The Lakeland city board and mayor held a special meeting on March 20 to vote on a $38 million capital outlay note for construction of a Lakeland high school. The motion passed on a split vote. But first, they voted on whether citizens would be allowed a comment period before the vote.
The agenda omitted a citizens’ commentary period, and Commissioner Michele Dial immediately made a motion to disallow it despite two or three people being ready to speak to the board. Vice Mayor Josh Roman seconded her motion.
Commissioner Richard Gonzales Jr. objected, saying, “This is a slap in the face to the citizens of the city. They’ve come here to express their opinions, which some people don’t want to hear, apparently. I think we need to reconsider this because the integrity of this body is in question now. Think long and hard about this one.”
Gonzales and Mayor Mike Cunningham voted against the motion. Commissioners Roman, Dial and Wesley Wright voted for the motion, so it passed and there was no public commentary period.
Roman said he called for the special meeting to amend the resolution, “giving better direction to city staff, financial advisers and any other professionals trying to help the city try to determine exactly what the possible tax rate would be.”
His motion to amend called for:
1. The capital outlay note to change from $38 million to $35 million
2. The use of the full one-cent tax rate per $100 of assessed value of $35,515 “as this rate is based on audit data, actual collected tax and not a gross tax bill that may require discounting”
3. The assumption of a $700,000 reduction in city hall expenditures. He added, “This decrease is coming from a combination of a historically large roads budget and/or city hall operations, as well as new revenues will be used to support the full amount of the annual debt service.”
4. Not assuming any future city hall operations will need to be included in this project.
5. The assumption that no reserves are used or needed at this time for a new Canada Road project. Roman further stated, “The BOC directs staff to withdraw our city application for funding and anticipates reapplying for the next round of applications, which is believed to be in 2023. The BOC will decide on financing options at that time, assuming the application is approved.”
6. The assumption that all general reserve funds not already committed to projects with the debt policy are available to pay off other debt obligations, whereby freeing up additional revenue for capital outlay note payment. Roman noted, “This includes $1.5 million in the current fiscal year budget for a Lakeland Fire Department. This course of action was reversed, and the city of Lakeland, Tenn., has no imminent plans to separate from Shelby County Fire.”
7. The assumption of a four-year agreement with the Lakeland Board of Education, whereas they contribute $700,000 annually.
8. The pricing of various call options to give this city flexibility. (“Calling” refers to when a bond can be refinanced, which affects the cost.)
Wright seconded the motion.
Gonzales questioned the draining away of road maintenance funds. “We can’t keep up the roads we have now, and now we’re not gonna even spend the money we’re spending now, which is not enough. That’s nuts.”
Roman bristled and asked if the statement was directed at him and then told Gonzales, “You’re welcome to excuse yourself.”
The mayor broke in to advise commissioners they must ask permission of him, the chair, before they speak.
Gonzales continued, saying he doesn’t understand the fourth item and asking if Roman wants to back out of the Canada Road expansion for the foreseeable future, until at least 2023. If so, Gonzales added, that’s also nuts.
Dial asked to review the roads budget, and the board discussed it briefly.
For the 2019-20 budget year, the total budget is $1.2 million, which includes $750,000 for street reconstruction, pothole repairs and other maintenance. That amount was already cut from the previous budget year, which had $1.2 million for streets.
Cunningham said, “I agree that we’re strapping this city’s ability to do what is in the best interests of all our citizens by strapping our road budget down 700 grand. We all know what the roads look like around here. That’s the one thing I see and get the most complaints about, is the roads. I think that’s foolish, taking that out of our budget. That’s not taking care of our citizens and their needs. That’s what they’re paying taxes for.”
The mayor also criticized the recommendation to postpone the Canada Road Project. “We stand to lose $20 million that the state is giving us to build this project. Our contribution is five (million). So we’re willing to tell the state, ‘We don’t want your $20 million because we have something else that is much more important than serving all the citizens of this city.’ I think that’s ludicrous in and of itself.”
To the best of his understanding, Cunningham said, declining that money means a delay of five years before the state will even reconsider.
“So I think this amendment just to try to shuffle money around – to try to make something magically work, without giving the people of this city a vote on financing for a school – is the absolute lowest I have ever seen in my life,” Cunningham said.
He continued, “I never dreamed we would get to this point, where this is more important than taking care of everyone and letting the citizens have a voice and a vote to decide the school issue once and for all, for now. Let’s let the citizens have a say. If it’s a ‘yes,’ then we move forward and we find a way to finance it and we build the best school that we can. If it’s a ‘no,’ we don’t just stop. We keep trying to find ways to get to the point where we can grow enough to make this school successful.”
Cunningham also said, “I just think we’re grasping at straws now in a last-ditch effort to avoid the vote of the people. Let’s let the people have a say. It’s two years since the last vote. Nobody knows how it’s going to go. There might have been a lot of changes in people’s opinions and minds. Let’s let the citizens have a vote, because I will respect the will of the people, I can tell you that right now.”
Before they voted, Gonzales said the integrity of the board is now in question. “We’re losing folks. I said it at the last meeting: We have a bad habit of ignoring the will of the people in the city, and we just did it again and then we slapped them in the face when they came up here tonight to talk to us because apparently there was a glitch in the agenda here. That’s just nuts. I’m begging you guys. You’re losing the support that’s out there.”
Roman said his amendment is simply a prioritization of the city’s projects to accomplish goals.
Roman’s motion passed on a split vote, with Roman, Dial and Wright voting yes and Gonzales and Cunningham voting no.
Cunningham said he would have a prepared statement at the next city board meeting, adding, “And I will assure you, it’s gonna raise some eyebrows.”
He also promised as mayor that all future agendas for regular city board meetings, special-called meetings and work sessions will have a public commentary period.
