Big winnings
North Strabane Township officials standing in front of their new public safety building are, from left, Bill Brooks, township supervisor; Frank Siffrinn, township manager; Sonia Stopperich, township supervisor; Mark Grimm, fire chief; Dan Strimel, police chief; and police Sgt. Joe Curnarski. The building and two fire trucks were paid for with proceeds from The Meadows. The public safety building was designed to match the casino buildings.
Cathy Wagoner of Cranberry Township keeps an eye on her grandson, Jacob Smarslak, 3, during playtime last week at the new North Strabane Township Community Park. The spacious park was built using money from The Meadows Casino. Jacob’s parents are Katie and Jack Smarslak of North Strabane Township.
North Strabane Township Community Park, built at a cost of $8.1 million, features two large playgrounds, several pavilions with picnic tables and several ball fields.
Without placing a bet, North Strabane Township is the biggest casino winner in Southwestern Pennsylvania. Year in and year out.
And unlike some players, it doesn’t squander its winnings.
“You just can’t spend. You have to plan,” said Frank Siffrinn, manager of North Strabane Township, which in 2004 happily benefited from the opening of the casino at The Meadows Racetrack & Casino.
As the casino’s host community, the township is entitled to a share of the revenues from slot machines and table games, which has been formidable – about $2.7 million to $2.8 million annually since 2005.
When it passed legislation to allow casinos in 2004, the state government included a host community clause by which a municipality would receive annual slots and table revenues totaling 50 percent of its 2004 budget or $10 million, whichever is smaller.
North Strabane’s 2004 budget, Siffrinn said, was about $4 million, resulting in a base $2 million windfall from the casino each year. He said about $750,000 is added to the $2 million figure through “a little estimator built (into the calculation), like the consumer price index.”
Casino funding isn’t the only reason North Strabane’s population has nearly doubled since 1992 – to about 14,000 – and that its tax rate has remained virtually unchanged for two decades. But it has been a significant factor in the township’s continued growth and vitality, with expanded facilities, services and recreational opportunities.
“If not for the casino revenue,” Siffrinn said, “the township would not be able to undertake some initiatives. The public safety building, the building of the park … these are amenities we’ve been able to provide because of this revenue.”
No local share funds
Siffrinn’s municipality does not get all of the gaming revenue that is disbursed from The Meadows Casino. The state also mandated in 2004 that casino money be placed in a Local Share Account, which is distributed by the host county – in this instance, Washington. North Strabane does not get any of those funds.
About $7.3 million in LSA funds from 2012 will be distributed to 38 entities countywide this summer.
“Pennsylvania legislators took a unique approach to returning revenue to the host municipality and county,” Siffrinn said.
He estimates the township will receive $2.74 million from the casino this year, Most of that money – about $2.3 million – will come from slots, which is paid out twice annually; funds from table games are distributed quarterly.
This isn’t the only way The Meadows boosts the township’s finances, though. Collectively, the track/casino is the No. 2 employer in the county, with about 1,500 who provide payroll tax revenue. The complex also has helped draw retail and commercial interests.
But the casino, Siffrinn said, did not start the township boom.
“We had development occurring before the casino,” he said. “The township was in a building stage. But the casino definitely pushed it along.”
The advent of the casino, coinicidentally, was accompanied by a comprehensive plan that identified community priorities. Residential development is paramount, but commercial development and preserving about one-third of the township as green space or agriculturally zoned property are vital as well.
“The supervisors decided they wanted 20,000 to 30,000 people max,” Siffrinn stated. “And we can have the best of both worlds.”
Strategically placed
North Strabane’s world exists in a county that is gaining population, is about 30 minutes from Pittsburgh and features two interstates (79 and 70), a toll road (Route 43) and a fourth major artery (state Route 19). Route 19 and I-79 pass through the township, as does Racetrack Road. There is a lot of local traffic, which brings a lot of people to the racetrack and casino.
Siffrinn admitted that having this annual financial windfall increases the temptation to splurge. Instead, the municipality opted for a long-range plan.
The township’s parks and recreation department was the first to benefit from the additional money. Its annual budget not only has grown from $1,500 to $383,000, it has a full-time director, Greg Sulc, and a new $8.1 million municipal park.
