City's Keno revenue quadruples

McCOOK, Nebraska -- City of McCook revenue from Keno funds has increased dramatically in recent years and is projected to end the current fiscal year at four times the budgeted amount. The increase in revenue has resulted in more than $224,000 in uncommitted community betterment funds in the proposed upcoming budget, providing the McCook City Council with yet another opportunity to enhance the future of McCook.

Keno revenue year-to-date is at $87,212 and is projected to reach $100,000, after being budgeted in the 2012-13 city budget at $25,000.

The revenue had typically averaged around $23,000 annually until it spiked during the 2011-12 budget to $52,046, more than doubling the budgeted $20,000 at the time.

City Clerk Lea Ann Doak recapped the item to councilors during the proposed budget review Monday evening. Doak credited the increase in revenue to a second location in McCook adding the Keno game.

Doak proposed the city increase their annually budgeted amount to $105,000 in the upcoming budget and said the funds were required to be spent on community betterment. Doak indicated the city had a combined unallocated amount of community betterment funds totaling just over $224,000, in the proposed budget.

Doak also identified $61,732 in funds that were described as residual interest, leftover from when the Valmont tax-increment financing project was implemented. Doak said it was another reserve that could be used "for whatever."

Councilor Jerry Calvin suggested the Valmont funds be utilized as the beginning of funds set aside to demolish the St. Catherine's Apartment building.

"It's good to have reserves, but the community has some projects that really need to be done, too," said Calvin.

The proposed budget also leaves $11,415 of the one percent city sales tax funds uncommitted, as well as $207,082 of the 1/2 percent sales tax funds. In recent years, councilors have allocated the majority of the uncommitted city sales tax funds during their subsequent three readings required to pass the budget, committing the funds to various items. The subsequent commitment typically varied between community improvement projects and buying down sewer and water debt.

Doak asked councilors this year to increase the amount of sales tax dollars left uncommitted though, citing a decreasing trend in the revenue.

Councilors will continue their budget discussion during a public hearing on Aug. 5, 2013. The second reading is scheduled for August 19 and the budget's final reading is scheduled for Sept. 4.