In a recent city council meeting, officials discussed the allocation of funds generated from local casinos and cannabis sales, known as \"wrap money.\" The proposal, presented by the mayor, aims to address pressing infrastructure needs and establish a risk management fund.

The mayor proposed dividing the available funds—approximately $10.36 million—into two main buckets: 50% for a risk management reserve and 50% for economic development, particularly focused on downtown Waukegan and the lakefront area. The mayor emphasized the urgent need for infrastructure improvements, citing deteriorating conditions such as broken light poles, outdated electrical systems, and lead pipes that require replacement.

City officials highlighted the importance of using casino revenue to benefit the community directly, suggesting that revitalizing the downtown area could attract new businesses and residents. The discussion included the challenges of securing grants for infrastructure projects, which often come with strict limitations on their use. The mayor noted that while grants could supplement funding, they would not be sufficient to cover the extensive needs of the city.

During the meeting, city staff provided an overview of the revenue sources, including casino admissions and gaming taxes, as well as cannabis sales taxes from two dispensaries. The total revenue collected since the casino's opening in February 2023 was reported to be nearly $9.8 million, with cannabis taxes contributing approximately $487,000.

Council members expressed concerns about the feasibility of completing significant infrastructure projects with the allocated funds, with estimates suggesting that even a single block of downtown renovation could cost around $7.7 million. The mayor acknowledged the need for a phased approach, suggesting that the city could tackle projects block by block to ensure progress.

The meeting concluded with a commitment to further discussions on the proposed allocation plan, with the city council expected to revisit the topic in the coming weeks. The mayor reiterated the importance of starting these initiatives promptly to avoid further deterioration of the downtown area and to enhance the overall quality of life for Waukegan residents.