The following memorandum contains background information on the county budget that might be of interest, particularly to anyone planning to attend any candidate forums, community meetings and so forth. Also, the full budget is available on line, here

Dwight Van de Vate
Chief Administrative Officer
Knox County

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TO: All County Commissioners

FROM: Mike Ragsdale
Knox County Mayor

DATE: April 15, 2010

RE: FY 2011 Budget Preparations

As you know, we are finalizing my budget proposal for fiscal year 2011. The budget process has been challenging, as demand for local services continues to increase and revenues remain flat.

There are some who would ask you to believe there is a crisis, and claim to have proposals to save us. The fact of the matter is that we are not in a crisis. We are in challenging economic times. These require a thoughtful, deliberative approach to the business of government. I have asked elected officials and department heads to embrace this approach by examining their operations carefully and preparing budgets that assume both 4% and 8% reductions. The point of this is not to create agitation or fear, but to encourage everyone with some degree of budgetary authority to really scrutinize their expenditures.

How is Knox County doing? Consider that:

· Over the past two years, we have reduced General Fund expenditures in the Executive Branch by $6,700,000.00 while increasing funding for public education and public safety.
· For the past two years, our bond rating has been AA +, the highest in Knox County’s history.
· Six out of seven of the highest balances on record in the Undesignated Fund Balance of the General Fund (commonly referred to as the “rainy day fund”) have been recorded over the past eight years.
· We have accomplished all of this while still providing for increases in the costs of employee health insurance and employee pensions.
· We have added a new pension plan (the UOPP, often referred to as the Sheriff’s Pension) at an initial (and unanticipated) cost of $57 million.
· Knox County has gone 10 years without a property tax increase.

Knox County Commission
April 15, 2010
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How do we compare to our peers? Consider the following:

· Knox County has the lowest property tax rate of any of the four urban counties by a significant margin (Knox $2.36; Hamilton $2.76; Davidson $3.56; Shelby $4.06).
· Knox County typically has among the lowest monthly unemployment figures of any of the urban counties.
· Knox County has the third lowest amount of debt of the four urban counties, commensurate with our population and budget placement among these counties.
· Based on 2007 figures, Knox County will repay 52.1% of its debt in 10 years. Shelby County will repay 51.02% and Davidson County will repay 52.04% over the same period.

The current County Commission may be the best one to serve in recent memory. As we contemplate managing our way through these challenging times, please know how grateful I am to have you as my partners in government.

I am planning to present you with a budget, my final one, that is responsible, conservative and that meets the needs of our community. Our citizens deserve nothing less.