How is converting a government’s borrowing or bond issue leverage helpful to the people actually paying property taxes in Chattanooga?
We heard this over and over about how Tax Incremental Financing, speculative land development, was somehow good for the taxpayers. This message chronically resonates from the region’s largest welfare recipient called the Chattanooga Area Chamber of Commerce.
Our local Chamber has the richest membership in Chattanooga, and is gifted $1.2 million annually of our local tax revenue (city and county operating budgets). Yet, as a side item, the Chamber does not view their organization as subject to open records. The public cash flows in, but records never flow out.
The public subsidizes the Chamber for services government can easily perform in-house with their government staff. If economic marketing by government is a genuine need, please start a government division that serves city and county. Frankly, the public cannot afford the multitude of $200,000 plus CEO salaries at Ye Merry Ol’ Chamber. The Chamber employees highest paid government subsidized program in Chattanooga.
The Chamber continually lobbies for public resources and revenue to be converted to private cash, and what better way than encumbering the public with bond debt?
Bond issue leverage should exist only for public pursuits, and public-private partnership that are approved by referendum of the voters. Otherwise, the taxpayers are an open door bank, and subsequently act as collateral for speculative pursuits just like the Aetna Mountain TIF. Just cuz ya can gift low interest loans by encumbering the taxpayers, does not mean you should. Weigh the total merit of PILOTs, TIF, and Baylor School gift in the light of day, and let the public have a voice.
We hear so often that the law allows bond issue leverage to be transferred to private pursuits. That is not the purpose of government. The taxpayers definitely should have a referendum voice in these million dollar deals, such as the $9 million for the golf course road, $13 million for Baylor.
The public bond issues leverage should be used for more important infrastructure than a golf course road or private school?
The notion that public bond issues to Baylor School is somehow good for us is just mind boggling. Baylor wishes to be a private school, perfect be private and with their own financial resources.
Does anyone know who guarantees bond repayment, or what is the collateral if Baylor defaults? GovernMint needs to explain this one. This is why these huge loans to friends of the government need public referendum input. It is done deal by the time the public finds out that the taxpayers are encumbered by guarantee of collateral, if an entity defaults on payment.
April Eidson