BUDGET PROPOSAL -- Cut $6.2M

BUDGET PROPOSAL -- Cut $6.2M

Postby Nick Della Volpe » Tue May 27, 2014 12:07 pm

Proposed Budget Amendment
Cost Savings Measures

PREFACE: In a perfect world, Council would be able to analyze the proposed budget, and recommend changes at the dollar or percent level, and leave the distributive changes to the executive team, who are in the best position to allocate their efforts and the funds needed to achieve them.

CHARTER REQUIREMENT: That said, the City Charter (section 901) specifically calls for the Council to come up with the actual operating budget, and set out "estimated revenues in detail by source" and "appropriations according to fund and by organizational unit, purpose or activity" as set out in the budget document that comes to Council in the form of an ordinance each May.

POTENTIAL CUTS SUPPORTING BUDGET REVISION: Here are several suggested areas that could be cut without hurting essential governmental services, or affecting the Mayor's request to continue the 2 1/2% across-the-board pay increase.
Some of these are mere suggestions for council to consider in deciding on the total category awards recognizing we cannot directly affect individual, budget category line items. We have to start somewhere. Of course, a workshop with Finance could provide a better handle on the numbers.

1). Agency Grants: Why did Agency Grants nearly double, increasing from $712k in the current year, to some $1.255M for next fiscal year? Do we need to raise taxes in order to give away taxpayer money to charities, even though they are good ones? Included among those increased amounts are such items as:
-- Boys and Girls Club capital grant = $250k
-- Helen Ross McNabb Center = $45k
-- Knoxville Botanical Garden capital grant = $250k
-- East TN Civil War Alliance =$4500
-- Connect Ministries capital grant =$15k

We should reduce Agency Grants by some $500k, and let the Administration resort how the remaining $755k, which is still an increase over last year, should be distributed. Some of these initiatives could be funded more gradually over 2 or 3 years.

2). New Budget initiatives include the following items (among others that occur periodically). Reductions in some or all of these, or deferral to later years may be warranted.
-- Historic Preservation fund = $500k -- spread over 2 or 3 years?
-- Public Art = $250k
-- Downtown Restrooms = $250k
-- Chamber Partnership/Innovation Valley/Dev. Corp = $800,000 -- reduce by $100k?
-- Lakeshore Park = $2M (some is committed demolition by contract) -- spread balance over 2 years?
-- Commercial Facade Grants (was raised $300k to $500k)
--Zoo Improvements = $10M (part of new debt issue) -- spread over 2 or 3 years?
-- Parking Meter Upgrade = $500k -- defer until next year?
--Greenway Corridors = $1M -- spread over 2 years?
--Downtown Streetscapes for Marble Alley Improvements = $850k -- spread over 2 years?
--Ijams Nature Center = $100k -- spread over 2 years
-- Public Works Medical Center = $1.2M -- spread over 2 years?
-- Commercial facade improvements = $500k (raised $300k) -- trim back increase

Those might all be neat projects, but all in one year? When revenues are tight? At least $3.5 to $4M of those expenditures could be cut or moved partially to the following year.

3). Other Potential Savings: Not included in my suggested list, but worthy of your consideration might include the following:
-- reducing the amount of the proposed $31.4M in new general obligation bonds to be issued soon. Annual debt service will rise by up to $2M per year. What if we only borrowed say $20M? Or $25M? That could potentially save $500k in annual debt service costs.
-- giving this year's 2 1/2 % pay increase as a one-time cash bonus, instead of base pay? It still shows up in the employees’ pay check. That one-time action could save an estimated $300k in collateral costs computed on base pay.

4). Leadership: City Council has already discussed sacrificing their 202 discretionary funds for next year. That $90k in funds does a lot of good in neighborhoods, but again we are spending taxpayer money. We could exercise leadership by so doing.
Nick Della Volpe
 
Posts: 110
Joined: Mon Jul 02, 2012 4:00 pm

Re: BUDGET PROPOSAL -- Cut $6.2M

Postby Nick Della Volpe » Tue May 27, 2014 3:20 pm

Spread Sheet--unfortunately, this site does not fairly replicate the excel spreadsheet columns. see Attachment

REVENUES Proposed 3/24 Proposal Adjustments Revised
5100 Local Taxes $172,041,700 (6,226,170) $165,815,530
5200 Licenses and Permits 331,150 331,150
5300 Intergovernmental Revenue 21,637,370 21,637,370
5400 Charges for Services 1,312,490 1,312,490
5500 Fines and Forfeits 586,620 586,620
5600 Other Revenues 427,280 427,280
5900 Transfers In 2,161,350 2,161,350
5998 Fund Balance 2,004,600 1,942,150
$200,502,560 $194,213,940
APPROPRIATION

11100 Administration $3,934,110 $3,934,110
21200 Finance 4,108,960 4,108,960
21400 Information Systems 4,496,830 4,496,830
23700 Community Development 2,034,790 2,034,790
41100 Public Works 179,170 (179,170) 0
43100 Public Services 23,376,000 23,376,000
43300 Engineering 6,013,300 6,013,300
44300 Parks and Recreation 6,957,090 6,957,090
46100 Knoxville Area Transit (KAT) 717,960 717,960
51300 Law 1,930,000 1,930,000
52300 Police 56,322,240 56,322,240
52700 Emergency Management 364,930 364,930
72500 Fire 39,976,440 39,976,440
81500 Legislative 955,200 955,200
81700 Civil Service 1,081,380 1,081,380
91900 City Elections 10,000 10,000
93900 Knoxville Partnership 800,080 800,080
95100 MPC 905,000 905,000
95200 Knoxville Zoological Park 1,158,610 1,158,610
95300 Agency Grants 1,255,000 (500,000) 755,000
95600 Waterfront 535,040 535,040
95900 CAC 690,640 690,640
98100 Reserve 2,004,600 (1% reserve) 1,942,150
99100 Transfers 40,695,190 (5,547,000) 35,148,190
$200,502,560 $194,213,940

FUND NAME
201 State Street Aid $4,573,600 $4,573,600
202 Community Improvement $90,000 (90,000) $-
209 Abandoned Vehicles $879,260 $879,260
211 Animal Control $25,000 $25,000
213 City Court $3,167,850 $3,167,850
216 City Inspections $2,534,230 $2,534,230
220 Stormwater $3,302,900 $3,302,900
230 Solid Waste $11,111,770 $11,111,770
240 Miscellaneous Special Revenue $5,841,920 (250,000) $5,591,920
264 Home Grant $2,491,280 $2,491,280
290 Community Development Block Grant $1,560,670 $1,560,670
305 Debt Services $24,498,440 $24,498,440
306 Tax Increment $1,717,400 $1,717,400
401 Capital Projects $27,809,160 (5,207,000) $22,602,160
503 Public Assembly Facilities $5,018,890 $5,018,890
505 Metro Parking $2,754,230 $2,754,230
506 Convention Center $17,840,340 $17,840,340
507 Mass Transportation $23,180,080 $23,180,080
508 Municipal Golf Course $1,459,680 $1,459,680
702 Fleet Services $14,016,270 $14,016,270
704 Risk Management $7,758,670 $7,758,670
705 Health Care $19,572,220 $19,572,220
706 Equipment Replacement $1,514,300 $1,514,300
707 City Building $1,391,210 $1,391,210
Total Transfers from General Fund (5,547,000)
Attachments
Copy of Budget xls.xlsx
(15.59 KiB) Downloaded 2490 times
Nick Della Volpe
 
Posts: 110
Joined: Mon Jul 02, 2012 4:00 pm


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