MEMPHIS, Tenn. (AP) — Tennessee Comptroller of the Treasury Justin P. Wilson is warning Memphis officials about the city’s fiscal problems.
In a letter to Mayor A C Wharton and the city council, Wilson called a plan to defer city debt for a dozen years “scoop and toss” because it merely moves the problem to about 2025.
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The Commercial Appeal (http://bit.ly/11TmAyw ) reported Wilson outlined several measures that the city must undertake before he would sign off on a municipal bond refunding plan. Wilson said the city needs to deal with low fund reserves, a shrinking tax base and budgetary imbalance.
In a meeting with Wharton on Tuesday, the City Council discussed a short-term solution to come into compliance with demands from the state. Part of the plan involves moving money from the general fund to other pieces of the city budget that need it.
Wilson told the newspaper Wharton realizes the city’s position and the problems built up over time.
“I’ve got to say that the City Council has a challenge and we’ll see whether they meet the challenge,” Wilson said in an interview. “I believe the (Wharton) administration wants to meet the challenges.”
The report also notes funding needs for pension obligations, other post-employment benefit liabilities and more than $50 million owed the school system.
The report also notes the city has cut into future property tax revenue growth by offering payments in lieu of taxes incentives to lure businesses.
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Information from: The Commercial Appeal, http://www.commercialappeal.com