Through a 15-year bond issue, the township funded not only the park, but also a new fire station. The debt service is $890,000 a year.
Its new $1.8 million public safety building was architectually patterned after the casino to give a more uniform appearance, Siffrinn said. The building is on Johnson Road, off Racetrack Road, near the casino.
In anticipation of the casino years ago, North Strabane added three police officers at an annual cost of $300,000. It also hired a second full-time, fully certified code enforcement officer to handle the development boom, at a cost of $80,000 a year plus benefits.
In addition, the municipality was able to expand its fire department from one full-time employee to six, including Chief Mark Grimm, and spend $2 million to purchase new vehicles for the department.
North Strabane also is spending $1 million a year on its 70 miles of roads, double the $500,000 that was once allocated.
“A commitment was made to put money into our roads,” Siffrinn said, pointing out that while all roads are paved, there is now an emphasis on widening them.
The township also has purchased new computer equipment for the police, fire and public works departments, and spent $200,000 on trucks, mowers and construction of a salt shed.
And at a time when many Pennsylvania municipalities are struggling, if not strapped, to make payments to employee pension plans, North Strabane’s plans are fully funded.
Then there are the scholarships. Siffrinn said the township has been working with the Canon-McMillan Foundation to award scholarships annually to township students.
“This year, we’re giving out 10 $1,000 scholarships,” Siffrinn said.
North Strabane has done this on a general fund budget of $5,476,000, which includes a $1 million capital reserve plan. The total financial obligation, made up of eight funding categories, is $10,325,000.
The township maintained the same millage rate for 17 consecutive years, before reducing it by a half-mill – to 10.98 – for 2013.
“We may be looking at another reduction in 2014,” Siffrin said.
A model for Salem?
This comfortable coexistence of township and casino is recognized from afar. In August 2011, officials from Salem, N.H., flew in and spent the day in North Strabane, touring and speaking with Siffrinn and county officials about the municipality’s experiences with The Meadows.
“They wanted to find out what effects the casino had on the community, whether they were positive or negative and how it was perceived in the community,” said Salem manager Keith Hickey, who did not make the excursion. “They spoke very positively about it.”
The New Hampshire contingent had a vested interest: If slots and table games are legalized in their state, Salem likely would be the frontrunner among towns seeking a casino license. It is home to Rockingham Park, a track built in 1906, where Seabiscuit raced in the mid ’30s. There is no live racing there now, with gambling restricted to simulcasts from other tracks and poker for local charities.
Gaming is an issue that has been considered in the Granite State for a while, but may be resolved in a few months.
Legislation, allowing for one casino in New Hampshire, has been approved in the state Senate. The proposal will be debated in the House starting in a week or so, and if approved, bidding and other legal processes will begin.
Voters in Salem. population 28,112, had their unofficial say last month. In a nonbinding referendum, 81 percent said they supported a casino in their town.
Casino applications will come from elsewhere in the state, of course, but Salem is an attractive location. Rockingham is an established venue with 180 acres where, boosted by a casino, racing could be revived. And a casino there, in southernmost New Hampshire, would be a mere 30 miles north of Boston, New England’s largest city.
If gaming passes and Rockingham is selected, Salem would take its first step toward hopefully replicating what has occurred 700 miles to the southwest, in North Strabane. Cannery Casino Resorts LLC, which owns The Meadows, would be Rockingham’s new owner.
In 2005, Cannery acquired a multiyear option to purchase the Salem property. The option would be exercised following regulatory approval of gaming.
“It was very helpful for these people to see how this works in Washington County, and how it could serve the community of Salem,” said Rich Killion, a consultant to Millenium Gaming, which owns Cannery. Killion was among the Salem lot that visited North Strabane 20 months ago.
Whether Salem, if chosen, has similar success with its casino as North Strabane has to be determined, of course. But the possibilities are grand.
“The township considers itself extremely fortunate to be in the favorable financial position that it’s in,” Siffrinn said. “The board of supervisors has been committed and diligent in investing those funds back into the community to provide its residents with quality and affordable service, and to enhance quality-of-life opportunities for all age groups.
“We anticipate this commitment will serve to underscore our model where family and community grow together.”
Linda Metz contributed to this story.