Des Plaines using casino money to help solve flooding

Thanks to the state's highest grossing casino in its front yard, Des Plaines has casino revenues it plans to use this year to pay for infrastructure for a new city water source, replacement of a large water main under River Road and drainage improvements citywide.

The city plans to spend $12.3 million from Rivers Casino on those projects in 2015, officials said this week. Des Plaines has already spent nearly $9 million in casino revenue to date on stormwater projects and to pay off debt since the gambling emporium opened its doors in July 2011.

In a town that's been badly hurt by flooding, city officials have decided to focus much of their stormwater improvement efforts on replacing aging pipes.

“Des Plaines was developed a long time ago. Those pipes just aren't big enough anymore,” City Manager Mike Bartholomew said. “So what we're doing is putting in larger pipes to get rid of all the water off the streets as expediently as possible.”

Bartholomew said the first infusion of casino money in 2013 allowed the city to accelerate stormwater improvements on 12 additional streets that weren't planned for that year.

In the upcoming year, the city is spending $5.5 million worth of casino proceeds toward construction of pipes to hook up with the Northwest Water Commission, which agreed to take on Des Plaines as a customer after the city sought cheaper water rates when Chicago hiked its rates.

Under a 2008 agreement with casino operator Midwest Gaming and Entertainment, the state receives the first $10 million of Rivers' gambling tax revenues, Des Plaines receives 60 percent of what remains, and the other 40 percent is split among 10 economically disadvantaged communities.

Des Plaines receives about $8.8 million a year in gambling tax proceeds, but there's a significant lag between when revenue is collected, distributed and then spent. Officials said this week they will allocate $8.8 million in 2014 revenues toward 2016 projects during budget discussions that start in October.

The city also received $824,000 in property taxes from Rivers in 2014 and $335,000 in food and beverage taxes, licensing and compliance fees, and fines. Police department-issued fines for trespassing are often related to patrons who violate a casino self-exclusion list.

Des Plaines officials have argued that they should get a bigger slice of the gambling tax should the state expand gambling. The city has retained lobbyists to keep track of proposed gambling expansion legislation in Springfield.

“Incremental (gambling) positions will impact us,” said Mayor Matt Bogusz. “Casinos at the tracks, Lake County or Chicago will have an impact on us. We need to continue to stand against it.”