No WhiteWash!

The November 18, 2008 business meeting of the Kingsport, Tennessee Board of Mayor and Aldermen was a very lively heated debate concerning the MeadowView Convention Center expansion.

I saw political spin in action with the City of Kingsport attempting to justify the convention center expansion and using the Regional Sales Tax to fund it.  There was an attempt to explain how great things are going in Kingsport.  If Kingsport is doing all that great economically, then why not return the regional sales tax to the taxpayers

Vice Mayor Mallicote went on the attack with Mayor Phillips also jumping into the fray over remarks made by Alderman Shull.  Everyone on the BMA should be able to state their views without being attacked.

Vice Mayor Mallicote stated that he had researched and had found many newspaper articles concerning the MeadowView expansion and it was not be something that was kept from the public.  The problem that this BMA had was the cocky attitude displayed. There was a brief discussion on the economics of the expansion and there was a rush to railroad a vote on it the next night without public input.  It was like we have the votes and we don’t care what you think.  Alderman Marsh and Alderman Shull both attempted to delay the vote so the public could have input, but were voted down.

City Manager, John Campbell went over some numbers which no one could really see attempting to justify.  He even stated that 60% of the sales tax comes from people from out of town.  What he was saying was the citizens are really only out 40% as if that is going to make the citizens feel better.  How does he know if the sales tax comes from out of town?

Campbell also presented numbers that ranked tourism in the top counties.  By doing this he was riding on the coattails from Sullivan County tourists.  The number two tourist attraction in the state is the Bristol race held two times a year.

Campbell talked about the $85 million property tax values in the MeadowView area and then Phillips stated that they get $80 million in property taxes per year.  They can’t even get their facts the same.  $85 million appraised property value would give you $782,000 in property tax.  Currently the city gets $106,110 in property tax from the MeadowView hotel.

The additional property values should have no value in determining to expand the convention center.  When I visit my doctor in the Meadowview area, I do not stay at the MeadowView Resort and Convention Center at prices that start at $159.00 per night.  In addition, if I wanted to go to Eastman Credit Union, get my hearing checked, get a cup of coffee, get my teeth worked on, have plastic surgery, go to the Social Security office, etc., I don’t have a need for the MeadowView Resort and Convention Center.

It is apparent that the city leaders are attempting to ride on the coattails of the surrounding businesses to justify the MeadowView Convention Center Expansion.

I am sure that the surrounding businesses do not need to ride on the coattails of MeadowView Resort and Convention Center.  They would do just fine if there were no MeadowView Resort and Convention Center.

Mayor Phillips made a statement that unemployment in Kingsport was 6 percent.  I don’t know where the mayor gets his numbers, but the unemployment for Kingsport for the month of September was 7.7 percent using State numbers.

The bottom line to all of this folks is, you have kissed your regional sale tax goodbye.  You will not be getting it from the “gang of five”.  Maybe after the 2009 election things might change. Mayor Phillips was able to get his special parking lot that now is close to the restaurant at the Meadowview hotel.  Now he won’t have to walk so far to eat.

Listed below are past Kingsport Time-News articles relating to the MeadowView area.  When one looks at the articles, it is easy to see that Mayor Dennis Phillips had no intention of giving back the 1/4 percent Regional Sales Tax back to the taxpayers.  I think you will see that Alderman Marsh and Shull have been trying to discuss for some time the regional sales tax issue.  It was also interesting to see Alderman Munsey role in the early stages in the MeadowView issue.  Also, it my view, there is linkage between the aquatic center and the convention center.

It is indeed a sad day for the citizens of Kingsport!

BMA OKs $34.7 million in bonds to fund community projects

Marsh urges scuttling MeadowView expansion

Kingsport BMA hires architect for expansion at MeadowView

Convention center anchors booming development in Meadowview area

Kingsport readies for next step in aquatic center process

Kingsport BMA votes to put aquatic center at Meadowview, co-locate with YMCA

Divided BMA set to vote on site for aquatic center Wednesday night

Panel backs Meadowview for aquatic center site

Kingsport leaders plan bond issue for capital improvements

Committee close to vote on Kingsport aquatic center site

Aquatic center study supports Meadowview site

Kingsport BMA gets first look at $14 million MeadowView expansion

MeadowView breaks ground on $15 million expansion project

Mayor appoints panel to study sites for Kingsport aquatics center

Kingsport considering aquatics center sites

Two Kingsport hotel projects in the works

Kingsport BMA to consider reinvestment in MeadowView

Kingsport mayor urges look at MeadowView improvements

Kingsport leaders praise investment in MeadowView

Kingsport’s MeadowView Convention Center announces expansion: two new towers, 110 rooms

