Kimmswick residents will be asked on Nov. 8 to allow the city to collect a business license fee from for-profit museums.
The tax would be up to 3 percent of the museum’s gross receipts from admission fees and charges for tours, bookings, exhibitions and other business operations.
The measure requires a simple majority for approval.
If approved, the measure, called Proposition M, would not affect the Kimmswick Historical Society Museum because it is a nonprofit venture.
Right now, the city has no for-profit museums, but there is an effort underway to bring the 90-year-old Delta Queen steamboat to town, where it would be based and offer cruises up and down the Mississippi River. Because the boat is historic, if it begins operating in the city and offering tours, the city would be able to collect up to 3 percent of that money, Kimmswick Mayor Phil Stang said.
Cornel Martin, president and CEO of the Delta Queen Steamboat Co., says he supports the tax measure.
“We’re very much a part of it,” he said. “Part of our process of selecting a home port city and our decision to come to Kimmswick was not only to highlight the historical significance of the Delta Queen, but also of Kimmswick. We knew from Day 1 we wanted to make a contribution to Kimmswick, and this (tax) is the best way to do that. We’re very supportive of it. We want to be part of the community and preserve and highlight the historic significance of Kimmswick.”
The Delta Queen steamboat is docked in Houma, La., waiting for the U.S. Congress to vote on an exemption that would allow the boat to cruise on inland waterways. Even if the boat isn’t allowed to offer cruises, it could be permanently docked in Kimmswick and operate as a hotel, and the city could charge the business license fee for revenue collected there, Stang said.
Delta Queen was scheduled on Tuesday, after the Leader deadline, to open its Port of Call restaurant in the former Old House restaurant building in Kimmswick.
If the measure passes, Stang said, the city won’t be able to collect money from the sale of food and drinks at the restaurant.
However, there’s a strong chance a museum related to the Delta Queen would open in the city, and revenue from its admission fees also would be subject to the fee, Stang said.
“There’s a large (amount of) interest in the Delta Queen and supporters of the Delta Queen who have memorabilia, and we would eventually be looking for a permanent home for those,” he said.
Stang said the city currently has limited resources, with 75 to 80 percent of its annual budget of about $200,000 to $250,000 coming from events such as the Apple Butter and Strawberry festivals.
The rest is generated by a 1 1/2 percent sales tax, with 1 percent dedicated to the general fund and the remainder used for street maintenance, he said.
“The city is changing, and for the growth of the city and its revenue streams, we need to be able to address all the new and upcoming business opportunities to provide for the city,” Stang said.
If approved, the proposition would not cost Kimmswick residents anything, Stang said.
“There will be absolutely no cost for the residents, but it will add revenue,” he said.
Stang said the city needs more money to better address flooding issues, as well as to improve infrastructure.
“We have a whole list of things,” he said. “We’re not sustainable unless we do something. We have huge costs associated with flood control and the levee. We try our best to maintain our streets but we could do more. We need to upgrade the stormwater systems. We’d like to have improved sidewalks, lighting and a number of things. But we don’t want to put an extra burden on the residents.”