Bone fires back at Fox's criticism of Metro finances

Newly minted Megan Barry surrogate Charles Robert Bone says he is "stunned" by candidate David Fox's critique of the state of Metro finances and won't sit back as Barry and Karl Dean's legacy get attacked.

Bone, who came in fifth place in the Metro general election and later endorsed Barry, made those comments in an email to his supporters on Thursday. His email came after Fox, during a recent debate, criticized Barry's 2012 vote to increase property taxes as well as Metro's use of rain-day funds in the most recent budget.

"To hear David tell it, the last eight years under Mayor Karl Dean have been a fiscal disaster. While you know that's not true, I wanted to provide you with my perspective and talking points about why what David is saying is not accurate."

Bone later adds. "I really like David personally and enjoyed getting to know him better over the last year. However, I refuse to sit idly by while he and others on his behalf unfairly attack Megan (and Mayor Dean's legacy) and disseminate false information."

Below, you can read Bone's entire email and counter to Fox's fiscal argument.

Bone, who has served as legal counsel for the Nashville Convention Center Authority, is a close ally of Mayor Karl Dean's administration and is a personal friend of Metro Finance Director Rich Riebeling. The latter engineered the financial decisions that have taken center stage in the mayoral runoff.

UPDATED: 12:25 p.m.

Here is a response from Fox's campaign, which references comments Barry made about property taxes in a recent interview with the Nashville Scene.

"Charles Robert is a great guy, but on this one he is just wrong. 

Everything David has said about Megan's Metro Council votes to raise property tax rates by 13 percent, add $1 Billion to Metro's debt, and spend down the City's rainy day fund during boom times is just fact. It's part of the public record and is not in dispute.

Megan should defend her own record of spending more than the city is taking in rather than pushing Charles Robert to do so.

Because it is clear is if she is elected mayor, Metro voters can expect more of the same -- higher taxes for them and more debt for the city.

Even in this week's Nashville Scene article when Megan was asked about whether new taxes would be needed, she said:  

"I think a tax conversation is one that’s always on the table for any public official." - Megan Barry, Nashville Scene, August 27, 2015

David thinks that is absolutely the wrong way to go and has said so."

Bone's original email:

As you may know, I decided to support Megan's campaign for mayor because I believe that she will work to sustain the City's momentum in the most fiscally responsible way possible; that she will focus on addressing traffic and improving infrastructure; and that she will embrace and expand upon many of the great things that are already underway in this City.

Furthermore, I must say I was stunned by some of the things that David Fox had to say about the state of our City during Monday night's debate. To hear David tell it, the last eight years under Mayor Karl Dean have been a fiscal disaster. While you know that's not true, I wanted to provide you with my perspective and talking points about why what David is saying is not accurate.

David is simply wrong about the budget and fund balance. Addressing the use of the City's fund balance in this year's budget, David called it "extraordinary," said he "could not believe it," and "would never approve that." The truth is that the unappropriated fund balance has traditionally been kept at 5% of the budget, and is currently around 7% of the operating budget. Metro has appropriately used its excess fund balance in 14 of the last 16 budgets going back to 2001 (including all four years that David served on the School Board) with an average allocation of $42.6 million. These fund balances exist because of prudent and fiscally responsible management and year-over-year conservative financial projections. For example, despite an allocation of $73 million from last year's fund balance, the fund balance still increased from $124.8 million to $166.7 million. To claim that this practice is extraordinary is, in fact, an extraordinary position to take.

David is effectively proposing draconian budget cuts. He is now on record presumably with the position that he would not have raised property taxes and would never use the excess fund balance. The result of that would be approximately $175 million less in revenue today (9% of the total budget). More staggering is that if you assume he could not cut education, would not cut public safety and that debt service is essentially a fixed cost, then David would have to find a way to cut almost 32% of our remaining budget. This would decimate the Metro Government. This is not only an untenable position, but perhaps the most fiscally irresponsible position that one could possibly take.

In addition, it is important to understand that the property tax rate today ($4.516) is actually lower than it was eight years ago ($4.690); that the City has the same bond rating today – Moody's Aa2 /S&P AA – as when Mayor Dean and Megan Barry took office; that our debt service percentage to the total budget is less than it was eight years ago; and that the current administration has reduced more than $75 million from the City's departments while increasing funds for public education and public safety.

I really like David personally and enjoyed getting to know him better over the last year. However, I refuse to sit idly by while he and others on his behalf unfairly attack Megan (and Mayor Dean's legacy) and disseminate false information.

Thanks –

Charles Robert