ADOPTED BUDGET - The City of Kingsport

FY2007-2008ADOPTED BUDGETFuture Kingsport Higher Education Genter AndAllied Health BuitdingKingsport, Tennessee*Kingsport is committed to facititate higher education opportun¡t¡esto ensure we have an educated workforce for jobs of tomorrow.,t

FY2007-08 BudgetADOPTED BUDGETPrepared byThe City Manager's OfficeJulv 2007

FY2007-08 BudgetGOVERNMENT FINANCE OFFICERS ASSOCIATIONDistinguishedBudget Presentøtion

FY 2OO7.O8 BUDGETThe objective of a community is not merely to survive, but to progress, to goforward into an ever-increasing enjoyment of the blessings conferred by the richresources of this nation under the benefaction of the Supreme Being for the benefit of allthe people of that community.If a well governed city were to confine its governmental functions merely to thetask of assuring survival, if it were to do nothing but to provide 'basic services' for ananimal survival, it would be a city without parks, swimming pools, zoo, baseballdiamonds, football gridirons and playgrounds for children. Such a city would be a drearycity indeed. As man cannot live by bread alone, a city cannot endure on cement, asphaltand sewer pipes alone. A crty must have a municipal spirit beyond its physicalproperties, it must be alive with an esprit de corps, its personality must be such thatvisitors-both business and tourist-are attracted to the city, pleased by it and wish toreturn to it. That personality must be one to which the population contributes by massparticipation in activities identified \áith that city. (This quote is from the concurringopinion of Justice Musmanno in Conrad v. City of Pittsburgh, 218 A.zd 906, 421 Pa. 492(1e66).Kingsport Greenbelt

T"T 2OO7.O8 BI.IDGETCITY OT KINGSPORTORGA¡IIZATIONAL CHARTCffirftR-or¡Oa-

f,'Y 2007-08 BUDGETTABLE OF CONTENTSPageInspirational MessageBoard of Mayor and Aldermen and Leadership and Management TeamCity of Kingsport Organizttional ChartTable of ContentsBudget Message12348I. INTRODUCTIONA.B.Budget CalendarBudget Priorities1819BUDGET ST]MMARYA.B.C.D.Total Budget SumGrant Project Ordinance X'undsTotal DebtMajor Capital Projects SummaryE. Stafling History---2t27283234IIr.GENERAL X'UNI)A. General X'und SummaB. Major Revenues Described3844IV.ENTERPRISE FUI\TDSA. Cattails---B Meadow View X'und------C. - Solid'Waste X'undD. Waste WaterE. Water tr'und4850535766

PageSPECIAL REYENUE FT]NDSA. Fund DescrþtionB. Summarv7576VII.TRUST AI\D AGENCY X'TJI\DSA. Definition of FundsB. Allandale Trust -620C. Bays Mountain Commission-612D. Palmer Center Trust -617E. Public Library CommissÍon - 611F'. Senior Center Advisorv Council - 616G. Steadman Cemeterv Trust - 62177787879798080IX.\CAPITAL GRANT/PROJECT ORDINAI{CE X'UNDSA. Fund Descriptions and Summary8l

xT2OO7-OSBUDGETTABLE OF CONTENTSAppendixB. Appendix B - Economic and l)emographic Information--PageB-1

F"T 2OO7.O8 BI]DGETTABLE OF CONTENTSKingsport's Regional Center for Applied TechnologyKingsport, Tennessee

FY 2OO7-08 BTIDGETBTIDGET MESSAGEHonorable Board of Mayor and Aldermen:In accordance Article XV of the Kingsport City Charter I am pleased to present the CityManager's recommended Fiscal Year 2007-2008 annual budget for the City of Kingsport.The Fiscal Year 2007-2008 budget is balanced. It has been prepared in accordance with theadopted financial policies of the Board of Mayor and Aldermen. It includes adequate funding tomaintain the City's high level of service and reflects the priorities of the Board of Mayor andAldermen and community needs. It was also prepared according to the general directives of theBoard of Mayor and Aldermen which included: that current revenues are sufflrcient to supportcurrent expenditures; that the service delivery to citizens continues to be maintained at least atcurrent levels; that the implementation of the pay plan for employees continues. Departmentalneeds to provide desired services to the citizens were also considered.The General Fund has no increase in property taxes. The step increases for the pay plan arefunded and an additional 2Yo pay adjustrnent. There is also a performance bonus equivalent to$300 per person included in the budget,Water and Sewer rates increased to meet the needs of those two funds. The water rate increasedfor outside city residentsby 4Yo and a the sewer rate increased for outside ciry residents bv 8%.The sewer rate for inside customers increased by 3%.A five year Capital Improvements Plan (CIP) covering the Water Fund, Wastewater Fund andGeneral Fund is also provided. It covers the current known capital improvements anticipated forthe next five years.Copies of the budget and the CIP are available for public inspection at the Kingsport PublicLibrary and the Offices of the Cþ Manager and City Recorder.OVERVIEWKingsport is continuing to move forward on a positive course. The city continues to improve itsoverall financial position and the delivery of services.The multi-year capital and operating plans for the Water and Wastewater fi¡nds continue to beimplemented. Critical infrastructure needs are being addressed in a logical, planned manner.The City has begun major renovation of its sewer plant and improvements to the water systemwill continue being made. Capital improvements in the CIP for the General Fund are funded.

FY 2OO7-08 BUDGETBUDGET MESSAGEThe total recommended budget, less inter-fund transfers, is $140,581,750. Two sources ofrevenue, sales tax and property tax, provide the primary funding for the General Funds. Theserevenues fund approximately 83% of its capital and operating requirements: Property tax frrnds48Yo of the General Fund budget and sales taxes funds 35Yo of the General Fund budget.RE\rENUESGeneral X'undThe General Fund is balanced with no recommended increases in taxes. Equalization ofpersonal property will occur this year and the equalize percentage is approximately 84Yo.This will reduce revenue for personal propefy taxes approximately $700,000.The proposed budget reflects positive trends in the real property and sales ta>< revenues.Total property tax revenue growth is estimated to be about I.2% and the Local Option SalesTax growth is estimated to be about 3%. Regional Sales Tax growth is also estimated to beapproximately 3% and state shared taxes are projected to have an increase of 4Yo growth.The proposed budget does not utilize as much of the undesignated fund balance as previousyears for one time going into capital and, like in past years, the Educate and Grow program.When Sullivan County decided to make the program county wide, the need to use the original$50,000 City appropriation was reduced. Consequentþ, we are budgeting $20,000 of theunexpended portion of the original allocation, which is now $40,947.One major change in the revenue funds is in court fines and traffic fines. The Board ofMayor and Alderman increased the rates for court cost from $13.50 to $50.00 and we haveadded additional court cost from other sources..Water and Wastewater FundsThe customer base in the water and sewer utilities remains relatively flat and requires rateincreases in order to finance capital improvements and fund increases in operations costs.Rate increases are recommended and are generally in accordance with the previouslyapproved'Water Fund and Sewer Fund Multi-Year Capital and Operating and MaintenancePlans.o Water Rate Increase: It is recommended that the water rate be increased by 4Yo foroutside city customers. The monthly impact on the average residential customer using5,000 gallons of water per month is $2.00 outside the city.

FY 2OO7-08 BT]DGETBT]DGET MESSAGEThe following graph reflects the proposed rate increase for the water fund:Average Water Blll (Outs¡de Rate) 5,000 gallonsClevelandKUBCookevilleSurgoinsv¡lleJohnson CityFUD HawkinsElizebethtonKingsportClarksvilleSev¡erv¡lleLakev¡ewo Wastewater (Sewer) Rate Increase: It is recommended the sewer rate be increased by3%o for inside city customers and 80á increase for outside city customers. The monthlyimpact on the average residential customer using 5,000 gallons of water per month is $.90inside and $3.00 outside.In previous years rates in these funds would vary significantly from year to year. Onepurpose in developing the Water Fund and Vy'astewater Fund Multi-Year Capital andOperating and Maintenance Plans was to project anticipated future expenses and rates. Thishelps to smooth out rate increa^ses.10

FY 2OO7-08 BUDGETBUDGET MESSAGEThç following graphs reflect the proposed rate increase the sewer funds:Average Sewer B¡ll (lnside Rate) 5,000 gallonsFranklin15.25CookevilleI sro.MonistownJohnson CityElizabethtonClevelandSeviervilleClarksvilleOak RidgeK¡ngsportKUB$0.00 $30.00Average Sewer Bill (Outs¡dê Rate) 5,000 gallonsCookevilleFrankl¡nElizabethtonClevelandMonistownJohnson C¡tyKingsportClarksvilleSeviervilleKUB$0 00 $60.00 $70.00 $80 0011

F'Y2OO7-08 BUDGETBT]DGET MESSAGEOther FundsThere are no recommended increases in the fees charged within other funds. More detailedinformation on these funds may be found at the end of the budget message and in theappropriate sections of the budget document.EXPENDITURESGeneral FundThe General Fund Budget is balanced. The major expenditure of the General Fund is forpersonnel. It provides the funding for many services including public safety, recreation, andgeneral services. The General Fund is estimated to be 562,520,700. This includes fundingfor additional personnel to equip the new Rock Springs Fire Station and additional policeofficers for Zone 7 .Water and Wastewater FundsThe major expenditure for both enterprise funds are debt service, operations and personnel.The debt service as a percentage of total fund expenditures reflects previous years wheremajor capital needs were l00olo funded by debt. The implementation of the multi-year capitaland Operations & Maintenance plans will reduce this percentage in the coming fiscal years.ln the Fiscal Year 2002-2003 the Wastewater Fund provided zero cash for capitalimprovements and reflected 58% of the total fund budget for debt service. Debt service forthe Wastewater Fund has declinedto 47Yo of total firnd budget.The Water Fund expenditure is estimated to be $13,007,400.F?(mì ærFund E¡çendit¡rcsDeüSen¡æ17o/oTo CaFital HqecblAVoCapital O.rüey70/oToerìeral F-rìd9/oFersorEl Sen¡æs3ú/oq€rât¡rE ÞperEes1g/"t2

FY 2OO7-08 BUDGETBUDGET MESSAGEThe Sewer Fund expenditure is estimated to be $13,102,300.FVü}8 ìllffiuabr Fund Eryetrdih¡æsTo@¡bl PrcùectsCaßttal Orüay7/oToerÊral fundAVoDebtSen¡æ53VoQeraltng Erpenses1AVoÈrsond Seniæs1V/oBUDGETARY IMPACTS ON PERSOI\NEL, PAY AND BENEF'ITSPav Plan and BenefitsPay Plan. The scheduled step increases and pay scale adjustment are fully funded. Theincrease cost for this budget year is $683,100. This is less the project amount presented inMay of 2005.Health lnsurance. The City maintains a self-inswed health insurance plan, administered byJohn Deere. Premium rates are expected to increase 5o/o, or $203,000 for all funds. The Cityand the employees share the cost of health insurance premium on a 70130 percentage split.The monthly increase on employees witlì individual and family coverage will increase $5.64and $14.06 per month; respectively. The annual increase for the City portion will beapproximately $142,100. The budget is based upon plan changes beginning January l, 2008,which would increase co-pays for office visits, prescription co-pays, deductibles, and goingfrom 90/10 to 80/20 share of expenses on claims.Retirement Plan. The employer contributions for employees retirement is derived from theactuarial prepared by the Tennessee Consolidated Retirement System for employees of theCity. The contribution to the Tennessee Consolidated Retirement System (TCRS) isincreasing will remain at l6.36Yo for this fiscal year.13

F'Y 2OO7-08 BTIDGETBUDGET MESSAGEStafflrng LevelsAn increase of twelve positions in the overall number of full time employees isrecommended in the proposed budget. The total number of full time employees will increaseto 693. City administration is looking to the use of more part time employees and volunteersas a possible way to meet increased service demands also.Staffrng recommendations are as follows:F'ull time positions:. Add four police officers for Zone Seven. Add six fire fighters for the new Rock Springs Fire Stationo Add one Librarian. Add a Deputy City Manager. Add an electrical inspector for Building and Codes Divisiono Add an internal auditorPart-time positions:o Office Assistant for Records Clerko Maintenance Worker for Grounds Maintenance. Senior Offrce Assistant for Building Divisiono Police Records ClerkSCHOOL FUNDINGThe City operates its own city school system. While the majority of the revenues for the schoolsystem are derived from the State of Tennessee (about 33%) and Sullivan County (about 33yo),the City contributes $15,483,000 to the school system. Of this amount $8,721,400 is contributedfor general operations and56,762,000 for school debt service. The school funds are shown in thebudget as a total as the Board of Mayor and Aldermen does not have the authority to allocatefunding within the various budget codes of the school system. Approximately 24% of theresources of the General Fund are allocated to funding the Kingsport City Schools. Additionally,25Yo of the revenues derived from the annexation of a portion of Eastman, Inc. on Long Island, or$387,600, is allocated to the school system as a special grant for value added programs. Theseannexation revenues must be allocated in this manner according to the Plan of Services. They donot become part of the annual maintenance of efilort allocation to the schools, since the revenueswill increase or decrease depending on reinvestment in personal property, etc.The schools have requested an additional school resource offrcer. This position will be fundedthrcugh the schools budget and transferred to the police deparhnent's budget for the offrcer.I4

FY 2OO7-08 BUDGETBUDGET MESSAGEMULTI.YEAR CAPITAL IMPROVEMENTS PLA¡IThe Board of Mayor and Aldermen has previously approved a Multi-year Capital ImprovementsPlan (CIP) for the City. [n accordance with the plan the scheduled capital projects for theGeneral Fund is $15,625,600 the Water Fund is 94,695,200 and the Wastewater Fund is$2,860,900. A detailed list of these projects and the funding sources are in the summaries ofeach fund section and also in the Capital Improvements section of the budget.REGIONAL SALES TAX FT]NDThis fund was established to account for revenues that support the MeadowView Convention andConference Center and the Cattails Golf Course. The ñ¡nd is estimated to be $3,330,700 in theupcoming fiscal year.Once the debt for the MeadowView Conference Center is retired in Fiscal Year 2007-2008 theneed for continued financial support for operating contributions and provisions for long termmaintenance and expansion of the facility will continue. The General Fund doçs not fund theoperating or maintenance contributions of the facilities. When MeadowView wÍrs planned andopened in the 1990s, no provision was made for the long-term maintenance and expansion needsof the facility. The current funds for furniture, fixtures and equipment (FF&E) held in escrowannually are not sufficient to meet these long term obligations.Meadowview X'undThe total fund is estimated to be $2,697,900 and continues to be totally supported by therevenues generated by the operation of the conference center and the Regional Sales TaxFund. The General Fund has not contributed to this fund in several yeats. The City contractswith Marriott Corporation for the day-to-day management and marketing services of theconference center.Cattails FundThe total fund is estimated to be $910,800. Contributions from the General Fund to Cattailsceased in Fiscal Year 2003-2004 when it was determined that payment of the debt servicecontribution could be made from Regional Sales Tax revenues. Cattails is operated andmanaged by Marriott Golf.SOLD WASTE FT]NI)The total Solid Waster Fund expenditures are estimated to be $3,811,400. Approximately 84Voof its revenue is from the General Fund in order to provide the services.l5

F'Y 2OO7-08 BI]DGETBT]DGET MESSAGEDEBT, DEBT SERVICE, BOND RATINGThe recommended budget provides for the issuance of bonds as follows:o $13,250,000 General Fundo $ 2,145,800 Water FundDuring the 1990s a commitment was made to renovate all of the public school buildings as wellas build Washington Elementary School. Debt was incuned to build the MeadowViewConference and Convention Center and the Cattails Golf Course. Significant capital funds beganto be spent on sanitary sewer projects, primarily for the Inflow and Infiltration program inaccordance with the agreed order with the State of Tennessee. The City now has the debt at amanageable level. Capital projects are planned according to the debt service rolling off eachyeaf.The percentage of debt by charter limitations is 20%o and the Board of Mayor and Aldermanadopted a policy of lïYo. The following graph will reflect the debt policies and the GeneralObligation Debt which includes the Meadow View Convention Center and the golf course.Pe@ntaqe of T¡xabl€ Alsa$d Valæ1997 ïhroqgh 2012(Proþctod 2007 Thþugh 2012).--'+ru------'+lopÁdTdMdValæ+Gererd D€btOfttandng^d ^d ^e'"o".d.d n$ "d "d .É "d nst "ú, "$".d ñA detailed analysis of the debt position, debt service requirements and bond rating of the City isin the Total Budget Summary Section.t6

