City of ChattanoogaBudget 2010

Council Presentation September 1, 2009

Daisy W. Madison, CFOMayor Ron Littlefield

Vickie C. Haley, Deputy CFOFredia F. Kitchen, Budget Officer

Budget Highlights……Revenues

No tax increase for eighth consecutive year Total FY09 Revenues down $5.5 M or 3% from prior yr Total FY10 Revenues down $2.5 M or 1.49% from FY09 Budget

State Sales Tax down $1.1million or 9.95% County Wide Sales Tax is down $1.6 million or 6.05% Licenses and Permits are down $819,100 or 23.78% Charges for Services are down $199,746 or 8%

Mostly in box office sales, Auditorium rents, and concessions Use of Property is down $1,125,000 or 65.98%

Due to lower interest rates

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Revenue Shortfalls

2008 2009 Budget 2009

Projected2010

Proposed FY09 vs FY08Proj Fy09 vs 09 Budget

Prop 2010 vs Bud 2009

FY09 vs.

FY08FY09 vs.

BudProp 10 vs

Bud 09

Property Taxes 92,090,492 93,827,521 94,788,982 95,805,126 2,698,490 961,461 1,977,605 2.93% 1.02% 2.11%

Other Local Taxes 13,394,272 13,210,207 13,512,868 13,737,700 118,596 302,661 527,493 0.89% 2.29% 3.99%

Licenses, Permits 3,421,918 3,443,800 2,833,764 2,624,700 (588,154) (610,036) (819,100) -17.19% -17.71% -23.78%

Other Intergov Rev 9,507,326 7,172,293 7,960,670 6,917,230 (1,546,656) 788,377 (255,063) -16.27% 10.99% -3.56%

State Sales Tax 11,185,750 11,437,590 10,252,124 10,300,000 (933,626) (1,185,466) (1,137,590) -8.35% -10.36% -9.95%

County Wide Sales Tax 26,604,258 27,249,319 25,710,248 25,600,000 (894,010) (1,539,071) (1,649,319) -3.36% -5.65% -6.05%

Charges for Services 2,614,734 2,496,300 2,312,379 2,296,554 (302,355) (183,921) (199,746) -11.56% -7.37% -8.00%

Fines, Forfeitures & Penalties1,673,150 1,614,600 1,492,195 1,551,100 (180,955) (122,405) (63,500) -10.82% -7.58% -3.93%

Use Of Property 3,668,960 1,705,000 1,510,745 580,000 (2,158,215) (194,255) (1,125,000) -58.82% -11.39% -65.98%

Miscellaneous Revenue 4,409,586 4,444,574 4,162,745 4,362,697 (246,841) (281,829) (81,877) -5.60% -6.34% -1.84%

Transfers 4,944,287 3,468,796 3,468,796 3,759,893 (1,475,491) - 291,097 -29.84% 0.00% 8.39%

General Fund (1100) Only173,514,735 170,070,000 168,005,516 167,535,000 (5,509,219) (2,064,484) (2,535,000) -3.18% -1.21% -1.49%

Variance % Variance

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Budget Variance Trend

FY06 FY07 FY08 FY09Estimated Revenues 152,214,238 160,556,000 166,442,000 170,070,000 Actual Revenues 159,735,577 167,715,069 173,514,735 168,005,516

Variance 7,521,339 7,159,069 7,072,735 (2,064,484)

Estimated Expenditures 155,714,238 168,538,285 178,501,520 179,019,717 Actual Exp Excl Capital 150,072,999 159,844,087 165,737,315 169,802,003 Variance 5,641,239 8,694,198 12,764,205 9,217,714

Budget Var before Capital 13,162,578 15,853,267 19,836,940 7,153,230

Cap. Approp./reserve use 3,500,000 7,982,285 12,058,840 8,949,717 Net Budget Variances 9,662,578 7,870,982 7,778,100 (1,796,487) Change in FB 6,162,578 (111,303) (4,280,740) (10,746,204)

