Mayor Bill Haslam presented a $168.5 million budget for FY 2008-2009, up 3.3 percent from last year.

Mayor Haslam said during his budget luncheon address today at the new SYSCO distribution center that the budget includes funding to continue City operations at the current level, escalate redevelopment efforts, and bring city employee salaries in line with market rates in three years.

He also noted that the city's bond rating has recently been upgraded to AA+, the "highest in the city's history," that the reserve fund has increased from $18 million to $42 million and that the city's outstanding debt is 20% lower than it was when he took office.

Some budget highlights...

• A capital budget of $37.1 million, down slightly from last year

• Adding $3.8 million to $5.5 million already committed for bringing salaries and benefits to market levels over the next three years

• $5.4 million for fuel purchases for city and Knoxville Area Transit’s vehicles, up from $3.85 million last year

• Infrastructure investments including $750,000 for new sidewalks, $4.4 million for paving projects, and $2.5 million correcting longstanding drainage issues

The Mayor also said the city is committed to development efforts downtown, on the South Waterfront, Cumberland Ave. revitalization, and Downtown North. He also said the city would carefully manage energy consumption and energy costs.

City employee compensation was the subject of a recent study as reported in today's Knoxville News Sentinel. The mayor's office said the study found that city employee compensation is approx. 89% of the compensation employees in comparable public jobs receive.

More:

• Transcript of Mayor Haslam's budget address

• Proposed City of Knoxville Budget (PDF)

• Employee compensation plan (PDF)