Staff Recommendation

Staff recommends approval of the proposed budget. Executive Committee to meet on June 9, 2009, and report to the full Commisison

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Please consider for approval the proposed budget for Fiscal Year 2009-10. The proposed budget is based on approved City of Knoxville and Knox County budgets. Revenue and expenditure assumptions supporting the $4.18 million budget are summarized below:

Revenue Assumptions:
1. Fee receipts are estimated at $360,000, to reflect a significant decline in development activity.
2. City and County allocations of $900,000 were originally requested, or about same as last year including contract work. However, approved budgets for City is short by $30,000 and County is short by $154,000. In addition, $120,000 is estimated for office space provided by City and County.
3. Transportation ?related grant funding is estimated at $1.96 million, or about $700,000 less than last year to reflect current funding levels. MPC expects to pay about $130,000 for required local match for all grants, but expects to receive $279,000 for indirect charges reimbursed through grants.
4. Additional revenue through contract work is being pursued with Jefferson County schools.

Expenditure Assumptions:
1. Salaries and benefits are programmed at $2.7 million, a significant decrease of $249,000 from last fiscal year reflecting steps implemented to address budget constraints. These include: no salary increases, a resignation of a Development Services planner; an open Transportation Planner position being filled by an internal transfer of staff; a voluntary program to temporarily reduce work hours and a voluntary program to encourage retirements. The voluntary programs project savings of $166,000, including $113,000 from two retirements and $53,000 from six staff reducing work time. Employer provided health insurance premiums increased by $20,000 over last year. Approximately $621,000 of staff salaries and benefits are funded by grants.
2. Operating expenditures are projected two percent higher at $460,000. Grant reimbursable expenditures other than direct salaries are projected 39 percent lower for a total of $1.04 million.
3. Fund balance withdrawals project $33,000 in computer and software purchases including a Groupwise server and Web server replacement from last year. Unrestricted net assets (fund balance) on June 30, 2008 were $425,838 and are estimated to be reduced to $281,000 by June 30, 2009 due to lower fee receipts and other revenues. The projected fund balance at June 30, 2010 could decrease to $248,000, or about 6 percent of total annual expenditures.

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Disposition Summary

Staff and Executive Committee recommend approval of the proposed budget.