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East Tennessee City pours more money into losing investment

April 29th, 2009 No comments

I must admit that the decision of the Kingsport BMA to spend over $15 million for an expansion of the MeadowView Convention Center has really raised my blood pressure.

I have written many posts concerning this issue and feel that politics is playing a big part in the decision to expand the convention center.  Good common business sense seems to be absent for the five BMA members (Phillips, Mallicote, Joh, Shupe, Munsey) who voted to expand the convention center.  It appears that there is an incestuous relationship with special interest groups

Alderman Marsh implored the mayor to get public input before the vote, but the mayor railroaded the convention center expansion to a vote.  Alderman Marsh and Shull voted to give back to the city property owners the 1/4 percent regional sales tax that was used to pay off the current convention center, but the gang of five prevailed.

The taxpayers have invested $25.7 million in the current MeadowView Convention Center and Cattails golf course.  The convention center has never made money and the golf course barely breaks even.

The City of Kingsport is spending another $15 million to expand the convention center into an executive conference center.

One needs to ask, what is the real cost to the taxpayers for Kingsport’s part of MeadowView? The combined cost of the current convention center, golf course and the new expansion would be about $41 million.

To get the true cost, the interest expense for the bonds must be added to the cost.  In the table below you will see the actual cost after applying the different interest rates.  The bond life used is 20 years.

CostInterest ExpenseReal CostInterest Rate
41,000,00018,628,46459,628,4644.00%
41,000,00017,340,21058,340,2103.75%
41,000,00016,068,03657,068,0363.50%

I would like to ask, are there any citizens in Kingsport that would invest $57 – $59.6 million in a project that did not make money for them?

It is up to you as voters to decide your future.  Mallicote, Joh, and Phillips who are running for re-election voted to spend more money on the money-losing convention center.

Alderman Shull who is also running for re-election voted against the convention center expansion and instead voted to give the regional sales tax back to city property owners.

I must warn you to beware of the spin that the city officials have been putting out concerning MeadowView.  If MeadowView has been that great for Kingsport, then why do we have a declining population, negative retail growth after inflation, and the highest unemployment rate in the Tri-Cities area.  You decide…see data

Kingsport’s aquatic center in deep water

February 5th, 2009 No comments

The Kingsport, Tennessee Board of Mayor and Alderman meeting held on February 3, 2009, was indeed a very lively one with much discussion concerning the aquatic center.

The issue was for approving money so the city could begin to come up with detailed drawings.  However, the issue with the location came up with Mallicote again restating his opposition to the aquatic center located at Meadowview.  Alderman Marsh and Shull also voiced their concerns with the Meadowview location.

Alderwoman Valarie Joh was not a happy camper in this discussion.  She stated that the BMA had already voted on the Meadowview location.  That statement is true, but Mallicote, Shull and Marsh did vote against the Meadowview location last summer.

Alderwoman Joh has stated that in past meetings that Marsh and Shull were sore losers because they lost the vote.   Well Mrs. Joh, it appears also that the citizens of Kingsport are also sore losers because of the large numbers that are expressing their concerns over the location of the aquatic center.

On August 30, 2008, I wrote the following.

Kingsport, Tennessee has decided to build a new aquatic center at Meadowview and to co-locate with the YMCA.

The very vocal concerns expressed by local citizens over the location of the aquatic have fallen upon deaf ears by the Board of Mayor and Aldermen.  The citizens are calling for a petition to stop the aquatic center and voting the current BMA out of office.  Never before have I seen Kingsport citizens more angry.

I have not written a post of this issue before, but privately I felt that the BMA would vote to place the aquatic center in the Meadowview area.  It appears that certain members of the BMA have decided to railroad this issue to a vote.  The very short two-day notice of a public meeting was a good indication to me that the BMA wanted to push the aquatic center.  Giving the public two-day notice of a public meeting to me is not ample notice for an aquatic center that has been in the works a long time.

I would like to add that Alderman Shull, Alderman Marsh, and Vice Mayor Mallicote voted against putting the aquatic center in the Meadowview area.

Also, it appears that the City of Kingsport does not care about other small businesses by competing with them.  Giving the YMCA the aquatic center to operate and who is not paying for the center, gives the YMCA an advantage over other firms who provide a similar service.

What are your views on this subject?  Leave a comment.

During the vote last summer Larry Munsey started the idea about keeping the Legion Pool open for a a year.  In the meeting this week, it was discussed about keeping it open for two years.  Keeping the legion pool open for a period of time will not satisfy the citizens concerns because the city plans to shut it down later.

Do we really want the expense of operating two pools?   See how these ideas “evolve”.  I guess you can do anything if you spend enough money.  This points to the greater problem – the BMA refuses to distinguish between NEEDS vs. WANTS and will not prioritize spending.

The City Manager envisions turning the Legion area into something like the Splash Pad at Riverview.  In short, we need to see some cost and usage data to really make up my mind.

Kingsport’s history is to get hit later than the rest of the country during a recession, but to also Recover Later.

What are your thoughts on the aquatic center?