Budget Highlights….Appropriations

Includes appropriate measures to reduce costs without sacrificing quality of service delivery

Continued focus on economic development in current tough economic climate

Increased recycling pickup from once to twice monthly

Enhanced on call brush pick up service

Expanded parks & recreation program with addition of Summit of Softball Complex

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Budget Highlights Reduced hours at all 15 recreation centers

14 hrs/wk at 12 centers w/o pools Avondale East Chattanooga Eastdale East Lake First Centenary Frances B Wyatt Glenwood John A Patten North Chattanooga Shepherd Tyner/East Brainerd Washington Hills

5 hrs/wk at 3 centers w/pools South Chattanooga Brainerd Carver

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Budget Highlights Reduction in travel

Consolidate Eastgate, Southside, & Downtown police precincts

$980K net decrease in pension contributions over prior year Reduction in funded positions $25 proposed increase in court cost Changes in actuarial assumptions for both plans based on experience 20% per year phased in approach to increase in ARC for general Changes to Fire & Police DROP provisions as a result of plan review

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Budget Highlights

$400K increase in Liability Insurance funding

$235K contingency

$3.4M increase in existing debt service requirement

$300K new debt service requirement

$10,249 net decrease in agency appropriations

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Budget Highlights

Discontinue City funding of VITA Program

Discontinue Common Ground Newsletter Publication

Temporary suspension of capital recovery component of fleet lease payment for general fund only

Institute $50 per pay period charge for take home vehicle privilege

Assess $25 per pay period for use of City vehicle on a 2nd job

Maintenance of high quality benefits program for employees

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Budget Highlights (cont’d.) No employee layoffs

50% reduction in longevity pay

Enhanced Medical benefits Expanded hours at clinic to facilitate walk ins Expanded pharmacy to include over the counter drugs

Revision of City’s overtime policy to FLSA Standard

Freezes 93 positions – 17 from prior year

Cuts 6 positions

OPEB funding limited to pay-go amounts only

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2010 Allocations by Dept(Excluding Capital)

Inc/ (Decr.) over Prior

Year % change

GEN. GOVT 5,218,906 5,273,633 54,727 1.05%

SUPPORTED AGENCIES APPROP(1)13,207,398 13,235,857 28,459 0.22%

DEBT SERVICE 12,166,456 15,906,307 3,739,851 30.74%

GENERAL SERVICES 2,373,471 2,455,612 82,141 3.46%

INFORMATION SERVICES 3,792,361 3,792,361 - 0.00%

TOTAL GENERAL GOVT. 36,758,592 40,663,770 3,905,178 10.62%

FINANCE & ADMIN 4,076,750 3,874,300 (202,450) -4.97%

POLICE 43,283,539 40,757,862 (2,525,677) -5.84%

FIRE 28,534,996 27,435,824 (1,099,172) -3.85%

PUBLIC WORKS 33,074,616 30,430,100 (2,644,516) -8.00%

PARKS & RECREATION 11,523,733 11,589,463 65,730 0.57%

PERSONNEL 6,745,967 7,047,622 301,655 4.47%

NEIGHBORHOOD SERVICES 2,008,413 1,870,020 (138,393) -6.89%

EXECUTIVE BRANCH 1,715,512 1,580,113 (135,399) -7.89%

EDUC, ARTS & CULTURE 2,347,882 2,285,926 (61,956) -2.64%GRAND TOTAL 170,070,000 167,535,000 (2,535,000) -1.49%

FY2009 Budget

Final FY2010 Proposed

Supported Agencies include new/additional requests/Excludes Capital. FY09 does not include Alexian Brothers (29,458) and Inner City Ministries(9,250) totaling $38,708