FY 2OO7-08 BUDGETBUDGET MESSAGEMajor Capital ProjectsThe Capital projects for FY08 include a Higher Education Center, renovations of the LegionPool, traffic signals, a dog park, street improvements and resurfacing, drainage improvements,sidewalk improvements, and park maintenance. The impact on the operating budget will beadditional debt service payments and future maintenance for the Higher Education Center.The City is fumishing the facilities and partnering with North East State University to provideprograms, stafhng, and equipment for the Higher Education Center and the Allied HealthBuilding, which was funded in FY07. The Allied Health Building will be used for North EastState University's nursing progams. One of the goals of the council members and previouscouncil members is to provide a higher education for the citizens. This is found in the StrategicPlan in Appendix E under Key Success Factor #5.The Impact on the operating budget for the Legion Pool is also debt service. Staff is looking atbuilding an aquatic center. This will be an enhancement for the community and the high school.The impact on the operating budget for street resurfacing, street improvements, sidewalkimprovements, drainage improvements and park maintenance is minimal.A summary of major capital projects is listed in the Total Budget Summary Section and in theCapital Improvements book. Each project for the five year plan is listed in the CapitalImprovements book and the impact that each project will have on the operating budget.Budget ContentsThe Citizen's guide explains the different sections of the budget book and the page numbers forthe sections.The Shategic Plan adopted by the Board of Mayor and Alderman is in Appendix E. The budgetpriorities, the department narratives and the capital improvement plans are linked to the StrategicPlan.T7

F"r 2007-08 BUDGETBTIDGET CALEI\IDARThe City's annual budget process provides a framework for communicating major financialoperational objectives and for allocating resources to realize them. The budget process began inJanuary and will end in June. The City Charter requires that a balanced budget must be presented tothe Board of Mayor and Aldermen by May 15. A balanced budget must be adopted by June 30 andbe effective July 1.PROPOSED BUDGET CALENDAR FOR FY 2OO7 _ 2OO8Monday, December 4, 2006December 19-21.2006Friday, January 12.2007Iuesdav. Jutuwv 16. 2007Fridav. Februarv 2. 2007Monday. Illæch12.2007Mondav. March26.2007Monday, March 19,20073:00 o.m.Monday, April 16,20074:30 n.m. to 7:00 o.m.m#s¿ay;+p¡¡l++209+43o+=m- CancelledMondzy,Iiprit23,2007Thursday, r'ipn126,20074:30 p.m.Monda¡ April 30,20074:30 p.m.Monday, May 14,20074:30 o.m.Thursday, lNJay 24,20074:30 o.m. - 7:00p.m.Tuesday, June 5,20077:00 o.m.Tuesday, June 19,20077:00 o.m.Friday. June 29.2007Mondav. Jt1v2.2007FÅday, July27,2007Fridav. Julv 27. 2007Fridav. Aueust 17 .2007Monday, October 1,2007Budget Meeting and Distribute Budget Call Packages to the Leadership and ManagementTeamMeet with Denartment Heads on CIPFinal Date for DeDartments to Enter Budget NumbersMeetinss with Departnents BeeinDena¡Ínental Budeet Submissions Due lNarratives. benchma¡ks- PE measures etc.)Retum back to DeparÍnent Heads with NumbersBudeet BalancedMeeting with Dr. Kitz miller arid David FryeBMA Budget Work Session for Budget Review: School Budget PresentationSolid W¡tctc, (lriminal Fnrfe:tlro T)nrsFrnd ¡nd Tnrcf filndcìBMA Budget Work Session for Work Budget Overview, Revenue Awa¡eness and GeneralFundBMA Budget Work Session for Work Budget Review (Finalize General Fund, Water andWastewater Funds, Operating arid Capital)BMA Regular Work Session and Budget Work Session for Other Operating Funds (Risk,Fleet Health, Meadow View, Cattails, Regional Sales Tag State Street Aid, Solid Wæte,Criminal Forfeiture. Drus Fund and Trust Funds.Reg. Work Session. BMA Budget Work Session if neededBMA Budget Work Session if neededBMA Business Meeting-Public Hearing and I " Reading of Final BudgetBMA Business Meeting-2* ReadingÆinal Adoption of Final BudgetFinal. Aooroved Budeet to PrinterFY07 Budget Begins, Final and Approved Budeet Books Available to PublicSubmit entire budset to State of Tennessee Comotroller ofthe TreæurvSubmit school budget information to State Department of EducationSubmit budget to GFOA for Distinzuished Budset Award ProsramApprovals from State Deparfnent ofEducation and Comptroller ofthe Treasury received inCity Manager's Office18

FY 2OO7-08 BT]DGETBUDGET PRIORITIESThe Board has a tradition of reviewing and setting budget priorities prior to City Administrationpreparing the annual budget. In some years, the priorities were very complex and detailed andlast year they were very basic.The Board's consensus was that the City Manager would prepare a budget that:o Presented a balanced budget without a property tax increase.o The capital budget plans are developed in accordance with the approved multi-yearcapital plan.o The water and sewer funds are balanced in accordance with the 'Water Fund and SewerFund capital and rate stabilization plans.FY07-08 will continue to have revenue challenges, including,o The economy and impacts of motor fuel increases, etc.o Loss of sales tax revenue from Sam's Club and the temporary closing of a major foodchain due to construction of the shopping Center.o Impacts from State of Tennesseeo School Funding issueso Basic service delivery issues including:o Health Insurance increase of 5Yoo Building Maintenance , Equipment Replacement, and Cultural Arts Fundingo Hiring Police Offrcer to patrol Zone 7o Staffrng the New Rock Springs Fire Stationo Annexation impacts on utility revenues (decreasing), increasing tax base revenues andincreased costs to provide services.Continuation of FY07 Major Projects that will impact FY08o New Rock Springs Elementary Schoolo Allied Health Building and Higher Education Centero New Rock Springs Fire Stationl9

F'Y 2OO7.O8 BUDGETBT]DGET PRIORITIES20

FY2OO7-2008 BUDGETTOTAL BI]DGET SUMMARYunappropfa¡eo tsuno uaEst. EÊmings - June 3(FUNDING SOURCES:TaxesGross Reæipts TaesPenalt¡es and lnlerestLicensés and PêmitsCharg€s for Serv¡ceslntergovemmentelState Shered TaxêsSaleslntergst EamedFines and Forfe¡turesM¡sllâneousTap FeesSgec¡el Donat¡onsFrom School tundFrom Eastman AnnêxFrom Gen Proj FundFrom Gensal FundFund TrênsfèrsFund Balance/Rata¡nedGeneral FundnæfKelatneo$18,652,000$30,569,3003,513,500o603,0003,265,O0015,491,4@5,029,40001,300,0002,037,@0't 0l,600050,0o()173,900166.600Fund Entemfise Funds :ê Fund3HæIMEaatnän Cattails MeadowV¡ew tolid Wætr Waatemterlnsurilcê Fleet ile¡ntAnnex Funr Fund Fund Fund Fund WatGr Fund Fund FundDebt SefliceFunds92 000$0000o000000006,872,500¿168,400997,2002,'177,100$166 000$o0o0000000000094 000$0000001,OO0000000$85 000s0000 0107,9@0005 0000000$793,000$0000696,60000030,000000000$4,076,000$001 10,000or32,O000012,210,æO295,000014,500340,000000$3,229,000w0292,O@0207,4000o12,008,000190,0000o320,000000$2,636,000$00005,660,0000001o0,000000000$1 838 000s00004,880,50000120,00000000Risk tgt.Fund$2,621,000$0002,027,600000000000001,550,500 745,7@ 2,545,O00 3,0€4,8000000000000 1661,(nOnTotal Fund¡nq Sources $62.520.700 $10 515 200 $1.550,500 $777.300 $2.697.900 5J U11 4LlU $13 ',tuz :Jt'U $13.U0l 4(X) s5 /60 (Xx) $6 661 $2 o27CÀTENUI I UñEÐ:Leg¡slativs Govêmmsnt $.178,100000000000o0 000000002,157,000 10,495,100 ¿168,400 654,500 2,096,400 235,000 6,086,200 2,2U,W000n no0ônnnGeneral Govemment 6,73'1,0000000000000nDevelopment Sêru¡cés 'I,566,00000 00000000Poliæ Department't 0,291,900000000000Firs Dgpartment6,76 1,60000 00000000Community Serviæs 8,039,600o0 00 3,576,40000000Conferênc€ Center000 0 600,400000000Le¡surs Seruiæs4,548,70000 2Æ,2000000000H¡ghwey and Slrêels000 0000000To Olher Funds14,417,1æ0 694,500 000000000 000000000000000U1,032,85000 00000o 6,661,5000000 000 675,900 1,1 73,9000000ñ 000 157,500 383,6000000 000 1,755,7@ 1,424,40000000 000 2,O93,900 3,216,2æ000000 0000 955,9000006,29,700 20,1000 f0,1001,1000000000000 718,600 764,600 5,760,0002,027,600542,1000 387,600000 1,614,500 2Ail,200000$10,515.200 s1,550,500 $910.800 $'2.697.900 $3,811.¿foo sl3 1UZ.3UU s13 (ru/ 4ül s6 ô6't 500 s2.027,600Jnappropriated Fund Bal¡ ¡næ/RetainedEst. Eârn¡nos - Juæ30. I s18.652 000 ß92 0ü) st66 000 s34 6rX) ßR5 fxn $793 000 M 770 900 $3_437 100 s2 636 000 s1 83A 000 $2 621 000-otal Budqet Summarv Cont¡nued on Pæe 22.21

FY2O{'-2008 BUDGETTOTAL BIJDGET STJMM^A.RYFY07 Túl Budgst RoEnu* ¡nd Erpend¡h¡rct and U4aplmpltrlod Fund B¡hnærRelein€d Eem¡ng3 Summrysvenæ FundrTrut E Agsncy FundsDrug FundReg¡omlSales TårFundGemãl SchælE¡y! Allendrle Palml n lJbnry Sen¡orPurp@ Núrlüonllan3lm Canter Com.e Fund Schæl Fund Fund Ald Fund Fund Fund Fund Y Fund Fund Fundlot¡lEsL Eeminqs - Jure 30,FUNDING SOURCES:TãesGmss Ræeipt8 TdesPenalties ånd lnteßstLiHs and Pem¡teChargeg for S6ru¡coslntêrgovemmentalState ShaÊd TdesSaleslnt€Est EemêdF¡nes ând ForfeituGsM¡sælfanæusTap FæsSpec¡al Donel¡onsFrom Sdìool fundGrantsFund TrânsfeßFund Balânca/R€tain€d| $r02,00oIl$0l0lotît;0õfi7,3000000000$1,8t5,000$55,0(x)s3,955,000sl, I I 0,0005235,000$'116,000s1 58,000958 000$17,0(n$23 0ü)i24,oto$3,280,70000$000$20,762,0{X)00$000so00$000s000$000s0005000s0000 000000 0 0 0 0o 0 I,139,100o000 o 0 0 66,3000 0 20,298,400 28,400 1,298,7@000 0 0 00 0000000 0 0 00 o0 2,666,5000000 0 0 050,00000000008,0000000000155,00000009,550073,550000000000004,0{x)0001 8,000006,000o0000500o00000100000000500000000s@00050000 0 '15,493,4000 760,00000 0 0 0 00 n I 10,5002?m00s3.330.700 s8,mo ú5/.95ö.4{rU 62ttg.ow) 82'l s45 C $6.000 s500 glnô s67 300$41,598,000¡54,612,000$3,5t3,500$392,mO$603,000$18,3'15,900$37,1 16,900s5,029,400$26,885,300$2,112,'tæ$2,162,300s344,650s660,000$68,500¡173,900$0$31,93't,800ß, mq ÃmLegisletive GovemmentGôn€El GovemmenlDevelopmilt Sery¡æsPol¡€ DeparlmentFiß DepertmentCommunlty Seru¡æsConfænæ CenterLe¡sure SoryiæsH¡glMåy ând SlrætsTo Other FundsTEns To Meadowìy'¡ilM¡sc Govt Seru¡æsAdmin'EtEt¡onF¡nanc¡alPlant OpeEtionsSystem MaintenancêReâdinq and SeruicesOpe€lionsClsims andTÉnsf€r to Prcject FundEduet¡on - OptrDsbt Seru¡ce (P&l)ìeseruesTo Capital Prcjectglo't l000117 300000000o000000000000000o00745,7000002,585,0000000000000000008,000000000000000000000000000 0 0 0 0 $178,1@000000 0 0 0 s6,73t,000000000 0 0 0 $1,566,0000000 00 0 0 0 6'10,417,200000000 0 0 0 $6,761,600000000 t00 0 0 $11,8s't,100000000 0 0 0 $1 ,346,100000 45,000 6,0000 0 500 67 300 $4,913,70000 2,113,700000 0 0 0 $2,1 13,7001,591,550000 0 0 0 0 0 s16,1 75,300000000 0 0 0 $2,585,00000o000 0 0 0 s7,694,350000000 0 0 0 $1,849,80000000 0 0 0 $54't,100000000 0 0 o $3,580, t0000000 0 0 0 0 s5,31 0,100000000 0 0 0 9955,900000000 0 0 0$049,494,350000 00 0 0 $58,765,1 50000000 0 0 0 $4,998,,1000 2,774,ñO000 5m 0 0 0 $2,778,5006,872,50000000 0 0 0 $37,870,600000000 0 0 0$0nnnn0m$57.958.,100 52.//ö.o(ru s2 11 s45 0c $6.000 55{X) $500 s67 5luu.g9u.ð00JneppropnaBo Funõ H€il8tEßt Eâminos-.rrrm30l ßln, ônn s1.645 000 ß55 (xX) s3 955 off) $l.t10000 s235 000 Sl 16 (x),0 sl 58 0t)0 $58.000 s1 7 000 $23.0m s24 m0 sat7Á tnnTotel Budget Sumrory Continu4 from Pâgo 2122

FY2OO7.2OO8 BUDGETTOTAL BUDGET STJMMARYTotal Budqet SummarvActualRevised Budget Requested Recommend Approvedlevenues0,f{¡5 05{6 06-{17 0748 07{8 07{8Seneral Fund 54.420.104 57.330.486 60.584.561 62,520.70(, 62.s20.70( 62.s20.700Debt Service Fund 9.887.524 10.459.755 10.394.41 10.515.20C 10.515.20C 10.515.200Â/ater Fund 12.191.129 12.698.084 12.839.001 13.007.40C 13.007.40C 13.007.400Sewer Fund 11.786.'t32 12.453.020 12.460.106 13.102.300 13.102.30C 13.102.300Solid Waste Manaoement Fund 3.3'10_45€ 3AU.84e 4.463.155 3.811.40C 3.811 400 3.81 1.40CMeadowView CC Fund 2-993.824 2.90S.60C 3.128.100 2.697.900 2.6S7.900 2.697.90CCattails Golf Gourse Fund 700.585 754.51e 825.50C 910.800 910.800 910,80CFleet lnternal Service Fund 6.021.776 7.O't9.179 9.212.918 ô.661.50C 6.661.500 6.661.50CRisk Manaqement Fund 1.882.829 2.053.936 1.820.922 2.027.60C 2.027.600 2.027.60CHealth lnsurance Fund 4.960.362 5.376.20C 5.519.50C 5.760.00( 5.760.000 5.760.00cCriminal Forfeiture Fund 83.069 83 393 29.00c 8.00c 8.000 I 00cDruo Fund 185.570 203.2U 129.8M 17.30C 117.300 117.30CGeneral Pumose School Fund 52,438.518 55.262.435 56.399.55C 58.037.40C 57.958,400 57.958.40CSchool Food & Nutrition Fund 2.674.O51 2.686.038 2.714.45C 2.778.OOC 2.778.O00 2.778.00CReoional Sales Tax Fund 3.270.O01 3,150,429 4.330.00c 3.330.70C 3,330.70C 3.330.700State Street Aid Fund 2.020.195 2.069.930 2.057.700 2.113.70C 2.113.70C 2.113.704Public Librarv Commission Fund 3.402 1.719 27.504 50c 50c 500Bavs Mountain Commission Fund 133.46C 118.02( 134 000 45.00c 45 00c 45.000Senior Citizens Adv. Board Fund 52.352 68.682 67.100 67.30C 67.30C 67.300Steadman Gemeterv Trust Fund 32S 667 100 10c 100 10(Palmer Center Trust Fund 1i^e 2.323 50t 500 500 50(Allandale Fund 5.552 5.64C 6.00( 6.000 6.000 6.00(Eastman Annex Fund 1.728.7U 1 .681 .1 15 1.586.073 1.550.500 1,550.500 1.550.50C170.751.15a 179.793.299 188.729.952 189.069.800 188.990 800 188.990.80(23

