HomeMy WebLinkAboutITEM IV-GInteroffice Memorandum
WASHINGTON
To: Public Works Committee
Finance Committee
From: Shelley Coleman, Finance Director
CC: Peter Lewis, Mayor
Date: June 21, 2010
Re: Iron Horse Casino Request
The City of Auburn has received correspondence from the Iron Horse Casino
requesting:
1) The City reduce the gambling tax on card rooms from 12% to 4% for 4 years.
(State law allows cities, towns and counties to levy up to 20%of gross receipts
on card rooms)
2) Put the tax amount of $317,000 owing on a promissory note at 4% which will
be paid as soon as possible.
I have reviewed the audited financial statements from 2005 through 2009. As
presented, in my opinion, the casino will not be able to continue operations.
The City receives, on the average, about $800,000 annuatly. The reduction would
bring that revenue down to about $267,000 annually and allow the Casino to retain
approximately $534,000 annually for their operations.
Administration recommends a 2 year reduction at this time.
The revision to the City Code will be available as a handout at the meeting.
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