BY DAN CAMPANA
It took Alderman Stephanie Kifowit less than a day to pounce on what she thinks is another example of improper use of riverboat gaming tax money. Long critical of using it to pay debt, especially given the revenue source's drop in 2008, Kifowit released this statement today to point out she thinks using $86,200 in gaming funds to pay a consultant is wrong.
Here's what she had to say:
For Immediate Release
Aurora Mayoral Candidate Stephanie Kifowit Calls for an Independent Fiscal Review and Constraints on the City of Aurora Riverboat Fund.
AURORA, IL: Alderman Stephanie Kifowit, Candidate for Mayor, calls for a complete and independent fiscal review of the Riverboat funds that it has received from the Hollywood Casino. "The City of Aurora has squandered the $194 million it has received from the Hollywood Casino," stated Kifowit. "The current Mayor has shown complete disregard for fiscal responsibility and management of these funds, there needs to be a complete independent fiscal review and constraints set forth on future expenditures from this revenue source."
The City of Aurora opened Hollywood Casino in 1993. The State of Illinois granted casino licenses to old river towns with failing downtowns in an effort to provide needed funds for redevelopment. Past reports confirm these funds would also be used to support education. Mayor Pierce gave additional funding to the school districts from the riverboat; however, no other mayor has since. Neighboring cities of Joliet and Elgin both were also awarded casino licenses. The State of Illinois imposes two taxes on riverboat gaming, a wagering tax and a tax on admissions. The City of Aurora receives $1 for each person embarking on the riverboat in addition to a portion of the wagering tax the State of Illinois collects. Since 1993 the City of Aurora has received over $194 million as of 12/31/2008.
"The residents of the City of Aurora deserve to know where this money was spent," added Kifowit. "It certainly has not been spent to revitalize the downtown. Currently by visual count we have 22 empty store fronts in addition to at least three empty buildings."
Under the proposed independent review, the auditor will show exactly where the money from the riverboat has gone and how dependant on it Aurora has become. Following the independent review, Kifowit proposes strict constraints on spending, to include a ban on paying for salaries and benefits.
"The recent decision by this administration to pay the salary for an economic development consultant through the use of riverboat money is the peak of fiscal irresponsibility. This is not what that money was to be used for," explained Kifowit.
Prior to the 2005 Mayoral election, the general philosophy of the city administration was to use the Riverboat money for one-time expenditures. Under the current administration, the City has embarked on extensive leveraging of these funds. Most recently was the sale of approximately $14 million dollars in bonds where the repayment source is 'payable by the City solely from the Riverboat Casino Admissions and Wagering Tax.'
Additionally, Kifowit is proposing a debt reduction program which is aimed at reducing the extensive debt the City has amassed over the past three years. "We have seen a 92% increase in debt obligations for the City under this administration. For the health of our communities, this needs to be reduced" stated Alderman Kifowit.
"The City of Aurora needs to have long-term resolve to maintain fiscal stability," Kifowit added. "I will begin with the proper management of the riverboat funds and I will continue with the reduction of unnecessary expenses throughout the City, starting with the Mayor's office."
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Bingo!
Funny how to me this seems like an important issue; but the Beacon chose to put it on page 3 in the left hand margin. Whereas Richard Irvin proposed a plan that was mentioned by three people unnecessary and not needed, and he got front page with a picture. Obviously favoritism. An ice cream shop story is more important than the City wasting money? Pathetic.
In 1992 river boat money was yet in the then near future and the discussion in the 1993 mayoral campaign was that this money would be used for capital projects. Of course why should that idea or promise of the politicians be any different than any other. The politician will take the easy way out and spend funds in ways that help him or her politically rather than keep the promise.