From AP - News Headlines -

Champaign City Council Endorses Phase One of Five-Year Plan to Raise Liquor License Fees

The Champaign City Council is backing just the first year of what had been a five-year-plan for increasing liquor license fees in the city.

City staff had proposed the multi-year plan to phase in increases on a yearly basis, instead of imposing them all at once. But council members say they want to see a cost-of-service study before approving the entire plan, to see how much it actually costs the city to regulate liquor establishments. That information is especially important, as Champaign looks for new revenue sources due to recession-related drops in tax revenue.

Mayor and city liquor commissioner Jerry Schweighart says Champaign's liquor license fees could stand to be raised anyway, because they're some of the lowest in the region. For instance, he says a bar currently pays $1900 for a Class A liquor license in Champaign, compared to $4000 in Urbana.

The first year increase endorsed Tuesday night will raise fees for all liquor licenses in Champaign by 200 dollars on June 1st --- that would raise the fee for a Class A, or bar license, to 21-hundred dollars. Fines for violations will also go up, and the city will create a new 25-dollar keg fee.

Categories: Government, Politics