Gaming and county revenues down

As go the casinos, so goes Gilpin

Lynn Volkens

05/15/2008 - Foreclosures, considered an indicator of the economic condition, are up in Gilpin County. Looking back to the year 2000, when there were a total of 15 foreclosures, the number of Gilpinites losing their homes and businesses has climbed pretty steadily. It more than doubled in 2001, reaching 32 (7 commercial, 24 residential) total foreclosures. Last year the total number of foreclosures in Gilpin reached 58 (1 commercial, 57 residential). When a private citizen suffers an economic downturn, foreclosure can be just one of the results. What happens when Gilpin, as a county, suffers an economic downturn?

  Gilpin County’s main source of revenue comes from gaming. Gaming taxes are paid to the state. Twelve percent of that revenue is distributed, annually, to the two counties (Gilpin and Teller) where gaming is located. Gilpin’s share accounts for about 58% of the County’s annual revenue, last year amounting to $10,317,452. When gaming revenues drop, so do the County’s.

  Gaming revenues took a dive this spring. Fewer folks have been visiting Gilpin casinos this year. Increased gas prices and continued late winter/early spring snowfalls may be factors or, as indicated by the rise in foreclosures throughout Colorado, maybe folks just have less disposable income to play with. Some blame the smoking ban that took effect in January, however in Arizona, where smoking is still allowed, gaming revenues are also down. Whatever the reason, the results are the same, less money for County services and projects.

  Last month, Gilpin County Manager Roger Baker, issued a memo to the County’s elected officials and department heads putting them on notice. If the downward trend continues, Baker said the 2008 anticipated gaming revenues will fall short by about half a million dollars. What does that mean to Gilpinites?

  Commissioner Jeanne Nicholson said at her last Fireside Chat (May 6^th), the County may be reconsidering some of its discretionary spending, such as plans to purchase vehicles. For several weeks, Commissioners have been hesitant to approve funding requests and they are proceeding cautiously on those they do approve.

  The County began 2007 with a balance of $9,410,936. Total revenues added $17,525,948 bringing County coffers up to $26,936,884. Commissioners approved a budget expending $20,182,548 over 2008, leaving an ending balance of $6,754,336. That is disbursed to General Government (28.17%); Capital Improvement (24.10%); Judicial and Public Safety (15.90%); Road and Bridge (12.15%); Community Programs and Events (5.13%); Human Services (5.02%); Parks and Recreation (4.80%); Health and Senior Services (1.32%); Retirement (1.27%); Library (1.20%); Solid Waste (0.91%); and Conservation Trust (0.03%). Which of these would be cut, should revenues drop drastically enough to warrant it? That would probably be up to Gilpin voters, said Nicholson. “We would have to go to the Gilpin people and say, ‘Will you pay more taxes for these (specified) services, or should we let them go?’” While Nicholson anticipates the need to tighten the County’s belt, she didn’t see the need for a tax increase, as yet. Projects on the County’s roads this summer will proceed as planned, she said. The Justice Center completion (adding the parking structure and evidence room as per the original plans) is still on the table. The County hopes to partially fund that project with Department of Local Affairs (DOLA) grant money. DOLA requires the County to match grant funds, however, said Nicholson, if that match puts County services in jeopardy, Gilpin would refuse the grant and postpone the project.

  The County is not looking to cut any human services anytime soon. “How close to the edge are we (Gilpin County) living right now?” Nicholson was asked. “Not real close,” she responded, noting the County has reserves that can be used for essential services.