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HomeMy WebLinkAbout06.25.2007 (2)• • COUNCIL WORK SESSION June 25, 2007 4:25 p.m. Council Chambers The meeting was called to order at 4:32 p.m. Members present: Mayor Hurley, Kincaid, Welper, Gunderson, Greenwood, Getty, Cole, Schmitt. Moved by Schmitt, seconded by Kincaid that the Agenda, as proposed, be approved. Ayes: Seven. Motion carried. The purpose of the work session was to review the Gaming Development Agreement with the Black Hawk County Gaming Association. Mayor Hurley reviewed the history of the agreement. The city council approved the gaming development agreement with Black Hawk County Gaming Association on September 24, 2003. Paragraph 4 of the agreement spells out the terms of the disbursement of the total revenue derived from gaming operations. The approved agreement reads as follows: "The BHCGA will allocate annually at least fifty percent (50%) of the total revenue derived from gaming operations to Black Hawk County or the Municipal Corporations in Black Hawk County for property tax relief. All other funds not so allocated will be used to improve the quality of life of citizens of Black Hawk County or charitable contributions in Black Hawk County." Mayor Hurley explained that earlier this year, he was approached by officers of the BHCGA Board with a request to change the language so that a small portion of the proceeds would be available to surrounding counties. That was the original intent of the BHCGA organizers, but the original agreement language did not reflect that. Mayor Hurley proposed the following changes to the gaming development agreement for Paragraph 4: "The BHCGA will allocate annually at least sixty percent (60%) of the total revenue derived from gaming operations to Black Hawk County or the Municipal Corporations in Black Hawk County for property tax relief. After June 30, 2010, the sixty percent (60%) shall become fifty percent (50%). An amount up to ten percent (10%) of the total revenue may be allocated by BHCGA to entities or projects outside Black Hawk County to support the Cedar Valley. All other funds not so allocated will be used to improve the quality of life of citizens of Black Hawk County or charitable contributions in Black Hawk County." The revised agreement is contingent upon the BHCGA Board of Directors approving the proposed changes. The BHCGA Board of Directors must approve their internal funding guidelines and procedures that allow for (1) operating budget requests, but not for consecutive years for the same request, and (2) a provision which requires approval from the chief elected official for a request for funding from any government agency that may impact that entity. Mayor Hurley explained the proposal increases the revenues allocated specifically to Black Hawk County property tax relief over the next three years, and it also recognizes the interdependence of Black Hawk County and the rest of the Cedar Valley. Mayor Hurley noted we count on our neighbors to visit our attractions and businesses, and they should be able to count on us to help their communities in turn. Councilperson Getty commented he has a problem with the proposal because Mayor Hurley is asking the city council to make decisions that all the voters in Black Hawk County voted on. The citizens voted that it would be used for property tax relief only. Mayor Hurley responded the citizens voted on whether we should have gambling, and this agreement is between BHCGA and the city and was noted voted on by the citizens. Council Work Session June 25, 2007 Page 2 Mayor Hurley noted that in the past four years during the budget process we have been short at least $1 million, even with no new people or new programs. We have enough stuff in bricks and mortar, the city needs help in the general fund. Don Hoth stated that whether the funds are used as operating funds or not is up to the association and not the city council. This proposal is just to change the language in paragraph 4 so funds can be distributed to other counties. Mr. Hoth stated that BHCGA Board accepts the applications for funding and makes the decision to approve or disapprove the funding request. The board will continue to make sure the money is spent properly because they have to sign an agreement saying what they will spend the funds for. The BHCGA was looking for ways to help the surrounding counties and attract their citizens to our community. Visitors from other communities spend money on restaurants, hotels, etc. Mr. Hoth commented that the BHCGA wants to show the other counties that we are good neighbors, and that was the intent of the BHCGA all along. Mayor Hurley commented that the proposed changes will give support to the city's $8.10 levy. This is discretionary funds, and the city will have to make application and compete with other entities for it. Mr. Hoth commented that they hope to have the forms ready by August 1 and the first funding source by October 1. Mr. Hoth explained that the entities outside Black Hawk County would include Bremer, Chickasaw, Butler, Buchanan and Tama counties. With no further business before the council, it was moved by Cole, seconded by Getty that the meeting be adjourned at 4:50 p.m. Ayes: Seven. Motion carried. Nancy Eckert City Clerk • •