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Recently we asked the City Attorney for and received a listing of all appointed officials working for the City of Memphis. We asked for their names, salary, job titles, and years of completed pension service. We wanted to see who had been hired over and above the 119 positions the City Charter authorizes. We came up with some interesting facts and a solution to the impending budget crisis without needing any property tax increase. We have a list of 112 appointed people who have 8 years or less of service and who make a total salary of $4,950,000.00. Here are some examples of their job titles. 29 SPEC-WORKFORCE DEV at $39,325.00 ea for a total of $1,140,425. 6 MGR-FACILITY/GOLF at $54,636.00 ea. for a total of $327,816. There are many other examples of needless positions but that gives you some examples that were obvious in looking at the 112 positions. By laying off these 112 people we will close the 5 million dollar budget gap. Also consider the savings from keeping these people from getting onto the 12 year January 2001 pension system. First there are the pension payments themselves which could run 30% of the $4,950,253 times 20 years (this is a guess) times 112 people and you are talking 30 million dollars. Also add in the health insurance for 112 people with the city paying 70% times 20 years times 112 people and you have another 13 million. And these guesstimates are probably conservative. Pretty soon you are talking real money. This is a real solution to our budget problems, not the smoke and mirrors the Mayor has proposed.   January 7, 2005 Here are some interesting facts that you need to know as the Mayor says that Memphis needs a large property tax increase. Look at the record. The 1992 City of Memphis operating budget was 252 million dollars. The 2003 City of Memphis operating budget was 461 million dollars. This is an increase of 83%. However, the Consumer Price Index (CPI inflation rate) for this period was 31%. This is an increase in spending by more than 2 ½ times the inflation rate (2.67). The 2005 adopted budget is 495 million dollars, a 96% increase from 1992. The property tax income to the city in 1992 for the operating budget was 77 million dollars. The 2003 property tax income was 147 million dollars. This is an increase of 90%. The population increase in Memphis over this period was about 7%. The total City employment in 1993 was 6022 people. The total City employment in 2005 is proposed to be 7164, up 19%. The City Attorney’s staff went up from 35 to 57. The City Attorney's budget went from $1,825,000 to $5,782,000, an increase of 321%. The City Council is completely out of control. They have gone from a staff of one secretary at its formation in 1968 to a staff of 26 and a budget of $1,631,733. It is time the taxpayers take control back from these politicians. The Mayor says that hiring two more high paid assistants is inconsequential in our multi million dollar budget. In other words, peanuts. Well, elephants grow large on peanuts and it is time we put this elephant on a strict diet and force it to live within the taxpayers pocketbooks. The following letter was sent to the City Attorney (Sara Hall) on November 24, 2004. The writer received a reply promptly and was told that she would look into the matter and acknowledged that it was an open records request. She said that her office would review the matter and respond as soon as possible. After receiving no reply for over a month the writer sent another letter on January 3, 2005 telling her that the writer had received no reply to the November 24th letter and demanded an answer within a week and reminded her of her obligation to comply with the Tennessee Open Records Law. As of mid February the writer still has not received a reply. The reason that the writer wrote the letter and the reason that she (at the Mayor’s insistence) is not replying is that the Mayor has appointed some 310 people to positions whereas the City Charter only lists 108 appointed positions. The City Council is aware of this situation and has done nothing to correct the situation. The possible liability of these extra 202 appointed people in terms of pensions could run into the millions. An example is Roland McElrath, former city director of finance and administration who left to work for the city schools after the January 2001 pension resolution took effect. He will collect $1.4 million dollars if he lives to be 82. Think of the possible cumulative effect on the future budgets if the other 202 collect on this stupid city council decision. November 24, 2004 Ms. Sara Hall City Attorney City of Memphis 125 N Main Memphis, Tennessee 38103 Dear Ms. Hall, As a taxpayer of the City of Memphis I would like the following information. 