FY2OO7-2008 BUDGETTOTAL BTIDGET SUMMARYAGTUAIlevenues o4-{¡5 05{¡6Less lnterfund Transfersfo School Fund:F(evrseo Èluogel06¡7rrequesteg07-08rlecommenqApptove{¡07-08 0748From Eastman Annex Fund 562.20C 562.20C 562.20(From General fund 13.646.2U 16,564,182 r5.863.700 14.955.50C 14.955.50C 14.955.50Cto MeadowView Fund:From Reoional Sales Tax Fund 2.603.U2 2.590.65s 2.605.700 2.585.00C 2.585.00C 2.585.00ClÊo State Streed Aid FundFrom General Fund 659.30C 738.700 704.000 760.000 760.00c 760 00cIo Solid Waste FundFrom Fleet Fund c c 990.300 0 cFrom General Fund 2.726.'t74 2.903.20C 2.871.000 3.084.800 3.084.80C 3,084,80Cfo Debt Se¡vice:From General Fund 3.009,331 1,819.175 2.163.900 2.177.100 2.177.104 2.177.10CFrom General Proiect Fund 997.200 997.20C 997.20CFrom Eastman Annex Fund 468.400 468.400 468.40CFrom School Fund 6.216.757 7.U2.782 7.509.100 6.872_500 6,872,500 6.872.50Cfo Cattails FundFrom Regional Sales Tax Fund 513,97€ 555.289 655.300 745.70C 745.700 745.70Cfo General Fund:From ìNaler Admin Senriccs 774.459 820.262 860.90C 817,00( 817,000 817.00CFrom Sewer Admin. Services 511.522 il3.Ue 484.30C 575.20t 575.204 575.20CFrom Water Fund IPILOT) 333.00C 333.00C 333.00C 393.00t 393.000 393_00CFrom Reqional Sales Tax 0 0 1.069.00c C 0 cFrom Sewer Fund (PILOT) 408.000 408 00c 408.00c 468.00( 468.000 468 00CFrom Eastman Annex Fund 0 0 c 166.60( 166.600 166.60CFrom Fleet Fund 0 0 c ( 0 cTo Transit Fund:From General Fund 0 0 c 239.75C 239.750 239.75(fo Gen Proi€pecial Rev Fund:From General Proiect Fund (fo General Proiect Fund:0 c 21.50( 21,500 21.50(From General Fund c 0 0 520.60C 520.60C 520.60(Io MPO FundFrom General Fund c 0 0 61.20C 61.20C 61.20(to Risk Fund:From General fund 68/.321 672.85e 678.620 631.50C 631.50C 631.50(From Fleet Fund 43.461 u.o74 83.100 112.20C 112.20C 112.20(From Water Fund 1AO.12t 24633e 252.47â 298.60C 298.60C 298.60tFrom Sewer Fund 223.96C 201.2v 153.1 15 198.80C 198.80C 198.80(From Solidwaste Fund 138.79C 71.55Í 67,600 79.70C 79.70C 79.70CFrom School Fund 447.70C M5.l0c 546_600 533.30C 533.30C 533.30(to Fleet Fund:From General fund '|,.979.626 2_143.35,E 2.v2.OO0 2.070.80c 2.070.80c 2.O70.80CFrom Water Fund 367.221 431.792 508.800 535 90C 535.90C 535.90CFrom Sewer Fund 247.352 237.587 317.100 300.90c 300.90c 300.90(From Solid Waste Fund 763.097 775.631 795.00( 918.50C 918.50C 918.50(From Solid Waste Fund 199.00C 199.00C 199.00CFrom School Fund 723.029 766.74C 875.70C 808.50C 808.50CIo Health Fund808.50CFrom Water Fund 357,138 380,477 410.70C 421.OOA 421.00C 421,00CGeneral Fund 2.119 614 2.201.021 2.466.30C 2.694.600 2.694.60C 2,694,60tFrom Sewer Fund 206.248 224.167 228.40C 251.400 2il 40A 251.40CFrom Solid Waste Fund 175.4il 172.539 181.60C 198.600 198.600 198.60CFrom Fleet Fund 107.177 118.53C 127.60( 134.000 134.000 134.00CTo Eastman Annex FundGeneral Fund 1.254.9U 1.522.379 1.586.073 1.550.500 1.550-500 1.550.50CSub-Total 41425.427 45.913.972 48.138.983 48.409.050 48.409.050 48.409.05CTotal Budset Revenues 129.325.7: 133.879.327 140-590-96ç 140.660 750 140.581.750 140.581.

FY2OO7-2008 BUDGETTOTAL BUDGET SUMMARYwTotal SummaryActual Revised Budqet Requested Recommend Approvedlend¡tures 04.05 05-06 0647 07{8 0748 07483eneral Fund s53-5 17.553 $55.984.76: $ó0.584.561 s64.309.72( 62.520.70( 62.520.70()ebt Service Fund 9.923.59( 10.385.451 10.394-412 10.515.20( 10.515.20( 10.515.20(Water Fund t1.963.564 12.379.58t 12.839.001 13.007.40( 13.007.40( 13.007.40(Sewer Fund l 1.605.85: l 1.870.38( 12-460-10( 13.317.40C r3.102.30( 13.102.30(Solid Waste Manaqement Fund 3.304.561 3.166.284 4-463-t55 3.811.40c 3.811.40( 3.811.40(MeadowView CC Fund 2-92s-493 2-711.9s8 3. r 28.1 0( 2.707.126 2.697.90( 2-697.90(Cattails Golf Course Fund 664.24: 704.49( 825.50C 910.80C 910.80( 910.80(Fleet lnternal Service Fund 5.564.24: 6.401.99i 9,212.918 6.ó61.500 6.661.50( 6.661.50CRisk Manaqement Fund r-661-428 1.675,435 1.820.922 2.027-60( 2.027-60( 2,027.60(Health lnsurance 4.400.838 4.956.932 5.5r9.500 5.760.00( 5.760.00( 5.760.00(Sriminal Forfeiture Fund 3.00c 54.85ç 29.004 8.00( 8.00( 8.00(Druq Fund 1t9.367 t2t.3t2 t29.80t r r7.30( l r7,30( r 17.30(Seneral Puroose School Fund 52.210^737 54.689.805 56.399-55( 58.493.00( 57.958.40( 57.958.40(School Food & Nutrition Fund 2-572-273 2,686.038 2.7t4.45( 2.778-00( 2.778-00( 2,778.00(ìeqional Sales Tax Fund 3.016.601 3.130.810 4.330.00( 3,330,70( 3"330.70( 3.330.70(State Street Aid Fund 1.875.03i 2.022-422 2,057.70( 2.113.70( 2.1t3.70c 2.1t3.70(¡ublic Librarv Commission Fund 4S 27.50( 50( 50c )ut3ays Mountain Commission Fund 50.541 12.29( t34.00( 45.00( 45.00c 45.00(lenior Citizens Adv. Board Fund 47 -6tt 61-85t 67.10( 67.30( 67.30(, 67,30(Steadman Cemetery Trust Fund l0( l0( r0c r0()almer Center Trust Fund 50( 50( 500 50(\llandale Fund t-42: 2.00( 6.00( ó.00c ó.000 6.00(Eastman Annex Fund 1.580.213 1.623.95t r.58ó.073 1.550.50c 1.550.500 1.550.50(Sub-Total Expenditures 8163.703.622 $171.476.399 st88.729.952 $191.538.746 $188.990.80( s188.990.80t25

FY2OO7-2008 BUDGETTOTAL BUDGET SUMMAR YActual Revised Eudoet Reouested Recommend Aoorovedenditures 0¡f45 0546 06{7 07{8 07{8 07{8-ess lnterfund Transferssrom General Fund:To School Fund st3.646.264 $16.564.18' $r5.863.70( $r4.955.50( $14.955.500 $r4.955.50(To State Streed Aid Fund 659.30{ 738.70( 704.00( 760.00( 760.000 760.00(To Solid Waste Fund 2.726.t74 2.903,20( 2.871-00t 3.084,80( 3.084.800 3.084,80(To Debt Service Fund 3.009.331 1.819.17: 2.1ó3.90( 2.177.10(. 2.t77.104 2.177 -10(To Fleet Maintenance Fund 1.979.62( 2.143-35: 2-342.00( 2.070.80( 2.070.800 2.070.80(To Risk Manaoement Fund 684.321 672.85( 678.62( 631.50C 63 r.500 63 r.50(To Transit 239-75C 89-7sA 239.75(To General Proiect Fund 520.ó0c 520.600 520.60(To Gen Proiect-Soecial Rev Fund 21.50( 21.500 21.50(To MPO 61.20c 61.204 6r-20(To Health Fund 2.119,6t4 2.201,021 2.466.30C 2.694.60C 2.694-604 2.694.60(From General Proiect Fund:To Debt Service Fund 997.20C 997.20( 997.20(From Eastman Annex Fund:To General Fund 166.60C 166.60( 166.60(To Debt Service Fund 468,400 4ó8.40( 468.40(To School Fund 562.20C 562.20( 562.20(From School FundTo Debt Service Fund 6.2t6.75i 7.842.782 7.509.10c 6.872.50C 6.872.s0( 6.872.50rTo Risk Fund 447.70C 545.10( 546.60C 533.300 533.30( 533.30(To Fleet Fund 723.029 766.74( 875,70C 808.500 808.50( 808.50[From Water Fund:General Fund (Pilot) 333.00C 333.00( 333.00C 393.000 393,00( 393,00CGeneral Fund (Admin. Services) 774.459 820,262 860,900 817,000 817.00( 817.00CTo Risk Fund 180.t27 246.33( 252.475 298.600 298-60( 298.60CTo Fleet Fund 367-221 431-792 508-800 535,900 535.90( 535.90CTo Health Fund 357.138 380.471 410.700 421.000 421-00( 421.000From Sewer Fund:To General Fund (Pilot) 408.000 408.00c 408.000 468.00( 468.00( 468.000To General Fund (Admin. Services) 51t.522 543,348 484.300 575.20( 575.20( 575.20(To Risk Fund 223.964 201.234 153.1 l5 198.80( 198.80( 198.80(To Fleet Fund 247.352 237.581 317.100 300.90( 300.90( 300.90(To Health Fund 206.248 224.16',1 228.400 251.40( 25t-40( 25t-40(From Solid WasteTo Risk Fund 138.79( 71.555 67.60( 79.701 79.70C 79.70(To Fleet Fund 763.09i 775-631 795.00( 918.50( 918,50C 9r8.50(To FLecl Fu¡d (Lsa¡) 0 199.00( 199.00( t99.00(To Health Fund 175.454 172.539 r81.60( 198.60( 198.60C 198-60(=rom Reqional Sales:To Meadowview Fund 2.603.341 2.590,655 2.605.70( 2.585.00( 2.585.00C 2.585.00(To Cattails Fund 513.97: 555.289 655.30( 745-70( 74s.70C 745.70(To General Fund 0 1.069.00(From Fleet Fund:To Risk Fund 43"46: 84-074 83.10( rt2-20( ll2.20c t12.20(To Solid Waste Fund 990.30(To Health Fund t07.t1i I 18.53( t27 -60( r34.00( 134.00c 134.00(From General FundTo Eastman Annex Fund r,258.984 t.522.37t 1.586.073 1.550.50( 1.550.50c 1.550.50(Subtotal s41.42s.42i s45.913.97t $48.138.983 s48.409.0sr $48.409.05C $48.409.05(otal Budqet Expenditures s122.278.t9( s125.562.421 $140.590.96ç s143.129.69( s140.581.750 $140.581.7s(

FY 2OO7-08 BT]DGETGRANT PROJECT ORDINAIICE FUNDSFUND DESCRIPTION AND SUMMARYGrant Project FundsSpecial SchoolFunds142 & 145MetropolitanUrban MassCommunity7,000Proiects Fund Plannino Office Transit DeveloomentBeginning Fund Balance FY0810 000 $ 1 18,000 $ (6,000)Total$r1.95L8:ì4$l3trt00 $rL166-000 s 420.000Endinq Fund Balance - FY08 s 17.000 s 10.000 s 18.000 $ (6.000)Fund¡nq Source:Federal Grants3,788,492396,000420,000Federal through State759,042383,750Local Revenues387,60089,000From School Fund-'14116,700Federal FHWA VA4,500Federal FHWA TN224,400FTA Section 5303 TN38,1 00FTA Section 5303 VA3,200From General Fund61,200 239,750UMTA357.500Total Funding Sources$ 4.951.834 $ 331.400 $ 1.466.000 420,000Expenditures:Education & Administration4,951,834MPO331,400Transit1,466,000CDBG420,00027

F'Y2OO7-08 BI]DGETTOTAL DEBTTOTAL DEBTDuring the 1990s a commitment was made to renovate all of the public school buildings as well as buildthe new Washington Elementary School. Additionally, debt was incurred to build the MeadowViewConference and Convention Center and Cattails Golf Course. Significant funds began to be spent onlong neglected sanitary sewer projects, primarily for the Inflow and Infiltration program, as ordered bythe State of Tennessee.The combined impacts of these public policy decisions was to increase the debt from $49.2 million inFY89 to a record hish of $142.5 million in FY00.The adoption of a well reasoned multi-year capital improvements and financing plan is to provide afunding plan to address the needs of capital infrastructure. The debt service roll off will fund the newprojects each year. The plan is reviewed annually.It was proposed that the Five Year Capital Improvements Plan be amended to provided for the issuanceof new debt for the upcoming five fiscal years.The projects that will be funded by bonds for Fiscal Year 2008 are as follows:Higher Education Center$7,000,000Rock Springs Rd Safety Audit-Construction 50,000Ryder Dr/Eastman Road Signalization200,000Legion Pool-Design & Construction6,000,000Water Plant Solids Handling2,145,800*FY07 Sewer SRF Loan draw 4,250,000The Sewer SRF Loan for the Sewer Treatment Plant was approved in FY07 budget. The amountestimated for FY08, FY09, FY10, and FY11 is $4,250,000 each year making the total amount of the loan$17,000,000. The project is expected to be complete by FY12.The impact on the operating budgets is principle and interest payments. These will be absorbed throughdebt service roll-off. There will not be a need for a property tax increase.28

FY2OO7-08 BUDGETTOTAL DEBTAnticiDebt Issues and Position: FY03 to FY29FYDebtRevisedDebtGeneralPlanned New DebtSchools WaterSeweraJ456l8910llt2t3t4l516t71819202t22242526272829$127,592,483121,682,553117,722,872110,333,946130,755,519Total Five-Year PlannedNew Debt137,090,526 13,250,000139,843,988 6,250,000147,244,415 6,625,000149,849,321 4,450,000144,522,373 100,000132,160,113 0119,476,151 0107,400,184 096,867,344 087,172,741 078,129,347 070,224,046 063,424,915 056,359,157 050,047,386 043,462,728 036,591,471 029,528,091 022,273,170 014,713,950 09,658,347 05,799,247 0$30,675,000s59.660.400Vy'ater and Sewer debt issues based on Multi-Year CIP and Rate Plan.Total Planned New Debt includes FY07 SRF loan Sl7M. theestimated amount each yea is $4,250,000 in FY08, 09,10 and I l.0000000000000000000000$02,145,9001,965,0000143,5001,266,10000000000000000000$sJ2oloo4,250,0005,3 15,0005,450,0006,350,0002,100,00000000000000000000$23,465,000General Fund debt issues based on Multi-Year CIP fundineplan.Updated as of04-17-0729