Mayor is out of control with spending in a recession

January 28th, 2009 No comments

In this recession, the City of Kingsport, Tennessee has decided to go ahead with borrowing $34.77 million to fund various projects listed below.  While companies and citizens are having a difficult time in this economy, the city is going ahead with the spending of taxpayers money.  The addition of the $34.77 million would put the total debt for the City of Kingsport around $190 million.

According to Moody’s the three bonds have been issued and are listed below.  The dollar amounts below do not include interest expense.

General Obligation Public Improvement Bonds, Series 2009A
Sale Date: 22 JAN 2009
Sale Amt: $12.31 million

The detailed spending for this bond is listed in the table below.

K Play Park and Recreation Facility Improvements (Grant Match)$400,000
Various Road Improvements listed below (items 1-5)
1. Cleek Road Phase I – This project consists of adding width to both New Beasonwell Rd. and Cleek Rd. at their intersection with Stone Drive (SR 1, US 1IW) to provide for the separation of left, thru and right turns, reduce delays and improve the alignment between left turning traffic. Also included in this project is the addition of a left turn lane on Stone Dr. westbound for traffic turning onto Cleek Rd. as well as the extension of the eastbound left turn. This project would improve approximately 500′ of New Beasonwell Rd. and 770′ of Cleek Rd. $825,000
2. Harbor Chapel Road – This project would provide a wider two lane roadway with a multi-use mobility path along Harbor Chapel Drive from just south of Skyland Dr. to Cooks Valley Rd. and also improve the alignment of Cooks Valley Road between Harbor Chapel Road and Harbor Springs Dr. At the Road Workshop this was presented as a two phase project due to maintenance of traffic, however at this time we propose that it be design as one project and we will take care of the maintenance of traffic through the contract documents. $1,680,000
3. Clinchfield / Center Intersection Improvements – This project includes the resurfacing of the intersection, mast arm traffic signal, additional right turn lanes and an additional lane in the area of the old railroad bed to align the two Clinchfield St. approaches and provide a left turn northbound. This will remove the grade problem the railroad tracks caused and provide for reduced delays and confusion. $385,000
4. Netherland Inn Road / Industry Drive / Center Street Roundabout – This project would construct a modern roundabout at this intersection, similar to the one built at the intersections of Watauga / Gibson Mill / Ravine. This would Increase safety and reduce delay and confusion experienced at the existing intersection and is an integral part of the development of the Kingsport Riverwalk Redevelopment. $935,000
5. Rock Springs Road Improvements – This project involves upgrading Rock Springs Road from the southwesterly City Limits to Rock Springs Drive (SR 347) to an improved two-lane section. It will provide wider travel lanes, shoulder and some realignments at key locations to improve safety. $1,175,000
Stormwater Management Project – Modeling Study, Land Acquisition, Pipe$700,000
Riverwalk Project – Land acquisition, engineering design studies, select infrastructure improvements$600,000
School Projects – land acquisition, expand band room, security modifications for school entrances$1,100,000
Library Design and renovations – site assessment and preliminary design$200,000
Justice Center – design and architect fees (Total cost $4,000,000)$260,000
Downtown Parking Garage – 300 space garage with retail and office space$3,800,000
Bond #1 General Improvement Bond total for above items$12,305,000

General Obligation Bonds, Series 2009B
Sale Date: 22 JAN 2009
Sale Amt: $7.15 million

The bond above is for rebuilding of the V.O. Dobbins Community Center as well as the creation of a new non-profit center.  This non-profit center will take tenants away from the private sector, which means, the City of Kingsport becomes a competitor with it’s own tax customers.  Alderman Marsh and Shull voted against this project.

Local Option Sales Tax Revenue and Tax Bonds, Series 2009C
Sale Date: 22 JAN 2009
Sale Amt: $15.31 million

The above bond is for the MeadowView Conference Center Expansion.  This expansion is a very controversial subject with many citizens because of it benefiting special interest groups.  The current convention center loses money and it wishful thinking that the expansion would break even.

This new $15.31 million bond for the convention center expansion combined with the $25.7 million already spent for the current convention center and Cattails Golf Course would make it $41 million that the taxpayers will have poured into MeadowView.  The Cattails and the current convention center do not make money.  Alderman Marsh and Shull voted against this project.  See link for additional information on Meadowview

Kingsport’s water and sewer departments overcharges customers?

January 26th, 2009 No comments

The Kingsport Times-News article, Fiscal year 2008 audit OKs Kingsport financial health does some explaining on the recent audit of Kingsport’s finances.

However there seems to be some things left out or a press release issued by the city that never made it into the newspaper.

The press release below in the last two paragraphs state that the five enterprise funds had $16.3 million in cash.

Enterprise funds have to be self-supporting and we know that the Cattails Golf Course does not make any money and the MeadowView Convention Center ended the year with a $1.3 million loss

This would mean that the city is running a profit center in the water and sewer departments.  The raising of water and sewer rates each year has helped this cash position.  How else could they have gotten all of this extra cash?

If the City of Kingsport is doing so well, then how come they did not want to refund the 1/4 percent regional sales tax, back to the citizens when the MeadowView Convention Center was paid off?   Alderman Marsh and Shull tried to get the regional sales tax refunded back to the citizens but was voted down by Mayor Phillips, Vice Mayor Mallicote, Aldermen Munsey, Joh, and Shupe.

