(The following press release is published as it was received by the Main Street Journal.) You can also read the original (in DOC format) here.

2010 City of Memphis Operating Budget
Proposal of Jim Strickland, City Councilman

Snap Shot of Memphis

For years, Memphis has been saddled with the state’s highest combined tax rate (city and county), which is substantially higher than the surrounding counties. Compared to the other large cities in Tennessee, Memphians pay 26% more than those citizens in Chattanooga and 36% more than taxpayers in Nashville.

TAX RATES IN TENNESSEE
Total Tax for Total Tax for
County City Total $100,000 house $150,000 house
1. SHELBY MEMPHIS $7.29 $1,822.50 $2,733.75
2. SHELBY BARTLETT $5.63 $1,407.50 $2,111.25
3. SHELBY GERMANTOWN $5.63 $1,407.50 $2,111.25
4. KNOX KNOXVILLE $5.50 $1,375.00 $2.062.50
5. ANDERSON OAK RIDGE $5.45 $1,362.50 $2,043.75
6. SHELBY COLLIERVILLE $5.37 $1,342.50 $2,013.75
7. HAMILTON CHATTANOOGA $5.36 $1,339.00 $2,008.50
8. SHELBY MILLINGTON $5.32 $1,330.00 $1,995.00
9. MADISON HUMBOLDT $5.30 $1,325.00 $1,987.50
10. SHELBY ARLINGTON $5.09 $1,272.50 $1,908.75

29. DAVIDSON NASHVILLE $4.69 $1,172.50 $1,758.75

TIPTON COVINGTON $3.53 $ 882.50 $1,323.75

FAYETTE SOMERVILLE $2.31 $ 577.50 $ 866.25

Mayor’s Proposed Rate* $7.86 $1,965.00 $2,947.50

*The City’s portion would increase from $3.25 to $3.82, a 17.5% increase.

These comparatively high taxes would not be as much of a problem if we were successfully dealing with the two most fundamental local government functions - - crime and schools.

“Voting With Their Taillights”

People and businesses are “voting with their taillights” as a result of high crime, struggling schools, and high property taxes.

Despite three annexations forcing over 33,000 people to live in Memphis in the last nine years, our population has steadily decreased.

POPULATION DECREASE

2000690,571
2001685,921
2002683,607
2003681,214
2004678,757
2005676,738
2006677,345
2007674,028

Population Decreasing, Government Expanding

Memphis City Government has consistently increased in size and cost despite governing a city that is shrinking.

BUDGET INCREASES

Total Net Expenditures
2007 Actual $488,130,4631
2008 Actual $563,542,5622
2009 Forecast $584,019,4263
2010 Proposed $577,300,0124

EMPLOYMENT NUMBERS (FTE)

2000 5,704 2006 5,800
2001 5,973 2007 5,620
2002 5,789 2008 6,200
2003 5,769 2009 6,309
2004 5,837 2010 6,216

Recession

The recent economic recession has greatly impaired sales tax revenue. In fact, sales tax receipts for Memphis should decrease by approximately $ 6 million.

As a result, city government will have fewer funds to govern our community.

Mayor’s Proposed Budget

Two months ago, Mayor Herenton presented a proposed budget to the Council that was “balanced” with no layoffs and a 3% raise for all employees. It did not, however, account for $57 million owed by the City to Memphis City Schools.

In addition, the City and County have agreed that the County will pick up $8 million in the City’s obligation to the Health Department. Therefore, if Memphians are to feel the relief from this “double taxation,” their Memphis City taxes need to be reduced by $8 million.

In short, the Mayor’s proposed budget needs to be reduced by $65 million.

Budget Reductions

In order to reduce the budget, the Council needs to adhere to some priorities or guidelines. I propose the following:

PRIORITIES IN BUDGETING

1. Public Safety

The safety of Memphians is the top priority of City Government. It is the number one reason for the existence of government. There should be no budget cuts in any areas directly affecting public safety.

2. Court Ruling on School Funding

The Shelby County Chancery Court entered an Order finding that the City of Memphis owed a duty to fund Memphis City Schools. During the pendency of the appeal, the Court stayed or suspended its judgment for the 2008-2009 year.

With respect to the 2009-2010 year, the Court stated that the City must pay and instructed the school board to return to Court quickly if the City refused.

As a result, the City of Memphis must issue tax bills up to $57 million for school funding.

Even if the Court of Appeals or Supreme Court overturns the Chancery Court ruling by August 2010, the City’s budget should be reduced by $57 million to give way to the County government replacing the funding and still giving Memphis taxpayers a net tax decrease.

