Wednesday, February 22, 2017

Jackson might borrow $90 million

The Jackson City Council discussed borrowing $90 million last night for infrastructure repair. Mayor Tony Yarber told the city council that it wanted to borrow $90 million against future 1% sales tax revenues. Councilwoman Margaret Barrett-Simon presided over the meeting and said a special meeting will be held before March 8 to vote on obtaining the loan.


The city will borrow the money through the Mississippi Development Bank. MDB meets every month but Mayor Yarber and Councilwoman Barrett-Simon said they wanted to vote on the measure before the next MDB meeting on March 8. Mayor Yarber said the Sales Tax Commission only has the authority to approve projects and the master plan but not actual spending of the 1% sales tax.





Section 27-65-241 of the Mississippi Code states:

(h) The commission shall, with input from the municipality, establish a master plan for road and street repair, reconstruction and resurfacing projects based on traffic patterns, need and usage, and for water, sewer and drainage projects. Expenditures of the revenue from the tax authorized to be imposed pursuant to this section shall be made at the discretion of the governing authorities of the municipality if the expenditures comply with the master plan. The commission shall monitor the compliance of the municipality with the master plan.

(8) The governing authorities of any municipality that levies the special sales tax authorized under this section are authorized to incur debt, including bonds, notes or other evidences of indebtedness, for the purpose of paying the costs of road and street repair, reconstruction and resurfacing projects based on traffic patterns, need and usage, and to pay the costs of water, sewer and drainage projects in accordance with a master plan adopted by the commission established pursuant to subsection (7) of this section. Any bonds or notes issued to pay such costs may be secured by the proceeds of the special sales tax levied pursuant to this section or may be general obligations of the municipality and shall satisfy the requirements for the issuance of debt provided by Sections 21-33-313 through 21-33-323.

Kingfish note: It is quite clear that Stokes and Priester will vote for the bill.  Ms. Barrett-Simon probably will support getting the loan because she refused to place the item in a committee and instead said she wanted to get a vote before March 8.  It is not clear how Hendrix or Foote will vote.  This item has a real chance of passing. 

49 comments:

Anonymous said...

Knew this was coming. That money will never be used for street repair as intended. Terrible idea.

Anonymous said...

Who would loan Jackson money?

Anonymous said...

Sheer lunacy.

Anonymous said...

@ 1:16pm

Then ask the question! What kind of assurances will be made to ensure the money is strictly used for infrastructure repairs?

Anonymous said...

what idiotic entity would make such a loan???

Anonymous said...

Rushing to borrow now before the bond market figures out that special tax collections are declining.

Anonymous said...

This is not for the streets. I bet once this loan is approved they will set a date to fix the 48" water main.

Anonymous said...

Isn't this exactly what Prince Chuckway Antar Boomboombalumbaba and Brother Kali Akushman are proposing?

Anonymous said...

✔✔✔ Mississippi's bond pimping industry will welcome a new opportunity to feed at the public trough. ✔✔✔

Anonymous said...

Should spend the money on infrastructure as it comes in and not issue bonds. The cost of issuing those bonds will be astronomical.

Anonymous said...

Revenue bond such as this is much better than general obligation bond.

Anonymous said...

What does Jackson have to offer as collateral?? Hahah

Anonymous said...

MDB is an agency of the State and will never be repaid this money unless is withheld from future sales tax and one day there will no sale tax to withhold.Bad move for the State to approve this.Like a pay day loan.

Anonymous said...

Quiet now, I'm trying to concentrate on writing the "community engagement" portion of my resume. If I could just get 1-2% for meetings, mentoring and posters out of this loan package, I should have a good year.

Anonymous said...

The Mississippi Development Bank will be "encouraged" to make this happen. Interesting that it is being "postured" as a loan rather than a bond issuance. Perhaps the city's bonding capacity and/or pathetic bond rating have something to do with that?

Anonymous said...

Does this mean Ridgewood Rd. won't get repaved? Jesus, that road sucks!!

Anonymous said...

The 1% money flows through the county coffers. The loan will be repaid. What you need to worry about is where the $90 million proceeds go.....half or more in the pockets of consultants.

This is going to be like one giant credit card debt with nothing to show but a bunch of fast food receipts.

Yarber Pie said...

Revenue bond such as this is much better than general obligation bond.

