posted August 29, 2008
I find it beyond appalling that our East Ridge City Council can say that they want a pay increase in the same breath they use to say that they will force upon the citizens of East Ridge a property tax increase.
They have the audacity to vote themselves a triple pay raise for council members and a quadruple pay raise for the mayor? Gentlemen, did you not know what the pay was for the office which you agreed to serve? If you don't like the pay, resign your office immediately.
The current mayor has consistently stated that the former mayor and the former administration left a mess that he inherited and there was never a $500,000 surplus of funds left in the city's general fund with a balanced budget.
Three of those council members from the previous administration are still serving in office today; they are Vice Mayor Jerry Petty, Councilman Denny Manning and Councilman Tom Card. I would hope that these three members of the previous council would answer the call of being referred to as liars. Was there a $500,000 surplus or did you lie about that as insinuated by Mayor Steele?
Mayor Steele has consistently dishonored the previous administration which also includes the current temporary City Manager Chief Eddie Phillips and Director Freida Wheeler along with the three council members. None of these individuals have challenged the current mayor's allegation. Each played an intricate part of the budget that Mayor Steele references as a mess and a lie regarding a $500,000 surplus. I cannot understand why each would let the current mayor question their integrity and leave it unchallenged. Someone has lied, but neither side has produced evidence to support the truth. I would hope that one or the other produces the evidence to support the truth.
Additionally, I hope that these fine council members and directors will go back and look at the recorded minutes from a workshop that they each attended. It was the Workshop of the City Council of the City of East Ridge, Tennessee, held on July 13, 2006, 12 noon, at Camp Jordan. I have included excerpts of that workshop for your convenience.
Perhaps, after looking at the recorded minutes, Council Members Jerry Petty, Denny Manning and Tom Card will recall the subject of that workshop. Mr. Steel was the current chairman of the Regional Youth Soccer Association and he came before the East Ridge City Council to request $4.5 million in funding for a soccer complex at Camp Jordan. Mr. Steele brought with him the Chattanooga Sports and Events Committee, engineers from Barge Waggoner Sumner and Cannon and various officials from the City of Chattanooga and Hamilton County.
Mike Steele, RYSA Chairman updated the attendees on the progress of the soccer complex located at Camp Jordan. He stated the focus of the authority is to be build world-class soccer fields and bring in large tournaments to impact the area economically. He stated that Chattanooga and East Ridge are good central locations to hold these tournaments. Commissioner Curtis Adams discussed how RYSA was formed.
Merrill Eckstein, President of the Chattanooga Area Sports and Events Committee discussed the economic impact the complex could have on the area. He stated that from 1992 – 2009, soccer will have a projected $26 million impact on the area. The Tennessee State Soccer Association will hold its Division III boys and girls championships here in November 2006 and May 2007 respectively with a 3-year commitment. He stated those two tournaments will bring in $1 million.
Mike Steele discussed the 3 phases of the project. The first phase, which is complete, cost $600,000 and was provided through a grant for $200,000 from the State of Tennessee, $100,000 from the Osborne Foundation and $300,000 from Hamilton County. The second phase is $1,400,000 provided by the City of East Ridge to be paid for with a hotel/motel tax. After the second phase is completed, there will be a total of nine fields. The next step, Phase 3, will cost approximately $2,500,000 to complete the final five fields for a total of 14 fields. Mr. Steele stated that large tournaments will not come to the area unless there are at least 14 fields. The average cost per field is $500,000.
John Brown with Barge Waggoner Sumner and Cannon updated everyone on the status of Phase 2. He stated Phase 2 is scheduled to be complete at the end of August 2006.
At this time, there was a question and answer session regarding this soccer complex and Mr. Steele ended his presentation.
Mayor Dean stated that the City Attorney would go over various aspects of the agreement with RYSA. Mr. Steele stated that the agreement was something RYSA requested because they needed to finalize a contract with Tennessee State Soccer, but can be used with any groups that come in for tournaments.
City Attorney Helton stated that the biggest issues with the agreement concern scheduling because of other city activities going on in the park, maintenance of the fields and revenues from concessions. Mr. Steele stated that RYSA would work with Ms. Wheeler scheduling only when there are dates available for these tournaments. He also stated that RYSA has worked with Wayne Thompson to come up with a maintenance amount of $6,700 per field per year and will reimburse the City that amount. He also stated that concessions, especially with the East Ridge Soccer league, will still belong to that group.
The Council and RYSA members went through the sample contract and discussed various changes that the City Attorney will make and bring back to the Council and RYSA. Mr. Steele stated he appreciated the support of the City on this project.
Vice Mayor Petty, Council Members Denny Manning and Tom Card, have you all forgotten this meeting? Have you each questioned the current mayor about where is the $26 million economic impact that he promised the city of East Ridge Council on July 13, 2006, while at Camp Jordan?
Have you forgotten the organization that he served as chairman agreed to pay the city of East Ridge $5,000 per soccer field for reimbursement of the maintenance cost on the 14 soccer fields and an annual fee of $6,700? How much did he or RYSA reimburse the city of East Ridge? As of last year on June 28, 2007, City Manager David Mays stated that we had not received any funds from RYSA during the City Council Meeting. RYSA owed East Ridge $60,000 total and Mr. Steele was the representative who entered into this contract on behalf of RYSA. Why did the city of East Ridge not get our money from RYSA or Mr. Steele?
Ironically, Mayor Steele never answered or addressed that question in the City Council Meeting at the time of this statement.