Kingsport BMA hears options for aquatics center

Kingsport may partner with YMCA on aquatics center

Kingsport alderman wants $800,000 in interest tacked onto MeadowView debt

Kingsport mayor believes higher ed center best use of ‘MeadowView tax’

Kingsport mayor hopes to use MeadowView tax to fund higher ed center

Shull suggests using sales tax to pay off debt

Marsh: Voters should decide whether to reallocate funds for higher ed center

See all posts on MeadowView

In the Kingsport Times-News article below, City Manager John Campbell puts his spin on new construction in Kingsport.

The article states that $43.8 million in new construction, business investments in September and October of which $20 million is for a production facility at Eastman and $8.3 Million for businesses at the Kingsport Pavilion. If you read the article correctly, then $15.5 million would go toward the construction of the luxury resort that Eastman is expanding at the MeadowView Resort and Convention Center. Apparently, housing construction permits are at a standstill because no totals were given for the same period of October and September.

What John Campbell does not say is that the City of Kingsport gave Eastman a $28 million tax break for the production facility and the fact that the convention center is a lost leader for the City of Kingsport and is used to line the pockets with money for special interests groups by helping Eastman who owns the MeadowView Resort fill up the hotel with guests.

John Campbell boasts about the number of new restaurant openings, but fails to mention the number of restaurants that have closed. He also mentions new businesses that are going to open in Kingsport, but again fails to mention the ones that have gone out of business lately.

Also, John Campbell does not say anything about the high unemployment in Kingsport. While having a nice place to eat out and shopping is nice to have, it does nothing to attract high paying jobs so people can afford the business types that Kingsport is trying to attract. Campbell’s statement “This is exactly the kind of growth we need to see — housing, dining and amenities, as well as retail expansion” confirms what many citizens are saying, that the City of Kingsport is not attracting businesses that offer high paying jobs.

Kingsport has the highest unemployment rate in the Tri-Cities area (see graph below) and it is likely to get worse. I have yet to hear anything about unemployment from the city. Wonder why? Mr. Campbell, what are your plans to address unemployment?

Article from Kingsport Times-News

Kingsport city officials are reporting that the city realized $43.8 million in new construction and investment in September and October, highlighted by the addition of 110 rooms at the MeadowView Marriott Hotel and continued work at Eastman Chemical Company.

Eastman Chemical applied for a $20 million building permit for the construction of a new production facility in Kingsport in late September, while single family housing construction also remains steady.

Eastman is spending $1.3 billion to upgrade its Kingsport facility over the next five years, and according to a recent Wall Street Journal article, is clearly helping the East Tennessee region through strong exports despite the difficult economic climate nationally.

“We know Kingsport is not completely immune to the major economic struggles we’re seeing in other parts of the country,” City Manager John Campbell said Thursday. “We know that the regional development environment is challenging.

“Still, the investments in the community that the Board of Mayor and Aldermen have made over the last couple of years have laid a solid foundation for continued growth here in Kingsport.”

Since the end of 2007, Kingsport has seen the opening of seven new restaurants. And during the past two months, Best Buy, Decorators Warehouse and East Shops, a small strip center, have taken out $8.3 million in building permits at the Kingsport Pavilion on East Stone Drive.

Meanwhile, 96 new single family homes have been built in Kingsport through October, at a total value of $17.65 million. Kingsport has averaged 108 new housing starts over the last eight years. Average construction permit value on the new homes this year is $183,920.

Kingsport’s Building division issued nine single-family home permits with a value of $300,000 or more. Developers also added 108 apartment units and 19 condominiums to the housing stock so far this year. In all, $25.31 million in construction permits for housing have been issued in 2008.

“Growth in available housing options in Kingsport continues to attract new and returning residents to town,” Campbell said. “Downtown dining adds to the quality of life in the city, while retail expansion adds significant new dollars to the tax base.

