Title
To authorize the City Auditor to allocate the City's share of the Casino Tax Revenues received from the State of Ohio for 2012, 2013 and each year thereafter; and to declare an emergency.
Explanation
The City received its first allocation of State Casino Tax Revenues on July 31, 2012 in the amount of $514,490.90. These monies came from the Gross Casino Revenue County Fund where monies are allocated and distributed quarterly to all 88 counties, based on county population. Payments are to be made to the City by the last day of the month following the calendar quarter's end.
In addition, after the Columbus casino opens (anticipated to be October 8, 2012, the City will receive monies from the State's Gross Casino Revenue Host City Fund. These monies will represent five percent of the gross casino tax revenue collected at the Columbus casino during the previous quarter. The first allocations of these monies are expected by January 31, 2013.
The purpose of this ordinance is to authorize the allocation of these Casino Tax Revenue receipts along with future receipts received from the State of Ohio.
2012 MONIES
Monies received in 2012 will be deposited in the Casino Fund (Fund 275) and the General Fund (Fund 010) in priority order as follows:
Priority 1. Fund 275 Subfund 001 - Casino-Debt Service: Deposit of $499,783.76. These monies are for 2012 debt service costs ($486,826.88) and bond issuance costs ($12,956.88) associated with the $15.0 million issued in July, 2011 for reimbursing CD Gaming Ventures, LLC for public roadway improvements in the casino area and environmental remediation of the casino site. The total annual debt service payments will vary by year with amounts ranging from $1,322,737.50 in 2013 to $789,150.00 in 2032.
Priority 2. Fund 275 Subfund 003 - Casino-Westside Community Fund: Maximum 2012 deposit of up to $1,000,000. If the 2012 allocation is not fully met, the remaining balance of that allocation will be added to the 2013 year allocation. These monies are for the reimbursement of $1.0 million, when necessary, to the Special Income Tax Fund (Fund 430), which represents monies transferred into the Westside Community Fund (Fund 276) to be used for a variety of projects related to neighborhood(s) immediately surrounding the site, including but not limited to job training, minority affairs, economic development and/or capital projects. As part of the Consent Order and Settlement Agreement between the City of Columbus and Penn National Gaming, Inc., the parties agreed to the create this fund. Each party agreed to contribute $1,000,000 in 2012, $750,000 in 2013, $500,000 in 2014 and $250,000 in 2015.
Priority 3. Fund 275 Subfund 099 - Casino-Other: Monies deposited into this subfund represent the balance available from Casino Tax Revenue after the 2012 obligations set forth for debt service and the Westside Community Fund are met. These funds are to be transferred to the General Fund, Fund 010, and will be available for general government purposes. The City Auditor in conjunction with the Director of Finance and Management will establish when such transfers to the General Fund will take place.
MONIES AFTER 2012
Monies received in 2013, and each year thereafter, will be deposited in the Casino Fund (Fund 275) and the General Fund (Fund 010) in priority order as follows:
Priority 1: Fund 275 Subfund 002 - Casino - Arena: Deposits as follows:
Percentage of Total
Calendar Year Casino Tax Receipts Received
2013 through 2015 25%
2016 26%
2017 27%
2018 28%
2019 29%
2020 30%
2021 31%
2022 and thereafter 32%
These agreed percentages may be subject to reduction after retirement of the Franklin County Facilities Authority's Bonds and State Loans.
The timing and percentages correspond with the lease payments related to the Lease Agreement and Sublease Agreement between the City of Columbus, Franklin County and the Franklin County Convention Facilities Authority (CFA). The City and County entered into a lease and sublease arrangement with the CFA that allowed the CFA to purchase, operate and maintain Nationwide Arena (authorizing ordinance 1596-2011).
Priority 2. Fund 275 Subfund 001 - Casino-Debt Service: Deposited amounts in the years 2013 through 2032 vary per year per the debt service schedule. Ordinance 1113-2011 authorized the issuance of $15,000,000 for public roadway improvements in the casino area and environmental remediation of the casino site. The principal and interest payments for 2013-2032 total $22,042,425.
