Published: August 10, 2009 03:12 pm      

City to discuss revenue from liquor sales

The Crossville City Council meets Tuesday for their regular August meeting at Crossville City Hall and one expected discussion concerns one of the few bright spots in city revenue these days, liquor stores.

The council meets 6 p.m. in the council chambers and other items on the agenda include transferring the city's rights of the Board of Education's (BOE) sewer line from Shadberry Lane to Brown Elementary School to Tansi Waste Management, Inc. (TWMI); skate park rules and regulations; the downtown renovation project; and changes to the city's personnel rules and regulations.

The council will meet as the audit committee beginning at 5:30 p.m. in the city hall conference room.

With sales tax collections revenue continuing to be below recent years, the one bright spot has been the initial months of what is called an inspection fee assessed against the wholesale purchase of liquor by the three new Crossville liquor stores. In the first two months, May and June, just over $850,000 of wholesale liquor was purchased, and at the current 8 percent fee, the city has received some $68,000 in revenue as a result.

Councilman Jesse Kerley has requested a discussion of reducing the percent of the fee down to 5 percent at the request of the local liquor store operators who have expressed concern about competition from Baxter and Harriman. Under state law, the city previously decided to assess the maximum fee allowed at the current county population. If the 2010 census shows the county population at over 60,000 then the fee would automatically drop to 5 percent under state law. The percent could be reduced by council ordinance after three readings.

Liquor store owners are asking that the fee be reduced to 5 percent now, the same fee charged by Baxter in Putnam County that has over 60,000 people and by Harriman in Roane County that has a population closer to Cumberland County's.

As Tansi Waste Management, Inc. continues moving forward with plans for sewer service at Lake Tansi, they are seeking to take over the sewer line the BOE installed several years ago to connect Brown Elementary School onto the city sewer system. An agreement between the city of Crossville, BOE and TWMI will come before the council for action.

The agreement would transfer ownership of the line and easements to TWMI 30 days after they become fully licensed and capable of treating effluent from Brown Elementary School. TWMI could then allow additional hookups to the line that are not currently allowed.

The agenda also includes a request from Councilman Kerley to discuss options to enforce requirements that skaters and bikers wear helmets when using city facilities.

Crossville Mayor J. H. Graham III is seeking approval from the council to move forward with the next steps in the downtown renovation project. Steps two and three are the financing plan and implementation plan including grant services by EG&G Engineers. The cost of the services for the work is $38,000.

The council will consider approval of revised personnel rules and regulations including areas of ethic and nepotism, sick leave, information technology policies, and revised grievance procedures. The city personnel board has recommended the changes be approved.

A report on marketing and public relations programs will be presented to the council and several recognitions and awards are on the agenda.