City of Chattanooga Budget 2010 Council Presentation September 1, 2009 Daisy W. Madison, CFO Mayor Ron Littlefield Vickie C. Haley, Deputy CFO Fredia F. Kitchen, Budget Officer

Budget Highlights……Revenues No tax increase for eighth consecutive year Total FY09 Revenues down $5.5 M or 3% from prior yr Total FY10 Revenues down $2.5 M or 1.49% from FY09 Budget State Sales Tax down $1.1million or 9.95% County Wide Sales Tax is down $1.6 million or 6.05% Licenses and Permits are down $819,100 or 23.78% Charges for Services are down $199,746 or 8% Mostly in box office sales, Auditorium rents, and concessions Use of Property is down $1,125,000 or 65.98% Due to lower interest rates 9/10/2015 2

3 Revenue Shortfalls

9/10/ Budget Variance Trend

Budget Highlights….Appropriations Includes appropriate measures to reduce costs without sacrificing quality of service delivery Continued focus on economic development in current tough economic climate Increased recycling pickup from once to twice monthly Enhanced on call brush pick up service Expanded parks & recreation program with addition of Summit of Softball Complex 9/10/2015 5

Budget Highlights Reduced hours at all 15 recreation centers 14 hrs/wk at 12 centers w/o pools Avondale East Chattanooga Eastdale East Lake First Centenary Frances B Wyatt Glenwood John A Patten North Chattanooga Shepherd Tyner/East Brainerd Washington Hills 5 hrs/wk at 3 centers w/pools South Chattanooga Brainerd Carver 9/10/2015 6

Budget Highlights Reduction in travel Consolidate Eastgate, Southside, & Downtown police precincts $980K net decrease in pension contributions over prior year Reduction in funded positions $25 proposed increase in court cost Changes in actuarial assumptions for both plans based on experience 20% per year phased in approach to increase in ARC for general Changes to Fire & Police DROP provisions as a result of plan review 9/10/2015 7

Budget Highlights $400K increase in Liability Insurance funding $235K contingency $3.4M increase in existing debt service requirement $300K new debt service requirement $10,249 net decrease in agency appropriations 9/10/2015 8

Budget Highlights Discontinue City funding of VITA Program Discontinue Common Ground Newsletter Publication Temporary suspension of capital recovery component of fleet lease payment for general fund only Institute $50 per pay period charge for take home vehicle privilege Assess $25 per pay period for use of City vehicle on a 2 nd job Maintenance of high quality benefits program for employees 9/10/2015 9

Budget Highlights (cont’d.) No employee layoffs 50% reduction in longevity pay Enhanced Medical benefits Expanded hours at clinic to facilitate walk ins Expanded pharmacy to include over the counter drugs Revision of City’s overtime policy to FLSA Standard Freezes 93 positions – 17 from prior year Cuts 6 positions OPEB funding limited to pay-go amounts only 9/10/

9/10/ Allocations by Dept (Excluding Capital) Supported Agencies include new/additional requests/Excludes Capital. FY09 does not include Alexian Brothers (29,458) and Inner City Ministries(9,250) totaling $38,708

City County Funding for Agencies Included in Sales Tax Agreement 9/10/ *Inner City Ministries and Senior Neighbors (Alexian Brothers) were previously funded in Parks and Rec. (2) Addtl. RPA proposed over FY09 includes $125K city share for repair of HVAC at DRC

City County Comparative Agency Funding 9/10/ *Inner City Ministries and Senior Neighbors (Alexi an Brothers) were previously funded in Parks and Rec. 1 Carter Street and Finley Stadium funded through CVB on behalf of Hamilton County

9/10/ Other Agency Funding FY 2010

New Agencies Not Funded

General Fund Position Summary Cut positions includes 74 positions transferred in 911 unification.

9/10/2015 9:42 PM 17 FY2010 Proposed Budget (Excluding Capital) $167,535,000 $2,535,000 under prior year budget or -1.49%

18 Budget Summary (Excluding Capital)