Rauner fiscal plan means St. Charles giving agencies less

St. Charles aldermen began preparing for the pending loss of $1.6 million in state income taxes Monday night by telling five groups that receive funding from the city their budgets will be cut 10 percent.

City aldermen and staff members said they foresee that $1.6 million loss - from Gov. Bruce Rauner and state lawmakers reducing the local share of state income tax collections by the currently proposed 50 percent - as more probable than possible after consulting with local state representatives.

Calling it a "share the pain" conversation, aldermen gave tentative approval to a 10 percent reduction in funding for five outside agencies. The move would net about $100,000 in budget savings.

The St. Charles Convention and Business Bureau, the Visitors Cultural Commission, St. Charles History Center, Pride of the Fox RiverFest and Downtown St. Charles Partnership would all lose some funding under the proposal. The money for the partnership, up to $25,000, would still be expended on projects for the downtown. The rest of the money would represent budget savings.

The convention and visitors bureau, which was set to receive $585,000 worth of funding from the city in the 2016 budget, became a particular target for Alderman William Turner. He said the bureau, chamber of commerce and downtown partnership represent a "structural problem" with how the city promotes itself.

"Three offices, three staffs, and you're all doing the same thing," Turner said. "The goal is the same - bring people into town and have them spend money. It's incredibly inefficient."

Amy Egolf, the executive director of the bureau, defended her agency as playing a large role in attracting large groups to the city's 11 hotels. She noted hotel/motel taxes are up 8 percent so far this year.

But when pressed on exactly what percentage of guests at the Q Center and Pheasant Run her agency could take credit for, Egolf said she wouldn't hazard a guess. She said, overall, the bureau takes credit for "just over 3,000 hotel rooms of new pieces of business."

That wasn't enough of a selling point to keep her funding.

Representatives from the history center and downtown partnership said they will move to tighten belts in cooperation with the city's financial pressures from Springfield. A letter from the visitor's cultural commission requested consideration of a staggered cut of 3 percent to 5 percent this year with the balance of the 10 percent cut to follow next year. Aldermen did not entertain that suggestion.

Turner and Alderman Rita Payleitner suggested the 10 percent reduction was less than they thought was coming or needed. Payleitner said she told history center staffers, before Monday, to brace for a 50 percent cut in line with the city's loss of state funds. Compared to that, Payleitner said 10 percent was "reasonable" for the agencies' share of the pain.

Turner was more blunt.

"We're going to ask citizens of this community to absorb $1.5 million in cuts?" Turner said shaking his head. "And we're asking nonessential services to take a $100,000 hit?"

Aldermen must take one more vote before the cuts are locked in. City Administrator Mark Koenen said if the state cuts don't occur, city staffers may consider a reboot of the budget discussions.

There is some cushion involved in the budget reduction decisions. The city will pay $1 million less in bond fees next year, freeing up some cash.