“This is exactly the kind of growth we need to see — housing, dining and amenities, as well as retail expansion — to continue providing high-quality services at the lowest possible cost. At the same time, we need to continue making key investments to ensure we remain attractive as new business opportunities arise.”

Feel free to leave a comment!

The Kingsport, Tennessee Board of Mayor and Aldermen voted to spend $819,000 for an architect to design the $12.5 million expansion at the Meadowview Conference Resort and Convent Center. This was brought quickly to a vote without much detailed discussion or input from the public.

The September 16, 2008 televised meeting of the BMA showed that Vice Mayor Ben Mallicote has an issue with anger management and should seek help with it. In fact, it appears that there are many on the BMA that throw hissy fits when someone makes a statement why they are voting a certain way. See Mayor has hissy fit and attacks Alderman on TV

Again, this vote was another example of railroading a vote. Alderman Marsh expressed concern that this was voted on within 24 hours and that there had not been ample time to study the the financial numbers. He also asked what is in it for the citizens of Kingsport. He said that this is more for the special interests of certain people. He attempted to defer the vote to the latter part of October, but Alderman Marsh’s and Alderman Shull’s votes were not enough to postpone the vote.

In my view, the City of Kingsport has no business competing with other businesses. Kingsport built the convention center with a special sales tax that was approved by the voters many years ago. The current convention center is paid off, but the city continues to subside the convention center. The convention center is not a money maker and the city wants to spend another $12.5 million to expand it to make it a plush convention center.

Let hotels build convention centers and let them operate them. They have the expertise and experience in this type of thing.

This BMA board is out of control when it comes to spending the taxpayers money. Mayor John Campbell and his gang of five (Phillips, Mallicote, Munsey, Joh,and Shupe) continue to find ways to set records in spending the taxpayers money. They may listen to citizens concerns, but they are going to do it their way.

Below is a post that I wrote on February 18, 2008 that the Mayor wanted to spend money for a pool at the hotel, but the hotel already had a pool.

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Kingsport mayor urges look at MeadowView improvements

Kingsport is looking for more ways to spend money at the MeadowView Conference Resort & Convention Center. Eastman Chemical owns the hotel and the City of Kingsport owns the convention center at the same location. Kingsport also owns the golf course that is next to the MeadowView complex. The MeadowView Conference Resort & Convention Center is managed by Marriott

I would like to tell the Board of Mayors and Alderman to not spend the tax payers money on a pool for MeadowView……because they already have one.

KINGSPORT — Mayor Dennis Phillips wants the Board of Mayor and Aldermen to re-examine the MeadowView Conference Resort and Convention Center to see what investment, if any, the city should be making to help improve the facility for the future.

Phillips’ comments come after Eastman Chemical Co. announced last month a $15 million expansion project for the hotel — adding two 55-room towers and bringing the total number of rooms to 305.

In addition to the hotel expansion, Eastman is also footing the bill to renovate the facility’s existing 195 rooms. Once completed, all 305 guest rooms will feature the latest technology, including 32-inch flat panel televisions that will allow guests to plug their laptops into the TV screen.

“I believe it’s time for this board to re-examine MeadowView and see what investments, if any, we should be considering,” Phillips said.

A couple of items that catch Phillips’ eye are the fact MeadowView does not have a pool, and when he takes his 85-year-old mother to lunch at the hotel’s restaurant, she has to walk “a half mile.” Kingsport Times-News article

City Manager, John Campbell has signed a petition to request annexation into the City of Kingsport, Tennessee.

John Campbell, in the terms of his agreement with the City of Kingsport either must request annexation into the city within six months or move into the city within two years.  The annexation timeline has passed and now the City of Kingsport, Tennessee is faced with enforcing the agreement, if John Campbell has not moved into the city.  John Campbell’s two year timeline to move into the city is about two weeks away.

John Campbell stated that he did not start the petition, but stated that it would be better if his neighbors initiated annexation.  It would not surprise me that John Campbell provided his neighbors with encouragement and guidelines on what to do to be annexed.

Something is started to smell about this subject.  It will be interesting to see what the BMA decides to do.  Will they enforce the contract with John Campbell or just help old John out?  If the city did not live up to it’s contract with John Campbell, then I am sure John Campbell would have something to say about it.

