Omahans concerned with a proposed entertainment tax can rest easy—their city leaders have killed the idea.
Bryan popped down to the Omaha City Council meeting yesterday and confirmed that the city council voted down Mayor Jim Suttle’s proposed 2 percent entertainment tax with a 6-1 vote.
He also confirmed Councilman Ben Gray was the only council member who supported the tax, and urged the city to find additional sources of revenue.
Now folks in the metro-area won’t have to pay any additional cash to see G.I. Joe: The Rise of Cobra, a Creighton basketball game or even a dinner at Spaghetti Works.
But that means the city still faces a budget crisis.
Councilman Ben Gray is right: Omaha must find a new revenue source. Omaha should look at how other cities grab extra cash.
The National League of Cities released a “city practice brief” earlier this year that listed several “creative examples of alternative sources of revenue.”
For instance Newport Beach, California—with a population of over 70,000—set in place a program where citizens can pay bills online.
The Newport Beach Identification System (NBID) allows residents to access their account in one location, and make payments on line. Citizens can simultaneously access information about parking citations, business licenses, municipal services, and alarm fees by using one ID number. Once in the account, individuals may check boxes to choose which bills to pay, and the money is distributed to the proper accounts. In addition to the online service, all customer account records and service cancellations can be processes over the phone. Because customer accounts are interconnected, the city can monitor payments and withhold services until a balance is paid. The NBID caused a significant increase in the city's revenue, with the recovery of over $625,000 in outstanding receivables and over $500,000 in other fees.
Mayor Suttle will be successful in getting the city out of debt with a revenue-generating program that provides a service to the citizen, rather than giving the citizen a burden.
In a bizarre move to help the city get out of debt, Mayor Jim Suttle might implement a property tax bump even if the Omaha City Council votes against the proposal.
The Omaha World-Herald reported that City Finance Director Pam Spaccarotella said the City Council cannot change the mayor’s tax change:
In a memo obtained by The World-Herald, City Finance Director Pam Spaccarotella said the council has no authority under the City Charter to change the mayor's tax hike.
Spaccarotella said the charter bars the council from altering a tax hike meant to pay off city debts.
She wrote the memo in response to a request from council members and after consulting with the Law Department.
The City Charter states that the council “shall not reduce appropriations for debt service.
The World-Herald said City Attorney Paul Kratz should give a formal opinion on the matter today.
Spaccarotella’s starting salary was $180,000 and then reduced to $140,000.
- Facing the Music - Killers plea killed by high court - Best Western victimized
More after the jump...
Facing the Music Mayor Jim Suttle opened a file today he was hoping would just collect dust. Suttle announced he'll implement the layoff plans, drafted by city department heads, that will result in 130 civilian employees losing their jobs.. Cutting 45 full-time and 85 part-time positions will create between $750,000 and $1 million in savings, said city Finance Director Pam Spaccarotella.
The decision came as projections for the 2010 budget shortfall jumped to $12 million. Suttle said he did approach the Police or Fire Department about laying off sworn employees.
In addition to layoffs, the Mayor said he will again delay the incoming police recruiting class from November to January. He will also ground OPD's helicopter operation for the rest of the year, saving the city around $265,000.
Suttle repeatedly said the city needs to “get out of denial and face the music” on the dismal state of the city's finances.
During today's press conference, Suttle also made clear his proposed 2 percent entertainment tax would not effect non-profit organizations. Since he announced the new tax, there was concern that non-profits, such as the Joslyn Museum, would need to pay the tax, even during fundraising campaigns. Suttle said it was never his intention to burden non-profits with the tax.
Killers plea killed by high court The Nebraska Supreme Court denied an appeal from a three-time killer, upholding his conviction and death sentence. David Dunster, 55, argued that inadequate representation led him to plead guilty to the 1997 killing of his cell mate at the Nebraska State Penitentiary. Dunster has been imprisoned since he was 17, when he killed a mother of eight in Oregon.
County Judge reprimanded by Supreme Court The Nebraska Supreme Court handed down a harsher penalty to a Douglas County judge than what was initially recommended. The high court suspended Judge Jeffery Marcuzzzo from office for 120 days, up from the 90-day suspension recommended by the Commission on Judicial Qualifications.
Marcuzzo was disciplined for three incidents involving misconduct. In the first incident, he pulled strings for a nephew facing a protection order. Marcuzzo also told a prosecutor that a defendant was under charged, and left a profanity laced message on another prosecutors voice mail.
