Bob Furst's List: DesPlaines

• Des Plaines will likely receive between $3 and $5 million dollars from Rivers Casino this year and aldermen say they plan to use it for infrastructure improvements and debt reduction in 2013.
• Rivers Casino pays a gaming tax, which is five percent of its gross receipts, and an admissions tax, which is $1 per person.
• While $3 million is a “conservative” estimate, the city will know the exact amount it will receive in August or September, said Acting City Manager Jason Slowinski. Money will be kept in a separate fund and allocated in the 2013 budget.

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• 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 a draft of the policy, infrastructure projects include street and sidewalk reconstruction, resurfacing, flood control and mitigation projects, construction, expansion or renovation of city facilities and improvements to the water and sewer system.

• The policy would guide city staff as they develop the 2013 budget, and the money couldn't be spent until it's received, the draft document states.

• 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:

    

  • 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.

    

  • Paying off existing city debt.

    

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

    

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

• According to city Finance Director Dorothy Wisniewski, as of the end of January, $12,334,930 was in the General Tax Fund account. Rivers Casino opened last July. City officials have said that they don’t expect to be able to start spending the money until next January after they have made payments to the state and 10 needy communities.
• This agreement stipulates that Des Plaines pay $10 million to the state of Illinois and 40% of remaining gaming tax revenues go to designated revenue sharing communities.” What’s left over, which currently will amount to about $4 million annually, stays with Des Plaines. Added Bogusz, “This agreement guaranteed 30 years of revenue to the state and sharing communities, placing all risk on Des Plaines. Mayor Moylan knows this and is working hard to represent our interests in Springfield.”

• • Revenue sharing or other financial obligations pursu-ant to the BDA and applicable state law.

  • Capital infrastructure pro-jects to include such items as street and sidewalk reconstruction and/or resurfacing, flood control, renovation of expansion of city facilities, and improvements to the city’s water and sewer sys-tem.

  • Payoff of existing General Obligation Bond debt.

  • Fees for professional, legal, financial or administrative services as they relate to infrastructure projects.

  • Lobbyist services related to the protection of gaming revenue.

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