3. Services Directly Affecting the Public

Although not as important as safety, the City provides many services which contribute to the public welfare, quality of life, and economic prosperity of our community. Those City departments directly servicing the public should be preserved as much as reasonably possible.

4. Responsibilities Owed to Non-Management City Employees

Memphis has wonderful employees devoted to the service of our taxpayers and the betterment of our City. They deserve to be treated well and compensated fairly. If a choice has to be made, due to economic circumstances, between increased benefits and a reduction in workforce, it is fairer to a larger group of employees to maintain employment levels. It is also better for taxpayers because there will be little or no loss in services.

5. Internal City Management

While necessary for the efficient management of government, any necessary cuts should begin with upper management because it affects the public less and these departments can absorb more of the losses.

I. CURRENT CUTS BY BUDGET COMMITTEE: $10,146,824

II. ADDITIONAL CUTS REJECTED BY BUDGET COMMITTEE OR NOT YET
PROPOSED:

Police:

Seminars $ 39,000
Travel $ 66,000
Inspectional Services (Internal Affairs)
2 Secretaries $ 88,052
Administration
1 Clerk $ 30,726

City Council:

Seminars $ 7,153
Travel $ 30,000
Cell Phones $ 2,000
Food $ 7,500

City Court Clerk:

Total Quality Management $ 5,000
Seminars $ 10,000
Travel $ 10,000
Furniture $ 15,000
Mileage $ 4,000

House & Community Development:

Travel $ 9,570
Dues/Memberships $ 7,800

City Court Judges:

Travel $ 14,362

General Services:

Travel $ 4,500
Rewards & Recognition $ 1,000
Seminars $ 14,950
Furniture $ 5,000

Parks:

Travel $ 5.000

Finance:

Travel $ 24,710
Furniture $ 2,000

Fire:

1% Budget $1,625,852
Travel $ 167,765
Seminars $ 38,906 (2008 level)

Human Resources:

New Employee Positions (non-police) $ 171,878
New Employee Positions (police) $ 466,710
Employee Positions Added in 2008 $ 349,314
Total Quality Management $ 33,776
Seminars $ 31,952
Rewards and Recognition $ 10,626
Travel Expense $ 15,400
Mileage $ 13,818 (2008 level)

Executive:

Travel $ 63,563
Seminars $ 63,870
Mileage $ 7,917 (2008 level)

Public Services:

Travel $ 15,924
Seminars $ 8,301 (2008 level)
Dues $ 14,364 (2008 level)
Furniture $ 1,366

Community Enhancement:

Seminars $ 14,100
Travel $ 11,592

Note: Travel expense reduction was originally proposed by Councilman Shea Flinn.

All Divisions:

1.How much do divisions pay for food?

2.Take home vehicles – Only for “those whose job functions require them to be available at all times for immediate emergency response where they have actual responsibility over a scene or those who are assigned to specialized response units working a scene.” (Section 6-20.9, Group II (1), of City Vehicle Policy.)

Delete funding for cars under subsection (2) of Group II
All Directors, except Fire and Police, and all Deputy Directors
$44,251.40 in maintenance and fuel
Any other costs?

Other Fire and Police – to be determined

Note: Food and take home vehicles reductions were originally proposed by Councilman Kemp Conrad.

TOTAL: $ 3,574,928

III. ELIMINATE 3% RAISES:

City Employees (Not including Legal Division) $11,680,328
MATA $ 662,000

TOTAL: $12,342,328

IV. PERCENT ACROSS THE BOARD REDUCTIONS:

A.PART TIME OR TEMPORARY POSITIONS (Line item 051402)

1.Percentages:

0% - Police and Fire
2.5% - Community Enhancement
5% - Departments Directly Providing Services to the Public
10% - All Other Departments

2.Actual Reductions:

Community Enhancement – (2.5) - $11,452

Human Resources - (10) - $37,551
Public Services:

Animal Shelter (5) - $3,800
Music Commission (5) - $875

General Services:

Property Management (5) - $5,562
City Hall Operation (5) - $927

Finance (10) - $29,227

City Engineer (5) - $669

Mayor:

Citizens Service Center (5) - $368
Youth Services – already cut 29%

Parks:

Planning & Development (5) - $1,079
Parks & Operations – already cut 27%
Park Facilities – already cut 29%
Community Centers – already cut 18%
Golf – already cut 30%

3.If a Division or Department is not mentioned above, it has little or no part time or temporary workers.

