No WhiteWash!

Last night the Kingsport, Tennessee Board of Mayor and Alderman voted to borrow $41.1 million for various projects.  According to the Kingsport Times-News quote below, the total debt has doubled in the last five years.  I might add that this has occurred during Mayor Dennis Phillips terms as mayor and John Campbell as city manager.

With this bond issuance, Kingsport’s total debt has doubled in the past five years, from $110 million in fiscal year 2006 to $218 million in fiscal year 2010, according to city records. Kingsport’s general fund debt will increase from the current amount of $92.6 million to $103.4 million for fiscal year 2010, while total city debt will go from $173.5 million to slightly more than $218 million.

Read more via Kingsport BMA approves $41.1 M in bonds – Kingsport Times-News Online.

Things must really be in bad shape for the city because they are borrowing $200k to replace a roof on the Renaissance Center and financing it for 20 years.  Borrowing money to replace a roof should be a maintenance item that is planned for and funded from within a yearly budget.

It would not surprise me that Kingsport will be the subject of many discussions by other cities on Kingsport’s management practices or lack thereof. 

Mayor Phillips, when can we expect the property tax increase?

Below is the spending that was approved

Tennessee, California Have Highest Combined State, Average Local Sales Tax Rates

Tennessee, California, Washington state, Oklahoma and Louisiana have the highest combined state and average local sales tax rates, according to updated information released by the nonpartisan Tax Foundation today. On the other end of the scale, Delaware, Montana, New Hampshire and Oregon all have the lowest combined rates of 0 percent.

Click here for more information on sales taxes from the Tax Foundation

Sometimes elected officials get too big for their britches and need to brought back to reality. Below is information on a petition to have the citizens vote to repeal the sales tax hike in Hardin County, TN.

Kingsport, TN has a similar situation with the 1/4 cents regional sales tax that was voted on by the citizens to build the MeadowView Convention Center. The current convention center was paid off in 2007 and part of the regional sales tax money goes into the general fund to spend as they see fit. MeadowView Convention Center operates each year at a loss and about $1.3 million is used from regional sales tax fund to keep it operational. The Kingsport Board of Mayor and Alderman have voted against giving the regional sale tax back to the citizens.

In an effort that could yank the funding from a school construction and consolidation project, Concerned Citizens for Community Schools is filing a petition today with the Hardin County Election Commission for a referendum to repeal a 1997 sales tax increase.

Voters overwhelmingly approved the one cent hike after the Hardin County Board of Education published paid advertisements in The Courier touting it as the solution to the county’s long-term school building needs. The 1997 ads indicated the revenue would be used to renovate and expand the high school, and gradually address building problems at all the schools.

Instead, school and county officials broke ground last week for a program that shutters five schools and funnels their students into two new 550-student elementary schools in or near Savannah.

“The county said if you give us this money, we’ll spend it this way. Ten years later they forgot the promise they made and now they want to spend our money in ways we do not support or agree with,” said Selmer attorney Christopher Donovan, representing Concerned Citizens.

According to the Hardin County Election Commission, about 1,600 signatures of registered Hardin County voters are needed to get the measure on the ballot.

Concerned Citizens says the petition contains the names of 3,000 residents from all parts of the county.

via courier anywhere.com.

See also the following links:

• Hardin County Citizens Petition to lower sales tax
• Petitions
• Cattails in Kingsport not going as planned

Update:  Hawkins County commissioners met Monday night to try to finalize next year’s budget, which included a substantial property tax hike.  The Commission voted 16-4, with one abstaining, against the budget.

The Budget Committee will meet Tuesday morning to try to iron out a compromise.  The budget must be finalized and approved by October 1, and commissioners say a property tax hike is still on the table.

via Hawkins County Property Tax Hike Remains Up In The Air | TriCities.

Hawkins County is considering a 22 cent property tax increase which will put a wrinkle into the City of Kingsport plans for funding the King Medical School.  Kingsport has suggested that it would take about a 20 cent tax increase to fund its portion of the medical school.  The problem for Kingsport is that its city limits extend into Hawkins County and Kingsport has a tax rate for its part of Hawkins County. A Hawkins County rate increase of 22 cents and if Kingsport raises its rate 20 cents for the medical school would make the area unattractive for future development and a hardship on Hawkins County citizens.

The Kingsport portion of Hawkins County would have a rank as the 10th most expensive tax rate in Tennessee if the rate is increased 22 cents and Kingsport did not raise the rate.

