Budget Committee member Michael DeCotis has proposed plugging a figure of $1 million from casino gaming revenue into the revenue side of the town's fiscal 2019 budget to help offset a tax rate hike next year, but the committee didn’t act because no one is sure how much the town will get and when they’ll get it.
TIVERTON — Budget Committee member Michael DeCotis has proposed plugging a figure of $1 million from casino gaming revenue into the revenue side of the town's fiscal 2019 budget to help offset a tax rate hike next year, but the committee didn’t act because no one is sure how much the town will get and when they’ll get it.
Twin River-Tiverton casino and hotel is slated to open in the fall.
The proposal by DeCotis was made after the committee finished voting on department budgets Tuesday night that include a big bond payment for school renovations and substantial increase in the cost of trash pickup service and increases in insurance and pension payments.
The proposed $51.5 million budget is some 3.7 percent higher than the current $49.3 million budget. The schools have asked for $1 more from taxpayers and the library has asked for level funding. Capital expenditures are a quarter of what was requested.
While many of the members of the committee said they want to reduce the tax rate that is projected to be $17.12 per $1,000 valuation as of July 1, the question of how much the town will actually realize in casino revenue in fiscal 2019 and when it will get the money, kept the committee from endorsing the proposal for now.
DeCotis said the recent revaluation “has a lot of taxpayers upset, nervous and worried,” because some will be hit with tax bills that will be as much as $1,000 higher than they now pay.
Many properties in town saw increases in valuation of as much as 30 percent, so even though the tax rate, which is now $19.05, will be lower the next fiscal year, they will still end up paying more tax than they did this year.
“Take that money,” DeCotis said of some of the money that will be generated at the casino “and give it back to our people and lower the tax rate. I want to help people take a breath.”
He said he also would like to put forth “a solid budget” proposal that taxpayers will vote on May 19 at the financial town referendum, and hopes an alternate budget will not have to be presented.
“I don’t want to fight in an FTR with alternative budgets,” DeCotis said of what has happened the past several years. “I thought we could have a real solid budget without having to fight.”
DeCotis said “people will swarm to it,” when the casino first opens so the town can rely on a good amount of revenue for its next fiscal year budget.
“I don’t think $1 million is a bad gamble,” Budget Committee member David Paull said.
The Town Council’s recommended budget, which closely mirrors the one the Budget Committee has voted on, does not include any gaming revenue, Budget Committee member Jennifer Rashleigh said. “Why was the Town Council reticent to include any?” she asked, which made her wary of voting to include any casino revenue without having more information.
The Town Council hasn’t had a big discussion about casino revenue, Council President Denise deMedeiros told them.
A meeting of the council to discuss casino revenue is expected to be held sometime in the near future, but one has not yet been scheduled.
“I think the Town Council, one way or another, has to decide what they want to do with that money,” Town Administrator Jan Reitsma said Wednesday.
“There’s a question as to whether the Budget Committee can even do this,” Reitsma said. The town solicitor was looking into it, he said.
The town is expected to realize at least $3 million annually in gaming revenue from the "convenience" casino that will have 32 table games and 1,000 slot machines. There could also be sports betting but proposed legislation has none of the proceeds going to Tiverton, which the Town Council has strongly objected to. Another $1 million is expected from tax revenue, including property, hotel and meals taxes.
The hours of operation have not yet been decided by the Town Council. A public hearing that was scheduled for last week was canceled because of the nor’easter. Town Clerk Nancy Mello is trying to schedule one for May.
The casino is slated to open Oct. 1, though Reitsma said he was told by casino representatives at a meeting Tuesday that they are aiming for a September opening.
The casino was initially expected to open in July, but was pushed back to October due to some unanticipated construction issues, including a larger than expected amount of ledge that had to be removed from the 21-acre site, according to John Taylor Jr., chairman of Twin River Worldwide Holdings. Taylor also said the cost of the project increased to $140 million, nearly double the initial estimate of $75 million.