SHORELINE — The 2005 city budget was amended and adopted by Council members, with an increase of about $72,000 to the staff-proposed $77 million budget.
Members approved increasing the human services budget by $62,000 and approved funding to initiate video taping public meetings throughout the city for $10,000.
Council members also authorized a study of the six casinos in Shoreline to determine the necessity of reducing the city’s gambling tax.
Before the Council commenced their discussion of amendments to the budget, several casino representatives voiced concern about the city’s gambling tax and requested it be lowered.
Mark Mitchell, owner of the Club Hollywood Casino, said his business has been losing money for the past two years.
“Even the best casino is paying the city three times what they are making,” Mitchell said. “When we built the casino, we tried to build something nice. We are asking for one year to work things out.”
Larry Wheaton, representing Goldie’s Casino, said the casino has 160 employees and last year the city made more profit from Goldie’s than the casino. There was a net profit of less than $200,000 and the casino paid $800,000 to the city, he said.
“Goldie’s needs help to keep our doors open,” Wheaton said. “A consideration of a 1-2 percent decrease would help.”
Council member Bob Ransom proposed lowering the gambling tax rate at card rooms from 9 percent to 11 percent. He suggested the Council was not ready to make a decision that night, but could explore the topic further.
Council member Rich Gustafson proposed a substitute motion to Ransom’s request. He said he would like staff to evaluate the benefits of reducing the gambling tax and report back to the Council.
Council member Scott Jepsen recommended a friendly amendment. He proposed the Council not necessarily assume a reduction in the gambling tax, but needed to overall assess the situation without a predetermination.
Council member Paul Grace said he felt it was important to have an independent auditor assess the situation, to determine why casinos are losing money.
“It could be that revenue is down or employee costs are up,” Grace said. “Whoever looks at this has to do a thorough analysis.”
Grace also said they needed to consider the impact to the city if the gambling tax is reduced.
City manager Steve Burkett said staff would come back to the Council at the end of the year with a proposal to address the six gambling establishments in the city.
Council members also approved a 1 percent property tax levy increase and establishing a 6 percent utility tax on the city stormwater utility.
The budget the Council approved and which was presented by city staff Oct. 25 was balanced. Operating funds total $35 million and capital funds total $42.1 million.
Some changes in the operating budget, said city manager Steve Burkett, include a $458,000 increase in funds for police and the fire department, a jail contract for $65,000, establishing a capital facilities repair and replacement fund of $120,000 annually, and $293,000 to the public works department to pay off loans.
One-time allocations from the general reserves include $14.2 million to build a new city hall, $505,000 in emergency funds and a road surface maintenance program for $200,000.
Recommended revenue and fee changes in the 2005 budget include a permit fees hourly rate increase from $122 to $124, a recreation fee increase to bring in $36,000 in new revenue.
Capital expenditures include transportation with $24 million, surface water at $2.4 million and facilities and parks at $15.2 million. The facilities and parks fund includes $14.2 million for city hall, Spartan Gym upgrades, city gateways and a saltwater pedestrian bridge.
Transportation costs include funding the Interurban Trail for $5 million, a Richmond Beach overcrossing for $1.9 million, 15th Avenue improvements at $3.8 million and phase one of the Aurora Corridor Project for $10.2 million.
Surface water projects include Ronald Bog Drainage for $400,000 and the Third Avenue NW project for $1.5 million.
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