I am against tax-payer funding of the King College Medical School.  See previous posts

Table 1. below shows the current tax rates for the county and the cities within the county.

Table 2. shows the proposed tax increase for the county (highlighted in yellow) and the 20 cent increase for the part of Hawkins County that is in the City of Kingsport.

If you need help on how to figure your property tax bill go the the following link.  How to Figure Your Property Tax Bill

ROGERSVILLE – Hawkins County commissioners will be considering a $91 million budget and 22-cent property tax hike when they meet Monday.

The property tax increase is estimated to generate slightly more than $1.6 million in additional revenue, with $880,000 of the new money earmarked for the sheriff’s office and jail budgets.

Under the spending plan, the sheriff’s office would add four new deputies and a secretary, with a jail administrative position and 19 additional guards hired to staff the new jail facility.

The commission meets at 7 p.m. in the main courtroom of the Hawkins County Courthouse.

Information about the meeting will be posted Monday night.

via The Rogersville Review – News Story – Budget, tax hike on Hawkins Commission agenda.

Table 1.

County	City		RATES
		County	City	Total
HAWKINS		$2.6100		$2.6100
HAWKINS	BULLS GAP	$2.6100	$0.7237	$3.3337
HAWKINS	CHURCH HILL	$2.6100	$0.8500	$3.4600
HAWKINS	KINGSPORT	$2.6100	$2.2500	$4.8600
HAWKINS	MOUNT CARMEL	$2.6100	$1.3700	$4.8600
HAWKINS	ROGERSVILLE	$2.6100	$1.2700	$3.9800
HAWKINS	SURGOINSVILLE	$2.6100	$1.1500	$3.7600
SULLIVAN	KINGSPORT	$2.5300	$2.3000	$4.8300

Table 2.

County	City		RATES
		County	City	Total
HAWKINS		$2.8300		$2.8300
HAWKINS	BULLS GAP	$2.8300	$0.7237	$3.5537
HAWKINS	CHURCH HILL	$2.8300	$0.8500	$3.6800
HAWKINS	KINGSPORT	$2.8300	$2.4500	$5.2800
HAWKINS	MOUNT CARMEL	$2.8300	$1.3700	$4.2000
HAWKINS	ROGERSVILLE	$2.8300	$1.2700	$4.1000
HAWKINS	SURGOINSVILLE	$2.8300	$1.1500	$3.9800
SULLIVAN	KINGSPORT	$2.5300	$2.3000	$4.8300

The City of Kingsport, Tennessee is applying for a grant to plant trees that will have matching funds that come from the regional sales tax fund and the visitor enhancement program.  The Meadowview Convention Center was paid off in 2007 and the city refuses to rescind the 1/4 percent sales tax, but wants to use excess regional sales tax money to plant trees.

 Mallicote stated in a radio interview that if the regional sale tax goes into the general fund, then it should be taken to the taxpayer to decide what to do with the regional sales tax.  When can the voters expect the referendum Mr. Mallicote? 

It would not surprise me to see the trees planted in the Meadowview area to make it more attractive.

Voted on and passed at the August 4, 2009 BMA meeting

Consideration of a Resolution to Authorize the Mayor to Sign alt Documents Necessary to Apply and |Receive a Tennessee Agricultural Enhancement Program – Community Tree Planting Project Grant

Executive Summary:
The TAEP (Tennessee Agricultural Enhancement Program) grant funds for community tree planting were provided by the 2008 State Legislature to the Tennessee Department of Agriculture. The goal of TAEP community tree planting grants is to increase the tree resource base in cities and towns across the State of Tennessee. It is NOT to provide beautification. Trees are work horses for our communities, providing energy savings through shading, storm water mitigation through rain interception, and air quality improvement through filtration and absorption. Beautification should not be used as an objective for a TAEP tree planting project.

The city is eligible to apply for up to $20,000 with a dollar for dollar cash match required. This match will be provided from money in the budget for trees from the regional sales tax and visitor enhancement program.

The school system is a partner in the grant and will be implementing a project through the agricultural class at Dobyns-Bennett.

April 24, 2009 post

Listen to the April 23 WJCW radio interview with Ben Mallicote who is seeking re-election as Alderman on the Kingsport Board of Mayor and Alderman

Click here for interview

In the radio interview, he is asked about the regional sales tax and he stated that there is still debt that needs to be paid off at Meadowview.  The Convention Center was paid off in 2007 and the debt that Ben Mallicote mentioned must be for the debt for the Cattails Golf Course.  When the voters voted for the regional sales tax to be used for the convention center, I am sure that the golf course had not been dreamed about.

