Natchez officials want to break a bad habit — &uot;dipping&uot; into the city’s gaming fund to balance the general budget.

When the gaming fund was created in April 1993, Natchez mayor and aldermen intended that the money be used solely for capital improvements. But over the years, the city has found itself falling back on the fund to cover other shortfalls.

&uot;We want to avoid the temptation of using the gaming fund to balance the budget,&uot; City Attorney Walter Brown said.

Mayor F.L. &uot;Hank&uot; Smith said the recent hiring freeze on city employees and a probable across-the-board budget cut will help safeguard the gaming fund for capital improvements.

&uot;It was set up for capital improvement, and if you keep dipping into it, you won’t have any in there when you need it,&uot; Smith said.

Every month, the state funnels 3.2 percent of the local casino’s revenues into the city’s gaming fund, City Clerk Donnie Holloway said.

Last year, that percentage translated to more than $1,126,923 dropped into the city’s gaming fund on top of the existing balance of $624,014, according to the Sept. 22 gaming fund summary.

After loans and transfers to other funds and financing a few capital projects, the gaming fund was left with $369,864 when the fiscal year ended in September.

More than a third of the money paid out of the gaming fund — $502,670 — was in loans to other funds, including the general fund, employee hospital insurance and the recreation department.

Holloway said these loans will be repaid to the gaming fund as the money becomes available, as many of them already have.

&uot;We’re trying to build it back up,&uot; he said.

Most of the money transferred from the gaming fund was used to balance the city’s general fund, provide bond and interest escrow and service bond and interest debt.

Also, the city hands over 30 percent of its take to Adams County — an amount that totaled $365,647 last year.

Brown said the contract with the county has evolved over the years from an inter-local agreement to statutory law, and the percentage has steadily increased through various &uot;trade-offs.&uot;

Ward 3 Alderwoman Sue Stedman, who also serves as the city’s public properties chairperson, said the gaming fund is not viewed as a dependable source of income.

&uot;It generally runs a certain amount per month, but the casino may decide tomorrow to shut down or pick up and move, and then we’d be out of that money,&uot; Stedman said.