100% same was said to hoodwink Jackson voters to vote for the red-ink gulping black elephant Convention Center. How did that work out? Do you know?

Anonymous said...

Will Jacksons attorney and bond attorney make all the money or will butler Snow make it? Also, what about the so called financial consultants? Who will they be?

Anonymous said...

PERS will buy Jackson Ms Muni bonds.

Anonymous said...

It's my understanding that a "retreat" is planned in Atlanta for this coming weekend to work out all the details.

Anonymous said...

How will this be repaid? All sales tax that is going to Jackson is currently being spend.Sales taxes will not be growing so what future money will there be to repay loan. Do not let the city borrow money that can not be paid back.

Anonymous said...

Debt service devalues the infrastructure tax. So now instead of spending $1, for instance, on road paving, bridges and pipe replacement there will only be .70-.75 cents spent with the remainder used to pay bond interest.

How You Gonna Pay? said...

I'm a simple man and wondered how the city can repay this loan or who would make such a loan to Jackson, given its circumstances, reputation and instability.

I guess these are stupid concerns.

Anonymous said...

Yarber trying to get his last grasp at part of this money before he becomes a nobody. Has to pay to try to settle all those sexual lawsuits somehow. Under the current structure he can't issue enough consulting or engineering contracts to suck out his share, and once the commission put a kibash on the IMS ripoff for this next year this was his only way to the ATM machine.

Stupid is as stupid does. But the bond cartel has already sold enough of the council that they will try to steer this through before anybody looks too closely.

Anonymous said...

Wonder how much $$$ the minority set-asides will be?

Anonymous said...

Sure thing is that if the city gets the 90m the state will have to bail the city and the tax payers will be the one who has to be responsible.

Anonymous said...

They are proposing to dedicate the 1% tax in the future to bond payments. Not a bad idea except I still fear where the $90 million will end up.

Anonymous said...

Hey king your reCapcha thing is getting more of a bother than it's worth nine times an I can't get trough,fix it

Anonymous said...

What 5:12 said!

Anonymous said...

Another Kemper Power Plant nuance argument.

Anonymous said...

Harvey Johnson just had to have the convention center. They raised taxes for that. Now they got a hotel going up. All the tax money that went towards the DAM convention center and motel could fix the streets and water problems in Jackson!!!!!!!!

Y'all go ahead; raise taxes again; you will looses more of your tax base.

By the way; I'll drive 50 miles to eat at Olive Garden than spend my hard earn money at any restaurant in Jackson!!!!!

Anonymous said...

IF and only IF this money is spread around with LOCAL companies. If one or two companies are going to tie up all funding for themselves, then it is bad for the city and its future. IF it is to go to a "large national company" to design and supervise, then smell the rats.

Anonymous said...

I was thinking about all the "Jackson Haters" who post on this blog. Interesting study: Are they racist? Are they angry they moved? What do you think their problem is folks? At any rate, the Seiman's Deal was just terrible and we all are stuck paying for it. The $90,000,000.00 borrowed could be just the same or it could be the answer to Jackson's woes. All depends on leadership.

Anonymous said...

Everybody here is so worried somebody else is going to make a dime.....

Besides being petty.....and just shitty....and jealous.....what's the psychological word for constantly being concerned that someone else is going to make money?

Anonymous said...

$70 million for the minority planners, $10 million for crony payoffs and $10 million for actual infrastructure repairs.

Anonymous said...

Recall that the late Chokwe Lumumba as Councilman voted against using bonds to repave roads because the indebtedness would outlive the useful life of the repaved road.

Anonymous said...

Is anyone else familiar with the 'repairs' the city made to Woodland Way near Highway 18? The road was a complete pockmarked mess of pot holes. About 15 months ago the City 'repaired' it. That is, they spent the money to repair it.
They used men who did not know what they were doing to patch the holes. You could see what they were doing the work that they had no clue. Today the road is every bit a bad as it was 18 months ago. When you throw money away like that, it does not matter how much money you raise. All you are doing is increasing the city's debt.
Hire experienced, competent engineers and take bids only from experienced, competent contractors. Do not have any racial quotas (They have been sued about this before and lost. If they were to get sued again they would lose again.). Do not give any preference to local firms. Do not monkey around with the bids. List the qualifications in the bid documents that would insure only experienced and competent firms. Have a prequalifying process where the design team assists the city in weeding out bad actors before the bidding. Then open the bids and hire the lowest bidder. Period.

