Pokagon-New Buffalo Area Local Revenue Sharing Board
The Pokagon-New Buffalo Area Local Revenue Sharing Board exists as a result of a Compact between the Pokagon Band of Potawatomi (the “Tribe”) and the State of Michigan (the “State”) providing for the conduct of Tribal Class III gaming by the Tribe. The Compact was entered into on December 3, 1998 and amended on April 28, 2009. Section 18 of the Compact defines how tribal payments are made to local governments. This section states that the Tribe will make payments directly to the Board. These payments shall equal 2% of the annual net winnings at each casino derived from all Class III electronic games of chance, to the local units of government that are located in the immediate vicinity of each tribal casino site or that are otherwise directly affected by the operation of the casino. It is the intent of the State and the Tribe that the payments to local units of government provided for in this section will be used primarily to provide financial resources to those political subdivisions of the State that actually experience increased operating costs associated with the operation of the Tribe’s Class III gaming facility.
The Board is a five (5) member board that is the public body politic established by the Inter-local Agreement pursuant to the Urban Cooperation Act of 1967 and in accordance with the Compact between the Pokagon Band of Potawatomi Indians and the State of Michigan providing for the conduct of Tribal Class III gaming by the Pokagon Band of the Potawatomi Indians. The Inter-local Agreement was entered into on December 16, 2008. The Board’s sole function is to determine and make allocations of the tribal payments received from the Tribe. The Board is funded through a 4% administration fee charged on the tribal payments received.
DISTRIBUTION OF TRIBAL PAYMENTS
Guidelines or bylaws establishing criteria or formulas for the distribution of revenues, and any actual disbursements of funds require a unanimous vote of the representatives comprising the Board. Tribal Payments in the fiduciary fund are allocated and distributed in the following priority:
Administrative Set Aside – The Board allocates no more than 4% of Tribal Payments for administrative costs and expenses as provided in the annual budget.
Specific Actual Costs Incurred – Specific actual costs incurred as approved by the Board are allocated and distributed.
Payments in Lieu Taxes – After distribution of the administrative set aside and the specific actual costs incurred, 65% of the balance of the Tribal Payments are set aside for payments in lieu of taxes. Distribution to each local unit of government is in an amount equal to the proportion of its qualified and certified millage rates measured against the total qualified and certified millage rates of all the local units of governments that are eligible to receive payments in lieu of taxes.
Remaining Disbursements – The balance of Tribal Payments remaining are allocated and disbursed as follows:
|Local Unit of Government||Distribution|
|New Buffalo Township||40%|
|City of New Buffalo||20%|
|Three Oaks Township||10%|
|Village of Three Oaks||5%|
|Village of Grand Beach||2%|
|Village of Michiana||2%|
|New Buffalo Area Schools||1%|
|New Buffalo Public Library||1%|
|Berrien County RESA||1%|
|Lake Michigan College||1%|
For the most recent fiscal year 2014, the total allocations of the tribal payments in the Fiduciary Fund were:
|Local Unit of Government||Total Distributions|
|Berrien County||$ 831,473.55|
|New Buffalo Township||1,228,448.44|
|City of New Buffalo||406,140.96|
|Three Oaks Township||168,527.98|
|Village of Three Oaks||84,263.99|
|Village of Grand Beach||33,705.60|
|Village of Michiana||33,705.60|
|New Buffalo Area Schools||1,977,894.95|
|New Buffalo District Library||85,270.34|
|Berrien County RESA||272,843.60|
|Lake Michigan College||192,528.77|
|Total Distributions||$ 5,483,331.76|