Group Attends Council Meeting to Protest Amusement Tax

(SOME OF THE CROWD OF LOCAL RESIDENTS OUTSIDE CITY HALL PRIOR TO THE CITY COUNCIL MEETING, WEARING RED, IN OPPOSITION TO WHAT THEY ARE CALLING THE "ARTS TAX", OFFICIALLY KNOWN AS THE ENTERTAINMENT TAX)

Effingham City Council members Tuesday voted to amend the city's amusement tax creating new exemptions, eliminating a prior exemption for movie theaters, attempting to simplify reporting requirements, and placing 100% of the amusement tax proceeds into the hotel/motel fund.

The vote was 5-0 to approve the amended measure.

The vote came despite a group of local residents in attendance who oppose the tax and would like to see it repealed.

Five people spoke to the Council

Mike Yager of Mid America Motorworks said what he termed "unclear language" in the ordinance leaves, in his words, "many things open to interpretation". Yager asked about the tax's impact on several events. Mayor Jeff Bloemker said City staff would get back to Yager regarding his questions. It was noted that the Public Participation portion of the Council meeting is for comments, rather than question and answer.

Yager said, "many promoters will go elsewhere (if the tax is enacted)...you're spending dollars to chase pennies."

Singer-songwriter-enterpreneur Bill Passalacqua spoke to the impact of the tax, saying it has led him to seek other venues for his shows, some of which are just outside the city limits. Passalacqua noted the mayor has termed it a "nominal tax", but said, "5% adds up". 

Passalacqua's brother, Larry, also an entertainer, read a letter on behalf of entertainer Terry Stevenson, who could not attend. Stevenson's letter stated that "you're taxing local folks (who attend) smaller venues, and that "this puts pressure on local musicians" who are often not well-paid.

Erin Hartke of Tuscan Hills Winery said she's against the tax, but if it stays, she has ideas on how to amend it. Hartke noted the increased work on small staffs to calculate the revenue due the City from events.

City Administrator Jim Arndt has said the revenue generated by the tax could help offset requests for financial assistance the City receives from event organizers.

The City's goal is to have the tax in place to be collected beginning September 1.

Also Tuesday, the City Council awarded a bid for the annual pavement marking program for just over $85,000, but does not include striping for a bike path program that has been on the books for several years.

The Council approved a change in the liquor ordinance defining "licensed premises" to include any open air, roofed or unroofed area where alcohol may be sold or consumed, and also issued a liquor license to Chili's Grill and Bar, which is to be located along Avenue of Mid America in the former Ruby Tuesday building.

(MAYOR JEFF BLOEMKER READS RECOGNITION FOR CITY EMPLOYEE AMY BECKMAN, BEING HONORED AS "EMPLOYEE OF THE QUARTER")

Council members took action on several measures replacing retired City Treasurer Randy Bukas with new Treasurer Caitlin Phillips; granted Effingham High School permission to hold the Homecoming Parade on September 27; adopted a Downtown/Southtown Business Area Redevelopment Program agreement with Niebrugge A-1 Furniture to go halves on exterior improvements at the business at 500 West Fayette; honored Amy Beckman of the city administrative department as Employee of the Quarter; honored United Way of Effingham County with a week of celebration August 26 to September 2; and heard that revisions have been recommended to the City Comprehensive Plan regarding future land use.

(MAYOR JEFF BLOEMKER READS THE PROCLAMATION DECLARING UNITED WAY WEEK AUGUST 26-SEPTEMBER 2, WITH A NUMBER OF UNITED WAY BOARD MEMBERS IN ATTENDANCE)

The Council heard that bids will be opened soon on design work on replacing the water main beneath Jefferson Avenue downtown from 3rd Street west to Banker Street and replacing water line along East Route 40 from John Deere Road to Crystal Club Road, as well as generator maintenance and concrete pavement patching. Bids are also to soon be opened on storm sewer work on Charlotte Street and on the Haney Street railroad project closing the Haney Street crossing and improving the Oakridge Street crossing toward the goal of eliminating the need for trains to sound their horns while traveling through Effingham.

Arndt reported that the City went through 19 dozen donuts, 100 cups of frozen custard and all the remaining eclipse glasses at Tuesday's City Hall Selfie Day.