Kingsport’s swampland convention center and golf course sink on losses
I have written many posts concerning Kingsport’s regional sales tax that has served it’s purpose by paying for the MeadowView Conference Center. The bond for the conference center was paid off in 2007.
The City of Kingsport, according to the proposed 2009-2010 budget will be using the money in areas that was never intended when the voters voted for a 1/4 percent regional sales tax.
In the table below, the money from the regional sales tax is divided between three funds. The funds go into the Meadowview Convention Center, Cattails Golf Course, and Kingsport’s General fund.
The money that goes into the General Fund can be used in any way that the city want to spend it.
Regional Sales Tax Fund
| Revenues | Expenditures | ||
| Local Option Sales Tax | $2,870,900 | To MeadowView Fund | $1,325,100 |
| Investments | 22,000 | To Cattails Fund | 763,400 |
| To General Fund | 804,400 | ||
| Total Revenues | $2,892,900 | Total Expenditures | $2,892,900 |
The MeadowView Convention Center revenues and expenditures below show that the convention center is operating at a loss. $1,325,100 is needed from the regional sales tax fund to make up the loss for the year. Also note that the revenue from the $102,300 room surcharge, and $158,600 FF&E Fees is not much income for the taxpayers investment of $19.5 million to build the convention center.
The City of Kingsport has voted to spend an additional $15 million to expand the convention center.
MeadowView Conference Center Fund
| Revenues | Expenditures | ||
| Room Surcharge | $102,300 | Operations | 1,340,500 |
| Investments | 5,000 | Capital | 250,500 |
| From Regl Sales Tax Fund | 1,325,100 | ||
| FF&E Fees | 158,600 | ||
| From Sinking Fund | 0 | ||
| Total Revenues | $1,591,000 | Total Expenditures | $1,591,000 |
When the voters voted for the regional sales tax to be used for the convention center, I am sure that the golf course had not been dreamed about. But we see that $763,400 from the regional sales tax fund is being used for the Cattails Golf Course and $658,000 spent for debt service. As we can see below in the table, the golf course is not breaking even and the investment of $6.2 million has not been a good investment of taxpayers money.
Cattails Golf Course Fund
| Revenues | Expenditures | ||
| Sales & Fees | $1,065,000 | Operations | $1,090,800 |
| Investments | 300 | Debt Service | 658,000 |
| From Regional Sales Tax Fund | 763,400 | Capital Outlay | 109,900 |
| From Sinking Fund | 30,000 | ||
| Total Revenues | $1,858,700 | Total Expenditures | $1,858,700 |
Overall the taxpayers have invested $25.7 million in the current MeadowView Convention Center and Cattails golf course. From the budget items above he convention center and golf course do not make money. The City of Kingsport is spending another $15 million to expand the convention center into an executive conference center. This would make about a $41 million investment in MeadowView and would not include interest.
The current 2008-2009 budget items below shows how the Regional Sales Tax was distributed
1/4 percent Regional Sales Tax Fund Revenue $2,816,600
Transfer to Cattails $ 783,100
Transfer to MeadowView CC $1,233,500
Transfer to General Fund $ 800,000
It’s time to sell MeadowMuffin and move on, if you could find an actual fool to buy it. How about a referendum to undo the tax?