Press Release

KINGSPORT – Kingsport garnered a clean opinion of its financial statement for fiscal year 2008 from auditors Blackburn, Childers & Steagall, and rectified all four findings reported in the prior year.

“This audit represents what the citizens of Kingsport expect from their local government, transparency in financial reporting and responsibility with the taxpayer dollar,” Kingsport Audit Committee Chair and Alderman Larry Munsey said Tuesday. “I’m pleased to note that city finance staff corrected four items identified in last year’s audit, while auditors, whose job it is to go over things with a fine-tooth comb, only found three items in need of some work going forward into 2009. By any measure, our city continues to stand on firm financial ground.”

Auditors noted in their 2008 findings the need for a change in the way property purchases and sales are recorded by the Kingsport Industrial Development Board; better record keeping on the disposition of city capital assets; and better segregation of duties within payroll processing.

“We’re very pleased with this report, and already have projects underway to address the findings on capital asset recording and payroll processing,” Kingsport Finance Director Jim Demming said Tuesday. “The third finding on KIDB is just a matter of changing from net reporting to include all costs related to property acquisitions and sales.”

Demming also noted that the addition of a new internal auditor position and realignment of finance staff duties should quickly correct the findings.

Meanwhile, as of June 30, Kingsport posted $14.84 million in its unrestricted fund balance for 2008, with another $3 million to be added over the next few years as the general fund is repaid funding it advanced for the construction of Cattails Golf Course. Board policy is to maintain a minimum of $11.4 million at all times.

City Manager John Campbell said the pace of city government has quickened with regards to a number of key areas, including the development of a higher education center; greater internal support for job recruitment and retention efforts; expansion of commercial and tourism development; and implementing technology to increase efficiency.

“We have the staff in place to ensure we offer the greatest transparency possible,” Campbell said. “At the same time, we continue to operate well within the self-imposed debt limit of 10 percent of assessed property value, with new capital projects funded by the debt service roll-off as old debt is paid off.

“Without a doubt, the Board of Mayor and Aldermen is making sound investments that position our community for continued growth, which is how we keep property taxes low for everyone.”

Kingsport City Government is organized into six reporting units, starting with the general fund which covers emergency services, development services, leisure services and administration.

Five enterprise funds include the water fund, for the production and distribution of clean water, funded solely by user fees; a sewer fund, again self-supporting through user fees; a solid waste fund for garbage collection and disposal, reported separately but funded through property taxes; and two funds that cover MeadowView Conference Center and the golf course.

Collectively, enterprise funds reported $16.3 million in cash as of June 30, a strong cash position Campbell said he intends to maintain.

Kingsport, Tennessee Code of Ethics

January 7th, 2009 No comments

It is time for the City of Kingsport Board of Mayor and Alderman officials to update their Statement of Disclosure Interests for 2009?  Has any one on the Board of Mayor and Alderman declared bankruptcy?   Has the sources of income changed?  Investments, etc?

The Tennessee Ethics Commission disclosure form seeks the following information below concerning the candidate or elected official.

  • Filer Contact Information
  • Professional Services
  • Office Held or Sought
  • Retainer Fees
  • Sources of Income
  • Bankruptcy
  • Investments
  • Loans
  • Lobbying

You can review the current “2008 Statement of Disclosure of Interests” for the Kingsport, Tennessee BMA members listed below by clicking on the name of the person below.

2008 Statement of Disclosure of Interests

Mayor Dennis PhillipsVice Mayor Ben MallicoteAlderman Larry Munsey
Alderman Valerie JohAlderman Jaunty ShupeAlderman Patrick Shull
Alderman Ken Marsh

You can  report alleged violations of any law within the jurisdiction of the Tennessee Ethics Commission. See link to report violations.   Sworn Complaint (ss-8003

Note, however, that the Tennessee Ethics Commission does not have the authority to enforce local government ethical codes, nor does the Commission have any authority to regulate the conduct of local government officials except as relates to the filing of a Statement of Disclosure of Interests.

Also, see the following link:  Tennessee Local Government Ethical Standards

The Kingsport, Tennessee Code of Ethics below is from the Code of Ordinances for the City of Kingsport, Tennessee.  Use the following link to view all city codes.  CODE OF ORDINANCES

Kingsport, Tennessee Code Of Ethics

Sec. 2-97. Code of ethics–Applicability.

(a)   The provisions of this code of ethics, sections 2-97 through 2-106, are applicable to all full-time and part-time officials, officers, employees, servants, member of any board, agency, commission, authority or corporation, whether compensated or not and any officer, employee, or servant thereof of the city. This includes any separate board, commission, committee, authority, corporation, or other instrumentality appointed or created by the city as set out in T.C.A. § 8-17-102 including, but not limited to: the board of mayor and aldermen, city board of education, and employees, city industrial development board, city housing and redevelopment authority, city emergency communications district board, city regional planning commission, board of zoning appeals, beverage board, Bays Mountain Park commission, electrical board of examiners, gateway review commission, historic zoning commission, mechanical, plumbing and gas board of examiners, parks and recreation advisory committee, public library commission, senior citizens advisory board, sidewalk board, and wastewater appeals board.

