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Thom Druffel |
by Thom Druffel -
NASHVILLE: A CITY IN DEBT
We
have all heard about the booming business coming to Nashville. Cranes
and construction fill our downtown streets. How is it then that our city
debt has grown from approximately $400 million to $4.5 billion dollars
in just over 15 years? Our city debt is more than twice the debt of the
State of Tennessee.
According
to the proposed 2020 budget we are projected to bring in more than 4.7%
in revenue growth from last year which accounts for over $100M.
Despite that, we struggle to balance the budget or to provide fair
wages to our teachers, police and firefighters. While our debt has
grown, those who provide essential services are overlooked. This is
especially unfair when we look at the rising cost of living in
Nashville.
Mayor Briley and
the current council have tried to plug the holes by selling off county
owned assets: Real estate, power supply, parking. This is bad policy and
is not a sustainable way to pay the bills. A new law will prohibit some
of that in the future but much has already been lost.
POOR FISCAL POLICIES HAVE CAUGHT THE ATTENTION OF THE STATE.
Metro
budget practices have now caught the attention of the Comptroller of
the State of Tennessee. The state is about to scrutinize the way metro
is managing its finances, with particular attention to the plans to
sell city assets to balance the budget. The budget hole was supposed
to be filled by the higher than expected city fund, yet the budget still
included $2.33 billion in the budget for the sale of parking and
energy. The state, rightly, wants answers, and they are due by September
20.
The state has also taken the unusual action of demanding that the Metro Council pass a cash management policy by November 20.
We have been reactive in our current government, rather than proactive with strategic planning.
There has been no long term vision where we, as a city, prioritize our
needs and balance those against our income. Selling off an asset, that
cannot be replaced, is like selling Grand- ma’s silver to pay the
electric bill. You can do it once, maybe, but what happens next month
when the bills come due again?
IT BEGINS WITH TRUST AND TRANSPARENCY
The
solutions around financial responsibility and transparency must start
with you and regaining your trust. We must have robust and direct
conversations on our vision for our neighborhoods and city. We then
need to determine the strategies and costs to accomplishing our joint
vision.
My pledge to you as
your council member is to hold regular coffees/meetings where we discuss issues that are important to you. Too many times in recent years we
hear about important issues only a day or so before the council votes.
Other times we read about decisions after the fact, in the newspaper. We
are all stakeholders in our city, and we all deserve a voice and an
opportunity to learn what the issues are and what will be discussed by
the council. I can only represent you effectively when I know how you
feel about the issues.
We also
need council members who understand finance and budgeting. I have
managed hotel and investment portfolios for over 40 years with budgets
over $150M in regions all over the country. I have had to manage budgets
in diverse economic climates, in good times and in re- cessions. In the
private sector, if you fail to make your budget, you lose your job.
More borrowing is simply not
an option. We need to run our city government in the same way. Rather
than borrowing and going further into debt as an easy option to pay the
bills, we need to look at where our money is going, where cuts can be
made and where we want to prioritize our spending.
Our
current leadership has been inconsistent on budget issues, at one time
voting for a proper- ty tax increase, later against and then claimed
more time was needed to understand the issues.
Here is where I believe we can begin to find answers:
- Ensure that our money is being spent efficiently and wisely, with input from the community about priorities.
- We
need to understand the expenses and determine if the increased revenue
from our growth can fill the gap against the needs of our operating
budget. To date, we have seen very little of the revenue from our
growth come back to neighborhoods or to wages for police and teachers.
- We
should look at changing the process for capital budgeting from yearly
to 3 to 4 year timelines. This would allow the city to make purchases
in bulk at substantial savings.
- Growth
is only good when it adds value to our quality of life. We have seen
almost no in- vestment in our district in infrastructure or capital
improvements. While adjoining districts see new libraries, ice rinks,
fire stations, playgrounds, sidewalks and schools, District 23 has been
largely overlooked. A good council person will fight for funds to come
back to our District.
I
have the financial experience to work on the council and help steer our
city back in the right direction. This is a pivotal time in the history
of Nashville, and we need members on our coun- cil who understand
finance and can collaborate to make sure that our growth benefits all of
our citizens.
Margie and I
have three children who are starting their careers and who want to live
in Nash- ville. We want Nashville to provide them with a future of
potential rather than debt. Let’s get to work!
Thom Druffel is a candidate for Metro Council in District 23. For more information follow this link.
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