F'Y2OO7.O8 BUDGETTOTAL DEBTDEBT SERVICE AND DEBT SERWCE RECOVERIESDebt service is the term used to describe the allocation of operating funds for the retirement ofdebt þrincipal and interest). Debt service is the first item in the budget for which resources arebudgeted. Understanding and planning for the impacts of debt service on the various operatingbudgets is critical.Given the growth in debt service recoveries, an opportunity exists to leverage these funds to issuedebt for the next four fiscal years and address pressing facility and infrastructure needs. Theamount of annual cash funding is still prorated between schools and general services per theBoard's policy; however the general services piece will be used to pay debt service. Debt servicerecoveries is a revenue stream 100% dedicated to the capital improvement plan per Board ofMayor and Alderman policy.The chart below includes total planned debt through FY12.Total Debt Trcnd Ardysb160,000,000140,000,000120,000,000100,000,00080,000,00060,ooo,00040,000,00020,000,0000æ04.66g,7ææ101112131430

FY2OO7-08 BTIDGETTOTAL DEBTThe FY08 debt service requirement fòr the total budget is $20,288,600, as reflected in thefollowing chart:Debt Seruice Requirements EstimateFYOSSolid General/ School Water Sewer MeadowView Gattails TotalFY07 Waste L/E AnnexDebtPrincipal& lnterest 36.100 92,625,400 $7,369,700 $2,046,300 $5,460,700 $ 2,096,200 $654,500 $20,288,600Subtotal$2.625,400 $7,369,700 $2.046.300 $5.460,700 $2,096,200 $654,500 $20,288,600As of 03-20-07Debt ServiceScheduleBOND RATINGThe City enjoys a solid Ar bond rating with a stable rating. Our sister cities of Johnson City andBristol, TN each enjoy an Al rating as well. The City's written hnancial policies, strong GeneralFund undesignated balance, well reasoned and conservative multi-year capital improvementsplans and reducing total debt levels all contribute to helping maintain this excellent bond rating.31

FY 2OO7-08 BUDGETMAJOR CAPITAL PROJECTS SUMMARYMAJOR CAPITAL IMPROVEMENTSThe late 1980s was the last time the City had a unified multi-year capital improvements plan.This was seen as a critical deficiency and incremental steps have been made to develop such aplan by this Board and Administration. The Water Fund and Sewer Fund Capital ImprovementsPlans were approved in FY02 and FY03; respectively. The General Fund Capital ImprovementsPlan was approved in FY04.Prior to the development of the multi-year capital planning, much work was not getting done andnone was getting done in a coordinated fashion. A summary of the planned major capitalimprovements for FY08 is provided below. The reader is directed to the water, sewer andgeneral fund capital improvement plans found in the Capital Improvements budget book.CIP Projects For FY2007-2008General Fund Proiects:Higher Education CenterRyder Dr./Eastman Road SignalizationLegion Pool-Design & ConstructionRock Springs Safety Audit-ConstructionK-Play Phase ll & lllDog ParkMiscellaneous Annexationslndian Trail/Stone Dr. SignalizationStreet ResurfacingMinor Street lmprovementsMinor Storm Drainage lmprovementsParks & Recreation Maintenance lmprovementsRoad DesignFleet Roof & Back Wall RepairMeadow View Conference Center Major Maint.John B. Dennis/Pavilion Dr. SignalizationSidewalk lmprovementsFundinq SourceNew BondsNew BondsNew BondsiPrior YrsNew Bonds/Reallocated BondsReallocated BondsReallocated BondsGeneral FundGeneral Fund/Reallocated BondsGeneral FundGeneral FundGeneral Fund/Reallocated BondsGeneral FundReallocated BondsFleet Fund BalanceRegional Sales TaxTDOT/STP FundsGeneral FundTotalGeneral Fund CIPProjectAmount$7,000,000200,0006,250,00075,00030,00040,00045,60095,000350,00020,00030,00030,000310,000400,000480,000220,00050,000$15.625.60032

F'Y2OO7-08 BUDGETMAJOR CAPITAL PROJECTS SUMMARYProjectAmountSewer Fund Proiects:Maintenance Building Roof ReplacementSewer Maintenance StorageHemlock Park lmprovementsMiscellaneous Annexationslnflow & lnfiltration Replacement ProgramWgter Fund Proiects:Water Plant Solids Handling-Design/ConstStorage Tank Rehabilitation ProgramRock Springs Water UpgradesFordtown Road RelocationM iscel laneous AnnexationsWater Plant Window ReplacementFundinq SourceSewer FundsSewer FundsSewer FundsSewer FundsSewer FundsReallocated BondsTotal Wastewater Fund CIPNew BondsWater FundsWater FundsWater FundsReallocated BondsWater FundsWater FundsWater FundsTotalWater Fund CIP$ 75,00060,000550,000700,90028,6001.446.400$2.860.9002,145,80054,200300,0001,000,000295,200204,800595,200100,000$4.695.200aaJJ

FY 2007-08STAFFING HISTORYCitv Staffins HistorvApprovedDepartment Division 04 05 06 07 08Governine BodyCiw ManaserBoard of Mavor & Aldermen 7 7 7Citv Judse I I 1 ITOTAL EMPLOYEES I 8 8 8 8Administration 5 6n8 9Communiw Relations 1 I IFull-Time Total 6 8 9 t0Part-Time 2 0 0 0 0Interns-Part Time Total 0 0 0 0 2TOTAL EMPLOYEES 8 7 8 9 t2+Fleet Maintenance 20 20 20 20 20Purchasine 5Part-Time Purchasins/Mail Courier 1 I IPart-TimeTotal I I I I IFull Time Total ¿J ZJ ZJ z) ZJTOTAL EMPLOYEES 24 24 24 24 24aJnJJIJCitv AttornevAdministration 4 4 4 4 4Code Enforcement (Assigned from PoliceDept-Patrol FY07 and FY08) 0.5 0.5 0.5 0 0Full-Time 4.5 4.5 4.5 4ATOTAL EMPLOYEES 4.5 4.5 4.5 4 4Human ResourcesAdministration 4 4 5 4 4Risk Manasement 2.5 2.5aJaJJ*Health Insurance I I 1TOTAL EMPLOYEES 7.5 7.5 9 8 8FinanceAdministration 2 2 2 2 2CiW Clerk I I I IAccountins 10 ll l2 t2 l3Grant Accountant Partiallv Funded bv Grants I IBillins/Collections l4 T4 t¿ ll l1Temoorarv Efficiencv Full-Time Carryover I 1 0 0 0Information Services 9 9 9 9 9Part-Time Office Assistant-CiÛ Clerk Office 0 0 0 0Full-Time Employees 37 38an)t 36 37TOTAL EMPLOYEES )t 38 JI 36 3834

FY 2007-08STAFFING HISTORYCitv Staffrns HistorvAoorovedDenartment Division 04 05 06 07 08FireAdministration 4 4 4Á a 4Central Station 43 43 43 43 43Prevention 4 4 4 4 4Substation 2- Center St. 9 9 9 9 9Substation 3-Memorial Dr. 9 9 9 9 9Substation 4-W. Stone Dr. 9 9 9 9 9Substation 5-Lvnn Garden Dr. 9 9 9 9 9Substation 6-Colonial Heiehts 9 9 9 9 9Full--TimeSubstation 7-Rock Sorinss 0 0 0 0 6Admin. Partiallv Funded bv Granl 0 0 0 I ITotal Part-Time 0 0 0 0Total Full-Time 96 96 96 96 103TOTAL EMPLOYEES 96 96 96 97 r03PoliceFull-Time Administration 4 4 4 4 ^+Sworn Officers 98 99 99 102 106Civilian - Intellisence & Support 0 ICivilian - Records & Traffic CourtClerk 8 8 8 9 9Civilian - Jail 7 7Civilian - Animal Control 2 2 2 2 2Civilian Parkins Enforcement I I 1 1Central Dispatch l8 l8 t8 18 l8Communication - Radio Shoo a a J Ja J J JGrantSworn Officers 3 3 3 I IPositionsPart-Time Central Dispatch 0 0 0 0 0Civilian Records 0 0 0 0 ICivilian- School Guards bt) I5 t5 I5 I5 I5Total Part-Time 15 15 15 t5 t6aGrant Funded Full Time J JJ I IResular Full-Time I4l r43 143 147 151TOTAL EMPLOYEES 159 161 161 t63 16835

FY 2007-08STAFFING HISTORYCitv Staffins HistorYApprovedDeDartment Division 04 05 06 07 08Leisure ServicesBavs Mountain Park t5 15 l6 t6 l6AllandaleaJ J 3aJaJSenior Citizens 7 7 7L brary - Downtown n l2 t2 t2 l3L brarv - Carver Branch I 0 0 0 0L brarv - Archives I 1 I I IParks & Recreation t6 l8 18 l8 l8Part-Time Bavs Mountain Park 4 4 4 2 2Senior Citizens 2 3 3 3tJLibrarv - Carver Branch 2 2 2 2 2Librarv Downtown 7 7 7 5 5Development ServicesParlæ & Recreation I I I I IParks & Recreation -Seasonal39 39 39 39 39Total Part-T me 55 56 56 5t 5lTotal Full-T me 54 56 57 57 58TOTAL EMPLOYEES 109 It2 ll3 108 109Administration 2 2 2 JPlannins 6 6 6 6 6Buildins /Inspection I I 8 7 7/1GIS 4 4 I 4 4Partiallv Grant Fund Mass Transit* I l0 11 11 l1aPartiallv Grant Fund MPO* 4 2 2 JJ100% Grant Funded CDBGX 2 2 2 2 .5Part-TimeMass Transit*(Partial 1l I1 I] t0 10Grant Fund)MPO (Partial GrantFund)InternMPO (Partial Grant I I I I IFund)Developmenl ^Svcs..Part- Time Senior OfficeAsst. 0 0 0 0 IGrant Fund,Partial l2 l2 t2 t2 t2Part-TimeTotal Part-Time t2 t2 T2 l2 t3Resular Full-Time 20 20 20 20 21Partial Grant Funded l3 t2 13 t4 t4Full-Time*Hope VI & CDBG Fully Grant Funded 2 2 2 2 5Total Full-Time 35 34 35 36 36TOTAL EMPLOYEES 47 46 +t ^n 48 49.5II36

FY 2007-08STAFFING HISTORYCitv Staffins HistorvAoorovedDeoartment Division 04 05 06 07 08PublicWorksWater Adm nlstratron l0 l0 t0 10nSewer Adm nlstratlon 4 2 2 2 2Streets/SanitationAdministration4 6 6 6 6Streets MaintenanceJJaaJJ JJ JJaaJJSolid Waste - Collections(includes vard waste and trash)25 25 25 2l 20Part-TimeSolid Waste - Landfill 6 6 6 6 6Solid Waste - Recvcline 4 4 4 4 4Water Plant l3 t6 t6 16 t7Water Svstem Maintenance 36 36 36 36 36Sewer Plant l5 t2 I2 t2 t2Sewer Svstem Maintenance 26 26 26 26 26Meter Readins & Services 8 l8 t8 18 l8TransportationaJ l3 T3 l3 l3Ensineerins 2 t2 l3 l4 t7Public Buildines Maintenance 9 t9 20 20 20Public Grounds, Parks &Landscaoins27 27 27 27 27Resular Full Time Employees 26s 265 267 264 264Seasonal Temporary Grounds(Mowers)4 4 4 4 4Maintenance Worker-Streets &Sanitation0 0 0 0 ITOTAL EMPLOYEES 269 269 271 268 269SummarvGoverning Body 8 8 8 8 8Citv Manaser 8 7 8 9 T2Fleet Maint./Purchasins 24 24 24 24 24Citv Attornev 4.5 4.5 4.5 4 4Human Resources 7.5 7.5 9 8 8Finance 38 )I 36 38Fire 96 96 96 97 103Police 159 161 l6l r63 168Leisure Services 109 r12 ll3 108 109Develooment Services 47 46 47 48 48Public Works 269 269 271 268 269Total Part-time Employees 97 96 96.5 93 98Total Full Time Emolovees 672 677 682 680 693Total Emplovees 769 773 778.5 I tJ 79137

FY 2OO7-08 BUDGETGENERAL FTII\DSUMMARYGENERAL FUND SUMMARYMISSIONTo provide efficient, effective services to all of the City's citizens and customers.SUMMARYThe City of Kingsport is a municipal cooperation founded in l9l7 as a modem industrial center of businessand commerce. As such, it created at an early date a high level of services and expectations of qualitymanagement. The General Fund provides a wide array of services ranging from general administration topublic safety, streets maintenance to planning and development, contributions to various community pafiners,economic development and perhaps the City's most important service, an outstanding public education system.o KSF # l: Citizen Friendly Governmento KSF # 2: Qualified Municipal Work Forceo KSF # 3: Economic Growth and Developmento KSF # 4: Stewardship of the Public Fundso KSF # 6: Reliable, Dependable Infrastructureo KSF # 8: Safe CommunitySIP _ KEY SUCCESS FACTORSKEY ISSUES. Maintain the General Fund debt service recoveries funding plan for the multi-year capitalimprovements plan. The amount of annual cash funding is still prorated between schools and generalservices per the Board's policy; however, the general services piece will be used to pay debt service.This is the same approach utilized by the school system with its annual funding allocations.o Economic development is a now a major activity of the General Fund. The creation of a JointEconomic Development Partnership for Sullivan County, Kingsport, Bristol and Bluff City promisesto increase economic activities.38

FY 2OO7-08 BUDGETGENERAL FUNDSUMMARYCAPITAL PROJECTSThe Fund's capital improvement plan is funded through two sources of revenues, tax revenue generated fromthe Long Island annexation in FY02 and debt service recoveries.The capital projects included in the FY2008 Plan are as follows:FY2008 ExpendituresStreet ResurfacinglSidewalk Improvements'Minor Drainage ImprovementsMinor Street ImprovementsK-Play Phase II & IIIParks & Recreation Maintenance ImprovementsDog ParkRock Springs Rd Safety Audit-ConstructionFleet Roof and Back Wall Repair ''Miscellaneous AnnexationsnHigher Education CenterLegion Pool-Design & ConstructionMeadow View Conference Center Major Maint.TJohn B. Dennis/Pavilion Dr SignalizationTotal Expenditure$350,00050,00030,00020,00030,00030,00040,00075,000400,00050,000200,000250,00095,000305,6007,000,0006,000,000480,000220,000$_ll.é25-600FY2008 RevenuesReallocated BondsCashBondsPrior YearsFleet Fund BalanceState MaintenanceTDOT/STP FundsRegional Sales Tax FundsTotal Revenuess 459,000520,60013,250,000250,000400,00046,000220,000480.000$15-625=6001. An additional $100,000 is funded for Street Resurfacing in the State Street Aid fund.2. An additional $70,000 is funded for Sidewalks in the State Street Aid fund.3. The Fleet Roof and Back Wall will be funded from the Fleet Fund Balance.4. The Legion Pool -Design & Construction will be funded from bonds reserved in the Legion Poolproject account.5. The funding for the Indian Trail Signalization will be $46,000 in cash and $49,000 from statemarntenance.6.7.Road Design will be funded from reallocated bonds.MeadowView Conference Center Major Maintenance will be funded from the Regional Sales TaxFund.39

FY 2OO7-08 BUDGETGENERAL FUNDSUMMARYREVENUESThe General Fund has been balanced without any recommended tax or fee increases.RevenuesACTUAL04-05ACTUAL0s-06BUDGET06-07REQUESTED07-08RECOMMENDED07-08APPROVED07-08Property Taxes927,722,393$29,858,204$30,211,800$30,569,300$30,569,300$30,569,300Gross Receipts3,036,5823,439,3983, I 80,5003,513,5003,513,5003,5 13,500Licenses & Permits349,751349,77133 1,500603,000603,000603,000Fines & Forfeitures314,670435,779351,0002,037,0002,037,0002,037,000Investments512,652899,8361,061,0001,300,0001,300,0001,300,000Charges For Services2,268,2632,568,7412,995,5003,265,0003,265,0003,265,000Interlocal Government14,019,83714,360,61314,587,20015,491,40015,491,40015,491,400State Shared4,042,3194,740,0704,552,9005,029,4005,029,4005,029,400Fund Balance1,926,642594,5411,761,200220,000220,000220,000From Reg Sales TaxFund001,069,000000Miscellaneous226,995242,2234g3,0g l492,100492,100492,100$54.420_lg4$fl,ry-!]6s60.s84.68rs62.520.700s62.s20.700$é2J20J0040