(b)   In any situation in which a personal interest under this code of ethics is also a conflict of interest under state law, the provisions of the state law shall govern. In accordance with T.C.A. § 8-17-103 to the extent an issue is covered by an ethical standard addressed by a law of general application, public law of local application, local option law, or private act nothing herein shall be construed to be less restrictive than such laws.

(Ord. No. 5558, § I, 6-19-07)

Editor’s note: Ord. No. 5558, § I, adopted June 19, 2007, repealed and reenacted § 2-97 to read as herein set out. Formerly, § 2-97 pertained to free passes, tickets or services prohibited, and derived from the Code of 1981, § 2-37.

Sec. 2-98. Definitions.

The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section:

City means the City of Kingsport, Tennessee.

Board of mayor and aldermen means the board of mayor and aldermen of the city.

Municipal board means any board, commission, committee, authority, corporation, or other instrumentality appointed or created by the city, including those set out in T.C.A. § 8-17-102.

Personal interest means:

(1)   Any financial, ownership, or employment interest which is the subject of a vote by a municipal board or board of mayor and aldermen not otherwise regulated by state statutes on conflict of interest;

(2)   Any financial, ownership, or employment interest in a matter to be regulated or supervised by the board of mayor and aldermen or a municipal board; or

(3)   Any such financial, ownership, or employment interest of the official’s or employee’s spouse, parent(s), step parent(s), grandparent(s), sibling(s), child(ren), or step child(ren).

Employment interest means a situation in which an official or employee or a designated family member is negotiating possible employment with a person or organization that is the subject of the vote or that is to be regulated or supervised.

Official or employee means and includes any official, whether elected or appointed, officer, employee or servant, or any member of any board, agency, commission, authority or corporation, whether compensated or not, or any officer, employee or servant thereof, of the city.

(Ord. No. 5558, § I, 6-19-07)

Sec. 2-99. Disclosure of personal interest.

(a)   An official on the board of mayor and aldermen or any municipal board with the responsibility to vote on a matter shall disclose during the meeting at which the vote takes place, before the vote and so it appears in the minutes, any personal interest that affects, or that would lead a reasonable person to infer that it affects the official’s vote on the matter. In addition, the official may recuse themselves from voting on the matter.

(b)   An official or employee who must exercise discretion relative to any matter, other than casting a vote, and who has a personal interest in the matter that affects or that would lead a reasonable person to infer that it affects the exercise of the discretion shall disclose, before the exercise of the discretion when possible, the interest on a form provided by and filed with the recorder. In addition, the official or employee may, to the extent allowed by law, charter, ordinance, or policy, recuse themselvesfrom the exercise of discretion in the matter.

(Ord. No. 5558, § I, 6-19-07)

Sec. 2-100. Prohibition of acceptance of gifts and gratuities.

An official or employee may not solicit, accept, directly or indirectly, on behalf of themselves or any member of their household, any money, gift, gratuity, service, transportation, loan, loan guarantee or other consideration or favor of any kind from any person, other than the city:

(1)   For the performance of an act, or refraining from performance of an act, that he or she would be expected to perform, or refrain from performing, in the regular course of his or her duties; or

(2)   Who has, or is seeking, to obtain, contractual or other business or financial relations with any department of the city or conducts operations or activities that are regulated by the department of the city where the employee is employed or the official has authority to act;

(3)   Who has interests that may be substantially affected by the performance or nonperformance of the official duties of the official or employee;

(4)   Who has some mutual understanding that the gift will influence the official’s or employee’s decisions on behalf of the city.

(5)   That might reasonably be interpreted as an attempt to influence the action of the official or employee or reward such official or employee for past action in executing city business.

(6)   Notwithstanding anything in this section to the contrary, gifts, gratuities, services or favors, which are allowed in section 2-101 are not prohibited by this section.

(Ord. No. 5558, § I, 6-19-07)

Editor’s note: Ord. No. 5558, § I, adopted June 19, 2007, enacted provisions intended for use as subsections (a)–(f). To preserve the style of this Code, and at the discretion of the editor, said provisions have been redesignated as subsections (1)–(6).

Sec. 2-101. Acceptance of gifts and gratuities.

The following are not deemed gifts subject to the aforementioned prohibitions in section 2-100:

(1)   A personal gift from a relative or friend, if such gift is unrelated to city matters.

(2)   An item of tangible personal property with an estimated retail value of less than $50.00 from any one person or entity at any one occurrence, provided it is not solicited by the official or employee and is of limited frequency; Employees who are supervisors or acting in such capacity are not permitted to accept cash gifts in any amount when such is related to or as a consequence of such employee’s employment with the city or other entity covered by this chapter.

