Fiscal Year 2027Budget Presentation

Fiscal Year 2027 Budget Presentation Thursday, May 28, 2026 ➢ Public Facility / Infrastructure Upgrades to Serve ➢ City Fleet / Equipment Modernization our Residents • 2 New Sanitation Trucks • Venue1921 Construction Completion • Delivery of Fire Department Rescue Pumper - Squad 1 • Community Center Expansion / Renovation • Purchase / equipping of 8 Police vehicles • Camp Jordan Investments - turf fields, boat launch, etc • Upgraded Fleet GPS software • Road Paving / Repair Program ➢ Hosted East Ridge Fall Festival, annual ➢ Economic Development Activities Christmas Parade & ongoing sports, community • Border Region Economic Activity : center and library programming • New Business Investments / Openings ➢ Grant Funding Priorities ➢ Named a 2025 "Best Managed City" • Pursued more than $9M in funding opportunities - awarded funds for a host of projects ➢ Hosted Memorial Day Events, Public Works • Seeking Congressional appropriation for Camp Jordan Parkway improvements Appreciation Luncheon and Staff Christmas Event ➢ Major Projects on the Horizon • Camp Jordan Turf - Phase II • Road reconstructions (S. Mack Smith & Scruggs Roads) • City Facility Planning Efforts Budget Proposal Fiscal Year 2027 General Fund - Expenditures by Category Personnel - 48.8% Operations - 20.5% Capital Purchases - 3.4% Transfers - 27.2% General Fund Operating / Capital Expenditures by Department 1.5% 0.5% 14.0% 12.6% Administration (14.0%) 2.1% 1.8% Municipal Court (1.8%) 3.2% Police (37.0%) 4.9% Animal Services (2.7%) Fire (19.7%) Public Works (4.9%) Codes / Planning (3.2%) 19.7% 37.0% Building Maintenance (2.1%) Recreation (12.6%) 2.7% Library / Museum (1.5%) Transportation (0.5%) FY2027 FY2027 General Fund Revenues FY2026 Change from General Fund FY2025 Actual FY2026 Budget FY2027 Budget Projected FY2026 Property Taxes $ 6,857,574 $ 7,151,333 $ 7,106,474 $ 7,357,579 $ 206,246 Local Option Sales Tax $ 4,651,940 $ 4,990,000 $ 5,075,834 $ 5,400,000 $ 410,000 Border Region Sales Tax $ 7,397,436 $ 8,400,087 $ 8,573,548 $ 9,000,000 $ 599,913 Business Tax $ 421,117 $ 450,000 $ 191,618 $ 449,500 $ (500) Alcohol Tax $ 752,346 $ 681,343 $ 583,231 $ 650,000 $ (31,343) Cable Franchise Fee $ 188,211 $ 180,000 $ 114,830 $ 150,000 $ (30,000) Building / Trade Permits $ 171,663 $ 295,000 $ 227,949 $ 294,000 $ (1,000) Code Enforcement Fees $ 36,778 $ 28,000 $ 18,361 $ 35,000 $ 7,000 Other License / Permits $ 77,279 $ 63,350 $ 138,983 $ 95,650 $ 32,300 State Sales Tax $ 2,720,350 $ 2,809,280 2,555,617 2,815,209 $ 5,929 TVA Gross Receipts Tax $ 271,886 $ 278,905 $ 268,650 $ 292,383 $ 13,478 Other Intergovernmental $ 438,317 $ 638,432 $ 629,066 $ 654,499 $ 16,067 Municipal Court Fines $ 334,808 $ 335,000 $ 276,266 $ 310,000 $ (25,000) Other Miscellaneous $ 2,296,706 $ 1,244,583 $ 1,764,652 $ 1,725,010 $ 480,427 Total Revenue $ 26,616,411 $ 27,545,313 $ 27,525,080 $ 29,228,830 $ 1,683,517 General Fund Expenditures FY2026 Department FY2025 Actual FY2026 Budget FY2027 Budget Change from FY2026 Projected Administration $ 2,662,838 $ 3,064,709 $ 2,941,642 $ 3,006,605 $ (58,104) -1.90% Municipal Court $ 412,817 $ 397,730 342,851 384,464 $ (13,266) -3.34% Police Department $ 7,187,136 $ 7,382,911 $ 7,026,503 $ 7,840,717 $ 457,806 6.20% Animal Services $ 398,842 $ 433,425 $ 427,623 $ 552,296 $ 118,871 27.43% Fire Department $ 4,399,683 $ 3,626,762 $ 4,194,518 $ 4,184,601 $ 557,838 15.38% Public Works $ 845,743 $ 1,052,382 $ 1,193,913 $ 1,015,807 $ (36,575) -3.48% Codes / Planning $ 578,199 $ 651,330 $ 577,031 $ 674,742 $ 23,412 3.59% Building Maintenance $ 393,318 $ 436,687 $ 450,312 $ 451,734 $ 15,047 3.45% Recreation $ 2,108,424 $ 2,425,371 $ 5,517,099 $ 2,666,574 $ 241,203 9.94% Library / Museum $ 273,221 $ 310,984 $ 307,999 $ 326,773 $ 15,789 5.08% Transportation $ 3,863 $ 100,000 $ 50,661 $ 100,000 $ - 0.00% Subtotal $ 19,264,084 $ 19,882,291 $ 23,030,153 $ 21,204,313 $ 1,322,021 6.65% Transfers (to)/from $ (6,575,447) $ (7,919,475) $ (8,549,158) $ (7,844,924) $ 74,551 -0.94% Total Expenditures $ 25,839,531 $ 27,801,766 $ 31,579,311 $ 29,049,237 $ 2,776,698 FY2027 Adjusting the Compensation Schedule ➢ Defining Compensation Adjustments • Cost of Living Adjustment - moves employees and the entire salary schedule • Merit Increase - performance-based, moves employees within the salary schedule ➢ Attracting New Talent, Retaining Outstanding Team Members • Maintaining a competitive compensation range allows us to compete for top talent • Properly placing experience on the scale supports lateral hiring and equity • Keeping the talent we have recruited and invested in benefits our community FY2027 Adjusting the Compensation Schedule ➢ FY2027 Compensation Proposal 3.0 % cost-of-living adjustment for all positions 1 or 2 % merit increase for all employees not on a Performance Improvement Plan (PIP) ➢ FY2027 Compensation Costs Total Direct Compensation Cost Increase : $750k TCRS Retirement: $78k increase over last year Health Insurance: $235k increase FY2027 General Fund Priorities Funded Highlights • Personnel - Adding 1 FTE (Animal Services), 2 PT (Animal Services, Recreation) - $87,150 • Personnel - Evaluating a change to the retirement bridge program for Public Safety positions • Fleet Modernization - New vehicles for Police (6 vehicles, 3 motorcycles), Animal Services (1 vehicle), Street Department (4wd truck, mower), Code Enforcement (1 vehicle), Parks (gator, mower) • Equipment - SCBA Replacement (Fire) • Enhanced Audit Services - Grant Funds - $11,500 Technology • Increases in software subscriptions and hardware citywide as needed FY2027 FY2027 State Street Aid Fund FY2027 Revenue and Expenses FY 2025 FY 2026 FY 2026 FY 2027 Account Budget Item/Description Actual Budget Forecast Proposed 121 STATE STREET AID FUND: REVENUES 33450 TDOT - TIP 1,617 0 0 0 33460 TDOT - HIP 6,302 234,000 234,000 0 33550 2017 Gas Tax (Improve) 195,153 200,000 198,714 200,000 33551 State Gas & Motor Fuel Tax 567,680 570,000 581,000 590,000 33558 City Transport - Electric Cars 23,854 1,000 9,885 10,000 36100 Interest Income 41 200 50 100 36330 Sale of Equipment 0 0 0 0 Use of Fund Balance 0 294,038 276,492 114,960 TOTAL STATE STREET AID REVENUE 794,646 1,299,238 1,300,141 915,060 FY2027 Revenue and Expenses FY 2025 FY 2026 FY 2026 FY 2027 Account Budget Item/Description Actual Budget Forecast Proposed 121 STATE STREET AID FUND: 43190 EXPENDITURES 247 Street Lighting 236,788 225,000 248,000 275,000 248 Street Light Repairs 5,649 0 0 0 254 Engineering & Architectural Services 1,710 30,000 18,000 20,000 272 Curbs/Gutters/Streets 0 61,483 0 0 301 Traffic Signal Repairs 5,092 30,000 0 20,000 313 John Ross Road - HIP 9,747 514,238 534,101 0 691 Bank Service Charges 20 0 40 60 931 Paving/Maintenance 0 500,000 500,000 600,000 TOTAL EXPENDITURES 259,006 1,360,721 1,300,141 915,060 FY2027 Capital Improvement Fund FY2027 Revenue and Expenses FY 2025 FY 2026 FY 2026 FY 2027 Account Budget Item/Description Actual Budget