A comment made on this blog makes a good suggestion.  “Put John Campbell on leave without pay till he complies with his contract. The time is up with John Campbell to move into the city. Give 30 Days to move and then terminate his employment if he does not comply.”

John Campbell has had ample time to comply with his contract.  Two years, in my opinion is ample time to sell a house, buy or build a house.  Maybe Mr Campbell should look at one of those homes that has wheels attached to it.

I think I know what the BMA decision will be, because John Campbell seems at times to control the BMA decision making process.

Also see my previous post,  Kingsport, Tennessee City Manager prefers not to live in the city he manages

City Manager, John Campbell was asked by a citizen at the August 19, 2008 BMA meeting if he lived in the city.  John Campbell stated that he did not and the discussion of this topic was abruptly cut off by Mayor Dennis Phillips.

John Campbell, in the terms of his agreement with the City of Kingsport either must request annexation into the city within six months or move into the city within two years.  The annexation timeline has passed and now the City of Kingsport, Tennessee is faced with enforcing the agreement, if John Campbell has not moved into the city.

If the city fires the city manager because he did not live up to his agreement, then Kingsport may have to pay John Campbell two years of base salary.

Will the City of Kingsport enforce the same rule that applies to Board of Mayor and Aldermen?  That rule is, if any member of the BMA ceases to be a resident of the city, then their position is considered vacated.

Will the City of Kingsport try to sweep this issue under the rug or has another agreement been made?  If there was another agreement with John Campbell, then what public meeting was this discussed?

It appears that John Campbell started his employment with the City of Kingsport around October 1, 2006.  This would give John Campbell a little over one month to vacate his house and move into the city.

Kingsport, Tennessee Mayor Dennis Phillips had a hissy fit and verbally attacked Alderman Marsh at the August 19, 2008 Board of Mayor and Aldermen that was televised.

Mayor Phillips was very vocal concerning Alderman Marsh’s changing his mind on rezoning an area in downtown Kingsport from manufacturing to general business.  This was a pet project of Mayor Phillips and accused Alderman Marsh who is on the Planning Commission of voting for the zoning change and then changes his mind when the BMA meeting is on TV.

Alderman Marsh stated that he resented the personal attack.  Alderman Shull came to Alderman Marsh’s defense and stated that the personal attack was out of line.  Mayor Phillips stated that maybe the BMA should replace Alderman Marsh on the Planning Commission.

In my opinion, Mayor Phillips needs to check his anger at the door and respect the views and votes of other BMA members.  Just minutes before Mayor Phillips hissy fit, he shut down discussion when a citizen asked if City Manager John Campbell lived in the city.  The mayor stated that personal attacks would not be tolerated, but the mayor needs to apply the personal attack policy to himself also.

All BMA members are entitled to express their views and votes without fear of personal attacks.  Mayor Phillips needs to keep in mind that the members of the BMA were placed there by the voters and they do not report to him.

Update: Kingsport, Tennessee may have the law on their side to condemn property, but read below and then decide if it is the ethical thing to do.

The City of Kingsport, Tennessee voted on second reading to start legal proceedings to condemn property for a new fire station in the Rock Spring Road area.

The owner paid $476,149 for the property in 2003 and the City of Kingsport offered $330,000 to buy the property. The city had the property appraised at $240,000 and the owner of the property had it appraised at $440,000. A bank has a $450,000 lien on the property.

Alderman Marsh voted against condemnation while Mayor Phillips and his band of followers voted for stealing the property from the owner.

The city is determined to take this property from the owner, because it is the less costly route than obtaining other property that owners are willing to sell. Other property in the area would require more expensive site preparations.

The condemnation proceedings will be a trial by jury and the bank will also be a party to the suit. The jury may select the $240,000 appraisal done by the city or award a higher amount. City Attorney, Mike Billingsley stated that once committed to this lawsuit that there is no backing out if the jury awards a much higher amount.

See previous post below for much more detail on this issue.

Fire fight erupts as city attempts to steal property for new fire station

Kingsport, Tennessee Board of Mayor and Aldermen voted on first reading to steal property from a Virginia real estate developer. Kingsport has been trying to purchase 2.33 acres to build a new fire station in the Rock Springs Rd area. The City of Kingsport had the property appraised at $240,000 and offered $330,000 even though King VA LLC paid $476,149 for the property. The owner of the property put the property up for sale and the city claimed it had three contracts with the owner.

