St. Charles mayoral candidates differ on budget, taxes
The bottom line may be the only line St. Charles residents care about in a depressed economy, and they have two candidates for mayor who view the budget in very different ways. While both agree cutting taxes on residents is a top priority, they disagree on how to do it, including possible tax increases in the future.
Incumbent Mayor Don DeWitte just put his stamp of approval on a city budget that will come onto the books in May. It calls for a pay freeze for all city employees, reduction of services and the use of savings to handle a deficit.
DeWitte explained the budget maneuvers are necessary to address an economy no one saw coming. And although he voted for several "spend, then tax budgets" as an alderman, he says he's vanquished that mentality in the city since he's been mayor.
His challenger, Jotham Stein, says the current budget is the result of financial mismanagement and empty storefronts.
Stein says the city never should've eliminated the food and beverage tax that funneled $600,000 a year into city coffers.
"If that had been collected all this time we would have no deficit this year," Stein said.
Stein says this coming budget year is not the time to add to the tax burden, but he is in favor of reinstating that tax the following budget year if warranted.
DeWitte says cutting the food and beverage tax made sense four years ago when the economy, the city's bank accounts and business were thriving. He has no regrets about the savings residents have experienced. However, DeWitte said he would support a new tax on alcohol served at restaurants and sold in packages at retail stores if necessary for this year's budget.
Also in the realm of taxes, Stein said property taxes in the city are too high. The city's property tax rate has been flat for several years. However, the increasing value of homes results in homeowners paying more taxes. That won't likely be the case for most homeowners in the next couple years as home values are expected to drop. But when home values begin to increase again, Stein said he would lower the city's property tax rate to keep the amount of money the city receives from the tax flat. He didn't have a specific plan for how he'd find money to pay for the normal increasing costs of doing business every year other than bringing more business to the city and firing overpriced attorneys.
In that realm, Stein believes DeWitte has done a poor job of luring vibrant business to the city. He pointed to the multitude of empty shops at the Charlestowne Mall and the First Street development as prime examples.
"The proof is in the pudding," Stein said. "You can go and look for yourself."
DeWitte said the vacancies at the mall are out of the city's control because there is no real owner of the mall to pressure. The mall is currently in a legal trust. The trust must dissolve before any real change occurs.
First Street is a work a in progress that DeWitte believes is as successful as it can be in the current environment. The majority of parking spaces in the garage are leased. Some new tenants are moving into some of the shops.
"This is not a flash in the pan," DeWitte said. "This is a long-term development. Overall, I am thrilled at the level of development activity that we've seen in this economic environment."