Forecast Proposed 341 CAPITAL IMPROVEMENT FUND REVENUES 33113 LPRF Grant Proceeds 81,150 632,500 27,500 0 33120 TDOT Multi Modal PIN #122000 279,438 0 0 0 36100 Interest 312,717 300,000 253,577 250,000 36421 TN American Water Grant 0 0 0 0 36915 Bond Proceeds 1,887,992 1,910,736 1,186,650 0 36990 Misc. Revenues 112,131 0 0 0 36992 Hamilton County 0 1,000,000 1,000,000 250,000 37940 Transfer In 514,657 500,000 500,000 100,000 Use of Fund Balance 3,234,736 10,395,740 1,416,392 984,000 * TOTAL CIP REVENUE 6,422,821 14,738,976 4,384,118 1,584,000 FY2027 Revenue and Expenses FY 2025 FY 2026 FY 2026 FY 2027 Account Budget Item/Description Actual Budget Forecast Proposed 341 CAPITAL IMPROVEMENT FUND EXPENDITURES 41000 General Government 0 0 55,688 0 41100 Administrative 11,611 12,000 10,543 12,000 41800 Upgrades to Bldgs - Various Sites 280,495 400,000 240,000 300,000 41900 City Hall Complex 19,503 0 0 0 41920 Multi Purposse Pavillion - Venue 1921 3,535,146 6,000,000 3,000,000 0 43110 Streets & Highways 162,233 400,000 0 0 43121 North Mack Smith Road Project 776,468 4,500,000 1,145,682 0 43122 Resurfacing Projects 40,895 937,976 990,710 700,000 FY2027 Revenue and Expenses FY 2025 FY 2026 FY 2026 FY 2027 Account Budget Item/Description Actual Budget Forecast Proposed 341 CAPITAL IMPROVEMENT FUND EXPENDITURES 43126 Spring Creek Project 107,461 22,000 17,910 22,000 44410 Parks & Recreation 1,274,772 164,000 1,430,900 0 44424 Animal Shelter Building 0 0 0 0 44423 Dog Park 0 0 4,303 500,000 44425 Dickert Pond Broadwalk & Pier 9,957 10,000 9,957 0 44426 Fuel Tank - Public Safety Bldg 0 125,000 0 0 44430 Community Center Expansion 180,810 2,118,000 2,118,000 0 44450 McBrien Complex 7,500 0 0 0 46511 Community/Economic Development 15,971 50,000 15,971 50,000 TOTAL CIP EXPENDITURES 6,422,822 14,738,976 3,884,119 1,584,000 FY2027 Solid Waste Fund FY2027 Revenue and Expenses FY 2025 FY2026 FY2026 FY2027 Account Budget Item/Description Actual Budget Forecast Proposed EXPENDITURES 43200 SOLID WASTE Personnel Total Personnel 824,873 861,388 785,054 819,126 Operations Total Operations 890,710 1,082,679 1,015,759 1,152,875 Capital 941 Machinery/Equipment 0 233,485 236,060 0 944 Transportation Equipment 0 0 38,650 0 Total Capital 0 233,485 274,710 0 Total 1,715,583 2,177,552 2,075,523 1,972,001 FY2027 Revenue and Expenses FY 2025 FY2026 FY2026 FY2027 Account Budget Item/Description Actual Budget Forecast Proposed 131 SOLID WASTE MGMT. FUND: REVENUES 34416 Sanitation Assessment Fee* 1,563,804 1,759,880 1,709,880 1,759,880 34418 Extra Cans 2,130 1,600 3,000 2,000 34420 Dumpster Rentals 7,570 6,500 6,800 6,500 34421 Recycling Program 0 0 0 0 34422 Recycling - Transfer Station 6,199 4,000 6,000 5,000 34426 Sale of Mulch 137 100 0 100 34430 Refuse/Disposal Charges 931 1,000 2,000 1,000 36350 Insurance Recoveries 0 0 0 0 36330 Sale of Equipment 0 0 0 50,000 36961 Operating Transfers 250,000 0 0 0 36932 Capital Outlay Note 0 244,000 236,060 0 Use of Fund Balance 0 167,175 111,783 147,521 TOTAL SOLID WASTE REVENUE 1,830,770 2,184,255 2,075,523 1,972,001 FY2027 Revenue and Expenses FY 2025 FY2026 FY2026 FY2027 Account Budget Item/Description Actual Budget Forecast Proposed 131 SOLID WASTE MGMT. FUND: REVENUES Use of Fund Balance 0 167,175 111,783 147,521 TOTAL SOLID WASTE REVENUE 1,830,770 2,184,255 2,075,523 1,972,001 Summary of the Budget - Fiscal Year 2027 Projected Fund Projected Fund Fund Balance Budgeted Budgeted Interfund Fund Title - Description Balance Balance 