(3)   A foodstuff gift, plant or flower arrangement which can be shared by everyone in a work area;

(4)   A discount for meals or services that is offered to employees as a marketing strategy by business to encourage trade from a large employee base, provided the discount is not solicited by the employee and is of limited frequency;

(5)   A business meal of a type and kind ordinarily associated with normal business activity;

(6)   Food, refreshments, sports activity or transportation when they are part of an official’s or employee’s participation in a charitable, civic, political or community event that bears a relationship to the official’s or employee’s office and the official or employee is attending in an official capacity;

(7)   A promotional, business logo gift item with an estimated retail value of less than $50.00 that is given for the primary purpose of advertising the business eatery or industry providing the logo gift item; or multiple promotional business logo gift items with a combined estimated retail value of less than $50.00 during a calendar year;

(8)   A door prize that is randomly won or received and where the opportunity to win/receive the gift is random and with low statistical likelihood, and when the employee is eligible for the prize as a consequence of his/her employment with the city or other entity covered by this chapter; provided however, that a door prize with an estimated retail value in excess of fifty dollars ($50.00) that is won as a consequence of employment with the city or other entity covered by this chapter may be accepted provided agift declaration form is completed and submitted to the city manager within five business days of receipt of the gift; and provided further that the final disposition of the door prize (i.e. to be retained by the employee, assigned to city use, or disposed/refused) shall be made by the city manager;

(9)   Receipt of entertainment or athletic tickets or entry to a private or sports/athletic suite, tickets to banquets, luncheons, receptions, local area golf tournaments and such for non-business related purpose; and

(10)   A gift or thing of value provided by the city to an employee in the course of the employer-employee relationship.

(Ord. No. 5558, § I, 6-19-07)

Sec. 2-102. Procedure for return of gifts and gratuities.

A gift, or gratuity prohibited in section 2-100 shall be declined and returned to the donor. If a gift is not easily returned, the gift shall be donated to a local charitable agency or organization in the name of the donor. Said donor shall be notified of such, as well as, notified of the city’s gift prohibition regulation. In addition, the following procedures and practices are to be followed:

(1)   A copy of all letters to donors shall be copied to the city manager;

(2)   Questions regarding the acceptability of a certain gift should be directed to the city manager for clarification.

(Ord. No. 5558, § I, 6-19-07)

Editor’s note: Ord. No. 5558, § I, adopted June 19, 2007, enacted provisions intended for use as subsections (a) and (b). To preserve the style of this Code, and at the discretion of the editor, said provisions have been redesignated as subsections (1) and (2).

Sec. 2-103. Use of information.

(a)   An official or employee may not disclose any information obtained in his official capacity or position of employment that is made confidential under state or federal law except as authorized by law.

(b)   An official or employee may not, directly or indirectly use or disclose information obtained in his official capacity or position of employment, that has not been made available to the general public, with the intent to result in financial gain for such official or employee or any other person or entity or to acquire or aid another to acquire, a pecuniary interest in any property, transaction, or enterprise that may be affected by the information, or to speculate, or aid another to speculate, on the basis of the information.

(Ord. No. 5558, § I, 6-19-07)

Sec. 2-104. Use of municipal time, facilities, etc.

(a)   An official or employee may not use or authorize the use of municipal time, facilities, equipment, or supplies for private gain or advantage of such official or employee, except to the extent that such are lawfully available to the general public.

(b)   An official or employee may not use or authorize the use of municipal time, facilities, equipment, or supplies for private gain or advantage to any private person or entity, except as authorized by legitimate contract, lease or that is determined by the board of mayor and aldermen to be in the best interest of the city.

(Ord. No. 5558, § I, 6-19-07)

Sec. 2-105. Use of position or authority.

(a)   An official or employee may not make or attempt to make private purchases, for cash or otherwise, in the name of the city.

(b)   An official or employee may not use or attempt to use their position to secure any privilege or exemption for themselves or others that are not authorized by the charter, general law, or ordinance or policy of the city.

(Ord. No. 5558, § I, 6-19-07)

Sec. 2-106. Violation and penalty.

Any person violating any section of this division shall be deemed guilty of an offense and upon conviction is punishable under the city’s general penalty clause or other applicable laws. An employee who violates any provision of this division is subject to disciplinary action, including termination from employment.

(Ord. No. 5558, § I, 6-19-07)

Secs. 2-107–2-125. Reserved.

Kingsport, Tennessee – Tax, Borrow, and Spend City

December 5th, 2008 No comments

The City of Kingsport, Tennessee, with its spending of taxpayers money, fails to see what is  happening to the struggling families who are trying to keep their heads above water in the economic crisis we are in.

Unemployment in Kingsport is the highest in the Tri-Cities area.

People are having to rely on food stamps to feed their families in record numbers.  See the quote from the Bristol Herald Courier article below.

More than 13 percent of Sullivan County residents received help from the U.S. government’s Supplemental Nutrition Assistance Program in October, a month that broke program participation records across the state of Tennessee.  Click for more Record Numbers Seek Aid To Buy Groceries

Because of what is happening in the economy, retirees that are drawing on a percentage basis from their 401k’s have less to live on now.  Also, retirees that draw a fixed amount from their 401k’s have had to readjust the amount withdrawn downward for fear of running out of money in their 401k.  I am sure there are people thinking about retirement, but have postponed it because of the economy.

Tennessee state revenues continue to slide and are down 7 percent for the recent month.  Tennessee may face a $1 billion shortfall.  The Tennessean newspaper reports the following in the article below.

