the popularity of Casinos and the closing of Bingo Halls; Therefore be it resolved that the City of Hamilton strongly urges the Province of Ontario to replace lost revenues to the charitable organizations through Casino profits.

At the special Council meeting on November 17, 2005, Item 9 was approved but an added Item 10 of the Social and Public Health Services Committee Report 05-014, was also approved as follows: 10. Staff report respecting charitable organizations:

(a) That staff prepare a report to investigate funding opportunities to assist charitable organizations who have lost revenues through local Bingo operations.

(b) That the report be addressed by the Corporate Administration Committee at its

meeting held on December 7, 2005 and include impacts, costs, implications and time frame for implementing a solution to address this problem.

Also at the special Council meeting on November 17, 2005, item 7.2, a motion regarding the provision of additional funding to Arts Hamilton, was approved. As a result of a significant loss of revenues from the closure of Bingo Central, it was approved that $10,000 from the 2005 contingency reserve be utilized to assist the agency in resuming normal operations. An amendment to the motion requested that this matter be included in the report as requested in item 10. At the Corporate Administration Committee meeting on November 16, 2005, Item 11, General Information / Other Business, included: (i) Impact of Bingo Hall Closures

Councillor Ferguson expressed concern with recent trends respecting the closure of bingo halls and the impact on revenues (i.e. ratio between revenues from bingo establishments vs. revenues from slots, the number of agencies that are affected by the decrease in bingo halls. The City Manager advised that he would relay this information to the City Clerk and the General Manager of Planning and Economic Development for a report to be presented to the Planning and Economic Development Committee.


In the month of November, the topic of declining bingo revenues was mentioned at a number of City of Hamilton committee meetings and it was requested that staff prepare a report outlining a number of related issues.

To address the varying council motions with respect to this item, staff have prepared this report for the December 7, 2005 Corporate Administration Committee that will:

Briefly describe the Bingo industry in Hamilton, including gross revenues Identify possible reasons for declining Bingo revenues Identify the agencies that are affected by declining revenues overall Discuss the status of the agencies affected by the closure of Bingo Central Investigate revenues from Flamboro Slots and reports on trends between bingo

revenue and slots revenues Briefly investigate the Community Partnership Program as a potential funding

source for organizations impacted by declining bingo revenues ANALYSIS/RATIONALE:

Not for profit organizations utilize many sources of revenues on an annual basis including grants, donations and fund raising activities in order for them to deliver the varying necessary programs required within the City of Hamilton. As part of these diverse revenue sources, these agencies also use a wide range of gaming activities, such as bingo, as a means of generating revenue. 1. Bingo Licences – Overview The City of Hamilton licenses two types of bingos: regular bingo events (up to a $5,500 prize board) and media bingos. Other special games within a bingo event1 must be approved by the Alcohol and Gambling Commission of Ontario (AGCO - Province of Ontario). The AGCO recognizes that lotteries should only be viewed as a supplement or alternative to the organization’s other revenues. Organizations interested in pursuing bingo revenue, must: 1. Complete an application form 2. Provide required attachments (list of Board of Directors etc.) 3. Submit the game schedules, game formats etc. 4. Pay the required fee. 5. Indicate the uses/purpose of potential funds received from Bingo Organizations are notified in advance that their license with the City is good for only six months. Those organizations that are approved for a bingo license are also required to maintain a separate bank account for these funds and submit a written report detailing the program’s expenditures. Activity in the bank account is reviewed by the Licensing

1 Super Jackpots, Table Board Jackpots Progressive Bingos etc.


Division of the Planning and Development Department to ensure that the expenditures are eligible and relate to the purpose as submitted on the application. It is worth noting that in order to be eligible for a bingo licence; the organization must demonstrate that it also has other revenue sources. Applicants that identify that their main source of income is bingo revenue are not eligible for a bingo licence. 2. Declining Bingo Revenues: Although a popular fundraising method, there has been a trend toward declining bingo revenues. Table one shows the gross revenues generated by Hamilton’s four Bingo Halls (Bingo Central, Delta, Princess and Upper Hamilton) from 2003 to November 2005. This is inclusive of both Municipal and Provincial licensed bingo events. An estimate attempts to annualize the revenues for 2005. The table shows that a decrease of 0.3% has occurred for 2004 and, provided Bingo Central was still operational, an estimated decrease of 4.5% is forecasted for 2005. Table 1: Gross Bingo Revenues

