Archive for the ‘Appraisals’ Category

Workforce Development And Training

Wednesday, May 31st, 2017

Workforce Development And Training

 

I am an advocate of open records access and workforce development and training. For many years I have been asking taxpayer funded public bodies for information on finances and evaluation of the effectiveness of the public money that they spend. Some of these bodies are very forthcoming and I would rate the local Shelby County government at the top of the accessibility scale and the old Memphis school board and the successor, Shelby County School Board, at the bottom.

Mainly my focus is local and generally I have not tried to get detailed information on any agency at the Federal Government level. In 2015 there was an article in the CA which caught my eye. This was an article about a $42 million dollar federal grant to provide no-cost career technical and academic training to nearly 300 people over five years. The facility designated was the Dr. Benjamin L. Hooks job Corps center at 1555 McAlister Drive here in Memphis.

As a taxpayer I felt I was entitled to enter and see the facility and learn how my tax money was being spent and how effective was the program. I drove out to the facility one day and was stopped at a guard gate. I told them that I wanted a tour and was told that I would have to make an appointment. I said fine, I would call and make an appointment.

I tried several times and never was able to get to anyone but an answering machine. I left word and a return call number and message but never got a return call. I was frustrated but I did not give up.

This year I tried again and after several calls I got the names of some of the staff. I was able to make a 10 AM appointment with Mr. Smith and I showed up for the appointment at 9:45 at the guard gate. I told the guard about the appointment and was told Mr. Smith was not in. I had the names of several other people and finally the guard tracked down Mr. Harris and I was allowed for the first time to enter the facility.

The facility is interesting. The facility history is that it started out as Memphis Preparatory School which was setup in the face of school integration in the 1970s. It eventually had to close due to finances and the property and the buildings eventually sold to the US Department of Labor for $1.975 million dollars. According to the 2015 CA news story the facility had 232 students aged 16-24 living at the center and 55 non-residential students. According to Mr. Harris this is still the approximate numbers.

I toured the facility with Mr. Harris and saw two dormitories which separately house women and men students. Also there is a child care building for children of the students and outside families able to get into the facility. I viewed classes which included carpentry, industrial electronics and medical and nursing assistant programs and forklift training.

I asked if they published a financial statement and he said he was not aware of one. Concerning performance reports of results I was able to pull up one on the internet as shown from 2012/2013. It showed a graduate average wage of $8.73/hour and a 44.5% full time graduate placement.

Upon further research the facility is run by Minact Inc. under a subcontract with the labor department.

A very interesting thing happened. Due to my telephone requests to the center I got an email from Mr. Wayne Gillard asking me for the best number to reach me. On his email he is listed as “Outreach and Admissions, Job Corps, Alutiiq Commercial Enterprises, LLC, 22 N. Front St, Suite 680, Memphis, Tn 38103.

I looked up Alutiiq and it is listed as a wholly owned subsidiary of Afognak Native Corporation. Here is a statement from their website.

Afognak Native Corporation (Afognak) is an Alaska Native Corporation (ANC) formed under the 1971 Alaska Native Claims Settlement Act (ANCSA) and through the 1977 merger of two Alaska Native village corporations: Natives of Afognak, Inc. and Port Lions Native Corporation. Native corporation shareholders are those Alaska Natives who were alive on December 18, 1971, and have proven their lineage to the respective region and village. Congress termed ANC enrollees “shareholders,” although being an ANC shareholder is truly more comparable to a tribal membership – it is a lifetime enrollment that cannot be bought or sold.

This all seems very strange to me. Is there anyone out there who can provide more information how native Alaskan tribes are involved so deeply in workforce development all over the country?

The Hooks center seems well run to me. My question is “What is the cost per student and what are we spending per student nationally on workforce development? Is our tax money being spent wisely? How can we find out? Open the Hooks center to the public and let the public see this facility as we are able to see Southwest Tennessee Community College and Tennessee Tech. Also provide detailed cost and result information to the taxpaying public. What do you think?

