Local Revenue Sharing Board
If you have questions regarding Local Revenue Sharing Board funds, applications or deadlines,
please contact Pam Gibson, Finance Director, at (231) 348-1714.
TO: Potential Applicants for LRS Funds from the Petoskey Casino Site
FROM: Local Revenue Sharing Board for Petoskey Casino Site
DATE: April 8, 2019
RE: Distribution of Revenues from February 2019 Casino Receipt
This is to inform you that there are insufficient funds for distribution to the class of applicants that are the last to be considered by the Local Revenue Sharing Board (LRSB).
According to the Compact between the Little Traverse Bay Band of Odawa Indians (Tribe) and the State of Michigan, the Local Revenue Sharing Board is charged with distributions of funds received from the Tribe according to a schedule found in the Compact.
The Compact provides that the Tribe will make semi-annual payments to the County Treasurer for and on behalf of the LRSB in an aggregate amount of two percent (2%) of “net wins” from Class III electronic games of chance. The LRSB determines how the amounts are to be divided and the Treasurer then disburses the funds as specified by the LRSB.
According to the Compact, the payment is allocated in the following order:
- Not less than one-eighth of the payment is paid to local public safety organizations. The LRSB has previously adopted a guideline that the payment to local public safety organizations will be 14.5%. This includes fire protection and law enforcement.
- Each local unit of government will receive no less than an amount equivalent to its share of ad valorem property taxes that would be attributed to the casino if that site were subject to taxation. This includes payments to Resort Township, Petoskey Public Schools, Char-Em ISD, North Central Michigan College, Greenwood Cemetery, Emmet County senior millage, and Emmet County EMS millage.
- Each local unit of government is allocated a portion to offset the actual costs incurred by the local unit of government as a result of the development of the casino in the vicinity. This is basically the administrative expenses associated with the LRSB.
- The balance of the payment remaining after the above may be utilized for any other lawful government purposes. This would be the discretionary funds that have been provided to local organizations in the past.
In a recent meeting of the LRSB, it was learned that the most recent semi-annual payment from the Tribe in February 2019 was less than received in the past. The first in order (local public safety organizations) was determined to receive their funds.
The amounts to go to taxing authorities was the largest payment, exceeding the amount that was actually received from the Tribe. There was a carryover of some funds from last year since it is the payment in the early part of the year that covers a majority of the lost taxable revenue.
A small amount was paid for the administrative expenses, which left only $3,602.51 as available for the balance for other lawful government purposes. It was decided that the costs of notifying the public, receiving applications from entities after they have spent considerable time putting their applications together, and then having the LRSB meet for one or two more meetings to review a possible payment when there is only a small amount available did not make fiscal sense.
Accordingly, the LRSB will reserve the $3,602.51 until the second semi-annual payment is made later this year. It is hoped that sufficient funds will be received for distribution at that time that discretionary funds may again be distributed.
Thank you for your patience and consideration.
If you have questions you may contact me at (231) 347-1311
Dennis Keiser, Chairperson, LRSB