Since the Convention Center had been paid off, Alderman Marsh and Shull voted to return the regional sales tax to the citizens by the way of a property tax deduction.

Mallicote also stated that if the regional sale tax goes into the general fund, then it should be taken to the taxpayer to decide what to do with the regional sales tax.

Mr. Mallicote should check the current budget he voted for, because part of the regional sales tax is going to the general fund.  When can the voter expect the referendum Mr. Mallicote?

1/4 percent Regional Sales Tax Fund Revenue
$2,816,600

Transfer to Cattails
$ 783,100

Transfer to MeadowView CC
$1,233,500

Transfer to General Fund
$ 800,000

King College, a denominational college located in Bristol, Tennessee, has been in discussions with Kingsport, Bristol, and Sullivan County officials to build a medical school in Kingsport and Bristol.

The cost for the medical school would be about $150 million.  King is looking for $50 million to come from the cities of Kingsport ($40 million) and Bristol ($10 million), $50 million from the State of Tennessee, and the remaining $50 million from private donations.

At the July 7, 2009, Kingsport, Tennessee Board of Mayor and Alderman, a resolution was passed on first reading to endorse the King College Medical School Initiative, and pledged its commitment to work with Bristol, Sullivan County, and King College to advance the project.

While it does sound like a good project for the area, there will be a major impact on the taxpayers if this is funded via a property tax increase.

Mayor Dennis Phillips has stated that if Kingsport were to fund $40 million for the project, property taxes would have to be raised 25 cents.

Below are tax rates that have been extracted from the Tennessee Property Tax Rates that show the top 20 cities that have the highest tax rates in Tennessee from 406 different tax rates for the different cities and counties.

I have added 25 cents to the tax rates for the two Kingsport line items (Kingsport-Sullivan and Kingsport-Hawkins) in the table below.  Kingsport, with the 25 cents added, would have a rank of 10 and 12 as having the most expensive tax rates in the state.  Bristol has a rank of 14 and I have no knowledge if they would increase property taxes.

Top 20 Cities with the most expensive property tax rates

R a n k	County	City	Total County and City Tax	Property Tax for $150k Home	Household Median Income	% Taxes from Household Income	Median Home Value
1	SHELBY	MEMPHIS	$7.29	$2,734	$32,285	8.47%	$130,695
2	SHELBY	GERMANTOWN	$5.63	$2,111	$113,733	1.86%	$278,800
3	SHELBY	BARTLETT	$5.63	$2,111	$74,091	2.85%	$164,600
4	KNOX	KNOXVILLE	$5.50	$2,063	$32,538	6.34%	$102,300
5	ANDERSON	OAK RIDGE	$5.45	$2,044	$45,474	4.49%	$120,100
6	SHELBY	COLLIERVILLE	$5.37	$2,014	$99,239	2.03%	$255,400
7	HAMILTON	CHATTANOOGA	$5.36	$2,009	$35,913	5.59%	$121,100
8	SHELBY	MILLINGTON	$5.32	$1,995	$43,753	4.56%	$124,144
9	MADISON	HUMBOLDT	$5.30	$1,988	$50,007	3.98%	$181,800
10	HAWKINS	KINGSPORT	$5.11*	$1,916	$34,391	5.57%	$99,900
11	SHELBY	ARLINGTON	$5.09	$1,909	$59,131	3.23%	$233,597
12	SULLIVAN	KINGSPORT	$5.08*	$1,905	$34,391	5.54%	$99,900
13	ROANE	OAK RIDGE	$5.04	$1,890	$45,474	4.16%	$120,100
14	SULLIVAN	BRISTOL	$5.03	$1,886	$36,454	5.17%	$94,000
15	MORGAN	OAKDALE	$4.98	$1,868	$32,174	5.81%	$47,502
16	COFFEE	MANCHESTER	$4.96	$1,860	$36,674	5.07%	$112,275
17	HAMILTON	LOOKOUT MOUNTAIN	$4.95	$1,858	$117,767	1.58%	$515,354
18	HAMILTON	RIDGESIDE	$4.95	$1,858	$103,995	1.79%	$293,387
19	LAUDERDALE	HENNING	$4.95	$1,856	$23,407	7.93%	$65,212
20	HAMILTON	SIGNAL MOUNTAIN	$4.93	$1,848	$78,175	2.36%	$283,948

* The current city and county combined tax rate for Kingsport-Sullivan County is $4.86 and Kingsport-Hawkins County is $4.86.  Twenty-five cents has been added to each of the Kingsport tax rates in the above table.

