Drop in gambling revenue affects Nitro budget

Tuesday February 4, 2014

Drop in gambling revenue affects Nitro budget
Treasurer says taxes from Mardi Gras Casino down, may see permanentdecrease from proposed law
by Matt Murphy
Daily Mail staff

CHARLESTON, WV -- A drop in business at the Mardi Gras Casino in December took a bite out of the city of Nitro's coffers, and officials are worried a proposed state law could put a severe strain on the city's budget.

Nitro Treasurer John Young told city council at its regular meeting Tuesday that the city received significantly less lottery and table games revenue in December. While lower casino-related income is typically lower during that month, this year was particularly low.

"The cash flow for December was horrendous," Young said, later adding, "The money from the dog track is half of what we've been getting."

Because the Mardi Gras Casino is in Nitro's city limits, the city receives gambling-related taxes from the facility.

Young said that in the current fiscal year, the city has spent about $169,000 more than what revenues have been brought in. While that situation also isn't unusual for this time of year, that same figure was $125,000 last fiscal year.

Cities often make up revenue over the course of the year.

Young said the city's finances are secure for the current fiscal year, but if the trend of lower gambling revenue continues, the city will need to start looking at cuts.

"I think it's going to be belt-tightening time," he said.

As a result of reduced gambling revenue, the council opted to pay for a new dump truck with a 5-year loan from City National Bank instead of paying for the truck in cash as previously decided.

Young said the loan will allow the city to keep more money in its savings account in case gambling revenue continues to fall.

Furthermore, a proposed state law could drop gambling revenues for Nitro permanently. Senate Bill 385 would reduce the amount of money directed to local entities from racetracks by 15 percent.

If that bill passes, the resulting financial reduction could put a major dent in Nitro's budget.
Council also:

n Discussed the effects of the recent chemical leak and subsequent water contamination in the city. Nitro was one of the many communities affected by the do-not-use order.

Casebolt said he's worried about the effect the event will have on the city's business and occupation tax revenue, a figure that won't be known until later this spring.

Casebolt said if there's a silver lining to the situation, it may be that Nitro residents were able to come
together and support one another during the crisis. He said the city has given out around 8,000 cases of bottled water each day.




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