Anonymous said...

10:11 -- that's logic. Doesn't work with this mayor, and it appears its the same with a majority of the council. Listen to Kennuf when he says it really doesn't cost anything because we will pay it with 1%. Same kind of logic that JPS said Stringfellow woudln't cost anything because his 24,000 came from money they had saved somewhere else.

Logic. Jackson Mayor. No connection. Only connection is Yarber has a lot of legal bills to pay and he needs somewhere to such some last few dollars from. $90 mil gives him a good source.

Line Forms Here.. said...

7:47 '..was thinking about all the Jackson haters..' and wonders if they're racists for commenting. Then, lo and behold he posts as one and reaches the same damned conclusion.

Oh, and by the way, it's never a bad idea to look around and see who is making the money off these deals. It's healthy and productive to recognize and point out graft, theft, slick-dealing and brother-in-law money-shifting. Don'tcha think?

Anonymous said...

Okay, so which minority owned business friend of the mayor gets part of this deal this time?

Anonymous said...

Some of you are so busy looking at Jackson that you aren't looking under your own nose.
I've been shocked at how quickly roads in some high end neighborhoods in Madison County and Rankin County deteriorated while my older neighborhood in Jackson has a road that is still good and decades older. Part of the answer is the amount and weight of traffic as my road was built to higher specifications.
And, given the sewers that went in 30 years ago in Madison with a " get your culvert from the supervisor on house by house basis" requirement, don't expect the sewer systems to last. Indeed , in two neighborhoods in Madison that were fairly new and still in development needed your federal taxes dollars to fix the sewers.
There are homes in Madison built 30 years ago that are not grounded and whose sewer lines are either inadequate or not connected to the main sewer at all. Inspection was a joke. That is why I moved to Jackson as soon as I could after watching how the homes in my very nice neighborhood ( and those of my friends) in Madison were being built.
If the counties and state don't require developers , in particular, and builders , in general, to meet high enough standards, this is what happens. They will build to the minimum requirements enforced.
You can build it right the first time or like Hwy 25 have to be adding and rebuilding again in just a few years. Which do you think is less expensive over time?
Why aren't you asking why the traffic projections on 25 were so off or why traffic doesn't move as quickly as it should for access to the businesses?
If the requests for proposals are bad and the specifications inadequate, inadequate and a short " shelf life" is what you get. And, it's wise to put your money into the " bones" of a building that are expensive and difficult to replace rather than in the facades which aren't!

Anonymous said...

I've been shocked at how quickly roads in some high end neighborhoods in Madison County and Rankin County deteriorated while my older neighborhood in Jackson has a road that is still good and decades older.

Name the neighborhoods.

Part of the answer is the amount and weight of traffic as my road was built to higher specifications.

Prove it.

That is why I moved to Jackson as soon as I could after watching how the homes in my very nice neighborhood ( and those of my friends) in Madison were being built.

Name the neighborhood.

Or do you have dementia?

Anonymous said...

Madison County has severe clay problems in most areas. So do many areas of Jackson. Roads will always be a problem in these areas. However, the city/county has to fill pot holes and repair the bad areas quickly and do it right. Ridgeland does this.

Anonymous said...

Moving from anywhere into Jackson is foolish. And I'm not talking about roads. Lets talk about the courts, the schools, the crime, the courts (oh sorry alrrady said that one), the racists running the city. Shall I continue? Now back to roads...

Anonymous said...

This is like loaning a crack head some money and the chances of them paying you back is slim and none, and I heard slim is out of town indefinitely...

Kingfish Cousin Catfish said...

@ 9:03am

If your sorry a** does not live in Beverly Hills, be quiet!

Talking like you living it up in Rankin County driving a Bugatti!? Chi'please!

This is still po'dunk Mississippi, wherever you may live! LMAO

Anonymous said...

As a Jackson remnant, I would definitely back this proposal to address $90M in infrastructure improvements. However, the terms of any financial arrangement with the MDB must stipulate that the State acts as Construction Manager, awards all contracts and supervises all projects. The City has repeatedly demonstrated it is incapable of managing the most basic services.

Anonymous said...

at least jackson is trying. ;-)

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Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


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Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

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