FY 2OO7-08 BTIDGETGENERAL FI]I\DSUMMARYExpendituresFY 04-05ActualFY 05-06ActualFY 06-07Rev.BudgetFY 07-08RequestFY 07-08RecommendFY 07-08ApprovedSalariess16,524,206$ló,993,65 I$ l 8,38 1,s39$19,565,600$19,565,600$19,565,600Career LadderRequest for New PositionOvertimeFunFestSocial SecurityGroup Health lnsuranceRetirementLife InsuranceLong Term Disability Ins.Workmen's CompensationUnemploymentEmployee EducationContractualCommoditiesOther ExpensesInsurance00542,19363,2101,239,4992,119,6142,196,92643,2843 8,55 I336,16330,55811,9413,810,9261,047,950928,447735,09500609,14293,872t,273,5032,201,0212,297,69648,9t740,498313,6942r,20514,0914368,t70t,013,674984,ss4748,47700s37,388'73,695r,416,0222,466,3002,927,s0059,1 8048,980304,39322,660l 9,5004,483,6091,186,407987,1 l s777 ,7 5660,200403,200s4 1,80094,8001,5 12,5002,694,6003, l 00,60063,7005 1,000250,20023,30014,500s,1 21,s50l,4l 1,600I, I 14,700766,600ó0,200403,200541,r0094,8001,5 12,5002,694,6003,1 00,60063,7005 1,000250,20023,30014,5005, l2 1,5501,3 19,800l,l 14,700766,60060,200403,20054 1,1 0094,8001,5 12,5002,694,6003,100,ó0063,7005 1,000250,2002330014,5005,121,550r,3 19,8001,1 14,700766,600PartnersCapital Outlay1,238,890439,504t,348,593450,6781,646,800749,8371,847,82088ó,600r,492J00438,900t,492J00438,900SubsidiesDebt ServiceSchool DebtSchool OperationsTransfer to Solid WasteFundTransfer to State StreetAid FundTransfer to Mass TransitFundTo Capital Projects - GeneralTo MPO FundTo Eastman Annex FundTIFF- East Stone Commons21,1773,009,3315,916,8647,729,4002,726,174659,300165,030546,68943,7001,258,984021,2412,018,2007,406,2008,721,4002,888,200738,700I 56,1 l969,80443,436I,445,13793,59226,7002,r63,9006,448,6008,721,4002,87 1,000704,000197,3001,677,50057,400I,550,500177,70032,7002,177,t006,344,6008,72t,4003,084,800760,000223,750520,60061,2001,550,500184,40032,7002,t77,t006,344,6008,72r,4003,084,800760,000223,750520,6006r,200I,550,500184,40032,7002,177,1006,344,6008,72r,4003,084,800760,000223,750520,6006t,2001,550,500184,400Other Transfers94,9s867,7000209,000209,000209,000Gen. Proj. Spec. Rev. Funds0002 1.5002 1.s002 1.s00Total Expenditures $53JUJ53 ss6.4er.r6s $60-s84,681$63.416.020s62.520.700 S62.s20.70041

FY 2OO7-08 BT]DGETGENERAL FUNI)SUMMARYFY08 èræral R¡rd Fènærr.e$62.5MSFrrtiandAreaLæd $ionSdesTaçenses$6¿5MbyRrEt¡fialAreaTËEfsto$il\ htetrd8/oScdQsáiG'l4VoTEEfsto Sde SredA¡dFrd1o/oToGFitd FkjectsGãsd1VoTohtrãìArfÞ(RrdÈsõdSsv'xE8/oScdsÈÈt11VoÈbtSsvi:e?/oGFatd o.dSy'lvoF*æ?/ofsæ10/oOfsEçerE€2/o42

43FY 2OO7.O8 BTIDGETGENERAL FUNI)SUMMARY

FY 2OO7-08 BUDGETMAJOR REVENUES DESCRIBEDProperty Ta

FY 2OO7-087 BUDGETMAJOR REVENUES DESCRIBEI)Gross Receipts Taxes represent a small and relatively stable, but very low growth, revenue category forthe General Fund It is anticipated that revenue growth from this sector for the new fiscal year will berelatively flat, with growth only in the Cable TV category. The motel tax, traditionally a strong revenuegrowth category, is expected to be flat due to the effects of the recession.The City collects the taxes in the referenced categories as follows: beer at l7%o, alcohol beverage at 5o/o,gross receipts on business at ranging from l/8 of l% to 1160 of l%o depending on the type of business,minimum business permit at $15, motel tax at5Yo, and cable TV franchise fee. All revenues from thesesources, except for the motel tax, may be allocated at the discretion of the BMA. 87 .5% of the receiptsfrom the motel tax are allocated to the Kingsport Convention and Visitors Bureau. 12.5% of the receiptsare retained by the city for administrative charges.Gross Receipt RevenuesActual lrounded in 000'sl Budset Estimated00-01 0r-02 02-0J 03-04 04-05 05-06 06-07 07-08Beer lVholesale$736 $750 $860 $842 $873 $868 $900 $900Alcoholic Beverase 2t8 200 23s 235 245 270 245 260Gross Receiots Business 833 820 901 983 834 l.l 57 900 1,100Minimum Business 3l 30 3l ZJ 3l 42 34 40Interest & Penalties I l I I I 0 t2 IMotel Tax 652 703 764 735 743 791 800 800Cable TV Franchise 233 200 280 293 297 310 290 412Miscellaneous 4 o 0 0 0 0 0 0TOTAL s2.708 s2.710 s3.072 $3.1 12 $3.024 s3.438 s3-l 8l $3.5 l345

FY2OO7.O8 BUDGETMAJOR REVENUES DESCRIBEI)3503æ2æm1501m50Ucerces & Pemib! RrildirgI Gntrætqtr Eectictr HurtirgrC6¡ El,siness L¡(HËef Zmirg CtrãìgetrAnind¡ Alãmf BeerLicenses and Permits represent a small, yet highly volatile revenue category for theGeneral Fund. It is heavily dependent on local building construction and improvements,permit revenues generally rise during strong economic times and are reduced duringweaker economic periods. The significant increase in building permits for FY02 is theresult of Willamette's $500M expansion and a significant increase in the fees. The Cityissues beer privilege licenses to local establishments and, on average, reflects a no newgrowthrevenue source. Alarm charges are for false alarms and alarm monitoring forADT.Licenses & Permits Actual (rounded, in 000s)00-01 01-0202-03 03-0404-05 05-06 06-07Budget EstimatedBuildine 99 242 r7t 183 2r0 219 200 JlfContractor 16 t9 l5 l) t4 t2 l) l5Electric t9 JZ 32 32 42 34 34 125Plumbine t2 l5 25 t5 20 l8 l5 50Gas 28 3l 2t 32 t+ 27 30 60Business License l3 t4 12 t4 l3 l3 IJ t3Zonins Chanse 2 3 2 I 3 2Animal I 0 0 0 0 0 0 0Alarm I 32 l5 l8 0 8 6 6Beer 1416 l4 t4 l{ t7 t7 t6 l7q?r{$35 I $349 s332 s603TOTAL S2O7 $401 $30807-0846

FY 2OO7.O8 BUDGETMAJOR REYENUES DESCRIBEDFines & Forfeitures Actual (rounded, in 000s) Budget Estimated00-01 01-02 02-03 03-04 04-05 05-06 06-07 I oZ-oeCitv Court Fines $403 $348 $283 ï220 $300 $421 $336 $2,022Librarv Fines $19 $18 $14 $16 $15 $15 $r5 $15422 366 297 236 315 436 351 2,037lrwesfuirtsI ln,esftæds0G 01- @- G 0+ 0G G 0z-01 e.æu056s76lnvestmentsAcutal (rounded, in 000s00-01 01-02 02-03 03-04 04-05 05-06Budget Estimated06-07 07-08lnvestments s1.445 $538 s357 $301 $51 3 $900 $1,061 $1,300Total $1.445 $538 $357 $301 $513 $900 $1,061 $1.30047

F'Y 2OO7-08 BTJDGETENTERPRISE FUNDSCATTAILS FUIID 421MISSIONTo provide a quality golf facility that continues to maintain a leadership position in service delivery and product quality, alongwith a sound economic retum on the City's investment.Cattails at MeadowView is a par-71 championship course, designed by Dennis Griffith, opened July I, 1998. Cattails has alreadypositioned itself as the finest daily fee golf product in the Tri-Cities. As the only municipal golf course managed by ManiottGolf, Director of Golf, Pete DeBraal and his stafftake great pride in making a resort golf experience available at an affordableprice.STRATEGIC IMPLEMENTATION PLANKSF #3: Ecoxorrrc Gnowru. Drvnl,opùrsNr. lxo RnDevnl,opìdnNr:. Increase tourism and conventions ÍÌs an economic development driverKSF #7: Supnnron Ounr¡rrY or Lrnn:o To provide a well-planned and aesthetically designed community that offers a wide variety of cultural and recreationalopporhrnities and encourages citizen involvement in community affairs.Cattails is a municipal golf course that also services the MeadowView Resort and Conference and Convention Center. The Citycontracts with Marriott Corporation for the management of the golf course. Operating revenues are not suffrcient to cover thecost of the facility less debt service and depreciation, thus transfers from the general fund were required for prior years.Beginning in FY04, the debt service was funded from the Regional Sales Tax Fund.RevenuesBudgetEstimatedRecommendedApprovedCommissionInvestmentsMiscellaneousFund Balance04-0s$tztr68s1,2190005-06$139,2351,3610006-07$ 131,2002,0000007-08$133,5001,0000007-08$133,5001,0000007-08$l 33,5001,00000Furniture & FixturesTransfer from FFE Reserve27,903028,8310037,000030,600030,600030,600From General FundTransfer from RegionalSales Tax FundTOTAL0513,97500655,3000745,7000745,7000745,700,Commission represents net operating revenues from operations ofthe golfcourse. FF&E represents a percentage ofnet eamingsthat is reserved for future improvements to the facility. Investments represent earnings on cash-on-hand and reserves. Transferfrom General Fund represents the net amount to fund debt service.ExpendituresContractualCommoditiesOther ExpensesMiscellaneousCapital OutlayInsuranceDebt ServiceFF&E Reserves92,632(6,369)35,134000514,94527,90305-065tt^ozs(22,020)35,142000571,75928,831Estimated07-08-$tt^600034,400085,0004,600664,60030,600Recommended07-08$91,600034,400085,0004,600664,60030,600$91,600034,400085,0004,600664,60030,60048

FY 2OO7.O8 BT]DGETENTERPRISE F'UIU)SCATTAILS F[]NI)PERFOR]VIANCE INDICATORSPerformanceMeasureActual03-04Actual04-05Actual05-06Projected06-07Estimated07-08Rounds of golf 26,064 25,900 26925 27,100 28,200Golf cards sold 606 625 650 700 77549

FY 2OO7-08 BT]DGETENTERPRISE F'UI\DSMEADOWVIEW-420MISSIONTo provide a world class conference and convention center for the region.SUMMARYTo be recognized as the standard for an operating team that produces outstanding services for owner andcustomer alike within a balanced set of mutuallv shared values.MeadowView Convention and Conference Center is a city owned facility operated via contract with theMarriott Corporation. The Center requires operating contributions from the Regional Sales Tax Fund for thepayment ofannual debt service and operations subsidy and from the General Fund for operations subsidy.RevenuesAcluøl04-05 I 0s-06Budget06-07Requesto7-nrRecommended07-08Approved07-08INT LGIP$0$93s0$s,000$5,000$5,000Restricted Cash Accounts000Room Surcharge93,666100,850101,400107,900I 07,900107,900Furniture/Fixture & Equip FeesMiscellaneousInvestmentsFrom Regional Sales Tax FundFund BalanceFrom FF&EFrom Maintenance SinkingFundTOTAL156,14217,0007,1742,603,3420I 16,5000152,582015,3462,544,429096,3000001,0002,605,7000300,00000002,585,0000000002,585,0000000002,585,000s2993.824 $2.909.600 s3.008. I 00 s2.697.900 $2,697,900 s2.697.900000Room Surcharge is a percentage ofgross room revenues generated by the Hotel for consideration ofthe facilityeasements granted by the City to the hotel. The percentage rate applicable in the 7rn and subsequent years is2%o. This revenue source is expected to gradually trend upward. Investments represent eamings on cash onhand and investments. Transfer from Reeional Sales Tax Fund provides funding for debt service paymentsand operating contribution and is funded via the $0.0025 regional sales tax. This revenue source is economydependent. From FF&E represents the percentage ofgross revenues that is to be held for FF&E needs by thefacilitv.50

FY 2OO7-08 BUDGETENTERPRISE FTII\DSMEADOWVIEWExoendituresAclual04-05 I 05-06Budget06-07Requested07-08Recommend07-08Approved07-08ContractualCommoditiesOther ExpensesInsuranceMiscellaneousSubsidies &ContributionsCapital OutlayDebt Service$47,1 800280,3695,1270298,84302,137,838s37,6020140,3816,2400240,54002,134,613$47,0000105,0009,2000298,000300,0002,097,500$36,7000177,20011,4000283,70002,097,500$36,7000717,20011,4000283,70002,097,500$36,7000117,20011,4000283,70002,097,500FF&E ReserveTransfersTotal156,142 152,582 151,400 151,400 151,400 151,400s2.925.493 s2.71 1.958 s3.008.100 s2,697,900 s2.697.900 $2,697,90051

[.Y 2OO7-08 BIJDGETENTERPRISE T'UNDSMEADOWVIEW-420Meadow View Convention and Conference Center52

FY 2OO7-08 BUDGETENTERPRISE FT]NDSSOLU) WASTE F'UND -415SUMMARYMISSIONTo provide a clean and healthy environment through a variety of services that meets the needs of residents,businesses and industries.SUMMARYThe City provides solid waste services to 16,100 households within the city under the auspices of its PublicWorks Department, Streets and Sanitation Division. Services that are provided include:1. Residential curbside organic refuse collection and disposal2. Small commercial and governmental bulk container collection and disposal3. Residential yard debris collection and disposal4. White goods and tires collection and disposal5. Demolition landfill services6. Residential and office paper recycling collection and disposalThe City does not charge for these services except for tires, backdoor service for a very limited targetpopulation, and tipping fees at the demolition landfill. If pickup of white goods is done by the City, there is acharge, but if the residents take them to the Landfill themselves, there would be no charge to them. The bulkof the service is financed via an inter-fund transfer from the General Fund.STRATEGIC IMPLEMENTATION PLANKSF # 7: SupBRroR Qu¡lrrv oF Lmn:o Continued improved handling of code enforcement.o Maintaining a clean, healthy urban environment.PERFOR}IANCE EXCELLENCEThe Solid Waste Division of Public Works has attained sienificant results from its efforts withperformance excellence. Specifically:l. Increased recycling volumes of all categories including new office paper recycling: the $45,000savings realized in FY04 continues in succeeding fiscal years.2. Recycling rebates from the State of Tennessee averaging 52,300 annually pay for the City'spurchase ofnew recycling bins.Please refer to Performance Excellence Appendix for more information.53