REVENUES BINGO HALL

2003 2004 2005 (Jan – Nov)

2005 Full Year Est.*

Upper Hamilton 5,897,621 4,937,503 4,133,856 4,509,661 Bingo Central 12,392,670 13,276,951 11,115,153 12,125,620 Delta 11,122,270 11,043,576 9,757,460 10,644,501 Princess 10,862,257 10,904,965 10,160,484 11,084,164 TOTAL 40,274,818 40,162,995 35,166,953 38,363,946 Incr. / (Decr.) (0.3%) (4.5%)

* 2005 Full Year Estimate is annualized on a straight line basis ** Includes annualized Bingo Central for this analysis Despite the table shown above, there are many factors that could be contributing to declining Bingo revenues such as:

Changes at Bingo Halls (i.e. Anti-smoking) Consumer preferences and availability of other gaming activities (slots, lotteries) Declining discretionary dollars for consumers to spend on gaming activities,

increasing poverty within the City of Hamilton, and changes in demographics

Since 2000, there has been a strong push towards linking declining bingo revenues with the increasing trend in municipalities towards smoking by-laws2 and the increased availability of alternate gaming methods such as slot machines and Casinos.

2 See: www.ocat.org/onlegislation/bingohalls


2a. Anti-Smoking By-law Hamilton’s anti-smoking by-law (#02-054) went into effect on June 1, 2002. It has three phases and the City is currently in Phase 2 of the by-law3. In this phase there is no smoking permitted in bingo halls unless in an approved Designated Smoking Room. In Phase 3 of the by-law, commencing in 2008, bingo halls will no longer be allowed to maintain the Designated Smoking Rooms. It is worth noting the new Smoke Free Ontario Act will take place on June 1, 2006. The Provincial Act will be more restrictive than the City’s current by-law and will not allow Designated Smoking Rooms in bingo halls. As a result, the requirements for bingo halls in municipalities across Ontario will be the same, regardless of any current requirements or exemptions under various municipal by-laws. 2b. Poverty in the City of Hamilton Despite the possible link between declining bingo revenues in the City of Hamilton to the implementation of the anti-smoking by-law and the inception of Flamboro slots, it is also important to note that the City of Hamilton has a significantly high poverty rate. The City of Hamilton continues to have a higher percentage of Hamilton residents living below low-income cut off thresholds than the provincial average (20% City of Hamilton, 14% provincial average). This is true for all family types, but especially for sole support parents and those over 75 years of age.4 Overall, there are a number of factors in the City of Hamilton that may be contributing to the decrease in Bingo revenues, however, it would be difficult, if not impossible, to confirm which factors are the most significant.

3. Impacts of Bingo Revenue on Charitable Organizations (City of Hamilton): Monthly Bingo hall net revenues (net of Bingo hall expenditures) are accumulated in a revenue pool, separated by municipally and provincially licensed Bingo, and then allocated to the agencies based on the number of events the organization has each month. An event is a specific time slot during the month. The net revenues allocated for 2003 until September 2005, from each of the City’s Bingo halls to the charitable organizations are provided in Appendix A to Report FCS05132. The appendix also provides the number of annual events put on by each organization. The following table summarizes Appendix A.

3 Phase 1 June 1, 2002- June 1, 2004, Phase 2 June 1 2004-June 1, 2008, Phase 3, June 1, 2008. 4 Source, 2005, City of Hamilton Environmental Scan


Table 2: Net Bingo Revenues Allocated to Organizations

REVENUES BINGO HALL # of Orgs

Funded* 2003 2004 2005 (Jan – Sept)

2005 Full Year Est.**

Upper Hamilton 50 593,824 642,116 401,879 535,839 Bingo Central 43 1,611,664 1,606,916 1,096,325 1,461,766 Delta 51 1,310,205 1,403,070 933,086 1,244,115 Princess 41 1,273,672 1,306,468 886,648 1,182,197 TOTAL 185 4,789,365 4,958,570 3,317,938 4,423,917 Incr. / (Decr.) 3.5% (10.8%)

