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News News Blog

Council Recap: Water Rate Hike, South Cordova De-annexation OKed

Maya Smith

The Memphis City Council

After months of debate and delay, the Memphis City Council approved an increase in water rates Tuesday, but voted not to raise gas and electric rates.

The vote means Memphis Light, Gas, and Water (MLGW) customers will start paying an additional 45 cents per month, beginning in March.

MLGW officials have been seeking water, gas, and electric increases totaling 10.5 percent over five years since December. If all three hikes were approved residential customers would have paid, on average, an additional $18.56 per month during the five year period.

J.T. Young, president and CEO of MGLW, said the hikes would have helped fund about $740 million worth of improvements to the utility’s aging infrastructure.

Instead, Tuesday the council upheld its vote from two weeks ago opposing a gas rate increase. The council voted 6-7 against electric hikes, but approved the 45 cent monthly hike on water with a 9-4 vote.

As council members were reluctant to approve the original ask, Councilwoman Patrice Robinson introduced the idea as a way to offset the utility’s negative net income.

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Young said if the utility stays in the negative, the state could step in to regulate rates, likely setting them higher than the utility’s ask.

Councilman Worth Morgan said the council has to take responsibility to avoid the state “coming in and acting like big brother.”

“No one is really arguing that we don’t have aging infrastructure that needs replacing,” Morgan said. “The question is when and how are we going to replace it.”

The increased revenue will go toward improving infrastructure at the utility’s water pumping stations, which Young said, on average, are about 58 years old. The utility has a “good bit of restoration and rehabilitation that needs to be done,” Young said.

Tuesday Young also presented the results of a public phone survey conducted by the utility regarding the rate increases. Of the more than 2,000 respondents, Young said 46 percent wanted more information, 23 percent would consider rate increases, 16 percent would support an increase, and 15 percent would not support the increase under any circumstances.


‘Right-sizing’ the city

The council also approved the de-annexation of portions of South Cordova on the third and final hearing.

Approximately two-square miles, housing around 4,000 residents in 1,806 homes, will officially be outside of the city limits beginning in 2020.

Residents of the community, many of whom spoke to the council Tuesday, support the move and have been pushing for it for some years.

The residents will be expected to pay taxes through 2023.

Doug McGowen, the city’s chief operating officer, said the de-annexation is in step with the city’s effort to “right-size” the city, while “building up and not out.”

Although the city will lose about $3 million of tax dollars annually, McGowen said the city will not have a reduction in revenue because resources once used in the de-annexed area will be saved. McGowen added that the resources removed from South Cordova will be re-allocated to other areas of the city to provide better municipal services to the city’s core.

For example, McGowen said the move will decrease the area the Memphis Police Department patrols by 8 percent.

This is the fourth area of the city the council has voted to de-annex. Last year Rocky Point, Southwind-Windyke, Eads, and Riverbottoms were approved for de-annexation.

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News News Blog

De-annexation Task Force Has First Meeting

Bill Morrison

The Strategic Footprint Review Task Force, the city-county body assembled to study the impact of de-annexing some Memphis neighborhoods, held its introductory meeting on Thursday afternoon at Memphis City Hall. 

The task force didn’t accomplish much in its brief first meeting. Members introduced themselves, and task force chair/City Councilman Bill Morrison set out some hopes for future meetings. Morrison said he’d like the task force to determine the positive and negative impacts of de-annexation, so the group can take their findings to Nashville and say “we’ve got this. This is what is best for our city and county.”

The task force was created back in April as a way to evaluate the cost of de-annexation, after a state bill was introduced that would have allowed de-annexation referendums in areas annexed since 1998. That bill passed the state House, but it was sent to summer study after it reached the Senate. At the time, Memphis Mayor Jim Strickland staunchly opposed the bill, saying de-annexation of certain areas would cost the city $28 million in residential property taxes. Proponents of de-annexation argued that the bill would save Memphis money since it would no longer need to provide city services to those areas.

The task force will meet again next Monday, August 18th at 4 p.m. at Memphis City Hall, in advance of a Senate summer study committee meeting on the de-annexation bill on August 22nd. Memphis Chief Administrative Officer (CAO) Doug McGowan and Chief Financial Officer (CFO) Brian Collins, who were both in attendance at the task force meeting on Thursday, will be present at the Senate committee meeting.

