Des Plaines panel to discuss spending gambling revenues
Des Plaines 3rd Ward Alderman Matt Bogusz says the city needs to develop guidelines for spending gambling tax revenues from the Rivers Casino, which could be used to supplement the city’s operating budget and fund pet projects without a policy in place.
The city’s finance and administration committee, chaired by Bogusz, will meet Thursday to discuss creating a policy for spending casino revenues.
“Casino revenue should not be allowed to pay for essential city services, as it’s not a dependable revenue source,” Bogusz said in a news release. “Funding city salaries or pet projects with this revenue would be reckless and the opposite of what neighbors want from the casino.”
The city receives a portion of the tax revenues generated from admissions and wagering at the Rivers Casino — $1 per person in admissions tax gets remitted to the city from the state each quarter, and the city gets 5 percent of the casino’s monthly adjusted gross receipts, less winnings.
The Rivers Casino, which opened July 18 on 20 acres off Devon Avenue and Des Plaines River Road, generated $10.8 million in gambling and admissions tax revenue for the city in its first six months of operation in 2011.
Per the deal that landed Des Plaines the state’s 10th, and supposedly final, riverboat casino license, the city is required to pay the state $10 million yearly for 30 years, with 40 percent of the remaining revenues generated distributed among 10 disadvantaged communities.
The city won’t have to pay the first $10 million to the state until year end.
Des Plaines Mayor Marty Moylan has pledged to reinvest casino revenues into the city’s infrastructure to improve streets and sewers and for flood control projects. City aldermen also have supported spending the money on infrastructure projects but haven’t adopted a policy.
The finance and administration committee Thursday will review a draft policy. It suggests revenues be used for only these specific purposes:
타 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.
타 Paying off existing city debt.
타 Fees for professional, legal, financial, or administrative services related to authorized gambling revenue expenditures.
타 Lobbyist services for the protection of this revenue source from federal or state regulation.
The draft police also states casino revenues cannot be spent in advance of receipt.
The meeting begins at 6:30 p.m. in the city council chambers at City Hall, 1420 Miner St.