Des Plaines panel OKs guidelines for spending gambling revenues

Des Plaines' finance and administration committee Thursday night approved guidelines for spending gambling revenues from the Rivers Casino despite objections from some aldermen who felt no need for the city to adopt a policy.

The issue will go before the full city council for a final vote in June in order to give enough time for aldermen to get input from the residents of their wards, officials said.

Des Plaines is required to pay the state $10 million yearly for 30 years per the deal that landed the city the 10th, and supposedly final, riverboat casino license. The city must also distribute 40 percent of the remaining revenues generated among 10 disadvantaged communities.

The city has received roughly $14.2 million in wagering and admissions tax revenue from the casino since it opened last July through February 2012, according to Finance Director Dorothy Wisniewski.

The draft policy approved Thursday suggests casino revenues be used for only these specific purposes:

Ÿ Capital infrastructure projects, including street and sidewalk reconstruction, resurfacing, flood control and mitigation projects/programs, the construction, expansion or renovation of city facilities, and improvements to the city's water and sewer system, but not to purchase equipment, do maintenance of existing equipment or facilities, or for operational costs.

Ÿ Paying off existing city debt.

Ÿ Fees for professional, legal, financial or administrative services related to authorized gambling revenue expenditures.

Ÿ Lobbyist services for the protection of this revenue source from federal or state regulation.

The vote was 2-1 to approve the policy with committee Chairman and 3rd Ward Alderman Matt Bogusz and 7th Ward Alderman Dan Wilson voting in favor, and 4th Ward Alderman Dick Sayad voting against it.

Bogusz said the policy reassures residents that the city council is being responsible with casino revenues and gives city staff direction to better prepare for the 2013 budget process. He added, the policy is designed to ensure that the city's casino fund is self sufficient and that revenues are not used to fund day-to-day operations.

“These dollars are volatile,” Bogusz said. “They are not to be counted on. We should treat them as such.”

Acting City Manager Jason Slowinski said aldermen and city staff have individually talked about how casino revenues could be spent and this policy is a mere formalization of the council's goal. He added, most if not all casino towns in Illinois don't have a similar policy in place.

“Many of them have started to rely on (casino) revenues for operational expenditures,” he said. “I don't want to see the city of Des Plaines get to that point.”

Sayad said the policy is premature since the city doesn't even know how much revenue it will have after paying off its obligations.

Sayad said infrastructure should be the city's top priority. He added, during his previous term as alderman residents weighed in on what casino revenues should be used for, and the majority supported fixing sewers, flooding, streets, sidewalks and alleys.

“I think we have to work together on this,” Sayad said. “This is not an ‘I' project.”

The aldermen in attendance agreed residents should have a say in how casino revenues are spent and vowed to meet with their wards to create a priority list of projects.

“We all want to spend the money properly,” 6th Ward Alderman Mark Walsten said. “We all want to make the city better for residents.”

Fifth Ward Alderman James Brookman said the city doesn't need a policy to bind the councilmen's hands.

“The suggestion that if we don't have a policy in place, the aldermen are going to do foolish things, I just think that's insulting,” he said.