FY 2OO7.O8 BTJDGETENTERPRISE FUNDS: SOLD WASTE F{JND 415SUMMARYMajor Revenues Describedo Refuse Collection Charees: charges for service to small commercial (14 accounts) andgovemmental bulk container service. The current charge is $20.00 per pick-up for one cart.General commercial service was terminated in FY96, thus the significant decrease inrevenues.o Backdoor Collection Charees: charges for service to 85 customers. The current charge is$264 per year.o Landfill Tippine Fee: charges for service, on a per-ton basis, for those that use thedemolition landfill. The cost per ton is $30.50.o General Fund Transfer: transfer of general tax dollars to support solid waste services. Thetransfer has generally been increasing due to increasing costs of personnel and otheroperating costs. The transfer is reduced this year primarily due to the levying of landf,rll feesfor the city operations. It provides 84o/o of the fund's revenues.RevenuesActualActualRevisedBudgetRequestRecommendApprovedFY 04-05FY 05-06FY 06-07FY 07-08FY 07-08FY 07-08RecyclingRefuse Coll. ChargesConstruction WasteTire DisposalMt. CarmelCollectionsWood ChipFuelBack Door Coll. FeesLandfill Tipping FeeInvestmentsMiscellaneousFrom General FundFrom Fleet FundFund Balances76,34776,8971,9351,46800406422,7784,45102,726,17400$5s,23173,4372,0702,2980020,570334,759t3,28302,903,20000$50,00085,000I,900I,7000023,000400,00012,00002,871,000990,30028,25s$50,00075,0001,9001,700I 35,000023,000400,00030,00050003,084,80000$50,00075,0001,9001,700I 35,0005,00023,000400,00030,00050003,084,80000$50,00075,0001,9001,700135,0005,00023,000400,00030,000s0003,084,80000$3.310.456 s3.404.848 s4.463.155 $3.806.400 s3.811.400 53lllrCIO54

FY 2OO7.O8 BUDGETENTERPRISE X'UIIDSSOLD WASTE FUND J15STIMMARYFUND BUDGET INFORMATIONFYOT{!8 Sol¡d ìllåsþ Fund Revenue Sourcesljppins ree,$4æ,0æ,11%Érnirgs ørlrnresfrent,$0,0m,1%Ail Ctfpr,$156,6æ,4%èrerd turdTransfer,$3,185,800, 84%EXPENDITURESActualFY 04-0sActualFY 05-06RevisedBudgetFY 06-07RequestFY 07-08RecommendFY 07-08ApprovedFY 07-08Trash Coll-4021s782,571s692,397$740,900$768,400$768,400$768,400Organic Refuse-40221,511,9921,493,0932,500,2501,470,600t,470,6001,470,600Demo. Landhll-4023652,667580,579757,453820,400820,400820,400Recycling-40273t6,657359,259403,052473,800473,800473,800Nondepartment-409940,67439,01361,50042,70042,70042,700Other Expenses-5010Total01.9430 235.500235,500235,500s3.304.561 s3.r66.284 s4.463.155 $3.811.400 s3.8 l r.400 s3.81 1.40055

FY 2OO7-08 BI]DGETENTERPRISE FUNDS: SOLID WASTE FII¡ID --415SUMMARYF'YO7{)8 Sol¡dlllffi Fund Þ

57FY 2OO7.O8 BUDGETENTERPRISE F[]1\DSWASTEWATER FUI\D SUMMARY

F'Y 2OO7-08 BUDGETENTERPRISE F'UNI)\ryASTEWATER SERVICES F'UND SUMMARYWASTEWATER FUND SUMMARYMISSIONTo provide reliable, high quality wastewater services that support the economic, environmental and quality oflife priorities of the City at the lowest possible cost and in full compliance with all local, state and federalregulations.SUMMARYThe City of Kingsport's wastewater system provides sewage collection and treatment services toapproximately 22,000 customers over a 50 square mile service district. The collection system consists ofapproximately 525 miles of sewer lines, 9325 manholes, 88 main line lift stations and 185 single-unitresidential pumps that work in combination with gravity flow to convey raì¡i sewage to the treatment plant. Atthe treatment plant, wastewater undergoes sedimentation, biological processing and chemical treatment toproduce sanitized biosolids and clean water effluent that is retumed to the Holston River watershed.SIP - KEY SUCCESS FACTORSo KSF # l: Citizen Friendly Governmento KSF # 2: Qualified Municipal Work Forceo KSF # 3: Stewardship of the Public Funds. KSF # 4: Reliable and Dependable Infrastructureo KSF # 5: Superior Quality of Lifeo KSF # 6: Safe CommunityKEY ISSUESMaintain the Wastewater Capital Rate Stabilization Plan, which provides for future debt reductionwhile meeting the needs of the Wastewater Fund.Continue the performance of the rùy'astewater Treatment Plant upgrades necessary to achieve bothcurrent and future environmental compliance, which will include compliance with the upcomingpromulgation of the EPA Capacity, Management, Operations and Maintenance (CMOM) regulations.Continue to execute Sewer I&I Rehabilitation Projects, Lift Station Upgrade Projects, and SewerReplacement Projects to achieve both current and future environmental compliance, which willinclude compliance with the upcoming promulgation of the EPA Capacity, Management, Operationsand Maintenance (CMOM) regulations.58

FY 2OO7-08 BUDGETENTERPRISE F'UNDSWASTEWATER FLTND SUMMARYRATE PROJECTION AND STABILIZATION PLANSThe City's wastewater rate is derived on a "cash-needs" basis with rates set each year based upon a l2-monthforecast for the cash requirements of existing debt, planned capital project needs and anticipated costs forwastewater operations for the next fiscal year. Due to the magnitude and variability of capital project costs ona year-by-year basis, the wastewater rate has historically been subject to cyclic fluctuations that may requirelarge increases one year with no increases in the following year.The variability inherent in the existing rate process makes it difficult for consumers to plan their respectivebudgets and contributes to an erosion of consumer confidence in the management of wastewater services. Theperception of the unpredictable nature of the rates that is driven by changing annual capital needs creates agreater degree of uncertainty and frustration among consumers than is necessary and ultimately has apolarizing effect that makes rate setting more contentious than is otherwise warranted.The FY2007 Wastewater Services budget includes a Wastewater Rate Stabilization Plan. This Plan includes acapital projects schedule (thru FY20l5) and a S-year funding plan (thru FYIO) for operations and maintenance.In an effort to improve the predictability and stability of the wastewater rates, the Wastewater RateStabilization Plan shifted the funding philosophy of capital projects from a year-by-year basis to a long termbasis and thereby established a more graduated approach to capital project scheduling and financing thateffectively eliminated the disproportionate impact that large capital projects can have on annual rates.The Wastewater Rate Stabilization Plan is based upon a strategy to reduce the long-term capital debt burdenthat pushed the rates upward in the 1990s as a result of the new capital demands required to meet annexationcommitments. The Wastewater Rate Stabilization Plan employs a combination of rate increases, emergingdebt service recoveries, and restrictive bond finance practices (ì¡iith all new debt service paid directly throughsame year rate increases) to generate the cash flow necessary to ensure adequate re-investment in the aginginfrastructure and to responsibly grow the system to meet current and future needs.The \ùy'astewater Rate Stabilization Plan includes anticipated operations and maintenance costs throughFY2012. In this manner, the Wastewater Rate Stabilization Plan provides a constrained and predictable waterrate schedule for the next 5 years for the full Wastewater Fund (capital and operations) and baning anycatastrophic infrastructure failures or unforeseeable new regulatory requirements, the wastewater rates are setfor the next 5 years. The adoption of the Wastewater Rate Stabilization Plan ensures the economic viability ofwastewater services for the near term and provides an incremental plan for capital re-investment that ensuresthe long-term performance of the wastewater infrastructure.59

FY 2OO7-08 BUDGETENTERPRISE F'UNI)WASTEWATER SERVICES FIIND SUMMARYThe capital projects included in the FY2008 Plan are as follows:FY2008 ExpendituresInflow and Infiltration Abatement (state order) S1,475,000Miscellaneous AnnexationsMaintenance Building Roof ReplacementSewer Maintenance Storages 700,900s 75,000s 60,000Hemlock Park Improvements $ 550.000Total Expenditures$2,860,900FY2008 RevenuesDebt Service RecoveryReallocated Bonds/Funds$ I ,4 14,500S1.446.400Total Revenues 82.860.90060

FY 2OO7-08 BUDGETENTERPRISE FT]NDSWASTE}VATER F'UI{D SUMMARYEXPENDITURESACTUALOPERA,TING BUDGET SUMMARYACTUALREVISEDBUDGETREQUEST RECOMMENI) APPROVEI)04-05 05-06 0641 07-08 07-08 07-08Personal Services $1.944.612 $2,015,939 $2,060,550 s2.238.900 s2.238.900 s2.238.900Contract Services 686,873 782,721 825,636 r,053,900 1,053,900 1,053,900Commodities 424.571 451,227 406,677 43 t,500 43 1,500 43 1,500Other Exoenses 196,976 209,201 208,900 239,000 239,000 239,000Insurance t77-tt9 t41,225 99,920 I 16,500 I 16,500 I 16,500Fund Transfer,838,376PILOT813,074 842,800 993,500 993,500 993,500Subsidies,Contributions. Grants13,850 l1,600 13,900 I 3,900 13,900 13,900Capital Outlav t52.331 70.256 164.823 *449.000 *449.000 *449.000Debt Service 6,132,040 6,064,420 6,583,600 6.151.600 6.151.600 6. l5 I .600Transfers to CapitalProiects1,020,300 1,261,800 1,253,300 1,414,500 1,414,500 1,414,500OutstandlngEncumbrances18,805 48,917 0 0 0 0Total DepartmentExoenses$11.60s.8s3 $11,870,380 $12,460,106 $r3.102300 $13,102,300 $13,102J00Total Excludings9,661,241 $9,854,441 $10,399,556 $10.863.400 $10,863,400 $10,863.400Personal.Services*Capital Outlay includes $200,000 for Developer Materials Agreement.FUffiB $ffirwater Fund ExpenditurcsTo Capital Prciects1CapitalOrüayT/oToèneral F'¡nd8o/oDebtSenice53o/o@rating Þpenses14o/oÈrsond Seniæs17o/o6l

FY 2OO7-08 BTJDGETENTERPRISE FUI\DWASTEWATER SERVICES FUND SUMMARYREVISEDOPERÄTING ACTUAL ACTUALREQUESTEI) RECOMMEND APPROVEDBUDGETREVENUES04-05 05-06 06-07 07-08 07-08 07-08User Charges $ 10.s78.123 s11.314.909 $11.7s2.400 $r2.210.800 $12.210.800 s 12.210.800Tap Fees 424.749 278.781 287.s00 340.000 340,000 340,000Penalties 118,613 122,992 112,500 110,000 I10,000 l10.000Permits 5,800 5,650 5,000 5,000 5,000 s.000Class II Surcharses 62.669 44,010 60,000 42.000 42,000 4Disoosal Receipts 86.700 78,825 85,000 85.000 85,000Interest on Investments 239.608 s46,677 100.000 295,000 295.000Fund Balance Aooroo. 217.807 28.917 38.806 0 0 0Miscellaneous 52,063 32,259 18.900 14,500 14.500 14,500TOTALS $11.786.132 s12.4s3.020 s12,460,106 s 13.102.300 s13,102,300 $ 13,102,300OPERATING REVEIIUE SUMMARYUser charses represent the lion's share of revenue for the fund's operations. A significant reduction insewer usage occurred in FY04 with user charges finishing $442,000 below budget. User charges forFY06 are currently on target to meet budget. Tap fees are revenues derived from new connections to newsewer lines, primarily lines built via the City-Count¡r sewer agreement and lines built to comply withannexation requirements. Class II Surcharees and Penalties are for users that are subjected topretreatment standards. Disposal Receipts pertain to septage hauler fees.62

Wastewater Rate ProjectionsF'Y 2OO7-08 BIIDGETENTERPRISE FUNDSWASTEWATER F'UND SUMMARYFY 05-06 FY06-07 FY 07-08 FY 08-09 FY 09-10 FY tO-ll FY ll-12ACTUAL BUDGET REQUESTED PROJECTED PROJECTEI) PROJECTED PROJECTEDSewer RevenuesSewer Sales - O&M/DebtService $r 0,053,109 s 1 0.526.1 00 $10.996.700 sl r.497.300 $l1.602.800 $l r,678,700 $l1,994,900Sewer Sales - CIP 1.261.800 t.226.300 1.414.400 t.100,000 1.060.000 1.050.000 800.000Class ll Surcharses 44.010 60.000 42,000 42.000 42.000 42.000 42.000Disposal Receipts 78.825 85,000 90,000 90.000 90.000 90.000 90.000Penalties 122,992 I 12,500 I 10.000 r 10.000 I 10.000 I 10.000 I 10.000Interest Income 546.677 100.000 295.000 I 50,000 100.000 100.000 100.000Tao Fees 278.781 280.000 340,000 340,000 343,400 346,800 350.300Misc. Income 37.909 l 7900 19,500 20.000 20.000 20.000 20.000Fund Balance Appropriation 0 0 0 0 0 0 0Year End Encumbrances 28,917 0 0 0 0 0 0Total Sewer Revenues s12.453.020 $12.407.800 $ 13.307.600 $13.349,300 $ 13,368.200 $ r 3.437.500 sl 3.507.200Sewer Exoenditureso&M 4. 136. I 60 4,216.800 5.238.300 5.688.800 5.935.500 5.787.500 5.339.900Payment-ln -Li eu-Of-Taxes 408,000 408.000 468.000 468.000 468.000 468.000 468,000Debt Servlce 6,064,420 6,556,300 6. l 86.900 6.092.500 5.904;100 6, l 32,000 6,899,300CIP - Cash Basis I,261,800 1.226300 1.414.400 l. 100.000 1,060,000 1,050,000 800.000Total Sewer Exnenditures sl1.870.380 s12.407.400 sr 3.307.600 s I 3.349.300 s l 3.368.200 st 3.437.500 $ 13107,2!0Total Rate increasesRate Increase Inside 5.0 50 3.0 3.0 20 )^ 20Rate Increase Outside 8.0 70 60 60 6063

FY 2OO7-08 BUDGETENTERPRISE FI]NI)WASTEWATER SERVICES FUND SUMMARYAverage Sewer Bill (lnside Rate) 5,000 gallonsFranklinCookevilleMorristownJohnson CityElizabethtonClevelandSeviervilleClarksvilleOak RidgeKingsportKUBs0.0064

FY 2OO7-08 BUDGETENTERPRISE FUNDSWASTEWATER FUND SUMMARYAverage Sewer Bill (Outside Rate) 5,000 gallonsCookevilleFranklinElizabeihtonClevelandMonistownJohnson CityKingsportClarksvilleSevierv¡lleKUB$0.00 $10 00 $20 00 $60 00 $70 00 $80 0065

F'Y 2OO7-08 BUDGETENTERPRISE FTIIII)SWATER FUI\D SUMMARYã'-.:-:66

FY 2OO7-08 BUDGETENTERPRISE FT]i\DSWATER F'UND SUMMARYWATER FUND SUMMARYMISSIONTO provide reliable, high quality water services that support the economic and quality of life priorities of theCity at the lowest possible cost and in full compliance with all local, state and federal regulations.SUMMARYThe City of Kingspoft manages a regional water system that provides potable water to approximately 36,600customers over a 120 square mile service area. The distribution system consists of approximately 750 miles ofwater lines, 12 main-line pump stations, numerous small neighborhood booster pumps and 22 storage tanksthat are designed to provide the necessary water volumes and flow pressures to meet residential, commercialand industrial customer demands.SIP - KEY SUCCESS FACTORSaaaaaaKSF # 1: Citizen Friendly GovemmentKSF # 2: Qualified Municipal Work ForceKSF # 3: Stewardship of the Public FundsKSF # 4: Reliable and Dependable lnfrastructureKSF # 5: Superior Quality of LifeKSF # 6: Safe CommunitvKEY ISSUESMaintain the Water Capital Rate Stabilization Plan, which provides debt reduction while meeting thecapital needs of the Water Fund.Continue to execute waterline replacement projects that are identified in the Water CapitalImprovements Plan to ensure reliable service and improve water quality.Performance of the Water Treatment Plant Upgrades Project that will include the installation ofemergency generators and the replacement of the filter's media.Performance of a water system hydraulic modeling contract that will assist in the operation of thewater system, provide a design basis for continued upgrades and expansion of the water system, andassist in compliance for recently promulgated regulations for water distribution disinfection byproducts.Participation and completion in AWWA's Partnership for Safe Drinking Water Program to ensure theproduction of the highest quality drinking water with maximum removal of microbial contaminates.Implement a pilot automated meter reading program using radio frequency technology coupled withthe development of a capital financing plan for the fuIl implementation of automated meter reading inFY2008-2009.67

