‘Project Afterburner’ plan to shape Memphis’ future
What became a $200 million spending package materialized on Memphis Mayor Jim Strickland's calendar this fall under the codename Project Afterburner.
The name was an homage to the jet engine component that helps a fighter pilot escape danger by injecting fuel directly into the jet's exhaust stream, giving it considerable extra thrust. That moniker was the brainchild of city Chief Operating Officer Doug Mcgowen, a former Naval fighter pilot.
The plan was something that had been on Mcgowen's mind for some time – what to do with the money that would flow back to the public once the city paid down more of its considerable debts.
It had been on Strickland's mind, too. The mayor, as a council member during the first half of the lastdecade, was among those voting on the austerity measures the city took in 2014. Those cuts and the city's limited revenue growth informed the budget he inherited when he took office in 2016. The name, Project Afterburner, rose from the danger of the COVID-19 pandemic, the suffering it has brought to Memphis, and the economic pain it has caused. It is an acknowledgment that the ‘momentum' Strickland touted on his way to reelection in 2019 is gone, or at least off course.
The ability to borrow now to rejuvenate tired parks and old civic assets like the Southwest Drivein on South Third Street or to spend money closing holes in the city's broadband infrastructure could jumpstart Memphis' recovery from the pandemic or incentivize private dollars to neighborhoods that don't often see them. It could be the little bit of thrust Memphis needs for its trajectory to turn upwards again.
“If we don't do it now, in a significant way, it's not gonna be done for a long time,” Strickland said. “I also think it's a visible sign to the community that we are going to aggressively try to recapture the momentum that we had.”
City is borrowing from future
Both Strickland and Mcgowen see a ticking clock. They will not be in power when the city sees its debt service decline substantially. Instead, they are borrowing against that future cash flow, reducing what a future mayor and city council will be able to borrow.
But, they are quick to say, they are not eating up a future government's ability to spend.
“We're putting on them a relatively small obligation that they can easily handle,” Strickland said.
Mcgowen said, “We are clearly investing now and preserving our future ability for our city to grow as well and to provide even better service.”
Project Afterburner, which had its name changed to Accelerate Memphis before it was made public, will be, like all bond issuances, not without interest. According to the city's bond documents, the total bonds issued will be $196 million in principal and $88 million in interest over 25 years.
But that borrowing won't eat up all of the city's future debt capacity. In mid-2026, which is when the 2027 fiscal year begins, the city's annual debt services is projected to fall by $63 million, going from $134 million to $71 million.
The Accelerate Memphis plan adds $13 million in debt service to the city's fiscal year 2027 bill, making it $84 million. So, in mid-2026, the city can expect to have an extra $50 million or so to spend. That money doesn't have to go debt service. It could go to expanded
parks programming, more staff at community centers or a line item for Shelby County Schools.
Much of that reduced debt load is because of the fiscal restraint exhibited during the past two mayoral administrations — A.C. Wharton and Strickland. Mcgowen was a part of both and he noted that the work of putting the city's financial house in order
“We're leaving a legacy for the next council and the next mayor that they have to do nothing and $49 million of new operating money falls into their laps on July 1, 2026,” Mcgowen said.
Strickland not ready to talk legacy
The plan, after Memphis City Council approvals two weeks ago, is poised to move forward. When Tennessee Comptroller Jason Mumpower signs off, the city issues the debt. After that, dirt starts moving.
Strickland told the council that each of the projects will be complete by the time he leaves office at the end of 2023. While the term-limited mayor is not quite ready to acknowledge it, the $200 million spending plan, if completed, would be a major piece of what he will accomplish in office.
Strickland was not keen on talking legacy just before the project was announced.
“I'm not sure I really care at this point. I mean I still have three years left, I'm not thinking about legacies or being remembered. I'm still trying to make Memphis better. And I think we've done a good job of that for five years,” Strickland said.
The mayor, an avid doubles player before he took office, followed that up with a tennis analogy.
“It'd be like playing tennis, and you're up 5-1 in the first set, and you start thinking about winning that set, and all of a sudden, you took your eye off the ball and the other player comes back and captures that set, which happens...we've got to keep focused on trying to make Memphis better,” Strickland said.
City Council buys into spending plan
For the past year, the relationship between the Strickland administration and the Memphis City Council has run hot and cold. The city's executive branch and half the council clashed over whether police officers should be allowed to reside 50 miles outside of Shelby County.
The council took a measure that would've asked voters that question off of the November ballot. Strickland vetoed their decision, employing the littleused veto power of a mayor for the first time in his five-year tenure. The council, along the same 7-6 lines as their previous vote, rebuked the mayor and overturned the veto.
On the “Accelerate Memphis” plan, however, the council and administration were able to agree. The administration unveiled the spending plan with a map that showed where projects were in the city. The map also featured the boundaries of the seven, single-member council districts — projects that the members, just two calendar years away from reelection, could be able to tout in 2023.
The administration overcame some early skepticism from some on council, including Martavius Jones, who has, at times, suggested the city should raise taxes to get more revenue and has pushed the Strickland administration to spend more.
“Memphis is a great city, but we have been, in my opinion, exercising too much austerity,” Jones said. “I think that this is a bold plan, really getting things done and people can really see that this is making some investments.”
On the other side of the coin, Frank Colvett, the council's chairman and someone who is not a fan of more spending, also found a lot to like in the plan.
Colvett, like the administration, is hopeful that the public spending will cause private money and development to follow.
“It is $200 million that is going to be spread equally around the city. That won't just improve our parks; it won't just improve our public spaces, it won't just improve our community centers, but will also help enhance simple things like landscaping and sidewalks so that developers will pay attention to not just the Poplar[avenue] Corridor, but also, hopefully, pay attention to these other great areas of Memphis, Tennessee, where there is equal if not even greater opportunity for them to get involved,” Colvett said.
Colvett, who, like Jones and Strickland is term-limited and won't be in city government in a few years, also believe that the plan would not mortgage the future
“Remember, this project does not use all of the budget cap space in the longer term, so we're leaving money. We're being responsible. We're not spending all of it,” Colvett said.