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County gambling with tribal money
By Jim Nielsen
How would you like the money you lost gambling to be gambled by elected
officials in a manner that might short-change schools, roads, police and
fire protection and even hit you in the pocketbook again through taxes or
fees?
Public records disclose that Yolo County supervisors are considering using
tribal gaming mitigation money to pay for the eminent domain acquisition
of the Conaway Ranch. It appears other financing options such as bank
loans and Proposition 50 funds have not panned out and self-imposed
deadlines to have financing in place are not attainable. The county
appears desperate to find money for land speculation.
Documents titled "Project Financing and Financial Issues" contain entries
for the Pomona Fund and the Tribal Fund as sources of financing for the
Conaway Ranch. The Pomona Fund accrues around $1 million a year and the
Tribal Fund accrues around $1.2 million a year, increasing to $2 million
in four years.
These funds are negotiated between local governments and sovereign tribes
for the purpose of helping with the financial and other impacts of
locating casinos in counties and cities. Tribal funds are used to pay for
public needs such as schools, roads, public protection and environmental
impacts.
Under the Yolo County agreement with the Rumsey Band of Wintun Indians the
county received $3.5 million of tribal mitigation funds in 2004-05. Forty
percent of the funds are directed into the general fund and 60 percent to
specific programs or projects.
A tribal advisory committee makes recommendations to the county as to the
distribution of the general fund allocation. Funds are recommended for
things like a sheriff's patrol in the Capay Valley, community enhancement
projects, and for non-county entities and county departments to pay for
the impact of having a casino located here. I would be surprised if the
advisory committee found that county land speculation on the Conaway Ranch
is a worthy expenditure.
A total of $2.2 million annually (increasing to $4.2 million by the fourth
year) is proposed as a source of Conaway financing. Public documents
report a total of "ongoing annual payments" of tribal funds of up to $1.6
million to the general fund by 2005-06 and up to $2.4 million to specific
projects or programs. So much for the county promise that no general funds
would be used for the Conaway Ranch. If these funds are spent to buy the
Conaway Ranch they won't go to any public projects or programs.
It is no stretch to conclude the county may attempt a re-negotiation with
the Rumsey Tribe to provide that these annual distributions are paid lump
sum, up front giving the county cash for the cost of the Conaway. It is
also interesting that more recent documents indicate a Conaway Ranch
purchase price of $80 million - up considerably from an earlier
projection.
It is alarming that the county would have the temerity to consider such a
significant general fund diversion while projecting annual budget
shortfalls that range from $10.8 million to $15 million from 2003-2004
through 2007-2008. Last week the board voted to oppose a state special
election. Board Chairwoman Helen Thomson bemoaned the $300,000 cost to the
county for a special election observing, "$300,000 is nothing to sniff
at." Guess not, but then why has the county expended considerably more
than that on consultants and attorneys attempting to take the Conaway
Ranch off the tax rolls while exposing the county to an $80 million
liability and legal risks?
One budget document discusses strategies to deal with the county's budget
shortfall. Savings are suggested from salaries and benefits, services and
supplies, contracted services, fixed assets and capital improvements.
County employees have already endured a furlough. The counties feeble
rationale for acquiring the Conaway Ranch cannot justify ignoring more
critical needs for tribal funds.
The proposed tribal fund raid was disclosed only through a pubic records
request not in open meetings. For more than a year probably the most
significant financial obligation in the history of the county has been
veiled in secrecy. There has been little opportunity for the public to be
a part of Board meetings and the only other venue, the Joint Powers
Authority meetings, were discontinued when the public started showing up.
Based on conversations with many people over time I question whether even
the supervisors have been availed all information about this Conaway
takeover. This is not the way this county has historically been run and it
is not in the best interests of the people.
Eighty million dollars is a lot of money to obligate for speculation. It
is increasingly clear that there are real risks, direct threats to
services the county provides, a trifling with money not intended for land
purchases all at a time the county is in fiscal trouble.

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