PORTLAND — The City Council approved new restrictions Monday for establishments that want after-hours entertainment licenses.

The issue surfaced earlier this year, when the Port City Music Hall sought an after-hours entertainment license for its music venue on Congress Street, in Portland’s arts district.

The new rules won’t affect Port City Music Hall, which received its permit, or the three other clubs that have permits: Platinum Plus, the Oasis and Styxx.

An after-hours license allows a club to remain open from 1 to 3 a.m. — two hours beyond the citywide closing time. During those early-morning hours, clubs can offer music and dancing, but cannot legally serve alcohol.

In 2007, the City Council prohibited minors from entering after-hours clubs, a measure that significantly reduced the number of police calls.

The new rules require applicants to develop security plans — subject to review by the police department — before going before the council to request the permits.

Each license holder will be limited to 24 after-hours events a year. In addition, a club will have to notify the City Clerk’s Office seven days in advance of each event so police can make coverage plans.

Assistant Police Chief Vern Malloch said the new rules will reduce the impact on police resources and people who live downtown.

Malloch and several councilors had wanted the number of events to be limited to two a month to reduce the strain on police and limit the impact on people who live downtown.

The City Council’s Pubic Safety, Health and Human Services Committee had endorsed the limit of two events per month.

However, Councilors David Marshall, Cheryl Leeman and John Anton argued that limiting the number of events to two a month would be too restrictive. The majority agreed.

Also Monday, the council’s Finance Committee submitted a proposed $162.5 million city budget to the council.

Among the fee increases proposed in the 2012-13 budget is a 50-cent increase in the hourly parking rate for city-owned garages. The increase would raise $160,000 in new revenue.

The rate would increase from $1.25 an hour to $1.75. The budget would also increase the daily parking rate from $12 to $21.

Staff Writer Tom Bell can be contacted at 791-6369 or at: tbell@pressherald.com