Increased Revenue is the Cure
Four percent of gross revenues from the gaming machines will generate at least $6,000,000 in taxes for the town annually. However, the town has the opportunity, once voters approve the ballot question, to enter into a contract agreement with Sharon Terry, owner of Scarborough Downs, that will guarantee the town a minimum payment of $8,000,000 dollars per year.
Unlike additional real estate taxes, the gaming revenues do not reduce the amount the town receives from the state under revenue sharing and school funding formulas, nor do gaming revenues increase the town’s share of the county budget.
Because of these differences, $6,000,000 in gaming revenues is worth more to the Scarborough town budget than $9,480,563 million in new real estate taxes. At our mill rate of about 11, it would take over $814,459,098 million dollars in real estate development to generate $9.4 million in real estate taxes. In short, the six million in gaming revenues will help the townís budget in the same way $814 million dollars in development would help, and without the related costs to schools and services.
The Scarborough Village development, however, will also generate substantial real estate taxes estimated at $2,000,000 initially. As the new village center is brought to reality, profits from the gaming operation will fund the infrastructure associated with that development. The Town will not be required to fund one dime for this infrastructure. When the development is fully built out, it is expected to generate a project $40 million in annual municipal gaming and other tax revenues.
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