No WhiteWash!

Kingsport citizens might not appreciate the Kingsport Times-News Sunday editorial for suggesting for whom to vote in the Kingsport elections.  The Kingsport Times-News must think that the citizens are not perceptive enough to make up their own minds for whom to vote.

One needs to ask, what is role of the Kingsport Times-News with Mayor Phillips.  I think you can assume that the very top management at the Times-News and Mayor Phillips are pals, fishing buddies, etc.  Because of this relationship, this blog has reported on many subjects that the Times-News did not cover.  One needs also to look at the role of the top management at the Times-News in positions appointed by the mayor as whether they can be objective in their reporting.

The Times-News is fighting for its own survival as are other newspapers across the United States.  If the Times-News had to put up their own money to support the spending habits of the current BMA gang of five, then it might be a different story.

The way I see this election is the elites will come out in droves to elect those who will benefit them.  There are the special interest groups that put up the big bucks to fund the mayor’s campaign or other alderman candidates.

You as a voter are smart enough to make your own decision for whom to vote.  I will not suggest that you vote for a certain candidate, but consider all of facts and make your own informed decision.

But I do request one thing and that is to please vote.  Get your friends and neighbors to vote also.  How about you Tea Party folks, do you want to have your vote counted in this election? If you don’t vote……then your complaints about the elected officials have no voice.

Whatever the outcome of this election, this blog will continue to report on the Kingsport Government for the citizens.

May 19, 2009, 8:00 a.m. to 8:00 p.m.  Voting locations are below.

• Kingsport Civic Auditorium:  Precinct 11S
• Traders Village, 2745 E. Stone Drive,  Precinct 11T
• Kingsport Public Library: Precinct 11W
• Clouds Bend United Methodist Church (in Ridgefields neighborhood): Precinct 12CB
• Ketron Memorial Methodist Church, 301 Virgil Avenue,  Precinct 12K
• Sullivan South High School:  Precinct 13P
• National Guard/Army Reserve Armory (Hawkins County across from Allandale)

Below is a video from the KNETIC debate, that shows two different perspectives on economic development between Pat Shull and Ben Mallicote, who are both running for re-election for the Kingsport Board of Mayor and Alderman.

Ben Mallicote stated in the KNETIC debate that Cincinnati, Ohio is not recruiting businesses and instead recruiting people.  Read the Cincinnati 2009-2013 Work Plan at the bottom of this post and decide yourself if the statement that Ben Mallicote made concerning Cincinnati is a true statement.  Also click on the links below and I think you will see that Cincinnati has a lot going on concerning economic development.

He appears to be anti-smokestack type businesses, but I should remind Ben Mallicote, that the patents that he talks about most likely came from those companies like Eastman that have smokestacks.

Cincinnati also states the following.

Each new company that locates here fortifies the entire region. Research shows that one new company bringing 50 new jobs will create 51 additional jobs in other industries, generating $4.1 million in wages and salaries for the total 101 jobs. This triggers an estimated 67 new housing units with $6.8 million in sales and, subsequently, $2.6 million spent on food, clothing, vehicle, entertainment and other goods purchased. One company. 50 new jobs. Significant regional impact for everyone.

2008 Annual Report

2008 Regional Business Growth Report

2008 Regional Business Retention Report

City of Cincinnati

Below is page 16 from the 2008 Annual Report

The KNETIC BMA FORUM is now on TV and online at www.MyTown16.com.

The schedule for MyTown TV Channel 16 is as follows:

May 15, 2009 (Friday):

9 AM
11 AM
1:30 PM
7 PM
10 PM

Listen to the May 8 WJCW radio interview with Dennis Phillips who is seeking re-election as Mayor for Kingsport,  Tennessee

Click here for interview

In the radio interview, Dennis Phillips appears to attack the two Alderman (Shull and Marsh) and portray them as non-progressive.  Labeling Shull and Marsh by Dennis Phillips as non-progressive in my view cannot be backed up by Mr. Phillips if you check Shull’s and Marsh’s voting record.   You will hear him talk about how there are 5 votes for progression and 2 votes against.

Mayor Phillips is running unopposed in this election and it is clear to me that he wants Alderman Shull to be defeated.  Dennis Phillips does manage to get what he wants with the current BMA members that always vote with him (Munsey, Mallicote, Joh, and Shupe).  What he wants is more of a majority and have no opposing votes or views.  This would give the mayor free rein to do as he pleases.  To me this would be very unhealthy for Kingsport citizens.