City County Funding for Agencies Included in Sales Tax Agreement

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*Inner City Ministries and Senior Neighbors (Alexian Brothers) were previously funded in Parks and Rec.(2) Addtl. RPA proposed over FY09 includes $125K city share for repair of HVAC at DRC

Budget Request Budget County City FY2010 vs

Agency Fiscal 09 Fiscal 10 Fiscal 10 % Change FY 2010 County FY 2010

Allied Arts Council Fund, Inc. 255,000 255,000 150,000 -41.18% 150,000 -

Chattanooga History Center 24,000 42,000 21,600 -10.00% 28,000 (6,400)

Chattanooga African-American Museum 70,000 70,000 63,000 -10.00% 64,000 (1,000)

Chattanooga Area Urban League 50,000 50,000 45,000 -10.00% 50,000 (5,000)

C-HC Bicentennial Library 2,640,000 2,708,255 2,708,255 2.59% 2,640,000 68,255

C-HC Regional Planning Agency(2) 990,007 990,007 1,115,712 12.70% 1,115,712 -

Childrens Advocacy Center 30,000 30,000 27,000 -10.00% 18,000 9,000

Heritage Hall Fund 57,019 62,653 62,653 9.88% 62,653 - Scenic City Beautiful Commission 22,888 22,888 5,000 -78.15% 22,888 (17,888) Senior Neighbors (Alexian Brothers)* 29,458 58,916 - -100.00% 10,300 (10,300) WTCI-TV Channel 45 60,000 100,000 54,000 -10.00% 30,000 24,000

Total Sales Tax Agreement 4,228,372 4,389,719 4,252,220 0.56% 4,191,553 60,667

City County Comparative Agency Funding

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*Inner City Ministries and Senior Neighbors (Alexi an Brothers) were previously funded in Parks and Rec. 1 Carter Street and Finley Stadium funded through CVB on behalf of Hamilton County

Budget Request Budget County

Agency Fiscal 09 Fiscal 10 Fiscal 10 % Change FY 2010

Air Pollution Control Bureau 270,820 270,820 270,820 0.00% 188,548 CARCOG & Economic Dev. Dist 31,111 36,038 31,111 0.00% 67,581 CARTA Subsidy 3,851,000 3,966,530 3,851,000 0.00% 105,200 Carter Street Corporation 1 150,000 219,000 135,000 -10.00% 219,000 Repayment for 1200 block demolition 50,000 50,000 50,000 0.00%Chattanooga Area Food Bank - - 15,000 - Chattanooga Downtown Partnership 100,000 100,000 90,000 -10.00% - Chattanooga Neighborhood Enterprise 1,000,000 1,500,000 900,000 -10.00% - Choose Chattanooga 25,000 25,000 22,500 -10.00% 30,000 Community Foundation Scholarships 160,000 160,000 100,000 -37.50% - Community Impact Fund 300,000 350,000 200,000 -33.33% - Enterprise Center 100,000 100,000 95,000 -5.00% - Enterprise Center Maglev - 142,500 142,500 - Enterprise South Nature Park 190,150 301,816 283,861 49.28% 283,861 ESIP Security - - 53,021 53,021

Finley Stadium 1 60,000 60,000 60,000 0.00% 60,000 Friends of Moccasin Bend - - 30,000 - Front Porch Alliance 30,000 30,000 27,000 -10.00% - Go! Fest 25,000 25,000 15,000 -40.00% - Homeless Health Care Center 17,500 25,000 15,750 -10.00% - Human Services 1,333,477 1,333,477 1,233,477 -7.50% - Inner City Ministries* 9,250 - - -100.00% - Railroad Authority 55,794 67,007 67,822 21.56% 67,822 Stop the Madness - - 75,000 - Tennessee Riverpark 1,258,632 1,346,732 1,219,775 -3.09% 1,219,775

Not in Sales Tax Agreement 9,017,734 10,108,920 8,983,637 2,294,808

Total Supported Agencies 13,246,106 14,498,639 13,235,857 -0.08% 6,486,361

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Other Agency Funding FY 2010

