Chammings projects Oxford budget boom from casino

OXFORD — Town Manager Michael Chammings says that the casino project is expected to have a large long-term impact on the municipal budget, but the short-term effects might be modest.

He predicts a 30 percent reduction in Oxford's mill rate, and a 22 percent reduction in county taxes for other area towns.

"The first year isn't even going to be budgeted for," said Chammings. "They won't be opening their doors until late in the fall."

The town is lined up to receive 2 percent of the casino's gross gaming revenues. If the casino rakes in north of $120 million in slots and table games, as the investors have predicted, that adds up to quite a few poker chips in Oxford's municipal coffers.

As in, $2.5 million worth of poker chips.

Of course, those numbers seem very optimistic, even when looking forward to the end of a five-year build out effort.

For year one, the numbers are sure to be more modest. Even Chammings, a strong supporter of the casino from day one, has referred to a "$2 million" impact.

"So what we'd be looking at is doing a regular budgeting cycle," said Chammings, "and then as the impact comes in, we would go to a town meeting."

Chammings says revenues are expected to more than offset increased costs associated with the casino.

"As you know, as your value goes up, you pay more to the school, you pay more to the county, you get less revenue share," said Chammings.

During a public hearing on the casino, he made some rosy predictions about the town's future finances.

"The value you pay for property taxes is well below cost, but the revenues coming from the gambling is what's going to make Oxford's projected mill rate go down roughly 30 percent over a five-year build out," he said. 

Surrounding towns, said Chammings, will be able to improve their mill rates as well, because he says that the casino will generate so much revenue for the schools that it will reduce the local tax pressures.

"It is possible for the surrounding towns to lower theirs because of the amount of funding going to the schools from Oxford," said Chammings, "and we give a lot more to the county."

Chammings says that the casino will give so much money to the county that each town might expect a significant county tax reduction.

"The county is going to be receiving about 1 percent, and if the county does the right thing with the revenues, which, the county budget committee is made up of selectmen from the towns, it is possible to see every town's county bill go down 22 percent, except for Oxford's," said Chammings.