1. How much has Allan Wade and his law firm been paid by the City and by the City Council during the year 2003? 2. How much has Allan Wade and his law firm been paid by the City and by the City Council during the year 2004 up to this date? How much has been billed up to this date but as yet unpaid? 3. Do the above payments include a retainer? How much is the yearly retainer if such exists? The City Council 2004 proposed budget shows one staff attorney but does not show the budget amount from the $1,551.628 proposed expenditures for this service. 4. How much is being paid each month during 2004 in pensions to people that retired under the January 2001 pension change for elected and appointed city officials? 5. What is the future possible monthly liability over and above the money being paid under item 4 if all the people who are qualified under the January 2001 pension change retire after 12 years and start receiving city pensions. I want to thank you for your prompt and timely handling of this request and since I assume most if not all of this information is on the computer, I assume I will receive this information within 15 to 30 days. If you need any additional information about this request, I am available at 7540699. Joseph N. Saino 6560 Kirby Forest Cove Memphis, Tennessee 38119 In view of the recent newspaper articles about FedEx Arena bond downgrades, you should know what the bond agreement says about the sources of funding for the Arena bonds. Practically everything that was not nailed down has been pledged to pay for this Arena. It cost over 250 millions dollars plus due to the contract, we were left with a 32 million dollar unpaid debt on the stainless steel white elephant known as the Pyramid. Due to the petition drive led by Heidi Shafer, property taxes (ad valorem taxes) are not to be used to pay for the Arena bonds. But what happens when there is not enough money from the below listed sources and the Mayor and the City Council comes and says "We need to raise property taxes, but it not because of the Arena bond shortfall". You are seeing that happening now. Arena Financing Facts According to the bond agreement (283 pages), the following items stand out. The Senior Lien Revenue Bonds shall be payable from the following sources. 1) A $ 1.15 per seat use charge on paid Arena events.. 2) Rebate of sales tax revenues to the City and the County for the exclusive use of the Sports Authority derived from NBA Franchise events, concessions and the sale of NBA franchised merchandise in the County. 3) City Hotel/Motel Tax Revenues derived from certain hotel/motel taxes imposed by the City pursuant to the provisions of City Ordinance 4824. (A 1.7% tax was added to the existing 5% plus the 8.25% sales tax for a total of 14.95%). 4) Certain County Hotel/Motel Tax Revenues (to the extent certain tourist development zone sales tax increment moneys are received) and subordinate to certain pre-existing debt. 5) Payments in lieu of taxes from the Water Division of MLG&W pursuant to that certain PILOT Agreement between the City and MLG& dated July 1, 2001. 6) A new 2% County-wide car rental tax imposed pursuant to Section 67-4-1907 of Tennessee Code Annotated. The City further covenants and agrees to transfer to the Authority for the benefit of the holders of the Senior Lien Revenue Bonds, all City's Hotel/Motel Tax Revenues commencing in fiscal year 2016-2017 and continuing until the Senior Lien Revenue Bonds are fully paid. The city and the County hereby acknowledge and agree that under current Tennessee law, the State and local portions of the Sales Tax Rebate Revenues are required to be transferred directly to the Authority for the benefit of the Revenue Bonds. That in the event the revenues pledged to the support of the Senior Lien Revenue Bonds shall prove to be insufficient to pay debt service on such Senior Lien Revenue Bonds in any bond year, the City and the County hereby covenant to timely appropriate fromn legally available non-ad valorem revenues sufficient moneys to replenish draws from the debt service fund. Click here to read an article written in the Regional Economist, the quarterly of the Federal Reserve Bank of St. Louis, titled "Should Cities Pay for Sports Facilities?" | Return Home | TODAYS NEWS AND MAIL | MEMPHIS CITY GOVERNMENT NEWS | MEMPHIS CITY COUNCIL NEWS | MLG&W NEWS | SHELBY COUNTY GOVERNMENT | MONEY MATTERS | CONTACT US | FAQ Page | |
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