* Only includes agencies that were funded in 2005, not agencies that dropped off in 2003 or 2004 ** 2005 Full Year Estimate is annualized on a straight line basis *** Includes annualized Bingo Central for this analysis Including an annualized estimate for 2005, the above table indicates that the amount of funding provided to charitable organizations from 2003 to 2005 has decreased by 7.6%. It is important to note that the revenues provided to charitable organizations are based on the net revenues received. Therefore, both expenditures and revenues play a role in the fluctuating contributions to agencies. 3a. Closure of Bingo Central: Bingo Central closed on November 10, 2005. At that time it was licensed for 1,800 annual events and provided funding to 43 non-profit organizations. The loss of about $1.6 million in revenues is a substantial decrease in funding to local charitable organizations. However, as at December 1, of the 43 organizations; 23 have received time slots at other Bingo halls, 11 are on waiting lists, 5 agencies were from out of town and the license will not be renewed, 2 already had time slots at other Bingo halls and two agencies (Arts Hamilton and Glanbrook Youth Soccer) do not currently have other time slots nor are on a waiting list. Staff have been in touch with both of these organizations remain willing to assist them as required. Arts Hamilton is currently contacting Delta and Princess Bingo for available time slots. This information is provided as Appendix B to FCS05132. As mentioned, 25 former Bingo Central agencies are now being funded at other Bingo Halls. At Bingo Central, they were licensed for a total of 1,073 events but after relocating, the annualized number of events is only 600. It is important to note that an increase or decrease in the number of events for an organization may not directly correlate to an increase or decrease in revenues. Much depends on the location, the time slot and the annual process of qualifying all organizations for events. In addition, the closure of Bingo Central may divert some additional business to the other Bingo halls.


3b. Arts Hamilton At the Council meeting on November 17, 2005, an allocation of $10,000, from the contingency reserve was approved to assist Arts Hamilton in resuming normal operations. The original motion was for the provision of an additional $35,000 in funding. Not only did the organization lose about $50,000 in annual funding from the closure of Bingo Central, but it was also noted that the organization’s grant from the Ontario Arts Council had been reduced over a number of years from $32,500 to $18,000. In addition to Bingo revenues, Arts Hamilton was approved for a 2005 Community Partnership Program grant of $26,757. Arts Hamilton is currently contacting Princess and Delta Bingos for available time slots in order to retain some bingo revenue. The situation at Arts Hamilton is complex and the organization, while impacted by the closure of Bingo Central, also has requested financial assistance to allow the organization to complete its strategic plan and review its mission statement. 4. Flamboro Slot Revenues as an Alternate Source of Funding: When the issue of declining of Bingo revenues arose, it was discussed that funding from the Flamboro slots may be an option. From 2000 to 2004, the City of Hamilton has received over $18,500,000 in revenues from Flamboro slot operations. Municipalities with racetrack slots currently receive 5% of gross revenues on the first 450 slot machines and 2% of gross revenues for additional machines5. The Flamboro facility has about 750 slot machines. The following chart provides information about annual revenues provided to the City of Hamilton from Flamboro slot operations and compares it to the net charitable revenues provided from the City’s four Bingo halls: Table 3: Flamboro Slot Revenues

2000 2001 2002 2003 2004 2005 2006Actual Actual Actual Actual Actual Estimate Estimate*

Flamboro Slot Revenues 569,500 3,431,915 4,596,492 5,153,552 4,796,116 4,204,000 3,827,000 YoY Change 502.6% 33.9% 12.1%

Bingo Hall Charitable Net Revenues 4,789,365 4,958,570 4,423,917 YoY Change 3.5%

* 2006 % decline estimated based on average of 2004 and 2005 % declines

In 2005, $3,854,216 in Flamboro slot revenues was budgeted. Of this, $1,518,676 was allocated to pay down the Borer’s Creek debt and the remainder, $2,335,540 was area rated to the former Township of Flamborough.

