Archive for August, 2014

Talent Rank Of Memphis

Monday, August 25th, 2014

August 25, 2014

Recently I was scrolling around the City of Memphis website and I clicked on the office of talent and human capital and this is what I found.

From the City of Memphis Website

From the City of Memphis Website

 

I congratulate the Mayor for printing this information and pointing out that we have a long way to go. In looking at the chart, we are 47th out of 51 for people 25 and older who have completed a four year college degree. If you restrict that to 25 to 34 years old, we move from 47th to 46th. We are 51st out of 51 for mathematicians and scientists etc. We are 45th out of 51 as a percentage of metropolitan workers that have a college degree and are employed in private sector businesses but excluding health care and education. Lastly we are 43rd out of 51 as a percentage of metropolitan population 25 and older that have completed a four year college degree and were born outside the United States.

This last number is interesting as Memphis is at 7.7% and the leading city is at 49.6%. I would take a guess that the leading cities are places like San Francisco, San Jose, Dallas or Boston.

The person in charge of the office of talent and human capital is Douglas Scarboro and in a recent news article it was stated the following.

“In March 2010, Wharton hired Douglas Scarboro to serve as the head of the city’s new Office of Talent and Human Capital, designed to attract talented workers. After a staffer said Scarboro’s initial salary of $125,000 a year would be funded by a local nonprofit group, Wharton issued a public apology and said the city was funding the position.”

If Mr. Scarboro can bring these numbers up he is certainly earning his salary. What do you think?

Property Developer With Other People’s Money

Monday, August 18th, 2014

August 18, 2014

Property Developer With Other People’s Money

A recent CA article stated the following “After a delay of several months, Robert Lipscomb said recently that his team is ready to move forward with a long-standing plan to redevelop the Mid-South Fairgrounds into a sports complex and retail center.”

What a remarkable statement. Most professional property developers risk their own money or gather together other investors based on their good track record. However Mr. Lipscomb uses government programs such as TDZs (Tourist Development Zones), TIFs (Tax Incremental Financing) and various State and Federal programs paid for by the general taxpayers. Bonds are issued with the promise of payment from a fund of incremental taxes over and above a predevelopment base tax rate. If the incremental taxes are there to pay off the bonds then everything works out fine. If they are not there, then the local taxpayers pick up the load.

My question is who appointed Robert Lipscomb as chief Memphis property developer? If the City of Memphis is his property development company, then we need to study the financial records of his company. The State of Tennessee through the office of (more…)

A Smoking Gun

Monday, August 4th, 2014

August 4, 2014

A Smoking Gun

I have a reluctance to throw out old files that I have from 2001. So I decided to start cleaning out and throwing away old files. The first one I came across was an open records reply from 2007. It was a Mercer Health and Benefits report dated July 24, 2006. The title was “City of Memphis Retiree Medical Landscape 2006 and Beyond”.

Take a look at this report. It was a warning of what was coming from GASB (Government Accounting Standards Board 43 and 45) concerning OPEB reporting, Medicare Coordination, Service Based Contributions and Future Hires.

Why was this report Important?

  • It will be a required part of the annual audit statement
  • This will impact bond rating
  • Unfunded liability is potentially 50 times current retiree health-claim cash flow

The report recommended plan changes such as

  • Coordination of benefits on medical and surgical coverage with Medicare (Parts A & B) for all post 65 retirees.
  • Adopting an age and service based contribution rate structure.
  • Plan design changes to the retiree medical plan that will reduce costs to some reasonable level and help manage the liability.
  • Medicare coordination will mean the City of Memphis will provide coverage for post-65 retirees only on a secondary basis and all post 65 retirees will be required to buy Medicare coverage.
  • The City of Memphis will adopt separate rates for pre-65 and post-65 retirees.
  • Retirees will contribute different amounts depending upon their length of service in active employment.

Is it any surprise that the City of Memphis ignored these recommendations and the County took the warnings to heart and adopted a similar recommended plan? This lack of action by the City in 2006 explains the current crisis we have at the City of Memphis.