Council members please ask Mr. Steele why RYSA, the organization he was chairman, consistently wanted the revenue produced from East Ridge hotel/motel taxes? However, his organization would encourage visiting soccer teams to stay in hotels and motels located in Chattanooga around the mall and downtown areas? RYSA and Mr. Steele wanted East Ridge business owners to contribute to their organization, but refused to recommend East Ridge hotels and motels as a place to stay, why?
The soccer fields went into cost over-run due to hitting rock and required additional revenue from East Ridge taxpayers.
Vice Mayor Petty, did you have any success in getting the officials of East Ridge Municipal Court to collect the over $1 million in outstanding court cost and fines that you questioned during last year's budget talks?
Non-collection of these fines are a mockery and a total disregard for our police officers who risk their lives day in and day out serving our city. Why should a police officer work hard if we refuse to enforce the laws or collect revenues to our city from convicted criminals?
Gosh, if East Ridge could get the $1 million in court cost and fines from convicted criminals and the $60,000 from RYSA, the organization that Chairman Mike Steele served, that would pretty well cover our financial needs of the city for this year.
And if we could begin to see some of that promised revenue from a 3 year contract for soccer tournaments that would bring $1 million dollars to East Ridge, we could perhaps have a real surplus.
At the urgency of Mr. Steele and Commissioner Curtis Adams, East Ridge has invested $4.5 million in soccer fields at Camp Jordan. And we can't even collect the maintenance fee they owe as promised by Mayor Mike Steele, the former Regional Youth Soccer Association Chairman. BellSouth Stadium cost an estimated $5 million to construct. East Ridge could have invested less than $500,000 more for our own Bell South Stadium in East Ridge and perhaps it would have produced a profit and paid its fees.
Now that all 14 soccer fields are paid off, East Ridge should have a gain of $240,000 per year in hotel/motel tax revenue and if they pay their fees that would include another $60,000.
Now, Mayor Steele to add insult to injury of the pocketbook for East Ridge citizens, look at WRCB's TV 3 news report of Camp Jordan Soccer Fields needing repairs aired August 22, 2008. I would have thought for more than $4.5 million dollars or $500,000 per field to quote you, the soccer fields should have working sprinklers and where is the field house that was promised by RYSA which you chaired. Talk about as you say, "world class soccer fields". I am not sure that East Ridge could have afforded those kinds of fields. How much did China spend on the 2008 Olympic soccer fields?
What happened to the $242,894.55 from the TVA Trust Fund that was to expire in 2007?
Vice Mayor Jerry Petty, Council Members Denny Manning and Tom Card have now been provided proof of the current mayor's promise of financial prosperity through a soccer complex which they each approved.
Now, can the current mayor provide proof that the former mayor and the three current council members lied about the $500,000 surplus of funds from the previous administration?
Last year, Mayor Steele stated that the city of East Ridge was paying out 80% of its $10 million budget to salaries and benefits for approximately 135 employees. That equated to $8 million dollars.
For this year's budget, it is stated that 62% of the budget or $6.2 million dollars now goes to employee salaries and benefits. Who took the huge pay cut? I thought that Curtis Adams was being paid only $60,000 per year. We also have about the same number of employees as last year 135. And the whole council has voted themselves triple and quadruple increases in pay. How does this bump against last year's budget? This is a reduction of $1.8 million dollar in salaries and benefits and we have the same number of employees.
Taking last year's budget ($8 million in salaries and benefits), it would mean that each of the 135 employees are on average receiving $59,000 in salary and benefits. Most of the city of East Ridge employees that I know are not getting anywhere near this kind of salary or benefit package. So, where is the money really going? Are we over-paying for insurance? Is anyone getting a kick-back? Something is not right with these figures!
Our city of East Ridge officials have openly admitted that they are not collecting all sales tax revenue due the City of East Ridge. This is due to funds inadvertently being sent to the city of Chattanooga by the State of Tennessee. If we don't know how much is being sent to the City of Chattanooga, how do we know how much to request for reimbursement? I am sure the city of Chattanooga is sending all the mis-directed revenue East Ridge is due, aren't you?
Are we collecting all of our due property taxes since we have homes in two different geographical locations within the city limits of East Ridge with a city of Chattanooga zip code for mail delivery purposes? Are we missing the collection of this revenue produced from current property taxes as well?
If we simply collect the revenue due our city, I firmly believe a tax increase is totally unnecessary.
What was the result of the MTAS audit from 2007, where did they determine that our city could cut expenses? We are about 30% to 40% higher in salaries and benefits for a city of our size, why?
What has the city of East Ridge Council and directors worked on for the past year to cut expenditures as was talked about during the last budget negotiations?
Request a line item by department line item budget. A summary budget is not an acceptable tool to use to determine the financial needs of each department. The mayor and vice mayor admitted to not using a line item budget last year to determine the City's financial needs.
Please do not accept miscellaneous items. Have a true accounting of expenditures from each department. If the Council does not have a line item budget, how are you really able to question the budget requested by each manager and director?
Mayor Steele, show the city of East Ridge all the money promised by RYSA. Vice Mayor Petty, Council Members Denny Manning and Tom Card and Directors Phillips and Wheeler, show the City of East Ridge the $500,000 that was saved and placed into the general fund from the last budget approved by the previous administration.
Council members, you must be aware of the foolish advice you have been given for charter changes. You are placing our city in jeopardy with such changes. Separate each recommendation, evaluate thoroughly and then place each on the agenda to be voted on individually. This will serve each of you well to do this.
Please post a line item budget on the city's website today for the citizens to review.
Gentlemen, if you can't produce all the proof, you are really not ready or justified in raising our taxes.
Find and collect what we are due before you even think about raising our taxes.
A.E. MacMahan
AEMACMAHAN@aol.com
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