Peterborough city councilors want to make a change and bring something new to the community which would be reflected in the 2020 budget that is currently in its draft state. According to it, the previously debated tax hike amounting to 2.84 percent will be changed to only 2.34 percent increase.
Local officials reminded that Shorelines Casino Peterborough is able to support the community with substantial gaming revenue allocations and next year could bring up to CA$4 million. Casino venues are known for their gaming revenue allocations that have the potential to fund the community and its various projects and organizations.
This is a mandatory condition for every casino venue compensating the host community for gambling offerings taking place there. As a result of this, various projects are being financed and the budget sees a boost. Peterborough City Council relies on this factor while it is working on its draft budget for 2020.
Casino Allocations Could Reduce Tax Hike Percentage
According to previous discussions, the budget for the upcoming fiscal year was supposed to bring a tax hike of 2.84 percent that was about to equate to some CA$114 more paid by every household. Now it has become clear that city officials want to decrease this percentage and instead make it a 2.34-percent increase.
This is going to result in a CA$94 increase of the taxes proposed by the city councilors. As a result of this, the overall tax bill is going to jump to a well-rounded CA$3,718. Peterborough has the potential to implement various initiatives and projects that will help amass money for the extension and reconstruction of Crawford Drive among other projects.
There are still months left until November when the city council will have to officially start working on the city budget for the upcoming fiscal year. Coun. Henry Clarke is among the main believers in the potential of a casino venue and everything it could do for a given host community. He claimed that Shorelines Casino Peterborough could compensate for the reduced tax hike percentage with its gaming revenue allocations.
First Allocation Reached CA$705,606
Projections at this point are that the city council would bag about CA$4 million from the casino venue managed by Great Canadian Gaming, as well as from the strategic sale of Peterborough Distribution Inc. This projected amount could be used to compensate for the smaller tax hike percentage. As many as six officials gave their vote in support of this decision, but there were concerns expressed in opposition.
Coun. Keith Riel made it clear that for the time being the city council has no way of knowing the exact amount of the casino allocation next year is going to bring. There is also the possibility that the aforementioned strategic sale would not take place in 2020 and that the negotiations extend beyond that point.
It could be recalled that the casino venue offered the host community a hefty first allocation cheque mid-March. It amounted to CA$705,606 over the span of three months between October 15, 2018, and December 31, 2018. As of now, the City Hall has already poured in CA$5 million and it is going receive a loan of CA$2.8 million. Casino operation is expected to provide the final CA$1.7 million.