City reallocates casino revenue for operating budget to offset inflationary pressures

FORT ST. JOHN — Fort St. John council has decided to reallocate the city’s revenue of over $750,000 from Chances Casino to the operating budget in order to offset inflationary pressures. 

According to a report to council, staff feels the increased expenses due to inflation need to be addressed by finding additional revenues and reducing costs. The revenue will now be transferred to cover community service operations in the 2024 operating budget.

The relocation is expected to generate an additional $100,000 to $200,000 yearly for the city’s operations and move the budget toward a surplus in the future. 

In the report, Chief Administrative Officer Milo MacDonald said extra expenses due to inflation put pressure on the city’s operating budget, creating deficits for the past five years. 

“The city’s interests would be well served by allocating all gaming revenues towards operations,” said MacDonald.

The past few years have seen revenue fluctuate below $750,000, with the city needing to absorb the loss. The report notes that casino revenue has since recovered to pre-pandemic levels.

Previously, the city’s policy had any revenue received from the casino over $750,000 be allocated to the North Peace Community Foundation.

The community foundation will continue to be funded through grants in aid and tax exemptions, which totalled $1,253,998 in 2023. The foundation will also receive legacy funds from BC Hydro once the Site C Dam operates in 2025. 

The policy will be circulated to staff and publicly available on the city’s website.

The full report can be viewed below: