Special Aurora fund here to stay?

With gambling revenues down nearly $3 million from 2007, some Aurora aldermen would like to see stricter guidelines placed on their annual ward allowance.

For more than a decade, the city has maintained a separate fund to account for an annual allocation of gambling tax revenues to each of its 10 wards with few strings attached.

The city allocated $480,000 per ward for most of that time, but last year boosted it to $580,000.

City Treasurer and Finance Director Brian Caputo said the money comes with a "general understanding" it will be used for road improvements, but there are "no hard restrictions."

As a result, some aldermen in the past six months have earmarked small portions of the money for things such as ice cream socials, block parties and Little League trophies.

Fourth Ward Alderman Rick Lawrence is one of those calling for tighter spending guidelines.

"I get $580,000 a year and there's no process telling me what I can do with it. It's supposed to go toward roads and infrastructure improvements but that doesn't always happen," he said. "Some (aldermen) don't spend it and others give donations to churches and other groups."

Caputo said aldermen still are required to have purchases of $10,000 or more and grants or charitable donations of more than $5,000 approved by the city council. They also must follow the city's procurement process by passing their pet projects on to the engineering department where bid requests are formulated, if required.

"I decide what roads I want to fix in my ward, based on doing the worst ones first, but not because they're tied into a plan of any kind," Lawrence said. "I could even ignore the roads and let them go ... but I'd never get elected again."

Alderman-at-Large Bob O'Connor, who also heads the city council's finance committee, disagrees with Lawrence's assessment.

"Typically our most active aldermen have a very active ward committee who identify the worst streets and let them know which need repair," O'Connor said. "Once a longer term plan is ready, the engineering department works through the particulars."

Mayor Tom Weisner is open to a discussion but supports giving aldermen some discretion about how the money is spent, said his assistajt chief of staff, Carrie Anne Ergo.

"In principle, the mayor agrees ward funds should be spent on neighborhood streets and he has urged the council to focus on street overlay projects," Ergo said. "But he understands committees should have some discretion in using those funds for the best interest of their wards."

In the second half of 2008, most aldermen earmarked funds for construction projects, but some also made donations to churches, senior programs and even to have a senior citizen's fence removed.

But Caputo insists the spending all was approved and within the rules.

"Now if I saw something illegal going on I would say something and intervene that way," Caputo said. "Outside of that, I'm not going to create rules that don't exist."

In a recent letter to Weisner and O'Connor, Lawrence said such rules are just what's needed.

"Given the fact that the bulk of the money for neighborhood road projects comes from (ward) funds, I feel we need to assure the taxpayers that we are spending their money in a responsible manner," he wrote. "It has been said by many in the past that this money should be designated toward road and infrastructure projects before being spent on social and charitable functions."

O'Connor said aldermen discussed stricter rules about six years ago and agreed to leave the current system in place.

"Admittedly it's a funny duck, an interesting thing that's developed, but it's in place now and it works very well for the aldermen," O'Connor said. "It's a very direct way for them to get projects done that may not have gotten done otherwise, so it's a program they appreciate."

Sixth Ward Alderman Mike Saville was elected in 1985, 13 years before the system was put into place. Saville, who said he dedicates more than 90 percent of his funds to road repairs, credits the system with even "saving" the 6th Ward. Before that, Saville said, the city's road improvement budget was "paltry."

"When I took office, I had roads that had not had an overlay in 50 years so they were in terrible shape, and I never thought I'd live to see them all done," Saville said. "Today, thanks to the ward funds and my ward committee's support, we're almost completely caught up with new streets."

The regular donations he and others have made to groups such as the Aurora Boxing Club, the local historical society, schools and colleges in town, keep them in tune with the communities they represent, he said.

"Our constituents appreciate that occasionally they can pick up the phone and we may be able to help them out a little quicker than going through all of the city council red tape," Saville said.

In Elgin, where the Grand Victoria Casino brings in about $20 million in annual revenue, officials said they would have a hard time tying important capital projects into gambling revenues.

"Our elected officials decided very early on when we got the casino that none of the boat revenues would be tied to city operations," city spokeswoman Sue Olafson said. "Instead we pump all of our revenues into the community in some shape or form, usually in neighborhood grants and other things to enhance the community."

Aurora aldermen said they've always been careful not to "overcommit" gambling revenues, knowing they likely will fluctuate as they have in the past year when they dropped from $15.4 million to $12.6 million.

"If the tax isn't there we won't be able to do $580,000," O'Connor said. "That's pretty simple but I can't imagine that gaming revenue will get to the point that we have to worry about changing the system."

Nonetheless, the council's finance committee will have the conversation at the Feb. 24 committee meeting.

By the numbersHere are some examples of nonroad expenditures of Aurora ward funds since June 2008:

• $2,985 for cable television advertising

• $1,600 for printing and silk-screening

• $1,275 for ward ice cream social

• $1,235 for Little League Baseball trophies

• $1,000 donation to the Aurora Sundowners Track Club.

• $1,000 donation to the Aurora Boxing Club

• $795 for a private resident's fence removal and yard work

• $500 for Junior Statesman Foundation scholarships

• $500 for ward block party

• $280 donation to Aurora Township Senior and Youth Services Fashion Show

Source: City of Aurora records