(6.9%) (12.3%) (9.0%)

(10.8%)

5 Information gathered from Ontario Lottery and Gaming Commission website; OLGC.ca


For 2006, staff have kept the Flamboro Slots revenue budget at $3,854,220. Staff do not recommend that a portion of the 2006 Flamboro Slot Revenues be re-allocated towards funding charitable organizations that have experienced a decline in Bingo revenues for the following reasons:

1. Of the $3,854,220 in budgeted revenues, $2,335,540 is area rated to the former Township of Flamborough. Based on estimates, a $400,000 increase to the Flamborough area rated levy would result in a 1% tax increase.

2. Staff also do not recommend the use of Flamboro Slot revenues because of the

ongoing Area Rating Sub-Committee Review. 3. The remaining $1,518,680 to Flamboro Slots revenues will be used as a final

payment towards the Borer’s Creek debt.

4. As evident in the above table, in 2004 the revenues from Flamboro Slots decreased by 6.9%. A 2005 estimate shows that the revenues will decline again by 12.3% to about $4.2 million. Continuing this trend, staff estimate that the 2006 revenues received will fall in line with the 2006 budget.

Historically, the revenues budgeted for Flamboro slots are conservative because the revenues are volatile, not guaranteed and any unfavourable variance would impact the tax budget negatively. In addition, revenue surpluses have been directed towards an outstanding Borer’s Creek liability, over and above the debt charges. 5. Financial Capacity within the Community Partnership Program Applications to the Community Partnership Program are assessed against the following criteria: Merit (30%), Organizational Capacity (40%) and Community Impact (30%) and must adhere to the policies and procedures. With respect to organizations experiencing declining bingo revenues, the following three policies are particularly relevant: 1. The City of Hamilton will not consider applications if the funding request is clearly for

deficit funding or to make up funding shortfalls resulting from programs of any kind unless undertaken without prior consultation with the City.

2. The City of Hamilton will not consider applications if the funding requested will be used to replace subsidies, other continuing sources of funding or revenues including use of reserves or accumulated equity, nor will it replace payments, which could be made under purchase of service agreements.

3. The Community Partnership Program will not ordinarily fund in excess of 30% of the

operating budget of any program, unless this causes undue financial hardship for a particular program. Council may reduce its level of funding over time to encourage new organizations to seek alternative sources of funding.

To augment the funding lost to organizations due to declining bingo revenues is not


consistent with the current policies and procedures of the Community Partnership Program. As identified in Appendix C to FCS05132, of the 185 agencies that had received funding from local Bingo, only 29 have had an affiliation with the Community Partnership Program since 2003. If the Community Partnership Program is being considered as a possible source of funding to offset the Bingo revenue decline, it is important to note that there are insufficient dollars within the Community Partnership Program budget to absorb these additional requests for future years. For example, in 2005, submitted applications requested $3,796,000 in funding compared to only $2,201,000 in available funding. Council could decide to revise the policies and procedures of the Community Partnership Program to allow these agencies to apply; however, without a significant increase in the Community Partnership Budget, this budget would be unable to accommodate these types of requests and honour existing commitments. 6. Next Steps: Staff from the Licensing Division will continue to work those organizations impacted on by the closure of Bingo Central with the goal of mitigating any potential negative impacts on these organizations. In order to maximize bingo revenue generation for City of Hamilton organizations, licensing staff will not be relocating any organizations that exist outside of the boundaries of the City of Hamilton. Further, as of January 1, 2006, applicants for a bingo licence outside of the boundaries of the City of Hamilton will no longer be eligible for a bingo licence. As well, a moratorium will be placed on the number of events organizations with current bingo licences can undertake until the situation for organizations impacted by the closure of Bingo Central and currently on bingo hall waiting lists is addressed. It is estimated that it will likely take approximately six months to properly assess all matters related to the closure of Bingo Central and the relocation of organizations. In the interim, there may be organizations currently in receipt of bingo revenue that are being negatively impacted by the closure of Bingo Central or who have experienced a significant decline in bingo revenues. Since these organizations would not normally be eligible for funds under the current eligibility criteria of the Community Partnership Program, staff recommend that a $100,000 emergency fund, funded form the 2005 Corporate Surplus, will be set up through the Grants Sub-Committee to assist these organizations. This recommendation would provide one-time emergency assistance to some organizations, but does not address the on-going sustainability of these organizations and their programs. An application process has not been formalized to date, but applicants for these funds will not be allowed to request funds exceeding the total revenue received from bingo revenues in 2004 and must also use these funds in a manner similar to the requirements of their bingo licence.