He mentions that the two Alderman voted against the major employer in Kingsport (Eastman).  There was only one Alderman that voted against giving Eastman a tax break of $28 million and his reason is explained here.  I would like to add that at the time of this vote, Eastman was having a great year as far for sales and profits.

Dennis Phillips mentions Food City that the gang of five voted to give a tax break and the sales tax that was generated.  Take a look at the following link to see how well Dennis Phillips has done in the last four years as mayor   Kingsport Facts

Voting for Dennis Phillips will give him an endorsement that you agree with his “out of control” spending.

U.S. NATIONAL DEBT CLOCK

The Outstanding Public Debt as of 09 May 2009 at 10:09:02 AM GMT is:

The estimated population of the United States is 306,148,997
so each citizen’s share of this debt is $36,786.13.

The current debt of Kingsport is around $190,000,000.  There are plans on the drawing board to spend over $90 million more, which would make a total debt of $280 million This would make the Kingsport debt per citizen, $6,301 or $13,988 per Kingsport household.** For a small city, Kingsport debt seems very high as compared to the national debt.  Kingsport has not bailed out the auto industry, banks, or fought any wars, etc.

Is this debt what you want for your children and grandkids?  If you agree with Dennis Phillips Tax, Borrow and Spend tactics, then vote for him and his chosen BMA members that vote with him.  You can also not choose to vote for him or do a write-in vote.

**  U.S. Census data used.  2000 census – people per household was 2.22

I have heard about a few reports of questionable political activity by City of Kingsport employees and below is Kingsport City Code concerning political activity by city officers, and employees.

Sec. 6. Political activity by city officers, employees.

To the extent permitted by federal law and except as provided by state law, neither the city manager, city attorney, recorder, city judge, chief of police, nor any person in the employ of the city under any of the said officers, shall take any active part in or contribute any money toward the nomination or election of any candidates for election to any municipal office of the city, except to answer such questions as may be put to them as they may desire to answer. A violation of this section shall subject the offender to removal from office or employment and to punishment by fine of not more than fifty dollars ($50.00).

(Pvt. Acts 1917, Ch. 76, Art. 2, § 6; Pvt. Acts 1980, Ch. 244, § 2; Pvt. Acts 2001, § 3)

Editor’s note: It should be noted that the Public Employees Political Freedom Act of 1980, T.C.A. §§ 8-50-601–8-50-604, guarantees public employees’ right to communicate with elected public officials for any job-related purpose.

Sec. 7. Political promises.

No candidate for any office nor any person shall directly or indirectly give or promise any person or persons any office, employment, money, benefit, or anything of value for the purpose of influencing or obtaining political support, aid or vote for such candidate, and any person violating this provision shall be punished by a fine of not more than fifty dollars ($50.00).

(Pvt. Acts 1917, Ch. 76, Art. 2, § 7)

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.

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

Ben Mallicote stated in the Rotary Club debate that he was humbled to serve as Vice Mayor of Kingsport.  Well, that is what he would like for you to believe.

The real story is that Ben Mallicote thought so much of himself that he nominated himself to be Vice Mayor and Mayor Phillips cast the deciding vote to break the tie.

I know of only one vote that Ben Mallicote has voted differently from Mayor Phillips.  He has stated in the past that Mayor Phillips is like a 2nd father to him.

Ben Mallicote would like for people to think he is an independent voice on the BMA.  But, with the exception on one vote that I am aware of, he votes the same as Mayor Phillips.  That is what Mayor Phillips wants, he gets!

Those city residents that go to the BMA meetings or watch on TV have more than likely observed the abrasive nature of Mr. Mallicote’s comments when other BMA members present a different viewpoint.  On this blog I have used the words “attack”, “anger”, “hissy fit” in describing the comments coming from Mr. Mallicote.  It is interesting to note that I have not seen any “hissy fits” coming from Ben Mallicote while he is running for re-election.

Clearly, Ben Mallicote has earned the title of “Tax, Borrow, and Spend” specialist by his voting record.

Below are the July 3, 2007 Regular Business Meeting Minutes for the Vice Mayor vote.