The city of Kingsport is putting their own spin on this property deal claiming that the owner would not honor the contract. It was pointed out by Vice Mayor Mallicote, who is an attorney, that the owner has an “out” clause in the contract. I do believe that they call this a contingent offer. The owner has refused to sell now and the city has begun condemnation proceedings. City Manager, John Campbell stated, the owner paid over $400,000 for the property. Mr. Campbell, quit the spin route, the real amount paid is $476,149.

It appears that the city is not willing to accept “no sale” for an answer and is willing to go the condemnation route when four of the current BMA members might be thinking of campaigning for another term when their term expire next year.

Alderman Marsh voted against condemnation proceedings and stated that there were other sites that could be used for the fire station.

City Manager, John Campbell, stated that if the condemnation matter goes to trial, then the owner might have to accept the $240,00 appraisal on the property. Aldermen Joh, who is the designated aldermen to deal with real estate matters for the City of Kingsport, stated at a June 16, 2008 BMA meeting, she did not pay much attention to appraisals since they can vary greatly. This comment by Aldermen Joh was given concerning the low appraisal done by the city versus the higher appraisal done by Kingsport Firefighter Association for their property. Alderman Joh is the owner of Blue Ridge Properties which is a real estate firm with many offices in the Kingsport area. I wonder if a jury trial decided that the property was worth $500,000, would the City of Kingsport still want it?

King VA LLC, 410 North Ridge Rd, Ste 100, Richmond, Virginia, is the owner of the 2.33 acres that the city wants. At the same address is Harper Associates, LLC, who deals in real estate development and investments. Harper Associates to me is well connected politically and is accustomed to dealing with city governments. They appear to care for the communities by sponsoring many events for the general public.

Listed below are the recent sale dates and prices paid for the property that the city wants to buy for $330,000.

The property is located on Rock Springs Rd and Blakley Dr.and is very close to interestate26.

BMA minutes on the subject is below

5-14-07

10. Consideration of an Approval of Offer for the Acquisition of Real Property located at Rock Springs Road and Blakley Drive for the Future Fire Station (AF: 162-2007).

Motion/Second: Mallicote/Munsey, to approve,

The offer of $330,000 for 2.33 acres owned by King VA, LLC and to authorize the mayor to execute an agreement for purchase in a form approved by the city attorney

Passed: All present voting “aye.”

12-03-07 WS

BOARD COMMENT. City Manager Campbell informed the Board that closing on the Rock Springs fire station property is imminent.

It might be a good idea for cooler heads to prevail. It seems that the city manager and the BMA have dug their heels in and are set to fight this one out. They might want to listen to Aldermen Marsh’s suggestion to look at other properties. In my opinion I see it as a no-win for the city if they prevail in the suit. Treating an out of state real estate developer this way may affect future developments in Kingsport when the word gets out. I wonder if Kingsport would treat Somera Capital Management or General Growth Properties this way. There is a very good chance that General Growth Properties manages property built by the property owner that the city is suing.

Maybe a little fire hose action is needed to cool everyone down.

Kingsport, Tennessee Board of Mayor and Aldermen voted on first reading to steal property from a Virginia real estate developer. Kingsport has been trying to purchase 2.33 acres to build a new fire station in the Rock Springs Rd area. The City of Kingsport had the property appraised at $240,000 and offered $330,000 even though King VA LLC paid $476,149 for the property. The owner of the property put the property up for sale and the city claimed it had three contracts with the owner.

The city of Kingsport is putting their own spin on this property deal claiming that the owner would not honor the contract. It was pointed out by Vice Mayor Mallicote, who is an attorney, that the owner has an “out” clause in the contract. I do believe that they call this a contingent offer. The owner has refused to sell now and the city has begun condemnation proceedings. City Manager, John Campbell stated, the owner paid over $400,000 for the property. Mr. Campbell, quit the spin route, the real amount paid is $476,149.

It appears that the city is not willing to accept “no sale” for an answer and is willing to go the condemnation route when four of the current BMA members might be thinking of campaigning for another term when their term expire next year.

Alderman Marsh voted against condemnation proceedings and stated that there were other sites that could be used for the fire station.