4.The following should increase due to reduction of in Full time and Part time/Temporary positions:
Memphis Public Library – Restore $50,000 of $443,388 cut in proposed budget

Total Net Part Time/Temporary Positions: $41,510

B. MATERIALS AND SUPPLIES

1.Percentages:
1% - Police & Fire
3% - Community Enhancement
5% - Departments Directly Providing Services to the Public
10% - All other Departments

2.Reductions:

Human Resources – (10%) - $377,373

Public Services:
Administration (10) - $4,287
Special Services (5) - $4,028
Animal Shelter (5) - $13,375
Motor Vehicle Inspection (5) – $8,754
Music Commission (10) - $5,000
Library Services – Already Reduced 10%

Police (1) - $188,197

City Council (3) - $10,158

General Services:
Administration (10) - $1,617
Property Management (5) - $74,711
Real Estate (5) - $17,900
City Hall Operation (5) - $52,798
Vehicle Maintenance (1) - $29,394

Finance (10) - $117,426

City Engineering:
Design and Administration (7) - $25,517
Signs & Markings (5) - $34,130
Signal Maintenance (5) - $35,556

Fire:
Administration (1) - $161,535

Public Works:

Administration (5) - $80,277
Street Maintenance (5) - $76,917

City Court Judges – Already cut over 10%

City Court Clerk (5) - $39,758

HUD (5) - $6,801

Executive:

Mayor (10) - $32,840
CAO (10) - $32,637
Citizens Service Center (5) – $1,691
Youth Services (5) - $21,126
Emergency Operations Center (1) - $2,260
Information Systems (10) $1,556,622

Parks:

Administration (10) – $5,799
Planning & Development (5) - $755
Parks Operations (5) - $79,284
Park Facilities (5) - $101,867
Community Centers – Already cut 17%
Golf (5) - $114,145

Total Materials and Supplies: $3,274,535

TOTAL: $3,356,049

V. VACANCIES:

City Council $54,269 (approved by committee)
City Court Clerk $136,603 (approved by committee)
City Engineering $164,343 (approved by committee)
City Judges $96,610
Community Enhancement $1,005,603
Executive $1,017,842 (approved by committee)
Finance $210,793
General Services $953,627
Human Resources $464,770
OPD $38,023
Parks $697,650 (1/2 of vacant positions)
Public Services $481,076 (approved by committee)
Public Works $182,083 (approved by committee)

Public Services Supervisor
and Digital Projects Manager ($92,447)

TOTAL (not yet approved by Committee) : $3,374,629

VI. DECREASES IN SALARIES:

Over $90,000 – 10% reduction $70,000 - $90,000 – 5% reduction

Executive (6) $ 77,689 (3) $ 15,734
Finance (6) $ 63,154 (6) $ 23,813
Fire (19) $189,124 (63) $252,358
Police (18) $183,333 (72) $271,202
Parks (4) $ 44,842 (5) $ 23,787
Public Works (3) $ 34,337 (2) $ 8,812
Personnel (9) $ 94,116 (3) $ 11,524
Public Services (7) $ 73,226 (9) $ 35,245
General Services (2) $ 23,152 (6) $ 23,378
Community
Enhancement (2) $ 23,425 (1) $ 3,651

Engineer (3) $ 43,264 (13) $ 54,763
Info Services (6) $ 62,787 (6) $ 23,556
Council (2) $ 19,209 (1) $ 3,514
Courts (3) $ 39,809
Court Clerk (2) $ 23,220 (1) $ 4,351

(92) $994,689 (191) $755,688

Council (13) $39,000

(105)$1,033,689

TOTAL: $1,789,377

Summary of Reductions in Spending

I. Current Cuts $10,141,131
II. Additional Cuts $ 3,574,928
III. 3% Raises $12,342,328
IV. Percent Across the Board $ 3,356,045
V. Vacancies $ 3,374,629
VI. Decreases in Salaries $ 1,789,377
Total $34,578,438

RECOMMENDATIONS

1. Reduce budget by $34,578,438. This proposal is a work in progress, and this amount will increase.

2. Use reserves in the amount of $30,421,562.

3. The Memphis tax rate would be reduced by approximately 8 cents. This would offset any tax increase by Shelby County, which was caused by assuming most of the cost of the Health Department. Memphians would receive a net tax decrease.

4. Over the next 6 months, each committee of the Council should thoroughly review a separate division of city government to identify cost savings opportunities. For example, there have been discussions in the budget committee questioning the need for some middle and upper level management positions. In addition, privatizing certain services has been discussed. Each committee should have a written report by December 31, 2009.