State’s decline among worst in U.S.

Bill Fox, director of the Center for Business & Economic Research at the University of Tennessee, said Tennessee has one of the nation’s largest declines in revenue, topped only by Florida and Arizona, a finding that surprised him. While Tennessee has not fared poorly with sales taxes, its slowdown in corporate tax collection is among the country’s worst, he said.

“Tennessee is feeling the brunt of the economic downturn from the tax revenue perspective much worse than is the norm around the U.S., at least through this part of the fiscal year,” he said.

States, Counties, and Cities around the country are being forced to cut spending, laying off workers and reducing pay for workers.  But, in Kingsport, it is business as usual with a bigger government with a bigger budget for this fiscal year and more city employees.  Kingsport debt is over $191 million and still growing to which Kingsport can be better known as the “TAX, BORROW, and SPEND” city.

Eastman Chemical has announced that their 4th quarter earning will widely miss its projection.  What next for Eastman?   Will there be another layoff or will employees cut back on spending because of unknowns in their future?

What can the citizens of Kingsport do about the situation with the current administration in Kingsport’s City government?

You must become more vocal with the Board of Mayor and Alderman.  Write letters to the editor and spread the word to others about what is happening with city government.  Submit comments online at the end of articles in the local newspapers.  If the Kingsport Times-News won’t publish your response, then go to other newspapers in the area.  Make your friends aware of what is happing on the BMA.  Be active in the local elections for the four BMA members whose terms expire.  Help get new BMA members get elected that resemble your views and vote current BMA members out if they should decide to run again for office if their views do not match yours.

As for me personally, I will be doing the following;

I will not vote for Mayor Phillips, Vice Mayor Mallicote, and Alderman Joh in the upcoming election if they decide to run for office again.  Reason:  Big spenders of taxpayers money.

Nothing seems to get the attention of certain BMA members (Phillips, Mallicote, Joh, Munsey, and Shupe) when citizens express concerns over spending or other issues.  Hence, I will be doing the following below.

If I decide to sell my property, I will not do business with Blue Ridge Properties since that is Alderman Joh’s business.  I have used Blue Ridge Properties in the past and in my opinion, they did not do anything for me that other real estate firms couldn’t offer.

If I need legal work done, I will not use Vice Mayor Mallicote’s law firm.

If I die, I will not use the Oak Hill Memorial Park, Funerals and Cremations owned by Stewart Enterprises because of Alderman Shupe’s employment there as manager.  I will not buy products from Shupe Securtiy since it is an Alderman Shupe firm.

I will not do business with any firm associated with Mayor Phillips or Alderman Munsey.  This means also that if Mayor Phillips opens up another Pizza joint, I will not buy his product.

Since gas prices are lower, I will shop elsewhere in Johnson City or Virginia and use the internet.

But, I will use Alderman Pat Shull’s business (Mary’s Kitchen) or any business Alderman Marsh has.

Maybe, in my small part, I can begin to get their attention when it affects their wallets.

Now, if everyone did the above, it might get Mayor Phillips’ attention.  But I’m sure he and other big spender BMA members will use some of the same threats below that has been used in the past.  Mr. Mayor, you do not need to reduce the services, instead reduce your obsession with the pet project spending you have done during your almost two terms.

Famous Quotes from the Kingsport Board of Mayor and Alderman

Mayor Dennis Phillips – ‘We need MeadowView to keep from reduceng 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

Mayor Dennis Phillips refuses to give back the regional sales tax to the citizens after it has served it’s purpose.  The Federal government has help out all kinds of firms and has given money back to the taxpayers.  It is time for Kingsport to step up to the plate and help the citizens out.  How about it Mayor Phillips?

Wake up Kingsport!!

Update to $34.7 million in new bonds approved by Kingsport, Tennessee BMA

November 27th, 2008 No comments

The Kingsport Board of Mayor and Aldermen voted on November 18, 2008 to spend $15.3 million for the MeadowView Convention Center Expansion, which will benefit special interest groups. As hard as Alderman Marsh and Alderman Shull have tried, the balance of the BMA refuses to give back the 1/4 percent Regional Sales Tax back to the citizens of Kingsport. It is a SAD day for Kingsport. Also, the BMA voted to spend $7.1 million for V.O. Dobbins renovation and expansion and $12.3 million for capital projects such as roads and parking garage. Total approved at the meeting was $34,753,000.

I had reported earlier that this was the first reading and the second reading was to be held on December 2, 2008.   However, I have learned that there will be no second reading and  this was an “Initial” resolution, which means the city staff is authorized to go into the bond market to make a deal subject to BMA final approval.

If you have a concern about this debt or the items below, then voice your concern to the BMA members. You can express your concerns by going to the meetings, write letters to the editor, talk to them on the telephone, leave a comment on this blog

$34.7 million in new spending for Kingsport, Tennessee

November 24th, 2008 No comments

There were three bonds that were voted on at the November 18, 2008 Kingsport, Tennessee Board of Mayor and Alderman. A total of $34,753,000 was voted on and passed.