6/30/25 Revenues Expenditures Transfers 6/30/26 6/30/27 Solid Waste Operations * $ 133,740 $ 21,957 $ 1,824,480 $ 1,972,001 $ 150,000 $ 24,436 FY2027 Debt Service Fund FY2027 Revenue and Expenses FY 2025 FY 2026 FY 2026 FY 2027 Account Budget Item/Description Actual Budget Forecast Proposed 212 0 REVENUES 31920 Hotel/Motel Tax 917,701 900,000 921,471 900,000 36100 Interest Income 103,946 135,000 175,000 200,000 37940 Transfer In 2,336,157 1,926,182 1,868,978 2,133,889 TOTAL REVENUES 3,357,803 2,961,182 2,965,449 3,233,889 FY2027 Revenue and Expenses FY 2025 FY 2026 FY 2026 FY 2027 FY 2025 FY 2026 FY 2026 FY 2027 Account Budget Item/Description Actual Budget Forecast Proposed Account Budget Item/Description Actual Budget Forecast Proposed 212 0 212 0 EXPENDITURES EXPENDITURES Bond Issue - 49111 Public Works - Capital Outlay -49410 650 Principal 108,000 111,000 11,100 114,000 650 Principal 0 73,000 0 73,000 651 Interest 36,525 33,744 33,744 30,886 651 Interest 0 17,800 7,516 16,416 TOTAL 144,525 144,744 44,844 144,886 TOTAL 0 90,800 7,516 89,416 Refunding Bond Issue - 2021 - 49114 Public Safety - 49412 650 Principal 525,000 500,000 500,000 500,000 650 Principal 43,795 40,819 40,819 40,819 651 Interest 156,963 141,213 141,213 126,213 TOTAL 43,795 40,819 40,819 40,819 TOTAL 681,963 641,213 641,213 626,213 Capital Outlay- Public Safety - 49413 Series 2022 Bond Issue - 49300 650 Principal 98,000 100,000 100,000 101,000 624 Principal 351,000 365,000 365,000 379,000 651 Interest 7,686 5,874 5,874 4,216 632 Interest 273,267 360,576 360,576 345,882 TOTAL 105,686 105,874 105,874 105,216 TOTAL 624,267 725,576 725,576 724,882 Public Safety - AXON Lease - 49414 650 Principal 53,530 53,530 53,530 53,530 CJ Parkway/Exit One - 49310 TOTAL 53,530 53,530 53,530 53,530 650 Principal 75,000 80,000 80,000 80,000 TOTAL EXPENDITURES 2,464,901 2,614,581 2,431,397 2,589,987 651 Interest 131,813 129,750 129,750 125,750 TOTAL 206,813 209,750 209,750 205,750 TOTAL VARIANCE 892,902 346,601 534,052 643,902 Series 2024 Bond Issue - 49320 624 Principal 275,000 260,000 260,000 270,000 632 Interest 329,323 342,275 342,275 329,275 TOTAL 604,323 602,275 602,275 599,275 FY2027 Long Term Debt Service Debt Service Fund - All Sources Debt Service Fund - All Sources Purpose : Funding Facilities and Equipment for East Ridge Purpose : Funding Facilities and Equipment for East Ridge Bonds & Bonds & Fiscal Year Principal Interest Total Fiscal Year Principal Interest Total Interest Interest $ 35,641,070 2036 $ 1,624,000 $ 470,281 $ 2,094,281 $ 12,733,328 2027 $ 1,611,349 $ 978,638 $ 2,589,987 $ 33,051,083 2037 $ 1,559,000 $ 446,620 $ 2,005,620 $ 10,727,708 2028 $ 1,604,819 $ 924,410 $ 2,529,229 $ 30,521,854 2038 $ 1,556,000 $ 362,317 $ 1,918,317 $ 8,809,391 2029 $ 1,534,819 $ 865,930 $ 2,400,749 $ 28,121,105 2039 $ 1,358,000 $ 307,083 $ 1,665,083 $ 7,144,308 2030 $ 1,526,819 $ 803,498 $ 2,330,317 $ 25,790,788 2040 $ 1,277,000 $ 253,691 $ 1,530,691 $ 5,613,617 2031 $ 1,530,000 $ 750,105 $ 2,280,105 $ 23,510,684 2041 $ 1,332,000 $ 200,881 $ 1,532,881 $ 4,080,737 2032 $ 1,484,000 $ 694,774 $ 2,178,774 $ 21,331,910 2042 $ 1,383,000 $ 145,763 $ 1,528,763 $ 2,551,974 2033 $ 1,535,000 $ 641,534 $ 2,176,534 $ 19,155,376 2043 $ 1,440,000 $ 88,549 $ 1,528,549 $ 1,023,425 2034 $ 1,582,000 $ 586,136 $ 2,168,136 $ 16,987,240 2044 $ 770,000 $ 43,425 $ 813,425 $ 210,000 2035 $ 1,631,000 $ 528,630 $ 2,159,630 $ 14,827,610 2045 $ 200,000 $ 10,000 $ 210,000 ($0) $ 26,538,806 $ 9,102,264 $ 35,641,070 FY2027