 

The Highland Street TIF District

Tuesday, May 16th, 2017

The Highland Street TIF District

 

TIF stands for tax incremental financing. The theory is that a certain part of a city is in decline and that by creating a TIF district and investing in certain projects in the district, the future for that district will improve economically and that the tax revenue increases from that district year over year will finance the investment required to pay for the new projects in that district.

There is a TIF district on Highland Avenue south of central and the genesis of this TIF district comes from the University of Memphis and their desire to change the area to benefit the university and its growth. The city public library on Highland was closed as a result. The area of the TIF district is as shown on this map.

The finances of this district are as shown on this Highland Row Bond Amortization schedule. I hope that it works financially which depends on the incremental increase of tax revenue in the district  sufficient to cover the bond payments with interest to the tune of almost $26 million.

As I drive around this area along Highland and Ellsworth I wonder about the design and appearance. Frankly in my opinion the apartments along Highland are ugly, boxlike and unattractive. I wonder about the neighbors along the west side of Ellsworth and the future of this residential area. Maybe over time and with sufficient plantings the appearance will improve. What is your opinion? I would love to know.

 

The picture below in the center is a view of the west side of Ellsworth. The picture on the west below is a view of the west side of Highland of some of the apartments. The picture on the right side below is a view of the parking garage for the apartments.

The Cargill Pilot

Monday, January 5th, 2015

January 6, 2015

The Cargill Pilot

Recently a reader of my blog asked me the following question.

“When a company pulls out before the end of their PILOT agreement, do they pay a penalty for not having delivered as promised?  I am thinking of Cargill.”

I responded “Good Question. I will check. I emailed EDGE (Economic Development Growth Engine) and asked for a copy of the Cargill Pilot agreement. They promptly responded as follows.

theath@growth-engine.org “The Cargill Lease, along with most documents, are online. See http://growth-engine.org/archive/?g=/Data%20By%20Company/Cargill

I went there online and found a number of documents about Cargill but the one that was most interesting was the following one entitled “Application Of Cargill Incorporated For Payment In Lieu Of Taxes” dated in 2010. Look at page 48 which is a letter signed by Mayor Wharton with promises of tax reductions close to $12 million and a $3 million dollar funding to assist in rail enhancements.

Then look at page 42 where Cargill would possibly provide a $500,000 funding for a school bus project in order to delay installation of equipment at Cargill to reduce their air pollution. I am not sure if they ever provided this $500,000. Does anyone out there know? Here is an article about the proposal.

Cargill is a big company and they do what is best for Cargill. They are a big employer and any city would be proud to have them as a local employer. It is best that all citizens know what is going on in the tax deals and EDGE is to be complimented for posting this information on line. However they still have not provided the critical information about properties that finish their Pilot contracts and the important information about whether they are paying the full tax amount that they were abated during the Pilot or whether they somehow left town, got an extension of the Pilot or are somehow paying less than their full share. Post that information on line PLEASE!

The Fairgrounds TDZ Zone

Thursday, November 20th, 2014

November 20, 2014

The Fairgrounds TDZ Zone

Here we go again with another proposed development project directed by the City of Memphis development wizard, Mr. Robert Lipscomb. Now it is the Fairgrounds involving the old Coliseum, Liberty Bowl Stadium and all the other buildings and improvements on the fairground property.

In an August 2014 article in Smart City Memphis it was stated that “the TDZ does not siphon dollars from the city’s tax base because no city general fund money is spent on the project, and in fact, it may expand the city’s tax base by increasing adjacent property values and citywide sales taxes.  That’s one of the reasons we prefer TDZ and Tax Increment Financing (TIF) over PILOTs: the project pays for itself with the taxes created by the project itself.  In other words, it is self-financing, but best of all; the new incremental taxes in the TDZ are predominately state sales taxes that stay here to pay for the project rather than being sent to Nashville where about 80% of it would be spent all across Tennessee.”