ALTERNATIVES FOR CONSIDERATION: Options for funding the charitable organizations with the intention of mitigating the impact of declining Bingo revenues can be categorized as follows: Emergency Funding As mentioned above, staff are recommending that a $100,000 emergency fund be administered by the Grants Sub-Committee with the purpose of assisting agencies affected by the closure of Bingo Central. As reported in FCS05107, 2005 Tax and Rate Operating Budget Variance Report to August 31, 2005, a corporate surplus is forecasted for fiscal 2005. As such, it is recommended that this be the funding source of the $100,000 emergency fund. Sustainable Funding Flamboro Slot Revenues As mentioned, the 2006 budget includes $3,854,220 in Flamboro slot revenues. Staff do not recommend that any Flamboro slot revenue be directed to a sustainable funding program as $1,518,680 of the funds are allocated for the final payments on the Borer’s Creek debt, $2,335,540 is area rated to the former township of Flamborough where a $400,000 levy increase results in an estimated 1% tax increase, the Area Rating Sub-Committee is currently reviewing area rated services and as can be shown from Table three, the Flamboro Slots revenue are volatile in nature and have decreased for 2004, 2005 and are estimated to decrease in 2006. Community Partnership Program To augment the funding lost to organizations due to declining bingo revenues is not consistent with the current policies and procedures of the Community Partnership Program. Of the 185 agencies that had received funding from local Bingo halls, only 29 have had an affiliation with the CPP since 2003. If the current CPP is being considered as a possible source of funding to offset the Bingo revenue decline, it is important to note that there are insufficient dollars within the Community Partnership Program budget to absorb these additional requests for future years. However, if this was considered as a possible solution for ongoing support, Council could decide to revise the policies and procedures of the Community Partnership Program to allow these agencies to apply. In order to accommodate such a request without affecting the current delicate funding situation within the CPP, additional funds would be required. In addition, a new funding stream (i.e. Sports, Arts, Social Services, etc) would have to be created, as would new policies, applications, evaluation resources and processes.


FINANCIAL/STAFFING/LEGAL IMPLICATIONS: The funding received by the City of Hamilton from Flamboro Slot operations and possible funding options are provided in previous sections of the report. There are no staffing issues associated with the recommendation contained in this report. There are no legal issues associated with the recommendation contained in this report. POLICIES AFFECTING PROPOSAL:

This report references the Community Partnership Program’s policies and procedures. RELEVANT CONSULTATION:

This report was completed in consultation with staff from the Corporate Services Department (Budgets & Finance), the Public Health & Community Services Department and the Planning and Economic Development Department (Licensing Division). CITY STRATEGIC COMMITMENT:

By evaluating the “Triple Bottom Line”, (community, environment, economic implications) we can make choices that create value across all three bottom lines, moving us closer to our vision for a sustainable community, and Provincial interests. Community Well-Being is enhanced. Yes No Bingo revenues form part of the overall revenue generation strategies of a wide range of non-profit organizations. The recommendations in this report will assist those organizations affected by the recent closure of Bingo Central as well as those significantly negatively impacted by declining bingo revenues. Environmental Well-Being is enhanced. Yes No By centralizing bingo activities in one location, non-profit agencies using bingo halls as sources of revenue share in the utility costs to operate the bingo and have less impact on the ecological footprint of the City of Hamilton by not running similar gaming events at multiple locations. Economic Well-Being is enhanced. Yes No Aside from assisting to generate revenue for non-profit organizations, non-profit organizations also employ a number of residents within the City of Hamilton. As well, some of the various programs offered by non-profits who utilize bingo revenues may actually assist others to remain employable. Bingo halls also are employers within the City of Hamilton.


Does the option you are recommending create value across all three bottom lines? Yes No Do the options you are recommending make Hamilton a City of choice for high performance public servants? Yes No Not applicable.