The Strategic Footprint Review Task Force is made up of Morrison and Memphis City Councilman Patrice Robinson, Shelby County Commissioners Terry Roland and Mark Billingsley, State Representative Larry Miller, Shelby County CAO Harvey Kennedy, Memphis CAO McGowan, Memphis CFO Collins, and Kelly Rayne of the Greater Memphis Chamber of Commerce.

Early in the meeting, Roland said he’d like the task force to determine how the city and county can compete with surrounding regions. At the conclusion of the meeting, Roland asked task force members if they remembered the old county license plates that had a number one on them. No one responded, but he replied with “That’s what we’re going back to. We’re going to rival Nashville.”

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Letters To The Editor Opinion

What They Said …

Greg Cravens

About Joey Hack’s post, “Questions Raised by Billy Joel’s ‘Piano Man'” …

The answer to these questions, and many more like them, is that in 1974, Prozac had only just been invented. It wasn’t until years later that it went into wide circulation.

OakTree

He should be wearing a piano key necktie in that photo. And why is Billy Joel brandishing a Telecaster, anyway?

Packrat

I love that moment when he hits that soaring final chorus in “Piano Man,” and dozens of catheters come flying onto the stage.

Mark

Who cares about all the damn metaphors in “Piano Man”? I understood what he was saying. I also remember when Billy and his small group played to a packed house at the old Lafayette’s Music Room at Overton Square in the early 1970s. I listened to it live on FM-100. Billy loved Memphis, and Memphis loved Billy. He became a superstar almost overnight after that show.

Paul Scates

About Jackson Baker’s Politics column, “Another City/Suburban Battle” …

Someone correct me if I’m wrong, but did the city not determine that South Cordova was going to lose money for the city immediately after annexing it? I’ve been saying for a while that the annexation strategy is and has been failing.

If you were to do a postmortem on the annexations, I believe you’d find that even the ones that at first were profitable for the city likely are no longer profitable.

The big problem the city has is that the minute it annexes an area, property values in the area drop. So any business case the city did based on the potential tax revenue of the annexed area was wrong if they didn’t assume that the pool of funds would be reduced after annexation. Knowing how most governments operate, I doubt that kind of analysis was ever done on any of the annexations.

GroveReb84

Mark Luttrell: 26%; George Flinn: 11%; Brian Kelsey: 9%; David Kustoff: 8%; Tom Leatherwood: 7%; Steve Basar: 1%; Undecided: 38%.

Given the choice of the above, it’s easy to see why Undecided is winning.

B

About Bruce VanWyngarden’s column, “Medium Cool” …

Maybe the Flyer is too “cool” to educate themselves on Trump’s policies, but you can read them here if you can find time between comparing IPA’s: donaldjtrump.com/positions.

Clyde

Dubya was cool to a certain segment of the country — largely the same segment that loves Trump, and for many of the same reasons. The difference is that many of the people who voted for Dubya but weren’t fond of his cool trusted that his handlers would actually run the country for him. They don’t have the same trust with Trump. They know he’ll surround himself with yes-men and do whatever he damn well pleases, and that’s what scares them.

Hillary Clinton’s cool is 10th-grade math teacher cool — the teacher everybody hates after the first day of class, but toward the end of the year decide she’s all right, and by the time they graduate, remember her quite fondly as one of the best teachers they ever had.

Jeff

Bruce, you’ve gone too far. How dare you insult the noble brotherhood of “Siding Salesmen.”

I prefer to think of Trump as more like the guy who owns a bunch of sleazy and failed businesses and has the audacity to show up uninvited to the party, referring to himself as a “Business Genius, and VERY, very rich to boot.”

Oh … Wait a minute. Never mind.

So maybe we can just call him what he is: the turd in the punch bowl of the 2016 election year. And that’s not cool.

John Shouse

I dunno, I have sat in a bar with John Kerry and voted for him anyway.

CL Mullins

Categories
News The Fly-By

State Considers De-annexation and De-funding Bike Lanes

Memphis had a lot at stake in Nashville this week as key votes were expected by the Tennessee General Assembly on several bills that would have direct and deep impacts here.

De-annexation

Memphis could lose Hickory Hill, parts of Cordova, and nearly $80 million in tax revenue if legislators approve a bill that would allow some areas to de-annex from cities.

The bill passed the House on Monday, and now it’s headed for the Senate.

Defeating the bill is the biggest legislative priority for Memphis Mayor Jim Strickland, who headed to Nashville this week to talk to lawmakers about it. Strickland said money saved by not servicing those areas would not equal the tax money lost, which is about 12 percent of the city’s budget.