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The table below again shows the top 20 cites and the effect on the taxpayers’ Household Median Income.  There appears to be a disconnect with those cities having a high tax rate, lower Household Median Income and the percentage of Household Income needed to pay property taxes.

The household median income for Kingsport is $34,391 and the Kingsport majority of Kingsport property owners would pay over 5.5 percent of household income ($150k home) for property taxes if  the 25 cents is added to the Kingsport tax rate.  The Kingsport rank is 6 and 7 and Bristol comes in at a rank of 8 in the table below for the largest percent of household income needed to pay property taxes.

A taxpayer funded medical school would reduce the already low Kingsport household income and would reduce the standard of living for the majority of Kingsport citizens so the city could reap the benefits of increased revenue to spend on other pet projects.

Top 20 Cities that take the highest percentage of income for property taxes

R a n k	County	City	Total County and City Tax	Property Tax for $150k Home	Household Median Income	% Taxes from Household Income	Median Home Value
1	SHELBY	MEMPHIS	$7.29	$2,734	$32,285	8.47%	$130,695
2	LAUDERDALE	HENNING	$4.95	$1,856	$23,407	7.93%	$65,212
3	KNOX	KNOXVILLE	$5.50	$2,063	$32,538	6.34%	$102,300
4	MORGAN	OAKDALE	$4.98	$1,868	$32,174	5.81%	$47,502
5	HAMILTON	CHATTANOOGA	$5.36	$2,009	$35,913	5.59%	$121,100
6	HAWKINS	KINGSPORT	$5.11*	$1,916	$34,391	5.57%	$99,900
7	SULLIVAN	KINGSPORT	$5.08*	$1,905	$34,391	5.54%	$99,900
8	SULLIVAN	BRISTOL	$5.03	$1,886	$36,454	5.17%	$94,000
9	COFFEE	MANCHESTER	$4.96	$1,860	$36,674	5.07%	$112,275
10	SHELBY	MILLINGTON	$5.32	$1,995	$43,753	4.56%	$124,144
11	ANDERSON	OAK RIDGE	$5.45	$2,044	$45,474	4.49%	$120,100
12	ROANE	OAK RIDGE	$5.04	$1,890	$45,474	4.16%	$120,100
13	MADISON	HUMBOLDT	$5.30	$1,988	$50,007	3.98%	$181,800
14	SHELBY	ARLINGTON	$5.09	$1,909	$59,131	3.23%	$233,597
15	SHELBY	BARTLETT	$5.63	$2,111	$74,091	2.85%	$164,600
16	HAMILTON	SIGNAL MOUNTAIN	$4.93	$1,848	$78,175	2.36%	$283,948
17	SHELBY	COLLIERVILLE	$5.37	$2,014	$99,239	2.03%	$255,400
18	SHELBY	GERMANTOWN	$5.63	$2,111	$113,733	1.86%	$278,800
19	HAMILTON	RIDGESIDE	$4.95	$1,858	$103,995	1.79%	$293,387
20	HAMILTON	LOOKOUT MOUNTAIN	$4.95	$1,858	$117,767	1.58%	$515,354

* The current city and county combined tax rate for Kingsport-Sullivan County is $4.86 and Kingsport-Hawkins County is $4.86.  Twenty-five cents has been added to each of the Kingsport tax rates in the above table.

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I have heard some members of the Kingsport BMA express their desire to have a college located in Kingsport.  They should keep in mind that there are very large number of cities that have been successful without having a college and who also have a better standard of living than Kingsport.

College Cities	Household Median Income
Knoxville	$32,538
Bristol	$36,454
Chattanooga	$35,913
Johnson City	$35,746
Memphis	$35,181

The above cities that have a college appear not to have increased the standard of living and have a low household median income.

Below is the household income distribution for Kingsport and the household median income for Kingsport is $34,391.  In the graph below there are 2,636 people who earn less than $10,000  classifying them as living in poverty.

I challenge the elected officials to venture outside of their social and political groups and try to understand the plight of the majority of wage earners in the Kingsport area.  The medical school would bring jobs, but some of these jobs will be imported jobs and the common folks would not have the background or training for these jobs.  Ask what you can do to raise the standard of living (higher income) for Kingsport citizens without imposing a property tax burden.