III.A SWEARING-IN ELECTED BOARD MEMBER OFFICIALS. City Recorder Jim Demming swore in the re-elected Mayor Dennis R. Phillips (joined by his wife and son), along with re-elected Alderman Larry A. Munsey (joined by his wife) and newly elected Alderman, Jantry Shupe (whose mother was in the audience). Alderman Marsh was not present and chose to be sworn in at the next business meeting rather than telephonically.

III.B ROLL CALL: By City Recorder Demming. Aldermen Marsh and Shull joined the meeting telephonically at this time.

III.C SELECTION OF VICE-MAYOR. Mayor opened the floor for nominations for vice-mayor. Mr. Marsh moved to postpone this action for two weeks in light of the physical absence of himself and Aldermen Shull, who seconded the motion. Mayor Phillip read from the City Charter stating that selection is required to be made at the first meeting in July, following an election and City Attorney Billingsley confirmed. Alderman Shull nominated Mr. Marsh, if the action is not deferrable. City Attorney Billingsley stated that no second is necessary. Alderman Mallicote offered his services as vice-mayor and Alderman Marsh moved that nominations cease, with Alderman Shull seconding. Board discussion followed whether to limit the nominations.

A vote was taken regarding ceasing nominations and failed, with Joh, Shull and Marsh voted “aye” and Mallicote, Munsey, Shupe and Phillips voting “nay.”

City Attorney Billingsley clarified that the roll call vote for vice-mayor required a majority vote; namely, four votes for one candidate.

Alderman Shupe nominated Mr. Munsey who indicated he was willing to continue as vice-mayor. Mayor Phillips announced the three vice-mayor candidates would be voted on by each Board member stating the name of the candidate for whom they were voting as a roll call vote was taken. A three-way tie resulted as follows:

Joh and Mallicote: Mallicote

Marsh and Shull: Marsh

Munsey and Shupe: Munsey

Mayor Phillips did not vote because no candidate would receive a majority vote. At this point, the mayor asked the three candidates to give a brief synopsis of why each would like to serve as vice-mayor and what each would bring to the board in that position. Another roll call vote was taken and resulted in a majority vote for Mr. Mallicote as follows:

Joh – Mallicote

Mallicote – Mallicote

Marsh – Marsh

Munsey – Munsey

Shull – Marsh

Shupe – Mallicote

Phillips – Mallicote

Mayor Phillips stated his appreciation for Mr. Munsey serving the Board extremely well as vice-mayor and has enjoyed working with him immensely and will continue to do so in his service as alderman. The mayor added that he would like to see the BMA devise a less divisive process for selecting a vice-mayor and would like to discuss improving the procedure further at the Board’s retreat.

Ben Mallicote seems to be in a tight spot in this election over his vote to refuse to give the regional sales tax back to the citizens via a property tax deduction after it had served its purpose.  Alderman Marsh and Alderman Shull voted to give the tax back to the citizens.

I had a chance to watch the video of the Rotary Club debate on cable channel 16 and it was very clear to me that he was trying to justify his vote on the regional sales tax issue.  Mr. Mallicote, why didn’t you not at the time of your vote bring up the same reasons as you did in the Rotary Club debate.

Alderman candidates debate what’s best for city at Kingsport Rotary Club

Kingsport Times-News

Mallicote, also first elected to the BMA four years ago, said you couldn’t consider Shull’s suggestion without considering the cost and trade-off.

“In the midst of this great housing crisis, Kingsport is third in the nation in home price appreciation. When other municipalities are seeing double-digit drops in sales tax collections, Kingsport is seeing double-digit increases,” Mallicote said. “Without the investment this board has made, we wouldn’t have Target, the new Food City, East Stone Commons, all of the new residential options, the higher education and allied health facilities, the revitalization of downtown, the new concert series, and a nationally recognized school system.

Mr. Mallicote mentions double-digit sales tax collections, but I doubt he can back up that statement with data.  See previous post that debunks this statement.  I am sure that Pat Shull is is thankful that Mallicote mentioned all of the other investments that Pat Shull voted for.

Mr. Mallicote again I feel is on the defensive in the radio interview on WJCW on April 23 concerning the regional sales tax.

Could it be that Mallicote does not have the security of the other four members of the Gang of Five to help him defend his vote?   Phillips,Joh,Shupe, and Munsey also voted against giving the regional sales tax back to the property owners.