F'Y 2OO7-08 BUDGETENTERPRISE FUNDSWATER F'T]ND SUMMARYRATE PROJECTION AND STABILIZATION PLANSThe City's water rate is derived on a "cash-needs" basis with rates set each year based upon a l2-monthforecast for the cash requirements of existing debt, planned capital project needs and anticipated costs forwater service operations for the next fiscal year. Due to the magnitude and variability of capital project costson a year-by-year basis, the water rate has historically been subject to cyclic fluctuations that may require largeincreases one year with no increases in the following year.The variability inherent in the existing rate process makes it difficult for consumers to plan their respectivebudgets and contributes to an erosion of consumer confidence in the management of water services. Theperception of the unpredictable nature of the rates that is driven by changing annual capital needs creates agreater degree of uncertainty and frustration among consumers than is necessary and ultimately has apolarizing effect that makes rate setting more contentious than is otherwise warranted.In an effort to improve the predictability and stability of the water rates a "l0-Year Water Rate StabilizationPlan" was adopted for capital projects FY2002. The lO-Year Water Rate Stabilization Plan shifted the fundingphilosophy of capital projects from a year-by-year basis to a five-to-ten year basis and thereby established amore graduated approach to capital project scheduling and financing that effectively eliminated thedisproportionate impact that large capital projects can have on annual rates.The lO-Year Water Rate Stabilization Plan is based upon a strategy to reduce the long-term capital debt burdenthat pushed the rates upward in the 1990s as a result of the new capital demands required to meet annexationcommitments. The Water Rate Stabilization Plan employs a combination of rate increases, emerging debtservice recoveries, and restrictive bond finance practices (with all new debt service paid directly through sameyear rate increases) to generate the cash flow necessary to ensure adequate re-investment in the aginginfrastructure and to responsibly grow the system to meet current and future needs.The Water Rate Stabilization Plan was expanded to include anticipated operations and maintenance costs for afive period. The Rate Plan is updated on an annual basis and as a result provides a constrained and predictablewater rate schedule for the next 5 years for the full Water Fund (capital and operations) and barring anycatastrophic infrastructure failures or unforeseeable new regulatory requirements, the water rates are set for thenext 5 years.Capitat FundsThe l0-Year Water Rate Stabilization Plan is based upon an average annual appropriation of $3,020,000towards repair, replacement and planned expansion of the City's water infrastructure for the next 6 years. TheS3.02 million allocation represents a constrained funding level that was determined based upon engineeringevaluations of the condition of the water infrastructure, existing and impending regulatory requirements, andprospective economic development initiatives. Based on this data, project schedules were developed such thatcapital expenses were balanced across each fiscal year and the corresponding rate impacts were allocatedevenly to avoid sharp spikes in order to minimize the impacts on water customers.New \ilater RatesIn accordance with the lO-Year Water Rate Stabilization Plan and the S-Year Water Rate Projection Plan, awater rate increase of 4% (outside city) is required to balance the fund for FY2008.68

FY 2OO7-08 BUDGETENTERPRISE FUNDSWATER FT]hID SUMMARYThe capital projects included in the FY2008 Plan are as follows:FY2008 ExnendituresWater Plant Solids Handling-Design/ConstructionStorage Tank Rehabilitation ProgramRock Springs Water UpgradesFordtown Road RelocationMiscellaneous AnnexationsWater Plant V/indow ReplacementTotal Exoendituress2,200,000$ 300,000$1,000,000$ 500,000$ 595,200$ 100.00084,695,200FY2008 RevenuesReallocated Bonds/FundsFY08 BondsDebt Service RecoveryRate Increases for Cash - OutsideTotal Revenuess 295,200s2,103,700s2,05 1,100s 24s.20084,695,20069

FY 2OO7-08 BUDGETENTERPRISE FUI\DS\ilATER FT]ID SUMMARYEXPENDITURES04-05ACTUALOPERATING BUDGET SUMMARY0s-06ACTUAL0647BUDGET07-08REQUEST07-08RECOMMENI)07-08APPROVEDPersonal Services s3.445,529 $3,468.s05 $3.849.700 $3,843,700 $3.843.700 $3.843.700Contract Services t,336,499 1.305.702 1.349.600 1.330.900 1,330.900 1.330.900Commodities 406.798 529,565 507,800 610,400 610.400 610.400Other Exoenses 253,687 281.486 290.300 359.900 359.900 359.900lnsurance 80.935 r37,728 148.300 t4s,700 t45,700 145,700Fees 0 0 0 0 0 0Fund Transfer,PILOT1,078,136 1,123,433 1,167,000 1,210,000 1,210,000 1,210,000Subsidies,Contributions,32,833 33,200 33,200 33,200 33,200 33,200GrantsCapital Outlay 683.886 652.522 s47.000 *940,000 *940,000 x940.000Debt Service 2.879.049 2,475,987 2,375,000 2,237,300 2.237.300 2.237.300Transfers toCapital Proiectsl,l 15,810 1,927,000 2,531,400 2,296,300 2,296,300 2,296,300OutstandingEncumbrances296,397 229,262 0 0 0 0Total DepartmentExpenses$11,609,559 $12,164,390 $12,799,300 $13,007,400 $13,007,400 $13,007,400Total ExcludingPersonal Services$8,164,030 $8,695,885 $8,949,600 $9,163,700 $9,163,700 $9,163,700*Capital Outlay includes $200,000 for projected Developer Materials AgreementsF1r':2m8 ìtläÞr Fund ExpenditurcsDebtSeniæ17VoTo Caçital Rojecfs18o/oCaF,italO;üqy7o/oToGeneral RrndV/oÈrsond Seniæs3Oo/o70

FY 2OO7-08 BTIDGETENTERPRISE F'UIV)SWATER F'UND SUMMARYOperating RevenueOPERATING REVENUE SUMMARYFY 04-05 FY 05-06 FY 06-07 FY 07-08 FY-07-08 FY 07-08ACTUAL ACTUAL BUDGET REQUEST RBCOMM APPROVEI)Sale of Water $11,086,426 s11,481,936 $12.019.300 $12,008,000 $12,008,000 $12,008,000Earnings onInvestments43,221 t44,739 60,000 190,000 190,000 190,000Penalties 141,682 148,553 140,000 140,000 140.000 140,000Line Extension Charses 28.390 38.129 30,000 30.000 30.000 30,000Reconnection Charees 136.340 134,164 130,000 130.000 130,000 130.000Miscellaneous 2.519 7,008 20,000 5.000 5.000 5.000Installations 164,680 170.540 160,000 162,400 162.400 162,400Water Tao Fees 209,970 233,930 220,000 320,000 320,000 320.000Return Check Charses 10,629 12.1 80 10.000 12,000 12,000 12.000Rental Income 10,943 10.954 t0.000 r0.000 10,000 10,000Develooers Contributions 102,465 265,770 0 0 0 0TOTAL stl.937.26s s12,647,903 $12,799,300 $13.007.400 $13,007,400 $ 13,007,400Sale ofwater represents the single largest revenue source for the fund. A significant reduction in revenuesoccurred in FY00 due to Willamette bringing on-line its industrial water facility. Additional reductions inconsumption occurred in FY04 resulting in sales revenue coming in $512,000 below budget. Water salesfor FY07 are currently on target to meet budget. Penalties are charges applied to past due accounts and isnot considered a growth revenue source. Line extension charges reflect revenues for small line extensionsoutside of the City as petitioned by customers. This revenue source is highly variant from year to year.Reconnection charges reflect charges for reconnecting discontinued service. Installation revenues reflectcharges to customers requesting new or the transferring of existing service. This revenue source remainsfairly stable from year to year. Water taÞ fees are charges for new service on new or existing lines and arevariable and dependent on new construction.Non-OperatingRevenuesFY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 07-08 FY 07-08ACTUAL ACTUAL BUDGET REQUEST RECOMM APPROVEDInvestments $ 43,899 s 746,286 s 60,000 $190,000 $ 190,00c $ 190,00cDeot. of Trans 11,969 0 0 0 0 cFund Balance 296,397 229,262 0 0 0 0Total s 3s2.26s $ $37s,s48 $ 60,000 $r90.000 $190.000 $ 190,00cInvestment is the largest revenue source in this category. Fund balance appropriation reflects funds forcapital projects not expended during the prior year that has been brought forward for appropriation in thecurrent year.Total RevenuesFY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 07-08 FY 07-08ACTUAL ACTUAL BUDGET REOUEST RECOMM APPROVEXOoeratins $11.894.044 $12,503,164 s72,739J00 s13.296.200 s 12.817.400 $12,817,400Non Ooeratine $ 352,265 $ 375,548 $ 60,000 s190.000 s190.000 s190.000Total Revenues s12,246,309 $12,878,712 s72,799,300 $13,486,200 $13,007,400 $ 13,007,4007t

F'Y 2OO7-08 BTIDGETENTERPRISE FI]I\DSWATER FUND SUMMARYWater Rate Projection PlanWater RevenuesFY 05-06 FY06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-lt FY I 1-12ACTUAL BUDGET REQUESTED PROJECTED PROJECTED PROJECTED PROJECTEDWater Sales - O&M/Debt Servrce $9,554,93ó s9. l 73,000 $9,71r,700 s9,840,600 sr0,029,900 $10,106,6r r s10,247,r00Water Sales - CIP 1.927.000 2.84ó.300 2.296.300 2.317,500 2,282.r00 2,331,500 2.3t9.700Service Charses 342.833 320.000 322.400 322.400 322.400 322.400 322.400Penalties 148,553 r40,000 140.000 140.000 r 40.000 140.000 140.000Interest Income t44,739 60,000 190.000 150,000 t00,000 70,000 60,000Tao Fees 233.930 220.000 320.000 323,200 326.400 329,600 332,900Rental & Misc. Income 28.142 40.000 27.000 27.000 27.000 27.000 27.000Year End EncumbrancesTotal Water Revenues s12.380.133 $12.799.300 $11007,400 $ 13.120.700 $r 3.227.800 $13.327.1il $13.449.100Water Exoenditureso&M 7.428.403 7.458.9t3 7.943.100 8.057.400 8. I 77.000 8.247.811 8.288.700Pavment- ln-Lieu-Of-Taxes 333,000 333,000 393,000 393.000 393.000 393.000 393.000Debt Service 2.475.987 2.475.987 2.375.000 2,352,800 2.375.700 2,354,800 2.447,7Q0CIP - Cash Basis 1.927.000 2.53 1.400 2.296.300 2.317.500 2.282.100 2.331.500 2.319.700Total Water Expenditures $ l 2.164.390 $ l 2.799.300 $r 3.007,400 $ 13. r20,700 s13.227.800 s I 3.327. I s 1 3.449.1 00Total Rate increasesRate Increæe - Inside 7.18 3.50 0 0.00 000 000 0.00Rate Increase - Outside 7.95 4.50 4.00 2.50 2.50 2.00 2.0072

FY 2OO7-08 BIIDGETENTERPRISE F'T]I{DSWATER X'T]ND SUMMARYAverage Water Bill (lnside Rate) 5,000 gallonsMorristownK¡ngsportJohnson CityClevelandFrankl¡n$12.40$14.85$14 94$15.41$16 10ElizabethtonCIA FClarksville$17CookevilleOak RidgeSeviervilleKUB$20.03$22.71I$z¡zeSurgoinsvilleFUD Hawkinscr.50I $st ¿tLakeview$53.00s20.00 $30 00 s40 00Average Water Bill (Outside Rate) 5,000 gallonsMorristowns20 l5Franklin$22.15Cleveland$25.92KUBÙ¿lì4CookevilleSurgoinsville82i 81¡5nJohnson CityFUD HawkinsElizabethtonù, 5_CÞI sst.+t!sat.aoKingsportClarksville| $40.47i39.60Sevierville$45 49Lakeview$53.00$10 00 $20 00IJ

FY 2OO7-08 BUDGETENTERPRISE FTNTDSWATER F'UND SUMMARY74

FY 2OO7-08 BUDGETSPECIAL REVENUE FTIIIDSF'UND DESCRIPTIONS AIID SUMMARYSpecial revenue funds are used to account for specific revenues that are legally restricted toexpenditure for particular purposes.Law Enforcement Fundso Criminal Forfeiture Fund - 126 - accounts for seized property and money awardedthrough the courts resulting from law enforcement actions against all illegal activitiesexcept seizures resulting from illegal drug enforcement. Additionally, this fund accountsfor funds received from the US Department of Justice under the Equitable Sharing ofFederally Forfeited Property program.. Drug Fund - 127 -accounts for revenues received from fines and property confiscatedfrom individuals involved in illegal drug activities and grant funds. These funds areearmarked for drug enforcement activities in compliance with state laws and regulations.Publìc School Fundso General Purpose School Fund -141 - accounts for administration, instructional,operational and capital costs of the City operated schools, except for the food serviceprogram and specific academic programs.¡ School Public Law 93-380 Fund - 142 -and other educational purposes.accounts for federal srants used for instructionSpecial School Projects X'und - 145 - accounts for federal and state grants used forinstruction and other educational purposes.School Food and Nutrition Services - 147 - accounts for the administration, operationsand capital costs ofproviding food services to students and faculty.. Special School Eastman Project Fund - 145-EAST04 -Other Fundsaccounts for 25Yo of theEastman Long Island Annexation revenues for value added school programs.o State Street Aid Fund - l2l -taxes.accounts for shared revenues derived from state gasolineRegional Sales Tax Revenue Fund - 130 - accounts for the proceeds from a $0.0025local sales tax previously approved by local referendum. These funds are earmarked forthe retirement of debt issued to fund construction of the MeadowView Conference Resortand Convention Center and to support the operations of the facility.Eastman Annex Tax Fund - 133 - accounts for revenues received from the annexationof a portion of Long Island located within the boundaries of Eastman ChemicalCompany.75

,*"",n1"*lo#,$1,ËY'.'fi 3iFIJND DESCRIPTIONS AI\D SUMMARYRevenuesCriminal Forfeiture FundDrug FundGeneral Purpose School FundSchool Food and NutritionFundSpecial School Projects FundPublic Law 93-380 FundRegional Sales Tax FundEastman Annex FundState Street Aid FundTotalActual04-05$83,069185,57052,438,5182,674,0521,354,9913,767,1943,270,001t,728,7842.020.199s6752231jSpecial Revenue Funds' SummaryRevisedActual Budget Requested0s-06 06-07 07-08$83,393203,28555,262,4352,686,0381,415,7443,613,9313,130,8 l0l,68l,t l52.088.549s70.165.300s29,000129,8045ó,399,5502,714,4501,119,2003,504,5004,330,0001,586,0732.057.700s71.870.277s8,000I 17,30058,493,0002,778,0001,387,1423,496,3923,330,700r,550,5002.t13.700s73.214.734Recommended07-08s8,000I 17,30057,958,4002,778,0001,4s5,4423,496,3923,330,7001,550,5002.113.700$72.808.434Approved07-08$8,000I 17,30057,958,4002,778,0001,455,4423,496,3923,330,7001,550,5002.113.700$72.808.434ExDendituresCriminal Forfeiture FundDrug FundGeneral Purpose School FundSchool Food and NutritionFundSpecial School Projects FundPublic Law 93-380 FundRegional Sales Tax FundEastman Annex FundState Street Aid FundTotals3,000rt9,36752,210,7372,572,2731,354,9913,668,7713,r17,3t7I,580,2131.875.037s66.50r.706$54,8s9t2t,3t254,689,8052,686,038986,5003,613,9313,099,7181,623,9592.022.422s68.898.544$29,000129,80456,399,5502,714,450l, I I 9,2003,504,5004,330,000I,586,0732.057.700s71.870.277$8,000I 17,30058,493,0002,778,0001,387,1423,4963923,330,7001,550,5002.113.700s73.2t4.734$8,0001 17,30057,958,4002,778,000t,455,4423,496,3923,330,7001,550,5002.n3.700s72.808.434$8,000I 17,30057,958,4002,778,0001,445,4423,496,3923,330,7001,550,5002.t13.700s72^798.43476

