Kingsport to borrow money to replace a $200k roof and finance it for 20 years
Last night the Kingsport, Tennessee Board of Mayor and Alderman voted to borrow $41.1 million for various projects. According to the Kingsport Times-News quote below, the total debt has doubled in the last five years. I might add that this has occurred during Mayor Dennis Phillips terms as mayor and John Campbell as city manager.
With this bond issuance, Kingsport’s total debt has doubled in the past five years, from $110 million in fiscal year 2006 to $218 million in fiscal year 2010, according to city records. Kingsport’s general fund debt will increase from the current amount of $92.6 million to $103.4 million for fiscal year 2010, while total city debt will go from $173.5 million to slightly more than $218 million.
Read more via Kingsport BMA approves $41.1 M in bonds – Kingsport Times-News Online.
Things must really be in bad shape for the city because they are borrowing $200k to replace a roof on the Renaissance Center and financing it for 20 years. Borrowing money to replace a roof should be a maintenance item that is planned for and funded from within a yearly budget.
It would not surprise me that Kingsport will be the subject of many discussions by other cities on Kingsport’s management practices or lack thereof.
Mayor Phillips, when can we expect the property tax increase?
Below is the spending that was approved
Expenditures are regularly spread out over time, which does not indicate things being in “bad shape.” Do you got to the meeting or bring this up to your representatives?
I share some of the concerns of conservatives and open government activists (espeicallty them), but they often loose me in their approach to solving problems (or not as the case often appears to be). Why not work through government, because that is precisely what government is-a mechanism for making collective decisions for the citizenry. The government is only as good as the citizens participating. When I look at our (US) low turn out figures and the demographics of who turns out consistently, it is no wonder we are falling apart.
As I recall, this was discussed by an Alderman that this should be a maintenance item and there were funds that could have paid for this. But that Alderman was voted down. If a city is in such bad shape that they have to borrow 200k to replace a roof and finance it for 20 years plus interest, then we need new leaders. I would suggest Thad, that you look at the total debt that the City of Kingsport has to help you better understand the problem.
By the same token, I don’t think my bank would be receptive if I went to my bank to borrow money to replace the roof on my home and asked that it be financed for 20 years.