City Manager, John Campbell, stated that if the condemnation matter goes to trial, then the owner might have to accept the $240,000 appraisal on the property. Aldermen Joh, who is the designated aldermen to deal with real estate matters for the City of Kingsport, stated at a June 16, 2008 BMA meeting, she did not pay much attention to appraisals since they can vary greatly. This comment by Aldermen Joh was given concerning the low appraisal done by the city versus the higher appraisal done by Kingsport Firefighter Association for their property. Alderman Joh is the owner of Blue Ridge Properties which is a real estate firm with many offices in the Kingsport area. I wonder if a jury trial decided that the property was worth $500,000, would the City of Kingsport still want it?

King VA LLC, 410 North Ridge Rd, Ste 100, Richmond, Virginia, is the owner of the 2.33 acres that the city wants. At the same address is Harper Associates, LLC, who deals in real estate development and investments. Harper Associates to me is well connected politically and is accustomed to dealing with city governments. They appear to care for the communities by sponsoring many events for the general public.

Listed below are the recent sale dates and prices paid for the property that the city wants to buy for $330,000.

The property is located on Rock Springs Rd and Blakley Dr.and is very close to interestate26.

BMA minutes on the subject is below

5-14-07

10. Consideration of an Approval of Offer for the Acquisition of Real Property located at Rock Springs Road and Blakley Drive for the Future Fire Station (AF: 162-2007).

Motion/Second: Mallicote/Munsey, to approve,

The offer of $330,000 for 2.33 acres owned by King VA, LLC and to authorize the mayor to execute an agreement for purchase in a form approved by the city attorney

Passed: All present voting “aye.”

12-03-07 WS

BOARD COMMENT. City Manager Campbell informed the Board that closing on the Rock Springs fire station property is imminent.

It might be a good idea for cooler heads to prevail. It seems that the city manager and the BMA have dug their heels in and are set to fight this one out. They might want to listen to Aldermen Marsh’s suggestion to look at other properties. In my opinion I see it as a no-win for the city if they prevail in the suit. Treating an out of state real estate developer this way may affect future developments in Kingsport when the word gets out. I wonder if Kingsport would treat Somera Capital Management or General Growth Properties this way. There is a very good chance that General Growth Properties manages property built by the property owner that the city is suing.

Maybe a little fire hose action is needed to cool everyone down.

At the June 16, 2008 Kingsport Board of Mayor and Aldermen meeting, it was approved to buy two properties.  One at 217 Revere Street and the other at 214 Clay Street.  John Campbell, City Manager, stated that the Revere Street property was needed so they could tear down the building and put in utility lines for the Higher Education Building.  Aldermen Marsh stated that the price for the building was out of line for the area and that the property was not needed for the Higher Education Building.  He also stated that the city owned two alleys next to the property where the utilities could be run.  The building was appraised at $86,000 and seven annual payments of $17,075.36 were to be made which would make a total of $119,523.53 paid for the property.

The 214 Clay Street property was appraised at $110,000, but the city is going to pay $140,000.  Again, this was pitched as needed for the Higher Education Building.  Aldermen Marsh and Shull stated that this property was not needed for the Higher Education Building.

Although these two properties were pitched as needed for the Higher Education Building, the bottom line is that the City of Kingsport thinks they are an eyesore and that is the reason for the purchase.

Aldermen Marsh and Shull voted against purchasing these two properties.  Aldermen Marsh and Shull were discussing the issue after the vote and were basically told by Alderman Joh to shut-up.  She stated that it was a moot point to discuss since it was already voted on.

The purchase of these two properties will require about 518 homeowners city taxes to pay for the properties.

Also, at the BMA meeting the 2008-2009 budget was voted on and approved.  Aldermen Marsh and Shull voted against the budget.  Aldermen Marsh stated with the economy the way it was now, it was business as usual with the budget.  He stated that the ‘Board of Education had cut their budget, but the city had not.  He stated that it was more big government that has added more people and had no energy policy.  He stated he had a concern with the city manager’s pay being buried in the budget and it should be separate from the budget so it could be discussed.  Aldermen Shull stated that he agreed with Aldermen Marsh’s concerns.   Note, in a previous meeting, Alderman Shull expressed a concern over the city manager’s pay  He stated that it could be as high as $200k with this budget.

