No WhiteWash!

Kingsport spending on projects in the last four years has set records since Mayor Phillips has been mayor.  I have written many posts in this blog about the spending on pet projects and to some, I am sure that they think I am against progress and just being negative.

The current debt is around $190 million and there are more projects in the works.  A recent review by Standard & Poor’s, a credit rating firm made the following statement below.

The five-year capital improvement program through fiscal 2013 includes planned issuance of additional GO debt of $5 million-$8 million annually, to help fund total general fund projects of $50.8 million.

The City of Kingsport provided Standard and Poor’s information such as financial data so Standard and Poor’s could give Kingsport a credit rating.

Mayor Phillips, what is the above $50.8 million going to be used for? There should be no secrets, and no surprises about future spending.  The city is working on a new CIP (Capital Improvement Plan) and the citizens need to know what additional projects have been added.

The City of Kingsport is paying millions of dollars each year for interest expense on its borrowed money.  Below is a bond for $11,165,000 that will have $5,464,109 interest that will be needed to paid during the life (20 years) of the bond.  The bond below is just one bond and if you add up all of the interest for all borrowed money, this interest becomes a huge number.

I am not against progress.  I am concerned that Kingsport is doing too much in a short period of time and feel that someday in the future that the city will have to raise taxes to meet its obligations.  At the current rate of spending, a tax increase will be coming in the future.  I am sure that it won’t be this year because it is an election year.

It is a sad situation in Kingsport that the city has to borrow money to fund small dollar projects such as road work, etc.  If I want to send my child to college, I start saving money early when the child is young.  I don’t wait when until he is ready to go to college, stick my hand in my pocket and discover that I don’t have the money and then have to go out and borrow it.  My point is that the City of Kingsport needs to do more long range planning and funding of future projects and depend less on borrowed money.

You can see other Kingsport financial data like the above by going to the following link:  Comprehensive Annual Financial Report for Year Ended June 30,2008.  You can also visit the Kingsport library to see the Kingsport 2008 Financial Report.

Famous Quotes from the Kingsport Board of Mayor and Aldermen

Mayor Dennis Phillips – ‘We need MeadowView to keep from reducing fire, police protection, and reducing trash pick-up to every two weeks.” October 21, 2008

Mayor Dennis Phillips –“We need to annex so we don’t have to raise taxes”  February 5, 2008

Alderman Munsey – “We need to do the MeadowView expansion to keep from raising taxes” September 15, 2008

Alderman Munsey – Debt is neither good or bad,”   June 3, 2008

Vice Mayor Mallicote – “I do not believe all of the doom and gloom about the economy”.  June 3, 2008

Mayor Dennis Phillips – “If the taxpayers wanted the city to cut the spending, then we could collect garbage every other week”  June 3, 2008

Mayor Dennis Phillips – “If there were no money to spend, then you would not need politicians”  October, 2007