St. Charles approves new budget, liquor tax, but watching state

More than $2 million in spending cuts and a new tax on alcohol will help St. Charles get through the 2010-2011 budget year without a deficit, provided the state plays along.

St. Charles joins many local municipalities in watching how state lawmakers will impact their budgets in the next couple weeks. The Illinois General Assembly is set to adjourn the first week of May provided it has a budget in place. The only question for St. Charles is whether or not the state lets the city keep the more than $2 million in income tax money it receives. Gov. Pat Quinn has called for a sweep of that money. St. Charles Mayor Don DeWitte said he feels confident the state won't create budget problems locally to solve the state's budget conundrum.

"I guess we feel as good as we possibly can for the time being," DeWitte said Tuesday about the waiting game. "There is no support for municipal revenue sweeps. We are confident that (legislative leaders) will be able to maintain their individual caucus' support to ensure that they remain in place."

The budget the St. Charles City Council approved this week solves a $3 million budget hole with about $2 million in spending cuts, burning through about $1 million of savings and the creation of a new 2 percent tax on alcoholic beverages. The new tax should net more than $800,000 of fresh income for the city, officials said.

The tax did meet with concerns from local businesses owners, particularly those who operate taverns in the downtown. Though not officially recognized as a trade-off, the city council also agreed this week to let businesses sell alcohol until 2 a.m. every day of the week.

DeWitte said he knows not all residents will be happy to hear of that change, but he doesn't foresee it creating any blemish on the city's reputation.

"I have the full faith and confidence in, not only our establishment owners, but our law enforcement personnel to ensure that an appropriate environment is maintained in the downtown."

The city plans on reviewing the extended business hours a year from now to determine the impact.