Below is the very detailed BMA Meeting coverage by the City of Kingsport newspaper (Kingsport Time-News)

In other business Tuesday, the BMA approved the city’s $172 million budget for the fiscal year that begins July 1. Aldermen Ken Marsh and Pat Shull cast “nay” votes in the 5-2 decision. Both said the BMA should have done more to try and trim the budge

See the post, Big spending as usual in Kingsport, Tennessee 2008-2009 budget for additional information.

On June 3, 2008 the Kingsport, Tennessee 2008-2009 budget was discussed and voted on. This was the first reading and the final vote is on June 17, 2008   It appears that the City of Kingsport did not reduce the spending and in fact increased it.  The budget has the usual pet pork spending and they are not going to raise taxes.  But, they have a secret tax for the citizens by raising the sewer rate 2.8 percent for city residents and 8 percent for county.  They will also raise the water rates for the county 3.5 percent.  Last year, they imposed the secret tax and received about $700,000.

Mayor Phillips, Vice Mayor Mallicote, Aldermen Joh, Shupe, Munsey voted for the proposed budget while Aldermen Marsh and Shull voted in opposition.

There was a front page article in the Kingsport Times-News.   It basically said that two aldermen objected to the budget and that there would not be a tax increase.  There was not significant coverage by the local newspaper for an important subject as this, but I am not surprised by the lack of coverage.

Alderman Marsh stated he could not vote in approval for the 2008-2009 budget.  He said the city is spending 2% more, nine more people added and it was business as usual.   He also stated that city employees are receiving 25% (including benefits) more over the last three years.  City Manager, John Campbell said that was not true and it was more like 15%.  Alderman Marsh stated that he was using Campbell numbers.

Alderman Shull read a prepared statement expressing his opposition to the budget.  He did state that the average pay for Kingsport citizens was around $35,000 per year and the city manager with the this budget would be making $200,000. He stated that the city manager’s pay should be capped at $137,000.  More information is needed on the city manager’s pay, but I did find the following the budget information.  “City Manager will receive 2% pay plan increase, The performance bonus and a 2% pay adjustment effective July 1, 2008″

Vice Mayor Mallicote began to discount what Alderman Shull and Alderman Marsh stated.  He said he did not believe all of the doom and gloom and he was more optimistic about the economy in Kingsport.  In my opinion he needs to open his eyes.  He stated that building permits are up when in fact they are down 45%

Alderman Valerie Joh boasted that she knew more about real estate than any one else on the BMA since she is the owner of Blue Ridge Properties, a real estate firm.  She stated that her real estate business is doing great.  That is great that her business is doing great, but what about the foreclosures in the area, gas prices, food prices, plant closings, less sales tax dollars coming in, etc.?

Alderman Shupe did not state his position on the budget, nor did I expect him to.  He almost never speaks up to take a position and usually votes with the majority.  It may be that he is intimidated by the other members of the BMA.  He brought up that Alderman Munsey was a former Treasure at Eastman Chemical and asked what Alderman Munsey comments were on the budget.

Alderman Munsey, with the lead in by Alderman Shupe began to read a letter concerning the A1 bond rating from Moody’s.  He was saying that Kingsport is in good shape to borrow more money based on the A1 rating from Moody’s.  As I understand it Moody’s Investors Service interviewed many people in the City of Kingsport government and I am sure they presented a rosy picture.  But, did anyone tell Moody’s that what Kingsport gave away to get some of this so called growth.  An example would be the $18 million tax break for Eastman Chemical.   Alderman Munsey has stated in the past that  “Debt is neither good or bad,”  Alderman Shull asked Munsey why Kingsport did not have a better bond rating and were there higher ratings?   (Note: Moody’s Aaa, Aa1, Aa2, and Aa3 are higher bond ratings than the A1 Kingsport currently has.  Sullivan County has a Aa3 bond rating.)

Mayor Phillips then stated that he was shutting the debate down.  Too bad, because I really wanted to see if Alderman Shupe had anything to say about the budget.  I was shocked to hear the mayor state that if the taxpayers wanted the city to cut the spending, then they could collect garbage every other week.  With this statement, the mayor is willing to cut services to the citizens, but unwilling to cut spending in other areas.

Based on past votes by members of the BMA, some on the BMA will carry the label as BIG SPENDERS.