October 24, 2006

Herenton challenged critics of his proposal to raise property taxes to show him a better way.

The above statement was in a CA this morning. Watchdog has been publishing examples of how the City of Memphis can save money. They should implement these savings and sources of revenue before they consider any new taxes.
Big hits on local government by Herenton and city council

1. Linebarger contract- 5 million per year savings, cancel this stupid self serving contract and let Bob Patterson collect delinquent taxes.
2. Mata trolley system- 3 million loss per year, do away with this money losing system.
3. January 2001 pension resolution-over $60 million total cost and current cost to date $3.6 million. This is an example of how the Mayor and the City Council threw away our scarce tax money.
4. Convention Center contract-$60 million cost overrun over the initial bid, another example of how they wasted our tax money.
5. Fed Ex arena- 32 million left in pyramid debt and what happened to the extra floor of the parking garage and where is the intermodal transfer point and what happened to the original plans and specifications that no one can seem to find to compare with the “as built” drawings and specs? Some people should go to jail for this scam.
6. Appointed people over and above what is needed or allowed by the City Charter, 5 million per year. Lay these people off and save $5 million per year.
7. Pilots and exempt properties $52 million per year. We desperately need independent oversight on this program and the City Council taking it over will not provide it. Are the recipients of these contracts doing what the contract promised? Who knows but no one is checking.
8. Professional contract given to friends of the Mayor. Change this provision of the City Charter, really get competitive bids and save millions.
9. Don't build the Beale Street Landing as it is not needed and will save $27.5 million.

October 20, 2006

Watchdog asked for the racial makeup of the City of Memphis employees and also their names, dates of employment and salaries. We have studied the results and we find that the racial makeup of the full time employees fairly matches the 2000 census figures for racial makeup of the City of Memphis. However we do find a discrepancy that is interesting. Maybe there is an explanation and we will check and report.

These reports show 6458 full time employees and 1751 temporary employees. However the 2007 budget shows 5578 employees. This is quite a difference.

Click below to see a list of full time City of Memphis employees with their salaries, hire dates and ethnic makeup.

City of Memphis employee list with salaries and ethnicity

October 16, 2006

“I DON’T CARE WHAT THE COURT TELLS YOU TO DO!” SAYS ALLAN WADE TO THE TUNE OF $1.8 MILLIONS TAXPAYER DOLLARS

The CA published a recap of this case brought by the partnership of Flautt and Mann against the City Council. The case is long running and complicated but what is clear is that Allan Wade, the well paid attorney for the City Council and recipient of lots of highly paid City legal work has cost the taxpayers of Memphis $1.8 million and counting at $1500 per day because he has flouted the court and is in willful contempt. But what does he care, it is only taxpayers’ money, not his or the City Council’s. The article was published in the CA on October 13, 2006 in the local news section under the heading “City’s tab: $1,000 a day”.

This is just one of many incidents where Allan Wade has cost the taxpayers money. Take the case of William L. Thompson and his pensions from the MLGW. Larry Thompson was an employee of the MLGW and one of the most capable and respected employees at the Division. He should have succeeded Herman Morris as President but instead the Mayor appointed the failed director of Finance for the City, Joe Lee. Then Joe Lee forced Larry out at MLGW and in the process two of the board members talked privately and illegally about the severance agreement that the Division had with Mr. Thompson and they admitted this. (Rev. Netters and Olin Morris). Mr. Lee was trying to get rid of Mr. Thompson without honoring the severance agreement. Mr. Thompson took them to court and has won the case at this point. To date this has cost the taxpayers $73,645.68 of which $44,406.55 has been paid to Allan Wade to represent Mr. Lee. The balance of $29,239.13 has been paid to the Bogatin Law Firm.

This is what it is costing the taxpayers to not do the right thing and honor a legal agreement. But who cares, it is only taxpayers money.

WHAT IS THE JANUARY 2001 PENSION RESOLUTION COSTING AND WHO IS RESPONSIBLE FOR IT?

One of the worst decisions of our city government, both the Mayor and the City Council, was the unanimous approval of the January 2001 pension resolution allowing elected and appointed officials to retire after 12 years of service, regardless of age.

Recently, watchdog asked for the cost information of this decision in an open records request. Here are the results.

The current annual cost of the pension payments as of august 2006 is $1,292,862.
The current annual cost of the medical premiums by the City is $393,000.
The total cost to date from the start date of January 16, 2001 is $3,653,503.
The total cost until all the eligible people have retired under this program is unknown but this is only for 56 people and there are hundreds more that are eligible. It will be well over $60 million dollars.

Click below to see those who are receiving this largess and note some familiar names.

http://memphiswatchdog.org/downloads/retiree%20pensions%20under%20jan%202001%20pension%20resolution%2010-11-06.pdf

· Roland McElrath, Director of Finance, who is now back working for the City.
· Rick Masson, former Chief Administrative Office, who is now chairman of the MLGW board.
· Robert Spence, former City Attorney, and now doing lots of City paid legal work.