Archive for December, 2017

More Info Needed Before Moving Brooks Museum Downtown

Wednesday, December 27th, 2017

December 27, 2017

What We Need Before Spending Millions On Moving Brooks Museum Downtown

 

Citing “declining enrollment” and “overwhelming real estate debt,” the Memphis College of Art — the storied Overton Park institution that traces its origins to at least the 1930s — on Tuesday announced plans to close. This CA article published October 24th of this year points out the problem of piling on debt without proper planning for debt retirement and a sound financial base.

 

As the plan for the Brooks museum rolls forward by the City of Memphis, let us look back on available information on the two institutions. The only available source of public hard financial information on the Memphis College of Art and the Brooks Museum is the 990 forms (Return of Organization Exempt From Income Tax) provided by Guidestar.

Therefore, I pulled up these forms and here is a brief report on the three last available years.

Memphis College of Art, form 990 for years ending June 30, 2014, 2015 and 2016. The figure shown are the net assets or fund balances (total assets less total liabilities).

June 30, 2014                         $14.8 million

June 30, 2015                         $18.1 million

June 30, 2016                         $16.6 million

 

Memphis Brooks Museum of Art Inc

June 30, 2014                         $6.2 million

June 30, 2015                         $5.8 million

June 30, 2016                         $5.0 million

 

I have attached the complete relevant 990 forms which gives additional information of the Memphis College of Art and The Brooks museum. However, these 990 forms may not reveal the complete story. Apparently, the College of Art made some bad decisions about opening additional facilities downtown.

 

What is needed before embarking on the expensive downtown move by Brooks is a complete most recent financial audit of the Brooks so that all information about expenses, income and debt is fully known by the Memphis taxpayers. The 990 forms do not give enough information to make a informed decision.

 

MLGW Rate Increases

Wednesday, December 13th, 2017

MLGW Rate Increases

 

MLGW has proposed rate increases in gas, electric and water rates over the next few years. MLGW management says that part of the need for increases are related to decreasing sales in product. Well I decided to review the latest annual report available (the year ending December 31st, 2016).

 

The City Charter designates the disposition of revenue from MLGW three divisions, light, gas and water. MLGW is not a profit-making organization but it is required to breakeven and pay it debts and keep a reserve to cover its debts and emergencies with a proper margin. It also pays to the City of Memphis a payment like a for profit business would pay.

 

I have looked at the statements of the three divisions for the year ended 12/31/16 and the electric division lost $12 million dollars after paying $40 million to the City of Memphis. The Gas Division lost $14 million after paying $17.5 million to the City of Memphis. The water division made $9.8 million after paying $4.4 million to the City of Memphis. It is not clear if this includes the 2 million payment for the FedEx arena.

 

It seems clear to me that the MLGW needs a price increase to keep its financial situation secure. It is a well-run organization with well trained employees and with advanced technical knowledge.

 

Now I want to point out that MLGW employees have a much richer health care benefits then the City of Memphis and Shelby County employees. I am gathering current information of these benefits and will be publishing information as soon as I obtain the data.

 

People are becoming energy savers and the combination of advanced energy saving appliances like light bulbs and AC/heating units and smart meters are saving energy and this is a good thing for the ecology. Again this is a well run organization with competitive rates and I hope that whomever replaces Jerry Collins will be as able as he has been.