However here is what a Moody’s investor’s service bulletin said about a Memphis Center City Revenue Corporation’s $20.1 million Stadium project and other Tourist Development Zone projects downtown.

The current issue is ultimately secured by all non-tax revenues that are legally available, other than ad valorem revenues, in the city’s General Fund. The ratings of the bonds are based on the city’s pledge to replenish the debt service reserve fund in the event of a draw on non-ad valorem tax revenue.

My point here is that if these bonds issued for the Fairgrounds TDZ are the same as those for the downtown TDZ zone; then if the incremental tax revenue is not sufficient to cover the required bond payments, then all city revenue other than the Ad Valorem Tax (basically property taxes) will be called on to make up the difference. It is not risk free. Take a look at the attached general fund revenue sheets from the 2013 City of Memphis budget. You will see that ad valorem taxes are about 40% of the revenue. The rest presumably would be subject to the bond insurance.

Memphis 2020 Growth Plan “Investing In The Future”

Monday, September 9th, 2013

September 9, 2013

 

Strategic Five-Fiscal and Management Plan

 

I have been reading through the huge five year City of Memphis Management Plan prepared by the Mayor’s Office of Strategic Planning and the PFM Group involving Rick Masson and V. Lynn Evans.

 

It is fascinating and full of information. It will take me some time to digest it. As I do I will let you, the tax paying public, share in the (more…)

Long Term Fiscal Health For Memphis

Monday, July 15th, 2013

July 15, 2013

There was an article in the CA yesterday entitled “What path to long-term fiscal health for Memphis”. The article had statements by several Council members and here is my take on their statements.

Shea Flinn: He starts off with the theory of the survival of the fittest. He states that some of his colleagues see city government as the employer of the first, second and last resort. I agree because whenever I suggest a reform evolving layoffs, most of the City Council members have a nervous breakdown. He points out that the majority of the Council refuse to face the facts.

He made the bold proposal to raise the tax rate to a level to pay for the present level of services. They refused and stuck their heads in the sand.

Myron Lowery: Myron pointed out that the $3.36 tax rate would produce the (more…)

The Budget Beast-Reform Or Put It On A Diet

Monday, April 29th, 2013

April 29, 2013

I heard City Councilman Jim Strickland recently talking about the upcoming budget hearings. He is chairman of the budget committee. He has a tough job as it is difficult to get seven votes to pass any significant cuts.

His suggestion seems to be to put the budget beast on a diet. In other words, the County Assessor has predicted that the new property tax assessments will be down 4-1/2%. Jim wants to let the pot of property tax money fall by this amount which would mean a reduction of about 3-1/4%. The Mayor, on the other hand, wants to increase property taxes rates by 28 cents or 9%. Faced with those (more…)

We Tote The Note

Tuesday, September 4th, 2012

September 4, 2012

For years as I drove home from work, I passed a used car lot on Lamar that had a sign that said “We Tote The Note”.

Recently I asked the City and the County for information on property taxes for the fiscal year 2011 to see who totes the note locally. I wanted to know how much is paid by residential versus commercial, industrial, farm, exempt, multi and personalty.

(more…)

How Much Do Residential Taxpayers Pay Versus All Others?

Thursday, August 16th, 2012

August 16, 2012

As I was looking at my City property tax bill due at the end of August, I ask myself the question “What is residential property tax total as a percentage of the total property tax?”.

You would think that this is a question that could be easily found online. So I went to the City of Memphis, Shelby County and the Shelby County Trustee for the answer. As of right now only the Trustee answered and I thank him and his staff for the outstanding job that they do and their (more…)

Investigation of PILOTS

Thursday, June 21st, 2012

June 21, 2012

I have been investigating past PILOTS (the payment in lieu of tax program) and trying to follow up on past ending dates to see if when the PILOT ended, did the City and the County get the promised higher taxes. This has proved to be very difficult to gather this information and it should be the subject of a public report run hopefully by the County Trustee’s office. But I will give it a shot. I (more…)