I feel that the taxpayers should not be taking the risk of funding a medical school when there already is a state funded one in Johnson City.  The need for doctors in this area is questionable since the population is declining in Sullivan County.  If they area has trouble attracting doctors or keeping doctors, then take a hard look at the reason.

Quality of Life issues are important, but a good Standard of Living for local folks just might make the area prosper by increased spending by the majority of citizens.

The bottom line is that the area needs good paying jobs without the additional burden on the taxpayers.

I need to point out that no funding has been voted on so far, but projects such as this grows legs very fast and then its then to late to react.  The intent of this post is to make you aware of the issues so you can make your views know.  Update:  Many elected officials have expressed their support of this project including Lt. Governor Ron Ramsey who may make it a part of his campaign for governor.  Again, I must point out that I am not against the project but am very concerned about it being funded by taxpayers.

Please contact your elected officials and tell them NO to a taxpayer funded denominational medical school.  Click on the email links below and add your comments in your own email program.

email Kingsport BMA -  Mayor Dennis Phillips -  Vice Mayor Ben Mallicote -  Alderman Larry Munsey -  Alderman Jantry Shupe -  Alderwoman Valerie Joh -  Alderman Ken Marsh, Jr. -  Alderman Tom Parham	email Tennessee Legislators for area -  Lt. Governor Ron Ramsey -  Senator Mike Faulk -  Rep. Jason E. Mumpower -  Rep. Tony Shipley -  Rep. Jon Lundberg -  Rep. Dale Ford
email Sullivan County Commissioners See list for -  Commissioners individual emails or -  email Mayor and all Sullivan County Commissioners	email this post to a friend
email Candidates for Tennessee Governor -  Mike McWherter -  Roy Herron -  Ward Cammack -  Zack Wamp -  Bill Haslam -  Ron Ramsey -  Kim McMillan -  Jim Kyle

Many folks have asked questions concerning the property taxes in Tennessee. Below is information on how to calculate your tax bill for the county/city that you live in. You can see the rates for the different areas by going to 2008 Tennessee Property Tax Rates. The 2009 property tax rates are not available so far from the state.

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King College laid out their plans for a $150 million school of medicine to be located in Kingsport and Bristol.

They stated that they were looking for $50 million from Kingsport, Bristol, and Sullivan County, $50 million coming from the state of Tennessee and $50 million in private donations.

Mayor Dennis Phillips stated if Kingsport were to fund $40 million for the project, property taxes would have to be raised 25 cents.  He also said that if this project isn’t really sold to the citizens, there won’t be a board member here two years from now.

Could it be that Mayor Phillips out of control spending is getting himself in a tight spot over funding.  What is Mayor Phillips willing to give up or does he want to the fund the college and all of the other planned pet projects that are on the drawing board in the future.

Is Mayor Phillips willing to give up on the MeadowView Convention Center Expansion that will cost about $15 million?  What about the Aquatic Center, is the Mayor and his gang willing to give up on the new tourist pool?  Is the Mayor willing to give up on the expansion of the library and the Justice building?

Mayor Phillips, what about the $34.7 million in new bonds that you recently got funding for?   A little old $34.7 million didn’t stop you then for projects that would not have any or very little return in profits.

The solution to the above money dilemma is very simple!  Let the voters decide on future spending projects by the city.  I am sure that there are many voters that would like to re-visit the MeadowView expansion and stop pouring more money into something that does not make money.

Read the Kingsport Times-News article

Read the Comments for the Kingsport Times-News article

Famous Quotes from the Kingsport Board of Mayor and Aldermen

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

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

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

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

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

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

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

Many Sullivan County residents will get some bad news this week as they learn exactly how the county’s latest reappraisal will affect their property values and potential tax payments.

Property Assessor Bob Icenhour said the average county land value has increased by about 23 percent since the last reappraisal was conducted in 2005.

“While in a majority of states, property values have gone down, ours have shot up,” he said, adding that some properties will see an increase of less than 23 percent, while others will see more.

Read more via Property Owners Told to Brace for Possible Tax Hikes | TriCities.

The cost of the TARP is going to be more expensive thanoriginally budgeted and the taxpayer will be left holding the check. What a surprise. The government will be wrong on the costs of a lot of bailout programs, so this is just the first in a long lists of items which will eventually have to be recouped by higher taxes, probably over the next five or six years.

Read more via The Congressional Budget Office Says Taxpayers Are Shafted – 24/7 Wall Street.