AMOUNTS IN DEPT. BUDGETSIncr/Decr

Agency Budget Request Proposed % County City Prop FY10 vs

FY09 FY10 FY10 Change FY10 County FY10

Ross' Landing Capital 90,613 90,613 90,613 0.00% * 90,613 Ross' Landing* (operations) 1,203,902 1,194,064 1,212,298 0.70% * 1,212,298 TN Riverpark Security - Police 217,706 230,690 230,690 5.96% * 230,690 TN Riverpark Security - Rangers 198,641 184,626 189,037 -4.83% * 189,037 Carousel Operations 92,123 92,039 92,141 0.02% * 92,141 Waterfront Management - - 40,000 0.00% 30,000 10,000

Greater Chatt. Sports Committee 1 75,000 100,000 75,000 0.00% 100,000 (25,000)

Total Dept. Budgets 1,877,985 1,892,032 1,929,779 2.76% 130,000 1,799,779

1 Greater Chatt. Sports Committee funded through CVB on behalf of Hamilton County*Half of operations funded by County

Funded in Economic DevelopmentMulticultural Chamber of Commerce 150,000 150,000 75,000 -50.00% 75,000 - Chatt Chamber Foundation-Econ.Dev 450,000 450,000 450,000 0.00% 450,000 - Enterprise South Marketing 75,000 75,000 75,000 0.00% 75,000 -

Total Econ. Dev. Budgets 675,000 675,000 600,000 -11.11% 600,000 -

New Agencies Not Funded

Agencies RequestA & E Transitional House 864,015$ Girls Incorporated of Chattanooga 19,925 YCAP (YMCA Metro Chatt) 20,000 Partnership for Families, Children & Adults 50,000

953,940$

General Fund Position Summary

Authorized Frozen Funded Frozen Cut Authorized Funded

General Services Total 40 6 34 6 0 42 36

General Government Total 76 0 76 0 1 75 75

Finance Total 67 2 65 4 0 67 63Police Total (includes 30 sworn) 676 4 672 45 75 601 556Fire Total (3 mo unfunded 30 pos or 7.5 FTE) 417 0 417 0 0 417 417

Public Works Total 326 0 326 23 5 319 296

Parks & Recreation Total 187 3 184 14 0 187 173

Personnel Total 19 1 18 0 0 19 19

Neighborhood Services Total 29 0 29 0 0 29 29

Executive Branch Total 16 0 16 0 0 16 16

Education Arts & Culture Total 26 1 25 1 0 26 25

Grand Total 1,879 17 1,862 93 81 1,798 1,705

FY09 FY2010 Requested

16

81 Cut positions includes 74 positions transferred in 911 unification.

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FY2010 Proposed Budget(Excluding Capital)

$167,535,000$2,535,000 under prior year budget or -1.49%

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Budget Summary(Excluding Capital)

FUND FY 09 Budget FY10 PROPOSED INCREASE/DEC % CHANGE

General Fund 170,070,000 167,535,000 (2,535,000) -1.49%Economic Development 10,045,806 10,400,000 354,194 3.53%State Street Aid 4,720,290 3,985,115 (735,175) -15.57%Hotel Motel 4,112,640 3,939,000 (173,640) -4.22%Debt Service Fund 17,378,642 21,449,643 4,071,001 23.43%Narcotics Fund 319,650 362,000 42,350 13.25%Human Services 12,719,294 17,553,331 4,834,037 38.01%Solid Waste Fund 7,264,382 6,617,228 (647,154) -8.91%Water Quality Fund 6,192,675 6,222,211 29,536 0.48%Municipal Golf Course 1,963,938 1,827,652 (136,286) -6.94%Community Develop/HOME 4,133,730 4,327,815 194,085 4.70%

TOTAL ALL BUDGETS 238,921,047 244,218,995 5,297,948 2.22%