Hotel tax revenue drop prompts St. Charles to get creative in supporting business group
The COVID-19 pandemic drastically decreased the annual hotel and motel tax revenue that helps fund organizations such as the St. Charles Business Alliance, but city officials agreed this week to fill the gap for the 2021-22 fiscal year by tapping into the city's general fund.
The city's aldermen voted unanimously Monday to allocate $698,600 to the alliance. The general fund will contribute $436,600, while $262,000 will come from Special Service Area funds, which is additional property taxes levied on commercial properties in the core of downtown and used to fund economic projects.
The city also approved $90,000 for the Visitors Cultural Commission.
St. Charles Finance Director Chris Minick said the city typically generates up to $2.3 million in annual hotel and motel tax revenue, a number that dropped to $550,000 in the fiscal year that ends April 30. Minick said the city anticipates about $650,000 in revenue for the 2021-22 fiscal year.
"The numbers will be what they'll be, and we'll know that at the end of April," Mayor Ray Rogina said. "I'm not saying there weren't disasters or businesses that didn't make it, but you look around our community and it stands pretty tall today. And that's the result of a staff and an executive body like ours that have come together and worked and meshed together."
Jenna Sawicki, executive director of the business alliance, detailed the work the organization has done in the face of obstacles presented by the pandemic.
The alliance put together a Scarecrow Stroll and a Holiday Homecoming that allowed the public to celebrate safely despite gathering restrictions. Sawicki said planning for the upcoming Restaurant Week and St. Patrick's Day celebration remains on track.
Sawicki also outlined future goals for the Fine Art Show, STC Live and Jazz Weekend as part of the alliance's continuing goal of driving economic growth to help local businesses.
"Even with COVID, we were able to see the silver lining and have a great foundation and a great team to continue to build upon," Sawicki said.