Exclusive: Omaha’s Ballpark Fund Takes a Hit
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One of the key revenue sources for Omaha’s new downtown ballpark has taken a major league drop.
Nebraska Watchdog has learned the City of Omaha’s Keno income is down nearly 15% from 2008, raising some early warning signs for the ballpark’s funding.
It is now projected that in 2009 the city will take in $52,176,859 from Keno. But according to Ron Gerard, Mayor Jim Suttle’s press secretary, that figure is 9.19% below the $57,459,497 city officials had expected.
Keno revenue is the single largest source of public money used to pay for the ballpark. The other sources are hotel and car rental taxes which have been increased in order to help fund the $128 million stadium.
Former Mayor Mike Fahey promised the ballpark would be built without raising property taxes.
Former City Finance Director Carol Ebdon, who helped put the stadium financing plan together, tells Nebraska Watchdog the city’s first ballpark payment is not due until 2011 and therefore, “It’s too soon to panic.” In July of 2008 Ebdon told the Omaha World Herald the plan built in an extra $19 million in public funding to safeguard against possible shortfalls. But Ebdon now tells Nebraska Watchdog, “Could there be a little bit of a problem, maybe…if it drops 9% every year that would be a problem.”
City officials predicted that Keno revenue would drop 10% in 2008 and stay flat in 2009. Instead Keno has struggled more than expected, dropping 14.36% in 2008 and 9.19% in 2009.
Some of the drop in Keno money is believed to be tied to a statewide smoking ban that went into effect on June 1, 2009 and included Keno operations. Several months ago many Omahans including former Mayor Hal Daub, who raised several concerns about the stadium funding package, said smokers would stay away from Keno outlets once smoking was not allowed.
Along with paying for the new stadium, Keno dollars are also used to help fund non-profit organizations such as Omaha’s Henry Doorly Zoo, which gets $1.55 million a year from Keno.
City Hall insiders tell Nebraska Watchdog that given the choice of funding organizations like the zoo or paying for the stadium, city officials would have no choice but to eliminate funding for the zoo and similar operations.
Reported by Joe Jordan, joe@nebraskawatchdog.org
Posted under News, Omaha City Hall, Omaha Government.
Tags: Carol Ebdon, Hal Daub, Jim Suttle. Mike Fahey, Omaha World Herald, Ron Gerard
7 Comments For This Post So Far
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Keno Numbers Game Rolls On
[...] Watchdog first reported that the city’s Keno income is down nearly 15% from [...]
11:46 pm on December 1st, 2009
If they take a single penny from the Zoo funding to pay for that ballpark they’re going to have a revolt on their hands, and I’ll be one of those with a pitchfork and torch.
12:19 am on December 2nd, 2009
GOOD news that Omaha area residents are gambling less.Gambling is a vice.Not so good that our great, year around zoo might lose keno funding due to the once a year ballpark. One thing is sure: property tax payers have had it in Nebraska. They will take to the streets if any more property tax hikes are proposed by Jim “The Taxman” Suttle or anybody else.
7:34 am on December 3rd, 2009
Nonsense Jim. Nebraskans will pay whatever taxes they are told to pay. And they will vote for boondoogles such as the ballpark. Herding Nebraskans is easy: just tell them each new spending plan is for “economic development.” They’ll take the bait every time!
11:46 am on December 3rd, 2009
Oh please adutls can make a decision to gamble if they want but the real reason no one will acknowledge is the ignorant smoking ban…that is why Keno is down…talk to the owner in Papillion his Keno percentage is UP because he spent money to accommodate smokers and non smokers…golly what an idea!!! Allow a business owner to decide….Omaha is a nanny city and get ready Suttle will raise your taxes to pay for the pension fund for police and fire but he never mentions the civilians wonder why? Personally it’s not my pension and I am sick of paying into it as a taxpayer when government employees never are demanded to sacrifice even though they will tell us they are
11:48 am on December 3rd, 2009
p.s. Tell Fahey to pay money for his stupid stadium he is the one that left this city in a mess and then we name a street after him !
11:03 am on October 27th, 2011
The former finance director who worked for Fahey knew how to do cost benefit analysis as she is teaching at UNO. She is just another self serving finance diretor who kissed Mayor’s ass. Of course, her degree in in political science not business. Idiot CFO ever!