February 16, 2006 - Mayor Bill Haslam told
City Council members Thursday that the "hard decisions we are making
together" are paying off in improving the City of Knoxville's financial
have said from the beginning that I don't think we can continue
to run the city the same way, with expenses growing faster than
revenue," Mayor Haslam said during a half-day discussion on the
City's finances at the midpoint mark of its fiscal year. "We've
made hard decisions together, made progress on the expense side
and that strategy is beginning to pay off.
we think of this as a mid-term report card, then we're earning good
grades. We're doing what we said we'd do."
The Finance Department is forecasting that the City will end its
fiscal year on June 30 with a balance of $5 million, increasing
the total fund balance to about $30 million. That compares to last
year's forecast that the City would end the 2005-2006 fiscal year
with a balance of just $306,000, and have a deficit of $7 million
by 2007-2008. The current forecast predicts that deficit will not
occur until the 2009-2010 fiscal year.
Mayor Haslam noted that after he took office in December 2004
his administration promised debt-rating agencies that the City would
balance its budget, not incur new debt in fiscal year 2006, and
rebuild the general fund balance. The administration had made good
on those promises.
The Mayor also brought Council members up to date on his strategic
plan for the City - Knoxville Works!
The first two goals - Stronger, safer neighborhoods and City services
you can count on at a competitive price - both address neighborhood
and repairing sidewalks near schools has been a priority in this
year's budget. New sidewalks around Fulton High School are complete,
and work is underway around Holston Middle School and Austin-East
Will Skelton and Riverside Greenways have been completed and work
is soon to begin on the Lower Second Creek Greenway.
Drainage issues continue to be tackled, with several projects
complete or nearly so, and a request for proposals for the First
Creek Master plan is expected to go out this month.
Forty-three miles of city streets will be paved beginning this
spring, and motorists will continue to be encouraged to drive slower
on those streets - especially within neighborhoods.
The City's 311 customer service center has "drastically impacted
the way we interact with citizens," he said. "This has
made life easier for our citizens because we now offer predictable
The plan's third goal is "An energized downtown; everybody's
"There is a cultural, spiritual and financial reason downtown
is so important and you're starting to see the benefits from that,"
he said. "When we first started two years ago, I thought this
would be important and now I'm absolutely sure."
The South Waterfront holds similar potential, he said, noting that
downtown's footprint is small and development opportunities are
already becoming limited.
"I do think the South Waterfront is a chance to dramatically
change our city's landscape. This is much more than a South Knoxville
project, this can have a real impact on our city."
The fourth goal of Knoxville Works! Is More and Better Jobs.
"I think most of you know that we stress a regional approach
to jobs growth through Jobs Now - and I firmly believe that's the
right approach. But I do want to share with you that in the first
six months of this fiscal year, we've announced the addition of
about 440 jobs just in the City. These are at new businesses and
expanding businesses and represent almost $200 million of investment."
The Mayor closed by reminding Council that although the City of
Knoxville does not operate a school system, the City does contribute
$83 million in sales tax collections to the schools. He encouraged
staff and Council to look for ways they can help improve schools.
"If we want Knoxville to be a great city, we have to have