2009-10 City Budget

City Revenue:  Where does the money to run our City come from?

The General Fund totals $165M, and is based on four main sources of revenue: 1) Local Taxes, 2) Intergovernmental Transfers & Grants, 3) Licenses, Fines & Fees, and 4) Muni-Court Excess Revenue (over costs).  Here is a short summary (in simplified form) of the major contributing revenue items (which are covered in greater detail in the 480-page FY 2009-10 Operating Budget document):

INTERGOVERNMENTAL REVENUE                                  $18,406,730     (11%)

TN Shared Sales Tax                        $10.49M

Hall Income Tax                                   3.21M

Misc Other State & Fed                      4.70M

OTHER REVENUE                                                               $  5,060,970     (3%)

Licenses & Permits                            $0.30M

Service Charges                                   1.173M

Fines & Forfeitures                             1.737M

Misc Revenue                                     1.849M             

MUNICIPAL COURT (Excess over Costs)                           $ 4,643,180_    (3%)

                              GENERAL FUND TOTAL                      $165,342,960

City Budget Expenses: Where does your money go?

The City employs some 1600 workers, and wages and benefits account for a large part of the overall $165M expense.  Police & Fire are the two largest departments, accounting for nearly half of the city's work force and approximately $80M or some 47% of the budget total. The City carries some $217M in total bonded and other debt and its annual debt service amounts to $27.65M.

The figures presented below are based on the General Fund budget of $165M.  The City's Net Budget is larger, totaling some $259.24M. The Net Budget includes other funds including certain earmarked Federal and State funds of $41.62M, which are required to be used for specific purposes -- such as community development, drug enforcement, and other specific programs.   The Net Budget also includes Enterprise Funds of some $51.14M; those are revenues earned by the City's business-like entities such as our KAT transit, the convention center, and public facility rentals at the Civic Auditorium/ Coliseum and Chilhowee Park.

Fire                                          30.70M

Public Service                         20.08M

Admin/Fin/Info Sys                  9.93M

Recreation                                6.80M

Engineering                              5.59M

Law                                           1.82M

Community Develop               1.08M

Civil Service                              0.99M

Legislative                                0.91M

Misc Depts                               1.57M

-plus another $41 million of expense-

Non-Dept Expense (e.g., Zoo,
    MPC, Elections, CAC, etc.)           $4.70M

Transfers                                          34.35M

Reserve fund                                      1.67M_

    
                  Total Expenses           $165.34M

Graphically, these expenses look like this: 

The detailed budget document covers some 480 pages, and can be examined online at the City's website. The City's Operating Budget (discussed above) as well as the annual Capital Improvements Budget (some $37M) is proposed by the Mayor's Office each Spring and then goes through several days of hearings before City Council before its adoption for the next fiscal year, which runs from July 1 through June 30th. The recently adopted budget controls the initiatives and operation of your City for the 2009/10 fiscal year.

The Budget is complicated and will need substantial study before its details can be mastered.  You will be pleased to learn that 4th District Candidate Nick Della Volpe is the only city council candidate who attended the two days of budget hearings this Summer. Nick understands the importance of evaluating our government as a business and of insisting on the efficient use of your tax dollars.

In addition, some $55 Million of the budgeted funds are spent by contracting out to private entities -- during his legal career Nick has drafted contracts and litigated government contract issues before the Government Accounting Office (GAO), the Court of U.S. Claims, and in federal and state courts in Tennessee.  Nick has the skills to evaluate our city's contracting efforts, and help provide the oversight to make them more efficient.  Nick is ready to serve you.

Please Vote for Nick Della Volpe
Thank You.