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TO: Mayor Richard C. Irvin
FROM: Wendy McCambridge, City Clerk
DATE: March 1, 2018
SUBJECT:
To Amend and Revise Amusement Fees related to the distributor and video gaming terminal licenses.
PURPOSE:
To make the corresponding changes to the fees for distributor and video gaming license holders.
BACKGROUND:
The Illinois Video Gaming Act (230 ILCS 40/1) enacted in 2010 enabled video gaming terminals to be allowed in bars and restaurants on their premises as an accessory use. In 2012 the City of Aurora adopted an ordinance establishing that a license is required for video gaming terminals and adopted the Illinois Video Gaming Act in its entirety. An annual fee and application process was established and mirrored the requirements in the Illinois Video Gaming Act. The Act establishes that a business is allowed to operate up to five machines per licensed establishment. The statute defines a licensed establishment as “…any licensed retail establishment where alcoholic liquor is drawn, poured, mixed or otherwise served for consumption on the premises, whether the establishment operates on a nonprofit or for-profit bases (230 ILCS40/5).”
DISCUSSION:
A six month moratorium on the issuance of video gaming terminal license was adopted on September 12, 2017 to investigate methods for regulating the licensing of video gaming terminals. During the moratorium the following activities were conducted:
- Review of municipalities statewide who allow for video gaming terminals
- Review of other states who allow for video gaming terminals
- Review of the State of Illinois Video Gaming Act
- A compilation of all regulating activities were compiled and reviewed internally by staff
- Recommendations and options were provided to the Mayor’s Office for review
- Economic impact study was performed
Based upon the activities completed the following changes to the Resolution R12-232 that revised amusement fees in Chapter 8 of the Code of Ordinances is being recommended:
Subsection (3)(b)
-Increasing the fee for terminal licenses from one hundred dollars ($100) per year to twenty-five dollars ($25) per month per terminal.
Subsection (3)(c)
-Increasing the annual distributor license fee from one thousand dollars ($1,000) per year to one hundred ($100) per month per terminal.
IMPACT STATEMENT:
The City would realize additional revenues in the administration of the video gaming terminal licenses.
RECOMMENDATIONS:
I request the proposed resolution be approved.
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Amending and Revising Resolution No. R12-232 Involving Amusement Fees.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, fees regarding amusement devices have previously been fixed via Resolution R93-11 adopted on January 5, 1993, Resolution R96-388, adopted September 24, 1996, and R12-232 adopted August 28, 2012.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that Resolution R12-232 is hereby amended according to Exhibit A.