New food, beverage tax OK’d in Park City

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Updated: April 18, 2012 1:52AM

Residents will receive a double-whammy in their wallets and purses May 1 when a 1 percent tax on prepared food and alcoholic beverages is implemented, along with increased water and sewage rates designed to cover a rate increase coming from the city of Waukegan, Park City’s water supplier.

“Like other municipalities, we have to keep an eye on the bottom line, particularly since the state has been very slow in reimbursing us for the services that we have provided for them,” Mayor Steve Pannell pointed out. Aldermen voted unanimously for the additional revenue-raisers Thursday night.

The 1 percent tax on prepared restaurant food and packaged liquor or on-site alcoholic beverages at the retail level matches those tax rates that have been levied for years by both the neighboring communities of Waukegan and Gurnee.

City Attorney Peter Karlovics said only five retail establishments in town will be affected. Both a Wendy’s and a McDonald’s are expected to be the major contributors to the city’s coffers when the penny on the dollar ordinance takes effect May 1. No revenue estimates were provided.

“This ordinance will help our cash flow and keep us moving forward,” Karlovics told aldermen.

The City Council also adopted an ordinance that will increase the city’s residential water rate this coming year from $5.05 per 1,000 gallons, to $5.42. The sewage rate will increase from 68 cents to 73 cents per 1,000 gallons. The new annual rates become effective April 30.

Karlovics pointed out the new ordinance would provide for automatic increases in both water and sewage rates in the future whenever Waukegan increases their basic water supply pass-along rate to Park City. Until now, Park City had to react after the fact.

Under the Mayor’s Report, Pannell publicly thanked state Sen. Terry Link, D-Waukegan, for supporting Park City as his choice for locating a casino, instead of Waukegan, should the Legislature adopt gaming legislation.

“Things continue to look very good for us. Our hard work is paying off and we are most appreciative of Senator Link’s loyal support and from those of our proposed casino developer partners. This project means a lot for the future economic development of our city,” Pannell said.