City Manager Presents Proposed 2010-2011 Operating Budget

Proposed budget maintains 20% reserve fund, with no increase in property taxes or business license fees

GREENVILLE, SC – May 3, 2010 – Greenville City Manager Jim Bourey presented the City’s proposed 2010-2011 operating budget to City Council at the first of two work sessions this afternoon. The proposed budget of $136,645,704 includes no increase in property taxes or business license fees, and in spite of a difficult economy, preserves core services expected by residents and maintains a 20% reserve fund balance.

“Our goals in preparing the budget were to maintain services, minimize tax and fee adjustments and minimize the impact on our employees,” said City Manager Jim Bourey. “Those goals were paramount as we went through the budget process and as we made what were extremely difficult choices based on economic realities.”

According to Bourey, City staff anticipates that the City’s revenues will continue to feel the lingering effects of the recession and expects continued weakness in the City’s most economically-sensitive revenues. License and permit collections, which account for 41% of the City’s General Fund revenues, are projected to decrease by 5.2%. The state’s current budget also proposes a $225,902 cut to the City’s Aid to Subdivision distribution. According to Bourey, the sole bright spot is property tax collections, which accounts for 45% of the City’s General Fund revenues and is projected to increase 1.4%.

Departments supported by the City’s General Fund were required to prepare budgets that were 95% of their baseline budgets and preparation of the overall operating budget required expenditure reductions in several key areas to avoid a property tax increase. There will be no annual merit increase for employees and the City will reduce its number of full-time positions by 34. Many of these positions are vacant or currently filled by employees who are retiring, and according to Bourey, every effort will be made in the coming months to transfer affected employees to other positions to avoid any layoffs. “When cities all over the country are reducing services and eliminating positions, the citizens of Greenville can feel very good about the fiscal condition of the City,” Bourey added.

The proposed budget reflects changes designed to streamline some of the City’s operations, including a reorganization of the Parks & Recreation Department, which will establish a parks maintenance district system to encourage accountability and pride of ownership by maintenance staff. Additionally, the proposed budget reflects the continued implementation of Parking Services’ automated collection system and all City garages are expected to be automated by fiscal year end. The proposed budget also supports a Public Transit budget that continues existing levels of service with no fare increase. Future service expansions will be reviewed as part of the Transit Vision & Master Plan.

“The City’s ability to maintain the quality and scope of our services with ever-increasing budget constraints can be attributed to City departments doing more with existing resources and being committed to looking for innovative ways to get work done,” said Bourey. “Overall, the City maintains a strong Fund Balance, which reaffirms our strong financial condition and maintains our continuing practice of being fiscally conservative.”

City Council’s second budget workshop is scheduled for May 10 and a public hearing on the proposed budget is scheduled for May 17 at 5:30 p.m. in City Council chambers. Following the public hearing, City Council will hold first reading on the budget ordinance. Second reading is scheduled for May 24.

Interested citizens can view the proposed budget online at www.greenvillesc.gov or view hard copies at City Hall in the Greenville Cares office on the 1st floor, the Office of Management & Budget on the 7th floor and the City Clerk’s office on the 10th floor.