Priority 3. Fund 275 Subfund 003 - Casino-Westside Community Fund: Reimbursements are expected to be $750,000 in 2013, $500,000 in 2014 and $250,000 in 2015. If the previous year's allocation is not fully met, the remaining balance of that allocation will be added to the current year allocation. These monies will reimburse the Special Income Tax Fund, (Fund 430), when necessary, for transfers to the Westside Community Fund (Fund 276) to be used for a variety of projects related to neighborhood(s) immediately surrounding the site, including but not limited to job training, minority affairs, economic development and/or capital projects. As part of the Consent Order and Settlement Agreement between the City of Columbus and Penn National Gaming, Inc., the parties agreed to the create this fund. Each party agreed to $750,000 in 2013, $500,000 in 2014 and $250,000 in 2015.
Priority 4. Fund 275 Subfund 099 - Casino-Other: Monies deposited into this subfund will represent the balance available from Casino Tax Revenue after obligations set forth for the Arena, Debt Service and the Westside Community Fund are met. These funds are to be transferred to the General Fund, Fund 010, and will be available for general government purposes. The City Auditor in conjunction with the Director of Finance and Management will establish when such transfers to the General Fund will take place.
Fiscal Impact: The allocations of these funds will allow for the execution of previous agreements and policy decisions.
Body
WHEREAS, the State of Ohio is and will be making Casino Tax Revenue quarterly distribution payments to Ohio municipalities from the operations of casinos in Cleveland, Toledo, Cincinnati and Columbus; and
WHEREAS, each casino is and will be required to file and remit taxes to the State of Ohio daily, revenue is then accumulated in this State's Casino Tax Revenue Fund, by the fifteenth day of the end of a calendar quarter, defined percentages of monies are then transferred from the Ohio Casino Tax Revenue Fund to the Gross Casino Revenue County Fund (51 percent), Gross Casino Revenue County Student Fund (34 percent), Gross Casino Revenue Host City Fund (5 percent), Casino Control Commission Fund (3 percent), Ohio State Racing Commission Fund (3 percent), Law Enforcement Training Fund (2 percent) and the Problem Casino Gambling and Addictions Fund (2 percent), these monies then will be distributed to municipalities based on various formulas no later than the last day of the month following the end of the quarter; and
WHEREAS, the City of Columbus received it first share ($514,490.90) of these Casino Tax Revenues on July 31, 2012, and will receive additional casino revenues later this year and future years; and
WHEREAS, these monies will be deposited into the City's Casino Fund, Fund 275, and the General Fund, Fund 010, for various purposes; and
WHEREAS, a portion of these monies will be used to fulfill a Lease Agreement and Sublease Agreement between the City of Columbus, Franklin County and the Franklin County Convention Facilities Authority (CFA). The City and County entered into a lease and sublease arrangement with the CFA that allowed the CFA to purchase, operate and maintain Nationwide Arena (authorizing ordinance 1596-2011), these agreed percentages may be subject to reduction after retirement of the Franklin County Facilities Authority's Bonds and State Loans; and
WHEREAS, a portion of these monies will be used to reimburse the Special Income Tax Fund, Fund 430, when necessary, for debt service costs and bond issuance costs associated with the $15,000,000 of general obligation bonds issued in July, 2011 for reimbursing CD Gaming Ventures, LLC for public roadway improvements in the casino area and environmental remediation of the casino site; and
WHEREAS, a portion of these monies will be used to reimburse the Special Income Tax Fund, Fund 430, when necessary, for transfers made and scheduled to be made to the Westside Community Fund, Fund 276, to be used for a variety of projects related to neighborhood(s) immediately surrounding the casino site, including but not limited to job training, minority affairs, economic development and/or capital projects. As part of the Consent Order and Settlement Agreement between the City of Columbus and Penn National Gaming, Inc., the parties agreed to create this fund. Each party agreed to contribute $1,000,000 in 2012, $750,000 in 2013, $500,000 in 2014 and $250,000 in 2015; and
WHEREAS, any remaining monies in Fund 275 after fulfilling obligations set forth for the Arena, Debt Service and the Westside Community Fund will be allocated to Casino - Other Subfund. These funds are to be transferred to the General Fund, Fund 010, and will be available for general government purposes. The City Auditor in conjunction with the Director of Finance and Management will establish when such transfers to the General Fund will take place; and
WHEREAS, an emergency exists in that this Ordinance is required to allocate the City's existing and future Casino Tax Revenues, such immediate action being necessary for the preservation of the public health, peace, property and safety; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the City Auditor is hereby authorized to allocate the City's share of the Casino Tax Revenues received from the State of Ohio for fiscal year 2012 in priority order to the Casino Fund, Fund 275, and the General Fund, Fund 010, as follows:
Priority One - Fund 275 Subfund 001- Casino - Debt Service: allocation of $499,783.76 to reimburse the Special Income Tax Fund, Fund 430, when necessary, for debt service and bond issuance costs associated with the $15,000,000 issued for public roadway improvements in the casino area and environmental remediation of the casino site.