City of Hamilton

BINGO REVENUE OVERVIEW

IMPACT OF BINGO CENTRAL CLOSURE

Corporate Administration CommitteeCorporate Administration CommitteeDecember 7, 2005December 7, 2005

2

Council Direction• That staff prepare a report to investigate funding

opportunities to assist charitable organizations who have lost revenues through local Bingo operations.

• That the report be addressed by the Corporate Administration Committee at its meeting held on December 7, 2005 and include impacts, costs, implications and time frame for implementing a solution to address this problem.

3

Declining Bingo Revenues:

• Possible impacts identified include: anti-smoking by-law, consumer preference & alternate sources of gaming activities (casinos and Slots), local poverty rates

• No causal relationship can be confirmed

4

Net Bingo Revenues Overview

(10.8%)3.5%Incr. / (Decr.)4,423,9173,317,9384,958,5704,789,365185TOTAL

1,182,197886,6481,306,4681,273,67241Princess

1,244,115933,0861,403,0701,310,20551Delta

1,461,7661,096,3251,606,9161,611,66443Bingo Central

535,839401,879642,116593,82450Upper Hamilton

2005 Full Year Est.**

2005 (Jan –Sept)20042003

REVENUES

Organizations FundedBINGO HALL

5

Bingo Central Closure Impacts

• Total Agencies impacted 43• Total Annual events 1,800• Total Lost Gross Revenues $13.3 M• Total Lost Net Revenues $1.6 M

6

Mitigation Efforts• Total Agencies Impacted 43

• Relocated to other Halls 25• On waiting Lists 11• Out of Town agencies 5• Inquiring about time slots 1 • No action 1

7

Flamboro Slots Revenue

% Change• Actual 2003 $ 5,153,552 • Actual 2004 $ 4,796,116 (6.9%)• Proj. 2005 $ 4,204,000 (12.3%)• Est. 2006 $ 3,827,000 (9.0%)

8

Flamboro Slots Revenues

Borers Creek Debt $1,518,676Area Rating Flamborough $2,335,540

Total 2005 Budget $3,854,216

9

Flamboro Slots Revenue• One more year remaining on Borers

Creek Debt. • Area Rating Sub-Committee currently

dealing with future use of slot revenues• Approx. $400,000 Flamborough levy

increase = 1% residential tax increase

10

Funding Issues

• Bingo Central Funding $1.6 M• Other Halls $3.4 MTotal Annual Funding $5.0 M

11

Conclusions1) Provide interim Funding to those

agencies who can demonstrate hardship has a result of Bingo Central Closure.

2) Assists agencies in relocating to other halls to mitigate losses of closure.

12

• That staff continue to work with those agencies impacted by the recent closure of Bingo Central and assist them in relocating to an alternate Bingo Hall if possible

• That those bingo licences from organizations outside of the boundaries of the City of Hamilton impacted by the closure of Bingo Central, not be renewed.

• That as of January 1, 2006, a six-month moratorium be placed on the Bingo licensing of all organizations located outside of the boundaries of the City of Hamilton with the intention of evaluating the availability of Bingo events.

Recommendations:

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• That a moratorium be placed on the number of events that can be undertaken by organizations currently holding bingo licences until the status of all organizations impacted by the closure of Bingo Central currently on bingo hall waiting lists is confirmed.

• That up to $100,000, funded from the 2005 Corporate Surplus, be made available through the Grants Sub-Committee in order to address requests for emergency funding from organizations who can demonstrate that they have been negatively impacted by the closure of Bingo Central.

Recommendations:

14

• That applicants requesting emergency funding through the Grants Sub-Committee related to the closure of Bingo Central be limited up to the maximum amount of funding received in 2004 from bingo revenue and that funds are used in a manner consistent with the bingo licence guidelines.

• That staff report back to the Corporate Administration Committee in June 2006, to provide councillors with an update as to the impact, if any, of Bingo Central.

Recommendations:

Documents

CITY OF HAMILTON · Whereas the thousands of charitable organizations are at risk of expiring as a direct result ... 1 Super Jackpots, Table Board Jackpots Progressive Bingos etc