FY 2007-08 BudgetTrust and Agency FundsTrust funds are used to account for assets held by the city in a trustee capacity.o Allandale Fund -accounts for nonexpendable assets left to the City by the late Harvey Brooks,consisting of his home and other tangible and intangible assets. The Fund's earnings are used for themaintenance and operation of the estate.o Bays Mountain Commission X'und -accounts for contributions from individuals, civic groups andprivate corporations for the support and continued development of the Bays Mountain Park.o Palmer Center Trust Fund - accounts for a contribution from the heirs of the late Mary L.Robinson estate, earmarked for the support of educational and other services provided to thephysically challenged children by the Palmer Center.o Public Library Commission Fund -accounts for contributions from patrons, civic organizations,private corporations and other supporters of the PublicLibrary.o Senior Citizens Advisory Board Fund -Accounts for revenues earned from various programs andevents conducted by participating senior citizens and contributions from individuals, civic groups andprivate corporations.o Steadman Cemetery Trust Fund -accounts for a contribution from the heirs of Bonnie M.Steadman to provide for the maintenance of the Steadman family cemetery.77

FY 2007-08 BudgetTrust and Agency FundsALLENDALE TRUSTAllendale Trust - 620InvestmentsFund BalanceRevenuesAclual04-05 05-06$5,5s2 $5,640Budget06-07$6,000Estimated Recommend07-08 07-08$6,000 $6,000TOTAL $s-552 $5.640 $6.000 s6-000 s6.000.4.pproved07-08$ó,000$6.000ExpendituresActual04-05 05-06Budget Estimated Recommend06-07 07-08 07-08Maintenance s1,425 $2,000 $6,000 $6,000 $6,000Approved07-08$6,000TOTALThis is an unexpendable trust with only investment earnings allowed for expenditure for maintenance onthe mansion or its grounds.BAYS MOUNTAIN COMMISSION FUNI)Bays Mountain Commission - 612InvestmentsDonationsFund BalanceRevisedRevenues Actual Budget Estimated Recommend Approved-05 05-06 06-07 07-08 07-08 07-08$2,460 53,276 54,000 $4,000 $4,000 $4,00031,000 t4,744 30,000 18,000 18,000 18,000100,000 100,000 100,000 23,000 23,000 23TOTAL $l33rté0 $lXì-0æ $131000 s45.000 $45.000 s45.000ContractualCommoditiesCapital OutlayTransfersRevisedExpenditures Actual Budget Estimated Recommend Approved04-05 05-06 0647 07-08 07-08 07-0824,139 10,706 40,000 23,000 23,000 23,0001,956 0 10,000 8,000 8,000 8,00024.449 1.590 27.700 14.000 14 l400TOTAL78

FY 2007-08 BudgetTrust and Agency FundsPALMER CENTER TRUSTPalmer Center Trust - 617Revenues Aclual Budget Estimated Recommend Approved04-05 05-06 06-07 07-08 07-08 07-08InvestmentsDonationsFund Balance$r,146 s2,323 $500 $500 $5000000000000TOTAL 5l.146 52.323 S500 5500 $500$50000s500Expenditures Actual Estimated Recommend04-05 05-06 06-07 07-08 07-08 07-08Equipment $0 $0 $500 $500 $500 $500000TOTALThe Palmer Center Trust has seen no activitv for vears. Disbursements are made at the discretion of theBoard of Education.PUBLIC LIBRARY COMMISSION FUNDPublic Library Commission - 611RevenuesInvestmentsUnrealized gain/loss on Invest.DonationsFund BalanceSupplies & MaterialsCapital OutlayEstimated Recommend07-08 07-08s500 s50079

ßY 2007-08 BudgetTrust and Agency FundsSENIOR CITIZENS ADVISORY BOARI)Senior Center Advisorv Council - 616InvestmentsFees, etc.DonationsFund BalanceRevenues05-06s 88366,694l,1050RevisedBudget06-07$40065,0001,700TOTAL s68.ó82 s67. l 00 s67.300 $673000Estimated Recommend07-08 07-08$50066,3005000$50066,3005000Approved07-08s50066,3005000s67.300CeramicsCraftsAthleticsSenior TripsExpendituresTOTAL04-05Actaals45211,7832,s2605-0625314,258781RevisedBudget06-07$6002l,000500Estimated07-08$ I,0007,000300Recommend07-08$ I,0007,000300Approved07-0832.850 45 59 59$1,0007,000300STEADMAN CEMETERY TRUST FUNDSteadman Cemetery Trust - 621RevenuesActual04-05 05-06RevisedBudget06-07Estimated Recommend07-08 07-08Approved07-08InvestmentsFund Balances3290s6670$1000$100 $100$100TOTALs329s667sl00$r00 $100sl00ExpendituresActual04-05 05-06RevisedBudget06-07 07-08 07-08Requested RecommendApproved07-08Maintenance SO s0 sl00 sl00 sl00 $100TOTALtThis is the old Shipley Cemetery located on Mountclair Drive.80

FY 2OO7-08 BT]DGETCAPITAL/GRANT PROJECT ORDINAIICE FI]}IDSFUND DESCRIPTION AND SUMMARYCapital/grant project ordinances are approved for multi-year projects and/or grants that cannot be easilyaccounted for in the haditional l2-month fiscal year cycle. Projects assigned to "Parent Funds" are not partofthe annual budget process; however, a reporting is made here to reflect the level oftotal budget activityoccurring during the upcoming fiscal year.o Community Development Fund - accounts for Community Development Block Grant entitlementgrants received from the U.S. Department of Housing and Urban Development and special funds fromthe State for the homeless shelter programs.o General Projects Fund - accounts for multi-year projects originating in the General Fund.o Industrial Development Fund -Development Board.o Metropolitan Planning Office Fund -accounts for multi-year capital projects related to Kingsport Economicaccounts for federal grants from the Federal HighwayAdministration and Federal Transit Administration and State grant funds provided from federal fundsgranted to the State for support of local government MPO programs.o Sewer Projects Fund - accounts for multi-year capital projects originating in the Sewer Fund.. Special Revenue General Projects Fund - accounts for direct federal grants, pass through grants, etc.o Urban Mass Transportation Administration Fund -accounts for federal grants from the FederalTransit Administration and State grant funds provided from federal funds granted to the State from theFTA for support of local government transportation programs.o Water Projects Fund -accounts for multi-year capital projects originating in the Water Fund.Capital/G rant Project FundsFundSpecial Grants' Revenue-1 1lUMTA--123MPO--122cDBG--124lndustrial Development--1 28General Capital Projects-31 1Water Capital Projects-451Sewer Capital Projects-452lotalBudEet$3,487,5858,341,436840,6853,092,623207,08152,704,79215,045,88229.469.224Revenuesto date$2,518,9306,228,950570,3232,424,434207,19348,818,39014,021,84922.003.662Expenditures& Encumb.to date$1,702,6626,245,088555,3482,712,328207,08147,5',10,762'13,397,25024.898.343Available$ 1,784,9232,096,348285,337380,29505,194,030I,648,6324 570 A81s1 13.189.308 s96 793.731 $97.228.862 $15.960.44681

FY 2007-08ECONOMIC AND DEMOGRAPHIC INFORMATIONGENERAL INFORMATIONKingsport was founded during the Colonial Era in 1761 when the area now known as the State ofTennessee was part of the colony of North Carolina. The town of Kingsport was incorporated in1822; however, the municipal incorporation became defunct during Reconstruction. The modernCity of Kingsport was incorporated in 1917 and has been operated under the Council-Manager formof government since that time. The Board of Mayor and Aldermen (the "Board") was expandedfrom five to seven members through a charter amendment effective lll{ay 15, 1973. On the thirdTuesday in May of each odd numbered year three members are elected by the qualified voters of theMunicipality for a four-year term beginning at the hrst regular meeting of the Board in Julyfollowing the election. The Board appoints the City Manager who is responsible for theadministration of the Municipality according to the Charter and Ordinances in effect. The Managerappoints all department heads, officials and employees to operate the Municipality except for theEducation Department. The Board of Education, consisting of five members with two or threeelected by the qualified voters of the Municipality each odd numbered year, is responsible for thehiring of a Superintendent and other personnel, formulating policies and operating the schoolsystem within the framework of state statutes and the CiW Charter and Code.Pay scales for employees and officials of allappropriations of funds are made by the Board.departments are approved by the Board and allKingsport is located in the northeastern part of Tennessee, 25 miles northwest of Johnson City andabout 23 miles west of Bristol. Kingsport is located in both Hawkins County and Sullivan Countywith approximately 5olo located in Hawkins County and the remainder in Sullivan County.Kingsport is a regional medical center for the area including southwest Virginia and southeastKentucky. Kingsport, occupying an area of 45.23 square miles is one of the State's leadingmanufacturinq centers. Leadine industries and businessês within the area are as follows:APPENDIX B-I

FY 2007-08ECONOMIC AND DEMOGRAPHIC INFORMATIONPRI** C I P¡IL E NtP LO Y ERSFOR TT{E FISCA¡, YE,\RS NO'I'EI)2006 2000rl'crcentagc ofP€rccûtsge ofTotal CountyTotll CounrYE¡nnloter lìmPlo¡ocs Rank lin¡plolmr:¡lt Emploïees Rsuk _ EmPlofrutntl$soran Chcmieal CornPan¡'rl¡r.'l l¡¡:oni Hcekh Syslenrslingspon C.iry SchootsW'al-N1¡rrlllountuin $tatcs Hcallh3itv ol KingsportHolstoo ì'ledical GroupAFü lndusuitsB.{U SYSTEN'IS CJr

FY 2007-08ECONOMIC AND DEMOGRAPHIC INFORMATIONGENERAL INFORMATIONKingsport was founded during the Colonial Era in 1761 when the area now known as the State ofTennessee was part of the colony of North Carolina. The town of Kingsport was incorporated in1822; however, the municipal incorporation became defunct during Reconstruction. The modernCity of Kingsport was incorporated in l9l7 and has been operated under the Council-Manager formof govemment since that time. The Board of Mayor and Aldermen (the "Board") was expandedfrom five to seven members through a charter amendment effective }iIay 15, 1973. On the thirdTuesday in May of each odd numbered year three members are elected by the qualihed voters of theMunicipality for a four-year term beginning at the f,rrst regular meeting of the Board in Julyfollowing the election. The Board appoints the City Manager who is responsible for theadministration of the Municipality according to the Charter and Ordinances in effect. The Managerappoints all department heads, officials and employees to operate the Municipality except for theEducation Department. The Board of Education, consisting of five members with two or threeelected by the qualified voters of the Municipality each odd numbered year, is responsible for thehiring of a Superintendent and other personnel, formulating policies and operating the schoolsystem within the framework of state statutes and the City Charter and Code.Pay scales for employees and officials of allappropriations of funds are made by the Board.departments ¿re approved by the Board and allKingsport is located in the northeastern part of Tennessee, 25 miles northwest of Johnson City andabout 23 miles west of Bristol. Kingsport is located in both Hawkins County and Sullivan Countywith approximately 5o/o located in Hawkins County and the remainder in Sullivan County.Kingsport is a regional medical center for the area including southwest Virginia and southeastKentucky. Kingsport, occupying aî area of 45.23 square miles is one of the State's leadingmanufacturing centers. Leading industries and businesses within the area are as follows:APPENDIX B-I

FY 2007-08ECONOMIC AND DEMOGRAPHIC INFORMATIONPRTNCIP^L EùTPLOYÉRSFOR THE FISCAI, YEÀRS NO'¡'I':DErnployerltrsínlan Chcn ical CarnPirn¡'rvci l¡¡:ont Hcelth SystentsKingsport Citv SchootsWal'l!lart!Íouotain Sratc.ì HcallhSitr oliKingsPortHolslco Medicul GrouPAFö fndusriusB.{E SYSTEtvtS Ordnmcc SysÇenrs' lnc-We1'crhtrous er CcmPfl nYQucbccor ftrldWillumctle IrdustricsCnÍquola lìabricsICG HotliilooK ingsport Prtb I ishing Timcs-Nervs+20068,0fl02,0c0t,ûqû900s45?61IJUótt0,128i?0NjÀ\i^rs.tÂN.¡ANrAt:,ol+I?t56ItI ItI'crcenlsgc ofTotol CountyIimplo-r-r:s Rank li:UlryIil,.i%2-8%j.5%¡.JYOt,39.i''1 .l'/;t.0o/åO.9o/tD.6Va0.5%22.,ir'"Perccntage ofTotnl CountYEmployees Rsnk EP!oY*g-t,l,¡0r,t??962NiAN¡A?00NiAr,230NiA\JÁ2, l4l581i752lo209...T60I 12.2%f2.¡'Yo: ':*6 1.0¡/oI tr-*2 f .AVo'ltJ.8%I 0.5%9 0,3%tl.t%t024.0o/oAPPENDIX B-2

FY 2OO7-08 BUDGETECONOMIC AND DEMOGRAPHIC INFORMATIONclrY oF KINGSPOKT''|'[NNESS[ ljI'RII{CIPAL PROPERIT T.{XFA YERSFOR THE l'1.5cÀt lEAns lioTEl,(¡tt¡t0unLr erprcssed in tholiands)'lhxoave¡TaxebleActess¿dVaìue10û6Perentagr: óf-lotal Tara'oleRanh As-¡e¡scd Value'l'axableåser¡edVslucI 997RtrtïPerccflhge ofTotal Taxablc¿\ssess¿d VstueEastn:an Chcrnical ËomPitnYlVeyerhocuret ÇomPan¡tilillamctle htduitissl{ingsport Porver ComPân}Qucb*cot World, Inc.Fort HmryMallUnitei Telephone / S¡rintWelnont Hcalth SYstenlVal Mart PropcaiestÏleal ÈtateMountain Slalc He¡lth.i tlCÀ¡lFG Industries lnc.Ëint Arnerican BankBCi ExtcuTive Park Realrlt o1¡llS ¡-5?,500?0,j?0l6,l??t3,6r,tlì,26?t219 E9r1,782,,6699,62j7,û88S 4i2,)04j,t-\67$t)t028.30/o 5t.ó%0.0%l.3TtL,t%I.0%1.00¿0.9Þlû0.9olo0 8i/o0.6%0.\t/t26t,510t2.209t2j168,9459,1i0r1,567û,6164,229l,0ll0.00/o 1,60tj1.4% $il¡'4914ó531IIl0)?;1To0,e/,l,.i%r.6%r.l%I .l-qlol.ó700.0%0.0olol.t%0._\Ü/o0'Ìo/':0.21a4l.T/,Total Taiabh Asscssed Valuc:FYE 200ó i l a¡t Ycar 2005)tYË 199? (Îu Year 1996))1,264, l07799, I 56-:Source: City 0fKin$port Fin¡ni:e Dep¡flmünlAPPENDIX B-3

FY 2OO7-08 BUDGETECONOMIC AND DEMOGRAPHIC INFORMATIONThe City of Kingsport's population as of the 2000 census is 44,905 with the median ageof 41.9. The personal income is $1,198,703,190.A ten year history of the City of Kingsport's population, per capita personal income,median age, school enrollment and unemployment rate is listed as follows:t:ducAllonFl¡cal lsurt nderl Junel0Pollul¡tion Fc¡solt¡tlncomcPer f-'enitrl,evcl inYmrs olf çrsonal i\ledian Fnrmulh¡ronrc Aqc $choolingSchool [JnemploYtncntEnrollrrenl Rttcr llli99819991000100 I't0022t)01?00¿?005zt0ú41,118 S 920,ói8,59$tl,rtl4 950.285,6144 t,.r54 08?,791,43i44,roJ I,127,?8r,075q4,,uji l,l4?,óq3,8034d,i62 l,!6ó,9tú,ll]44,i62 i,122,314,2i$,l{¡,211 1105.0?3,0jj4{f?0 I,159,7¿6,ill14¡,l]0 I,l9$,?|)i,lr0t Ì1:3t r ¡)1 qdlt t ¡¡2ì,?08 i8,i?i,t lt+25,80'J 41.,2ô,r0ó ' I1i ?qrl ! ¡24.98i26,11ô t r1?,¡63 I i6.10ôô,lthA 1??ó,141tr llbgrJ /¿6,4 tt6,i[,?.(r,3116,4i l.1.01t4.I9tj.s%4.30/ù5'(,V;5.t9',ú.:.J 70]'J-c'"5.,,:94ri lnlb¡mEtiur rli¡s nol av¿il¡ll¡rS0Ìtrce : Eil!' 0I Kingspot t F i rrar,t c f )cputrnv rtrAPPENDIX B-4