“In the short term, it would be very difficult to avoid a property tax increase to help cover that lost revenue,” Strickland said. “Remember, it’s already a challenge just to balance our budget with current revenue.”

The bill’s sponsors said they want to stop cities from annexing areas to capture tax revenue but then de-annex roads, bridges, or anything else they’d have to pay to maintain. Similar legislation died on the last day of the legislature’s session last year.

Strickland said that while he is open to shrinking the size of the city’s footprint, he’d want to do it more slowly, deliberately, with stakeholders involved, and “not as part of a messy financial crisis.”

Areas Memphis has annexed since 1998

Bike lanes/pedestrian paths

A bill that bicycle and pedestrian advocates call “dangerous” was slated for key votes on Tuesday, possibly clearing major hurdles on its way to becoming law.

The bill would prohibit cities and counties from spending state gas tax funds on bike lanes, pedestrian walkways, and “other non-vehicular facilities.” The bill is sponsored by Rep. Mike Carter and Sen. Todd Gardenhire, both from the Chattanooga area.

The Senate bill headed to the powerful Senate Finance, Ways, and Means Committee this week, but it arrived there with a negative review from a sub-committee that oversees state revenues.

The chairman of that sub-committee, Sen. Doug Overbey (R-Maryville) said concerns about the bill from constituents have “filled up my inbox.” Gardenhire laughed and told him “that’s what they make that delete button for.”

Portions of the state gas tax are required to go to cities and counties. Those governments sometimes use the funds to build bike lanes or for matching dollars to get federal money for bike and pedestrian projects.

Gardenhire said legislators would likely be asked to consider a gas tax hike next year, and his constituents want the money spent on bridges and roads, “not for recreational use,” noting that cities that want bike lanes “need to pay for it themselves.”

Skunks as pets

Having a skunk as a pet remains a Class C misdemeanor in the state after House members voted down a measure that would have made it legal.

Lawmakers were concerned that loosening the law could lead to the spread of rabies. State Senators didn’t think so, though. They passed the bill in February on a vote of 27-3.

Categories
Politics Politics Feature

Outliers and Insiders

The history of American politics demonstrates that positions that seem unconventional, even outrageous, when first broached have a way of becoming the norm with the passage of time — and sometimes not much time at all.

Think “Defense of Marriage Act,” now blink your eyes and think “Marriage Equality Act.” Even simpler: Think “Bruce,” don’t waste time with blinking and now think “Caitlyn.”

Though there was a time when the political left was responsible for most innovations (think 1960s, sit-ins, or even Social Security), the initiative where change is concerned seems to have shifted over to the right. Or at least to some mutating middle.

On the urban scene — and not just in problem-plagued Memphis city government — the idea of de-annexation may be finding its time. A bill to that effect got a trial run in the General Assembly last year, and it’s sure to take another bow in 2016.

Now you find the phenomenon of three city council candidates running as a ticket on that idea — which seemingly originated with suburban conservatives, but coupling it with such street-populist and Mempho-centric ideas as saving the Mid-South Coliseum and restoring pension and benefit levels for city police and firefighters.

The three are Jim Tomasik, a veteran of Libertarian Party politics; Lynn Moss, who admits to being Republican; and Robin Spielberger, whose politics are more amorphous. The trio of council candidates (Moss, Super-District 9, Position 2; Tomasik, District 2; and Spielberger, Super-District 9, Position 1) held an open-air meet-and-greet/fund-raiser Saturday at Lost Pizza Company on Poplar (site of the old Ronnie Grisanti’s Restaurant).

Their slogan (on a sign alongside a downtown-skyline graphic) indicates the ambivalent appeal of their position. “Right for Memphis/Cordova,” it says, and the fact is, sentiment for de-annexation seems to have just such a divided appeal. Recently annexed suburbanites (Moss and Tomasik are Cordovans) want independence (though they might settle for autonomy); meanwhile, a growing number of Memphians, like Spielberger, are concerned about the high costs of providing services to the sprawling outer areas annexed in recent years.

Maybe these three are wasting their time (competing with well-financed traditional candidates is going to be a problem), and maybe they are pathfinders, and maybe they’ll even run competitive races. All that remains to be seen, and how it works out may tell us something about our future.

• The developing matchup in council District 5 involves more conventional candidates and enough conservatives and liberals to allow for intramural contests within the larger race itself.

