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HomeMy WebLinkAbout01-340 Resolution No. 01-340 RESOLUTION ESTABLISHING A POLICY FOR THE USE OF RIVERBOAT PROCEEDS WHEREAS, the City Council of the City of Elgin, Illinois, has determined that it is necessary and desirable to continue the city' s efforts to maintain and improve the city' s credit worthiness, and and in furtherance thereof to establish a policy related to the appropriate use of proceeds the city receives from the Grand Victoria Casino. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that the following policy is hereby established for the City of Elgin setting forth the appropriate uses of Riverboat proceeds the city receives from the Grand Victoria Casino: A. Riverboat proceeds (revenue) shall not be utilized to fund Operating Expenditures except in the event that existing cash reserves are exhausted due to emergency expenditures . The use of Riverboat proceeds as a result of the exhaustion of cash reserves shall be for one year or less and be used solely to address cash flow shortfalls between Operating Expenditures and revenue collection. B. The use of Riverboat proceeds shall be restricted to Capital Expenditures, One-Time Non-Operating Expenditures and Agency/Organization Funding. C. For the purposes of this policy the terms listed below shall be defined as follows : Capital Expenditures : Expenditures for equipment, real property or improvements to real property including, but not limited to, construction of, and major alterations, remodeling or repair of physical facilities, buildings, structures, streets and highways, sidewalks, storm and sanitary sewers, fixed equipment and landscaping in an amount of $10, 000 or more and with a useful life of five years or more . Operating Expenditures : Expenditures for regularly occurring operations that provide basic governmental services including, but not limited to, personnel costs, supplies, utilities, materials, travel and fuel . One-Time Non-Operating Expenditures : Expenditures which are not Operating Expenditures or Capital Expenditures and that are not anticipated to occur more than once over a five year period. Agency/Organizational Funding: Funding to not-for-profit agencies and organizations that have received an exemption under Section 501 (c) of the Internal Revenue Code which operate in the City of Elgin, and pursuant to a written contract with the city provide charitable, literary, educational or civic services directly to the residents of the city. D. A five-year financial plan shall be adopted and updated annually identifying the use of the Riverboat proceeds . E. The Fiscal Services Manager, in conjunction with the Budget Officer shall endeavor to determine the financial impact of capital projects, that are funded with Riverboat proceeds, on general fund operations . s/ Ed Schock Ed Schock, Mayor Presented: December 19, 2001 Adopted: December 19, 2001 Omnibus Vote : Yeas : 6 Nays : 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk w