YPOR Presentation: City of Oak Ridge Financial Overview

Why Your City’s Financial Matters Matter

1. Just about anything that happens (or doesn’t) in Oak Ridge has a direct tie to money, your money.

2. Local government spending directly impacts your wallet. Think not only property taxes, but sales taxes, utilities, fees, permits, fines, etc.

3. The growth or decline of our community, in very large part, can be tied back to how government spends your money

4. You have the greatest potential to influence local spending than any other level of government

Census Snapshot

• Population: 29,330
• Households: 12,686
• Medium Household Income: $48,716
• Persons Below Poverty Level: 16%    (up from 11% in 2000)      2010 State: 16.5%
• Retail Sales Per Capita:  $17,450           State: $12,563

City of Oak Ridge Financials

Annual Budget

Revenues:          $168 M

Expenditures:  $174 M ——-> $6M Deficit

• Utility Operations:                               $71M
• Oak Ridge School Budget:                 $55.4M (part of the $174M total city budget)
• Annual Debt Service Payments:    $11M (~$6.5M pays on school project debt)
• Fire                                                             $6.8M
• Police                                                         $6.6M
• Public Works:                                         $6M

Note: Utility Operations are paid for by your utility bills and not your property taxes. When utilities are deducted from total expenditures, total school funding, including debt, accounts for nearly 62% of city spending.

City Audits  (aka CAFR)

ORS Audits

Debt: $186M ($6,350 per person/$14,693 per household)

Why Is Attention to City Debt Important?

– Municipalities across the country are starting to file bankrupcy; something previously thought to be impossible

– Annual Debt Service payments are subsidized by your tax dollars to the tune of $4.3M in 2014

Capital Improvement Program (CIP) – Prioritization of New Capital and Maintenance Projects

Financial Analysis – My various analyses of city, school and utility finances

Stay Informed! Get Involved!

City Council Agendas/Minutes/Videos

2015 Budget Calendar

• 4/3 Informal Council Discussion   9:00 a.m.
• 4/10 Informal Council Discussion  9:00 a.m.
• 4/17 Informal Council Discussion  9:00 a.m.
• 4/28 Council Work Session   7:00p.m.
• 6/2 Initial Budget Presentation by the City Manager
• 6/9 – 1st Reading/Public Hearing
• 6/16 – 2nd Reading/Final Adoption