Of the nine potential candidates who have so far drawn petitions, five have drawn the most attention, and, though the nonpartisan nature of city elections allows for a certain flow across party preference and ideological lines, those five divide into two groups, basically.

Dan Springer, a still-youthful veteran of government service and Republican politics, and Worth Morgan, an even more youthful insurance executive with family ties to elite Memphis business circles, are regarded as battling it out for the loyalty of conventional conservatives. (Morgan’s first-quarter financial disclosure showed upwards of $150,000 on hand; my friend Kyle Veazey of the Commercial Appeal may not like the term, but that’s a war chest.)

On the other side of the ideological spectrum, Mary Wilder, Charles “Chooch” Pickard, and John Marek, will be competing for the support of those voters who see themselves as progressives (a designation that has largely replaced “liberal” as a self-signifier).

All three have overlapping interests and platforms, with Wilder noted for neighborhood advocacy, Pickard for preservationist activity, and Marek for campaign management. Wilder and Pickard have been in the field for some time, while Marek, a longtime advocate of police reform and loosening of restrictions on marijuana, is poised to begin a serious effort.

Expectations are that a runoff is inevitable, with no candidate able to get an absolute majority as of October 8th. It seems almost certain that either Springer or Morgan will make the runoff, to vie against whoever predominates among the progressive trio. But it is not impossible that the two perceived conservatives, given the depth of their anticipated resources, will end up opposing each other.

It is less likely that the runoff will be drawn exclusively from the Wilder-Pickard-Marek aggregation, but that is possible.

The Rev. Kenneth Whalum drew a petition for a District 5 race, along with petitions for Super-District 9, Position 2, and mayor, but it’s now being taken for granted that he will end up in the mayoral field.

Colonel Gene Billingsley, Jimmie Franklin, and Jennifer James Williams, all of whom have drawn petitions for District 5 (Franklin has actually filed), have to be regarded as outliers, on the basis of the name-identification factor alone.

• At its meeting of June 3rd in Nashville, the Tennessee Ethics Commission met to consider several new penalties for alleged campaign-finance offenders and to reconsider several already assessed. One of the latter was a $1,000 fine imposed on then Shelby County Democratic Party chairman Bryan Carson last September.

As the commission recapped the situation last week: “Mr. Carson was assessed $1,000 at the September 17, 2014, meeting for failure to file the Statement of Interests. Mr. Carson has subsequently filed and appeared before the commission to explain the tardiness of his filing. After the discussion, Mr. [Jim] Stranch made the motion to reconsider and to waive the penalty as it was Mr. Carson’s first time filing. Mr. [Greg] Hardeman seconded and the motion passed 5-0.”

Carson — who ran afoul of his executive committee and the state Election Registry for his accounting procedures a few months ago and subsequently resigned his chairmanship — offered this explanation: “A few months ago, I learned that each candidate running for public must file a Statement of Interest and submit it to the Tennessee Ethics Commission. I ran for the Tennessee Democratic Party Executive Committee last August 2014 and did not know that I needed to complete a Statement of Interest which was due in September 2014. 

“All candidates were required to complete another statement in January 2015, of which I completed and filed on time. Running to serve on the TNDP was my first time running for public office, therefore, that weighed heavily on the final decision of the Tennessee Ethics Commission.”

• Fresh from serving as host for a “Memphis for Hillary” rally held on Saturday in a Southeast Memphis storefront owned by her family, state Representative Raumesh Akbari (D-Memphis) is in Canada this week, guest of the Embassy of Canada, which selected her and seven other legislators from the United States for a week-long “Rising State Leaders Program.”

The program began in 2006 with the goal of facilitating understanding between the two neighbor countries on business, trade, and cultural matters. The 2015 program, focusing on eastern Canada, will take legislators to Ontario, Quebec, and Nova Scotia. It began on Sunday and will continue through Saturday.

Following the death of longtime legislative eminence Lois DeBerry in 2013, Akbari won a special election to represent DeBerry’s District 91 House seat in the Tennessee General Assembly. She was easily reelected to full term last year.

A member of the House Criminal Justice Committee and Subcommittee, Akbari also serves on the House Education Instruction and Program Committee, where she closely monitors the effect on Memphis public schools of various state programs. She has sponsored several pieces of legislation designed to safeguard the structure of Memphis schools during a period of rapidly imposed innovations at the state level.