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LRSB – Local Revenue Sharing Board

About the LRSB - Local Revenue Sharing Board

The Pokagon-New Buffalo Area Local Revenue Sharing Board exists as a result of a Compact between the Pokagon Band of Potawatomi (the “Tribe”) and the State of Michigan (the “State”) providing for the conduct of Tribal Class III gaming by the Tribe. The Compact was entered into on December 3, 1998 and amended on April 28, 2009. Section 18 of the Compact defines how tribal payments are made to local governments. This section states that the Tribe will make payments directly to the Board. These payments shall equal 2% of the annual net winnings at each casino derived from all Class III electronic games of chance, to the local units of government that are located in the immediate vicinity of each tribal casino site or that are otherwise directly affected by the operation of the casino.  It is the intent of the State and the Tribe that the payments to local units of government provided for in this section will be used primarily to provide financial resources to those political subdivisions of the State that actually experience increased operating costs associated with the operation of the Tribe’s Class III gaming facility.

The Board meets quarterly the second Tuesday of the month in January, April, July and October at 8:30 am Eastern Time at the New Buffalo Township Hall.

The Board is a five (5) member board that is the public body politic established by the Inter-local Agreement pursuant to the Urban Cooperation Act of 1967 and in accordance with the Compact between the Pokagon Band of Potawatomi Indians and the State of Michigan providing for the conduct of Tribal Class III gaming by the Pokagon Band of the Potawatomi Indians. The Inter-local Agreement was entered into on December 16, 2008. The Board’s sole function is to determine and make allocations of the tribal payments received from the Tribe. The Board is funded through a 4% administration fee charged on the tribal payments received.

Distribution of Tribal Payments

Guidelines or bylaws establishing criteria or formulas for the distribution of revenues, and any actual disbursements of funds require a unanimous vote of the representatives comprising the Board.  Tribal Payments in the fiduciary fund are allocated and distributed in the following priority:

Administrative Set Aside – The Board allocates no more than 4% of Tribal Payments for administrative costs and expenses as provided in the annual budget.

Specific Actual Costs Incurred – Specific actual costs incurred as approved by the Board are allocated and distributed.

Payments in Lieu Taxes – After distribution of the administrative set aside and the specific actual costs incurred, 65% of the balance of the Tribal Payments are set aside for payments in lieu of taxes.  Distribution to each local unit of government is in an amount equal to the proportion of its qualified and certified millage rates measured against the total qualified and certified millage rates of all the local units of governments that are eligible to receive payments in lieu of taxes.

Remaining Disbursements – The balance of Tribal Payments remaining are allocated and disbursed as follows:

Local Unit of GovernmentDistribution
Berrien County7%
New Buffalo Township40%
City of New Buffalo20%
Chikaming Township10%
Three Oaks Township10%
Village of Three Oaks5%
Village of Grand Beach2%
Village of Michiana2%
New Buffalo Area Schools1%
New Buffalo Public Library1%
Berrien County RESA1%
Lake Michigan College1%

 

For more information, click the link below to the Pokagon Fund website.

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