Rock Island dilemma: How to spend `extra' revenue

Dockside gambling in Illinois is expected to increase tax revenue in the City of Rock Island, but city officials aren't in agreement as to how the money should be spent.

A conservative estimate for yearly gambling revenue in Rock Island hovers around $3 million. This figure was derived using estimates based on income generated through wagering taxes and admission and docking fees from July through October 1999.

Rock Island Mayor Mark Schwiebert proposed spending 63 percent to promote economic development, 32 percent for property-tax relief and 5 percent to treat gambling addicts.

Mayor Schwiebert defined economic development broadly, including business and residential incentives that create jobs and attract new residents throughout the city.

Gambling revenues could support sewer extensions to new businesses or subdivisions, new streets, land purchases, facade improvement programs, housing rehabilitation programs, riverfront enhancement, marketing Rock Island as a good place to live and special projects such as the Quad City Botanical Center.

Mayor Schwiebert added that the $1.89 million designated for economic development would be in addition to what the city currently spends.

The mayor also supports using casino generated taxes to give property-tax relief to Rock Island homeowners.

According to Mayor Schwiebert, if $960,000 were allocated to property-tax relief, the $9 million tax levy would be reduced by 10.66 percent.

In real terms, owners of a $90,000 house would see a $89.88 drop in the city portion of their annual tax bill, he said. The tax rate would decrease from $2.8106 per $100 assessed valuation to just over $2.50

In comparison, Moline's tax rate is $1.8014 and East Moline's is $1.7652.

Allocating $150,000 annually to agencies that treat gambling addicts is the final wish Mayor Schwiebert has for Casino Rock Island revenues.

``Though most people know when to stop, some of those who gamble (it is estimated at five percent) develop a serious addiction that can ruin lived and families,'' Mayor Schweibert said in a October 1999 editorial. ``Some part of the revuenue (perhaps 5 percent) could be utilized to support suitable programs that deal with the problem. Though Iowa does earmark a portion of their gaming revenues for this purpose, Illinois does not, so Illinois residents who have such problems are currently dependent on Iowa programs for relief.''

Aldermen aren't in complete agreement with the mayor's plan for casino revenue.

Most agree that some of the money should be used to promote economic development and reduce property taxes. However many of the city's seven alderman expressed concerns about Mayor Schwiebert's plan to use gaming funds to assist gambling addicts saying that it was not the city's job to fund an addictions program.

Both the mayor and the city council agree that the funds should not be spent before they are collected and, that the residents of Rock Island should have some say in how the funds are allocated.

In an unscientific survey taken last November, Rock Island residents were asked what the casino revenues should be used for. Infrastructure development, economic development, property-tax relief and a rainy day budget for unexpected expenses received the most votes.

John Phillips, Rock Island City Manager, expects that a decison regarding use of casino funds will happen later this year.

``We really need more infomation before a decision can be made,'' he said. ``There are some legal issues that need to be cleared up. We also need more discussion, so I would expect it to be at least six months before we know what is going to happen regarding a vote for what we should do with casino revenue.''