(MURFREESBORO) Murfreesboro City Council's proposed budget for Fiscal Year 2024 goes into effect July 1, 2023 - June 30, 2024.

Council will conduct a Public Hearing during its Regular meeting at 6 p.m., May 25, 2023, to consider ‘First Reading’ of the FY24 Budget ordinance and proposed tax rate. Second reading of the Budget and Tax Rate ordinances and Budget Resolutions will be considered at the City Council meeting, June 8, 2023.

This notice is given pursuant to the provisions of the Tennessee Code Annotated.

FY 24 Murfreesboro Proposed Budget

The proposed budget shows expense increases in the FY24 Budget include $3.26 million in salary adjustments for both full-time and part-time staff. Given the continued increases in demand for service, new positions amount to $1.6 million in this year’s Budget. Adjustments to health care benefits are necessary in FY24, which is driven by the elevated costs of pharmaceuticals. Employees’ contributions for health care benefits will increase in addition to the City’s increased contributions of an additional $565k during the last six months in FY24. Changes were made in FY23 to assist in managing future pharmaceuticals expenses. Utility costs are increasing by $550,000 (10%) primarily due to TVA rate increases to electric services. On the positive side, workers compensation premiums are projected to decrease by 18% or $340,000. As in the past, on-going expenses will be moderated and adjusted to the extent possible for inflationary pressure

The FY24 budget implements an eight-year plan for Solid Waste to become a self-sustaining utility operation. For the first year of this plan, residential rates are recommended to increase $2 per month and commercial rates outside the central business corridor $5 per month. over the next 8 years. With this recommendation, the overall impact of Solid Waste operations on the General Fund will decrease by approximately $400,000 as compared to FY23. The FY24 recommended budget is composed of the following, which total $619.4 million: General Fund $283.3 million City Schools (all funds) 123.6 million Loan/Bond Fund 65.2 million Water Resources Department 59.7 million Debt Service Fund 43.0 million Insurance Fund 23.5 million Other Capital Sources Fund 6.2 million Airport Fund 6.1 million Risk Management Fund 4.3 million Stormwater Fund 3.95 million Drug Fund .542 million City Schools, Water Resources, and Stormwater Fund present budgets to Council separately. The General Fund FY24 budget reflects a 6% increase in operating revenues relative to FY23. Total budgeted expenses decrease 1% from FY23. Excluding grant funded and one-time expense items results in a 7% increase for normal operating expenses.

Proposed Budget $573-million

The City’s total budgeted amount for FY24 is $573 million, including proprietary funds and internal transfers and the City’s General Fund budget is $283.3 million, a 1% decrease from the previous fiscal year.

Total revenues are projected to be $261 million, an increase of 6% ($13.6 million) compared to FY23 budget (excluding Federal ARPA Funding and other one-time revenues). The FY24 Budget is balanced by minimizing increases in operating expenses and balancing one-time revenues of $17.8 million with one-time expenditures.

The City’s unassigned fund balance at the beginning of FY24 is projected at $120 million. This amount includes approximately $55 million in operating reserves as required by the City’s Financial Policies and $20 million in non-cash receivables. Budgeted supplemental expenditures for FY24 are $7.72 million. The proposed Budget is consistent with the City’s Financial Policies, including fund balance and debt levels.

No change is recommended for the City’s tax rates. City Schools operating expenses and debt service equates to 18% of projected property tax revenues which is down from 19% in FY23.

Garbage Pickup Gradually Becoming FEE Funded

The City’s debt service exclusive of City Schools, MWRD (water) and solid waste debt is 53% of projected property tax revenues, which is 69,455,374. Solid Waste Fee increases $2 from $7.50 to $9.50 per month per can for residential service and an additional increase of $5 from $30 to $35 per month per can for commercial service. This fee covers only a portion of the Solid Waste Department’s operating costs and debt service. The goal remains moving this Department toward a utility enterprise fund fully supported by fee revenue.

Overview of FY 24 Budget

FY24 Revenue Adjustments include: $2 million (100%) increase – MTE/MED in lieu of tax replacement $1.5 million (2.6%) increase – Property Tax $1.3 million (25%) increase – Solid Waste collection charges $820,000 (18%) increase – Gross Receipts (Business License) Tax $457,250 (2.5%) increase – State Sales Tax FY24 Supplemental expenditure requests of $7.72 million include: ARPA grant funded improvements/equipment: $347,375– Public Safety and Recreation equipment $1.225m – reallocated Direct Allocation grant expenditures $1.6 million – 16 new positions and 20 promotion requests $3.26 million – personnel pay raises ⋅ $125,400 – Public Safety equipment 11 $240,850 – IT hardware, software and equipment requests $565,000 increased medical premiums $100,000 – outside consultants for park planning $78,150 –vehicle and equipment requests.

City Manager on WGNS May 30th

The regular broadcast on WGNS with City Manager Craig Tindall from 8:10-9:00AM on Tuesday, May 30, 2023. WGNS broadcasts on AM 1450, FM 100.5 and FM 101.9, along with streaming at www.WGNSradio.com.