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TO: Aurora City Council
FROM: Mayor Thomas J. Weisner
DATE: November 6, 2015
SUBJECT:
A Resolution Requesting the State of Illinois to Remit Riverboat Gaming Tax Proceeds to the City of Aurora.
PURPOSE:
To obtain the approval of the City Council of a proposed resolution calling for the State of Illinois to remit riverboat gaming tax proceeds.
BACKGROUND:
The City of Aurora has received a share of riverboat gaming taxes associated with the operation of the Hollywood Casino in Aurora since the casino opened in 1993. The tax revenues distributed to Aurora and other selected river cities in Illinois have included a $1 per head admissions tax and a 5% wagering tax.
Over the years, the city has generally applied riverboat gaming revenues for the abatement of general obligation debt service, economic development initiatives, and support of cultural, recreational, educational, and social programs in the community. In 2002, the city received a total of $16.3 million of gaming tax monies. A variety of a factors have caused gaming tax revenues to decline to about $7.2 million annually. These factors have included changes in gaming tax laws and the proliferation of gaming facilities in the state.
DISCUSSION:
As gaming tax revenues have declined over the years, the city has rigorously prioritized the needs of the community. Purposes and entities that received gaming tax revenues have seen their portions reduced or eliminated entirely in recent years. Currently, gaming tax revenues are applied only to needs of the highest priority.
Pursuant to the budget battles that have been in progress at the state level, the city has received no gaming tax money since July 1, 2015. The gaming tax revenue withheld by the state for the months of July through October 2015 amounts to $2,333,026. These are monies that the state has already collected but has simply opted to withhold. As a result, the funding for city programs whose support is dependent...
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