This was an “Initial” resolution, which means the city staff is authorized to go into the bond market to make a deal subject to BMA final approval.

The three bonds are as follows.

General Improvement Bond$12,305,000
MeadowView Convention Center Expansion Bond$15,305,000
V.O. Dobbins renovation Bond$7,143,000

The items in green in the table below gives the details for the General Improvement Bond ($12,305,000) and it would have been nice if the items in the General Improvement Bond were listed separately. Politics, I am sure has something to do with it, because of the way it is listed. For example, if a BMA member had a strong desire against one of the items below in green, but was for the balance of the items, then it may force the BMA member to vote for something he/she was against to get the good items.

I have written many posts concerning the MeadowView Convention Center Expansion. This expansion of the convention center in my view, caters to the special interests. The current convention center has not made money and the taxpayers are keeping it afloat. Johnson City, Tennessee Millennium Centre has not made money since it was built in 1999. I do believe that the City Manager of Johnson City was John Campbell when it was planned and built. Now, John Campbell, who is now the City Manager for Kingsport wants to do it here.

On the V.O. Dobbins Center, Alderman Marsh and Shull voted against this project, because it had grown into something bigger than in the earlier discussions. Both, Marsh and Shull expressed concerns that the city was getting into the business of competing with the private sector.

Alderman Marsh stated that the City of Kingsport is attacking its own taxpayers by competing with businesses that has rental property that rent to nonprofits. The city is looking to have as renters, non-profits that are renting elsewhere in the city. For example, if the city is successful, United Way would leave the downtown area to relocate to the V.O.Dobbins Center and thus steal customers away from the private sector.

With the final approval of the three bonds below, the total debt would be $190.7 million and this does not include the aquatic center. Alderman Marsh has stated that the debt could go as high as $250 million in the next few years.

If you have a concern about this debt or the items below, then voice your concern to the BMA members. You can express your concerns by going to the meetings, write letters to the editor, talk to them on the telephone, leave a comment on this blog

K Play Park and Recreation Facility Improvements (Grant Match)$400,000
Various Road Improvements listed below (items 1-5)
1. Cleek Road Phase I – This project consists of adding width to both New Beasonwell Rd. and Cleek Rd. at their intersection with Stone Drive (SR 1, US 1IW) to provide for the separation of left, thru and right turns, reduce delays and improve the alignment between left turning traffic. Also included in this project is the addition of a left turn lane on Stone Dr. westbound for traffic turning onto Cleek Rd. as well as the extension of the eastbound left turn. This project would improve approximately 500′ of New Beasonwell Rd. and 770′ of Cleek Rd. $825,000
2. Harbor Chapel Road – This project would provide a wider two lane roadway with a multi-use mobility path along Harbor Chapel Drive from just south of Skyland Dr. to Cooks Valley Rd. and also improve the alignment of Cooks Valley Road between Harbor Chapel Road and Harbor Springs Dr. At the Road Workshop this was presented as a two phase project due to maintenance of traffic, however at this time we propose that it be design as one project and we will take care of the maintenance of traffic through the contract documents. $1,680,000
3. Clinchfield / Center Intersection Improvements – This project includes the resurfacing of the intersection, mast arm traffic signal, additional right turn lanes and an additional lane in the area of the old railroad bed to align the two Clinchfield St. approaches and provide a left turn northbound. This will remove the grade problem the railroad tracks caused and provide for reduced delays and confusion. $385,000
4. Netherland Inn Road / Industry Drive / Center Street Roundabout – This project would construct a modern roundabout at this intersection, similar to the one built at the intersections of Watauga / Gibson Mill / Ravine. This would Increase safety and reduce delay and confusion experienced at the existing intersection and is an integral part of the development of the Kingsport Riverwalk Redevelopment. $935,000
5. Rock Springs Road Improvements – This project involves upgrading Rock Springs Road from the southwesterly City Limits to Rock Springs Drive (SR 347) to an improved two-lane section. It will provide wider travel lanes, shoulder and some realignments at key locations to improve safety. $1,175,000
Stormwater Management Project – Modeling Study, Land Acquisition, Pipe$700,000
Riverwalk Project – Land acquisition, engineering design studies, select infrastructure improvements$600,000
School Projects – land acquisition, expand band room, security modifications for school entrances$1,100,000
Library Design and renovations – site assessment and preliminary design$200,000
Justice Center – design and architect fees (Total cost $4,000,000)$260,000
Downtown Parking Garage – 300 space garage with retail and office space$3,800,000
Bond #1 General Improvement Bond total for above items$12,305,000
Bond #2 MeadowView Convention Center Expansion Bond$15,305,000
Bond #3 V.O. Dobbins Renovation Bond$7,143,000
Total for all three bonds$34,753,000

City gives special interest groups taxpayers money

November 19th, 2008 No comments

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

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Kingsport, Tennessee gives handouts to local businesses

November 16th, 2008 No comments

The City of Kingsport MeadowView Convention Center expansion does not appear to offer the citizens of Kingsport, Tennessee any benefits and does expose the citizens to great risk if the decision of the Kingsport Board of Mayor and Alderman stands.

The problem is that there are special interest groups that will benefit without putting up their own money.

Eastman Chemical who owns the hotel and who is also doing an expansion will benefit the most because of the hotel traffic that is generated by the convention center.  The current convention center loses money.  Also, the City of Kingsport Cattails golf course located at the hotel and convention center is also a traffic driver for the hotel.  The golf course also is not a money maker for the city.

Kingsport Times-News reported in the article below, the announcement of Eastman to expand the hotel.  Note the highlighted quote by MeadowView Resort and Convention Center Manager Andy King, that there was enough meeting space.

Kingsport Times-News article published 01/16/2008

MeadowView Marriott Conference Resort & Convention Center announced Wednesday it plans to add two 55-room towers to the hotel, bringing its total number of rooms to 305. Construction will begin in late summer.

MeadowView opened in 1996 and has achieved more than 70 percent occupancy for the last three years.

MeadowView General Manager Andy King said the expansion is needed because the hotel and conference center has missed opportunities to host larger groups that required more rooms.

“We have enough meeting space to accommodate the larger groups but we have lost some business opportunities because we could not accommodate them with enough hotel rooms,” King said. “This addition will allow us to utilize the meeting space more effectively and generate more revenue for the entire facility.”

MeadowView is a partnership between the city of Kingsport and Eastman Chemical Co. The city owns the convention center and adjoining Cattails golf course, while Eastman owns the hotel and restaurant. Marriott manages the property. See Thursday’s Times-News print edition for more information.

Eastman Chemical, who employ about 7,000 people in Kingsport, Tennessee, and who has manufacturing and offices throughout the world, gets a bailout/handout from the City of Kingsport, Tennessee.  Eastman’s sales revenue for third quarter 2008 was $1.8 billion, an 8 percent increase compared with third quarter 2007 and their operating earnings in third quarter 2008 were $174 million.

In November, 2007, the Kingsport Board of Mayor and Aldermen voted to give Eastman a $28 million tax break for an expansion Eastman wanted to do.  Eastman stated a few months after the vote on the tax break, that they expected to double earnings per share by 2012.  The citizens of Kingsport have done enough for Eastman.

Mayor Phillips puts his two cents in and charged the MeadowView Advisory Committee to examine the center’s operation.  Mayor Dennis Phillips stated that the hotel did not even have a pool, when in fact they did.  After the study, people got the Mayor’s religion and the MeadowView Convention Center expansion was born.   My guess is they did not consider that the current convention center was not a money maker for the city.  In my view, this project begin to get legs when folks realized that certain people in the City of Kingsport were for funding an expansion.  It is also my view, that there were commitments made without BMA approval and there could be a linkage with free land provided by Eastman for the aquatic center to be built in the MeadowView area.

See the Kingsport Times-News article published on 02/24/2008 below.

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.” Read entire article on Meadowview improvements

The Marriott Corporation manages the hotel for Eastman, and Kingsport’s convention center and Cattails golf course.

The Marriott Corporation stands to gain a bigger contract with the city for the expanded convention center.  They are no innocent bystander.  Andy King, who is employed by Marriott is the manger for the MeadowView Resort and Convention Center has said, that there were enough meeting rooms, but later became a cheerleader for the expansion.  I think you can rest assured that any profits realized by Marriott from management of the properties at MeadowView, will never see the light of day in Kingsport.

Kingsport Convention and Visitors Bureau is funded  in part by the City of Kingsport via the hotel tax.  The main source of revenue for the Kingsport Convention and Visitors Bureau is the 87.5% cut of the hotel/motel tax that the city allocates to them for operation.  The Kingsport Chamber of Commence is involved with the visitor bureau by cutting paychecks for the employees and other administrative things.  Again, the Kingsport Chamber of Commence is no innocent bystander as well as their members.

The inability of Marriott and the Kingsport Convention and Visitors Bureau to make the current convention center a success as for profits needs to be looked at.  Better marching orders needs to be given to these two organizations that operating at a loss is not an option.  If they cannot return a profit on the taxpayer money, then they should be replaced.  The taxpayers, I am sure do not appreciate giving corporate welfare to Eastman, Marriott, or other special interest groups.  The taxpayer have spent $25.7 million for the current convention center and Cattails golf course.  Investing another $15.3 million should not even be considered until there is a proven track record of profit success at the current MeadowView Convention Center.

It has been stated that the convention center would make money if it was expanded.  As I understand it, the economic justification for the expansion was weak and there were requests to get input from the public, and more discussion by the BMA.  But, these request were denied and the convention center expansion was railroaded. to a vote.  Aldermen Marsh and Shull voted against funding the expansion.

The weekday hotel room rates range from $154 to $189 per night plus tax.  I do have a question whether the taxpayers are giving a cost break to the hotel guests for the Cattails Golf Course.  The corporate weekday rate of $154 does not include golfing, whereas the $169 rate include weekday golf package with cart.  The published rates for golfing for citizens would be $31 as compared for $15 for hotel guests.  If Eastman is absorbing the $16 difference, then there is no problem.  But, if not, then it is not fair to the local Kingsport golfers or other Kingsport hotels who have guests that wish to play golf.

What are your views?  Please leave a comment.

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