Priority Two - Fund 275 Subfund 003 - Casino - Westside Community Fund: allocation of up to $1,000,000 to reimburse the Special Income Tax Fund, Fund 430, when necessary, for a variety of projects related to neighborhood(s) immediately surrounding the casino site, including but not limited to job training, minority affairs, economic development and/or capital projects. If this $1,000,000 allocation is not fully funded in 2012, the remaining balance of that allocation will be added to the 2013 allocation after the 2013 obligations for the Arena and Debt Service are met.
Priority Three - Fund 275 Subfund 099 - Casino - Other: Monies deposited into this subfund represent the balance available from Casino Tax Revenue after the 2012 obligations set forth for debt service and the Westside Community Fund are met. These funds are to be transferred to the General Fund, Fund 010, and will be available for general government purposes. The City Auditor in conjunction with the Director of Finance and Management will establish when such transfers to the General Fund will take place.
Section 2. That the City Auditor is hereby authorized to allocate the City's share of the Casino Tax Revenues received from the State of Ohio for fiscal year 2013, and each year thereafter in priority order to the Casino Fund, Fund 275, and the General Fund, Fund 010, as follows:
Priority One - Fund 275 Subfund 002 - Casino Arena:
Percentage of Total
Calendar Year Casino Tax Receipts Received
2013 through 2015 25%
2016 26%
2017 27%
2018 28%
2019 29%
2020 30%
2021 31%
2022 and thereafter 32%
These agreed percentages may be subject to reduction after retirement of the Franklin County Facilities Authority's Bonds and State Loans.
The timing and percentages correspond with the lease payments related to the Lease Agreement and Sublease Agreement between the City of Columbus, Franklin County and the Franklin County Convention Facilities Authority (CFA). The City and County entered into a lease and sublease arrangement with the CFA that allowed the CFA to purchase, operate and maintain Nationwide Arena (authorizing ordinance 1596-2011).
Priority Two - Fund 275 Subfund 001 - Debt Service: Allocation for the years 2013 through 2032 as follows:
2013 - $1,322,737.50 2023 - $1,111,575.00
2014 - 1,313,362.50 2024 - 1,080,900.00
2015 - 1,302,112.50 2025 - 1,049,100.00
2016 - 1,289,587.50 2026 - 1,016,175.00
2017 - 1,269,900.00 2027 - 979,650.00
2018 - 1,245,525.00 2028 - 943,125.00
2019 - 1,221,150.00 2029 - 906,600.00
2020 - 1,195,725.00 2030 - 867,450.00
2021 - 1,169,175.00 2031 - 828,300.00
2022 - 1,141,125.00 2032 - 789,150.00
These monies will be used to reimburse the Special Income Tax Fund, Fund 430, when necessary, for debt service payments associated with the $15,000,000 issued for public roadway improvements in the casino area and environmental remediation of the casino site.
Priority Three - Fund 275 Subfund 003 - Westside Community Fund: Allocation amounts are expected to be $750,000 in 2013, $500,000 in 2014 and $250,000 in 2015. If the previous year's allocation is not fully met, the remaining balance of that allocation will be added to the current year allocation after the current year obligations for the Arena and Debt Service are met.
These monies will reimburse the Special Income Tax Fund (Fund 430), when necessary, for transfers to the Westside Community Fund (Fund 276) to be used for a variety of projects related to neighborhood(s) immediately surrounding the site, including but not limited to job training, minority affairs, economic development and/or capital projects.
Priority Four - Fund 275 Subfund 099 - Casino - Other: Monies deposited into this subfund will represent the balance available from Casino Tax Revenue after obligations set forth for the Arena, Debt Service and the Westside Community Fund are met. These funds are to be transferred to the General Fund, Fund 010, and will be available for general government purposes. The City Auditor in conjunction with the Director of Finance and Management will establish when such transfers to the General Fund will take place.
Section 3. That all monies necessary to carry out the purpose of this Ordinance are hereby appropriated.
Section 4. That the City Auditor is authorized to make any accounting changes to revise the allocation of revenues and transfers associated with this Ordinance.
Section 5. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.