BY RACHEL MELCER
The Cincinnati Enquirer
LAWRENCEBURG -- The streets of Dearborn County are paved with millions of dollars in tax revenue from the Argosy Casino -- but officials say it isn't enough.
After years of cutting corners and an inadequate cash flow, Highway Superintendent Marty Hon says he is delighted that he can now spend an average $36,000 per day on paving during construction season.
But he could use a whole lot more.
Blacktopped roads have been damaged over time, especially with new development and increased traffic brought by the riverboat casino. And even after a year of intensive work fueled by gambling revenue, about 80 percent of the county's roads remain unpaved. So Mr. Hon was worried when he learned that his department was being tapped this week to pay back $750,000 it had borrowed from the county general fund. Although the highway department had the cash on hand -- and will be able to continue with another five weeks of work this year -- he hates to see any money go.
"This (riverboat) money has been a godsend. We're doing work out here now that I never would have dreamed of four or five years ago," he said. "But there's a lot more that we have to get done." Mr. Hon estimates it will cost up to $50 million to get all of the county's 500 miles of roadway paved and in good shape.
Dearborn County receives $1 for every admission to the Argosy Casino -- 60 percent of which is passed on to the highway department. In addition, 65 percent of the gaming revenue tax money that reaches the county is earmarked for highway equipment, material and work. The department has received about $6 million since Argosy opened its doors in 1996. And its share is increasing as the gambling business grows.
County council, which is responsible for budgeting and finance, projected that the highway department would get $4 million this calendar year -- but it has already received more than $3 million, with another quarter to go.
"The numbers just make your head spin," said Council President Charlie Fehrman.
So the council felt comfortable in transferring $750,000 from the highway department to the county general fund Tuesday night. It needed the money to make up for a sudden budget shortfall.
Council had loaned the money to pay highway department salaries this year, because the county was headed for a budget surplus. The additional influx of cash had allowed the highway department to accomplish more work.
But members found out recently that they had underestimated the county's growth and increase in property values. They inadvertently set the county levy too high, and took in nearly $200,000 more in tax money than is allowed under Indiana law.
The state Board of Tax Commissioners took back the money from the county and set it aside to meet next year's budget needs.
"It deflated the pocket of cash we had going into the second half of this year. It was a surprise," Mr. Fehrman said.
Frank Cummings, the county's budget consultant, said it is not unusual for a county or municipality to underestimate growth and raise more tax dollars than it should. The situation is remedied, and more care is taken in formulating a levy for the following year.
"We're pioneers in dealing with the effects of a riverboat casino," Mr. Fehrman said. "It all comes down to the phenomenal growth and development from the riverboat industry. . . . Even having seen it for a year, I don't know what it's going to be next year."