The October 21, 2008 BMA meeting got a little heated with Vice Mayor Ben Mallicote going on the attack when Marsh and Shull attempted to state their views in a business like way.

See the November 11, 2008 post below for more information.

Click on the More Info button for all posts that discuss  Ben Mallicote

Kingsport, Tennessee BMA refuses to rescind Regional Sales Tax after it had served it’s purpose

Alderman Marsh presented a resolution at the October 21, 2008 Kingsport Board of Mayors and Aldermen to eliminate the quarter percent sales tax that voters approved in 1992 to fund the Meadowview Convention Center.  The quarter percent regional sales tax had served it’s purpose and the convention center debt was paid off in 2008.

The resolution was to use a portion of the regional sales tax to reduce the property tax rate for citizens. The citizens of Kingsport could have received a reduction in their city property tax, but the resolution was quickly voted down by the “gang of five”. (Mayor Dennis Phillips, Vice Mayor Mallicote, and Aldermen Munsey, Joh, Shupe)  See Kingsport Times-News article  “Marsh urges scuttling MeadowView expansion

The decision of the “gang of five” showed their true colors by voting against the citizens for a property tax refund and instead voting for special interest groups.

Alderman Shull and Marsh have in the past tried to discuss the future of the regional sales tax, but Mayor Phillips would always table the discussion.  It is my feeling that Mayor Phillips had no intention of ending the regional sales tax and had plans to use it for MeadowView Convention Center expansion.

The October 21, 2008 BMA meeting got a little heated with Vice Mayor Ben Mallicote going on the attack, Alderman Joh stated that Aldermen Shull and Marsh were just sore losers.  Mayor Phillips stated that without MeadowView the city would have to raise taxes.  He also made a statement that MeadowView is needed to keep from reducing police and fire protection and doing trash pick-up every two weeks. Mr. Mayor, stop the spin, it may be news to you, the convention center has been operating at a loss and the taxpayers are in fact keeping the convention center in business.  The voters of Kingsport are smarter than you think, Mayor Phillips.

Maybe, I will in the future do a post about the wasteful spending in the City of Kingsport by Mayor Phillips and his gang.

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

On September 16, 2008, the Kingsport, Tennessee Board of Mayor and Aldermen voted to spend $819,000 for an architect to design the $15 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.  There were discussions on using the regional sales tax to fund the convention center expansion.

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.

Simply put, this is an example of the City of Kingsport catering to special interest groups and there seems to be no value to the citizens of Kingsport.  See posts Kingsport, Tennessee incestuous relationship with special interest groups, Convention Center issues plague cities, and More hissy fits in Kingsport, Tennessee Board of Mayor and Aldermen for more background information.

What are you views on the action of the BMA to not give back to the taxpayers the regional sales tax?  Leave a comment.

A concern that I and many others have  is the current balance of power on the Kingsport Board of Mayor and Aldermen.  For example, the five members below very nearly vote the same.  This means that if Mayor Phillips wants something, he almost always gets it.

Mayor Dennis Phillips *	Vice Mayor Ben Mallicote *	Alderman Larry Munsey	Alderman Valerie Joh *	Alderman Jantry Shupe

Alderman Shull and Alderman Marsh have shown the most restraint in spending the taxpayers money.  Aldermen Shull and Marsh do vote for worthwhile projects such as the Higher Education Center, but draw the line on certain issues such as funding the MeadowView Conference Center Expansion ($15 million).

They voted to give the 1/4 percent regional sales tax back to the citizens because the current Convention Center has been paid off.  They lost the vote because of the gang of five above.

Aldermen Shull and Marsh both were in support of the V.O. Dobbins renovations, but withdrew that support when the project expanded putting the City of Kingsport in direct competition with the private sector as a landlord leasing space to non-profits.  They also had a problem with the citizens’ tax dollars being used to subsidize the non-profit organizations.

They both have shown restraint in their discussions and votes when it comes to bigger budgets and bigger government.

The three new Aldermen candidates below have stated that they agree with what the BMA has done in the past and they appear to be more like the gang of five.  Since we know what Mallicote and Joh have done in the past, there might be an advantage to elect two of the new candidates below to replace Mallicote and Joh.  Re-electing Pat Shull in my view is needed to have some form of check and balance on the BMA.

I fear that if Shull is not re-elected, then a blank check will be given to city government to do as they please when it comes to spending and new city budgets.

* Term expires June 30, 2009