Another convenience store robbery Omaha police said the Speedee Mart near S 72nd and Q was robbed by an armed man late Wednesday night. Ralston police officers were at the scene coincidentally—but did not see anyone fleeing the store. The suspect ran off with cash, headed eastbound on Q.
Best Western victimized Omaha police say the Best Western near N. 30th and Chicago was robbed by four men late Aug. 5. Witnesses said three men forced their way into the lobby by prying the doors open. One suspect was armed. They took cash and payroll checks from the cash register. They were last seen southbound on 30 th in a stolen 1987 Mercury Topaz. Police are looking for four suspects.
Man dies in motorcycle accident Sarpy County Sheriff’s Department said Robert Etzel died after hitting the side of an SUV with his motorcycle. A medical helicopter took Etzel to Creighton University Medical Center, where he was pronounced dead. The driver of the SUV was charged with Failure to Yield the Right of Way, and may face more charges once authorities complete their investigation.
Mayor Suttle and other city officials appeared last night at Benson High School to discuss the proposed 2010 city budget.
And again—more speed dating.
WOWT reported it was organized similarly to Tuesday’s meeting, but went more smoothly:
“Organizers say they learned from that and changed how some of it worked. They used a bigger space this time and it was a little easier to hear.”
One issue that keeps surfacing is the big salary increases he’s giving some new appointees.
When confronted with it, Suttle has latched onto a not so subtle sound bite.
The quote—I’ll paraphrase here—the city’s having a heart attack, and we need a heart surgeon.
WOWT quoted him saying it last night: “We need professional people. We're having a heart attack. I need a surgeon and not a carpenter.”
The Omaha World-Herald reported he said it Tuesday night: “Your city is having a heart attack,” Suttle said, “and I need a heart surgeon.”
Repeating the same line over and over probably won't convince people that it’s a wise move. An explanation might go along way. Even if that explanation was that Werner Enterprises, the former employer of finance director Pam Spaccarotella, donated $1,000 to your campaign.
I may have jumped the gun when I suggested Mayor Jim Suttle was trying to be Batman—another nerdy movie reference may have been much more fitting:
Detroit’s mayor from the second RoboCop movie.
As you’ll recall, that character was trying to save Detroit from bankruptcy by borrowing cash from the evil corporation OCP. The city couldn’t pony on their debt, which led to the company taking over the city.
The current situation in city hall seems similar. We are indebted to the Qwest Center for about $216 million dollars, and Suttle hopes to close the city's budget shortfalls with a 2 percent entertainment tax. That didn't sit well with the elite entertainers at the Metropolitan Entertainment and Convention Authority.
The Omaha World-Herald reported today that MECA—which runs the Qwest Center—offered a $5.6 million advance for the Qwest's remaining naming rights that cover the next eight years.
“The offer: an advance of the convention center and arena's remaining naming rights payments through 2017, using MECA's reserve funds, if the mayor agreed to forgo his proposed entertainment tax. Each year, Qwest Communications Inc. sends MECA a payment for naming the complex after the telecommunications company.”
This looks an awful lot like a bribe to me. “Hey, mister, drop the tax idea and we’ll give you $5.6 million dollars.”
Unlike RoboCop 2’s mayor, who was thoroughly corrupt, in co-hoots with an organized drug cartel and probably would have taken the bribe, Suttle rejected the offer.
The entertainment tax will bring in almost double MECA’s $5.6 million, estimated at over $10 million, which would go much further to close that $11 million shortfall.
(NOTE: I corrected post title from "Suttle like RoboCop 2's Mayor" to "Suttle's dilemma similar to RoboCop 2 Mayor's" after a comment pointed out it was confusing. Thanks for the catch!)
Is it just me, or is this town is looking more and more like Gotham City pre-Batman?
Four people were shot this weekend, including one 17-year-old. That's down from the 9 people shot last weekend, or 12 if you include that Friday.
To be fair, the powers that be are taking action. For instance police arrested Tyrone Starks on July 24 for the attempted murder of Carrdale Hannah.
And Mayor Jim Suttle told the City Council last Tuesday that he is including funding for forty-four new police cruisers and the public safety auditor.
But the training of new police recruits will be put on hold for another year. The city currently has 820 sworn officers. The next class, stalled until May, will have 24 recruits – well short of the 40 budgeted for training this year.
So is Mayor Suttle trying to be Omaha’s caped crusader?
(Note: We were wrong! The next police recruit class of 42 will be this November. The one afer that, to get 24 more officers, is in May.)
