City of Cleveland, Tennessee Annual Budget FY 2017 The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Cleveland, Tennessee for its annual budget for the fiscal year beginning July 1, 2015. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. Mission Statement City of Cleveland, Tennessee Provide for the welfare of all citizens of Cleveland through efficient, high quality services, sound leadership and progressive planning for the future. City of Cleveland, Tennessee Annual Budget Fiscal Year 2016-2017 City Officials: Mayor: Tom Rowland City Council: George Poe, Jr., Vice Mayor (at large) Richard Banks, (at large) Charlie McKenzie, District 1 William Estes, District 2 Avery Johnson, Sr., District 3 David May, Jr., District 4 Dale Hughes, District 5 City Attorney: John F. Kimball City Judge: Barrett Painter City Manager: Janice S. Casteel Assistant City Manager: Melinda B. Carroll Department Heads: Director of Finance/ City Clerk: Shawn McKay Development and Engineering Services Director: Jonathan Jobe Fire Chief: Ron Harrison Human Resource Director: Jeff Davis Information Technology Director: Kris Miller Library Director: Andrew Hunt Parks & Recreation Director: Patti Petitt Police Chief: Mark Gibson Public Works Director: Tommy Myers Airport Manager: Mark Fidler Cleveland Utilities General Manager: Ken Webb, CPA Interim Director of Schools: Cathy Goodman Table of Contents Page # Front Cover Sheet Certificate - Government Finance Officers Association Distinguished Budget Presentation Award Mission Statement Listing of City Officials Table of Contents I. Introduction i Reader's Guide vii II. City Manager's Budget Message xi III. Summary of the Budget - All Funds 1-30 IV. Ordinances: Budget Ordinance 31-40 Tax Rate Ordinance 41-42 Appropriations Resolution 43-44 Electric-In-Lieu of Tax Resolution 45 Water-In-Lieu of Tax Resolution 46 Wastewater-In-Lieu of Tax Resolution 47 Cleveland City Schools Federal Project Fund Resolution 48 V. Financial Policies and Budget Preparation 49-64 VI. Personnel Administration Personnel Overview 65-66 Organization Chart of the City 67-69 Staffing Overview 70-71 City Boards and Commissions 72-78 Budget by Fund Type and Fund: VII. Fund Type: General Fund General Fund 79 Budget Summary 80 Revenues: Overview 81 Local Taxes 82 Licenses and Permits 83 Intergovernmental Revenues 84 Charges for Services 85 Fines and Forfeitures 86 Interest (Investment) Income 87 Miscellaneous Revenues 88 Public Enterprise 89 Other Funding Sources 90 Summary of Revenues 91-94 Table of Contents Page # Fund Type: General Fund (cont.): Expenditures: Legislative and Judicial 95-100 Administration and Finance Department 101-109 Codes Enforcement 110-111 Development and Engineering Services 112-120 Police Department 121-127 Fire Department 128-135 Public Works Department 136-142 Operations Division 143-145 Street Lighting and Signals 146 Cleveland Regional Jetport 147-152 Animal Control 153-158 Risk Management, Safety and Wellness Program 159-163 Parks and Recreation Department 164-169 Administration & Maintenance 170-171 Landscape Maintenance 172-173 College Hill Recreation Center 174-175 Cleveland Community Center 176-177 Tinsley Park 178-179 P&R Debt Service Leases 180 Waterville Golf Course 181 Grants and Other Agency Support 182-185 Transfers to Other Funds 186-188 VIII. Fund Type: Special Revenue Funds Special Revenue Funds Overview 189-190 Special Revenue Funds Summary 191-192 Solid Waste Management Fund 193-201 State Street Aid 202-206 Cleveland Public Library 207-213 Drug Enforcement 214-216 Byrne Memorial Justice Assistance Grants 217-219 Metropolitan Planning Organization 220-225 Community Development Block Grant 226-233 Recycling Grant 234-237 E-Ticketing Grant 238-240 Cleveland City Schools 241-254 School Food Service 255-258 IX. Fund Type: Debt Service Funds Debt Service Fund 259-290 X. Fund Type: Capital Projects Funds Capital Improvement Projects Overview 291-297 Capital Improvements Program (CIP) Fund 298-301 Sales Tax Capital Projects Fund 302-304 Greenway Fund 305-309 Fletcher Park Trust Fund 310-311 Spring Branch Industrial Park Fund 312-314 Table of Contents Page # XI. Fund Type: Enterprise Funds Stormwater Management 315-321 Cleveland Utilities Overview 322-334 Cleveland Utilities Electric Fund 335-341 Cleveland Utilities Water/Wastewater Fund 342-350 XII. Fund Type: Internal Service Funds Fleet Management Fund 351-358 XIII. Fund Type: Trust Fund Health Insurance Trust Fund 359-361 Meiler Estate Animal Shelter Fund 362-364 XIV. Appendices Glossary of Terms 365-373 List of Acronyms 374-375 List of Authorized Personnel Positions by Department 376-381 Position Classification and Pay Plan 382-388 Fringe Benefits 389-394 Retirement System 395-400 Property Tax Rates - Direct and Overlapping Governments - Ten Years 401 Principal Taxpayers 402 Principal Employers 403 Computation of Legal Debt Margin 404 Cleveland Utilities Electric Division Data 405-407 Cleveland Utilities Water Division Data 408-411 Other Statistical Data 412-413 Introduction The City of Cleveland is a fast-growing community that has retained its "hometown" feel. Convenient to numerous tourist attractions ranging from whitewater rafting and mountain climbing to shopping and big-city culture, Cleveland offers a high quality of life to its residents. Cleveland has a growing economy facilitated by a strong industrial base and fast- evolving retail market. The area is home to 11 Fortune 500 manufacturing companies as well as increasing the tourism component of the economy, with its proximity to the mountains, whitewater rafting, and Cherokee Indian heritage. Its location along the Interstate 75 corridor offers transportation advantages to residents and industries. Regional educational and vocational opportunities, anchored by a wide selection of area private and public colleges and universities, provide a competitive advantage for future workers. A solid secondary educational system, funded in part by the City, ensures a fresh supply of qualified college- and workforce-bound individuals. With the breath-taking beauty of the area, high standard of living and friendly, "hometown" feel, coupled with the community's unwavering commitment to ensure an even brighter future, Cleveland is a great place to live, work, play and visit. The average elevation is 875 feet above sea level, the terrain being the foothills of the Appalachian Mountains. The climate is seasonal, but moderate, with mild winters and summers. The average annual rainfall is 54.6” and the relative humidity is 72%. The City is a short distance from the Smoky Mountains and the Cherokee National Forest, site of the 1996 Olympic canoe and kayak events on the scenic Ocoee River. Outdoor recreational activities are plentiful. i The City of Cleveland is the county seat of Bradley County, Tennessee, located in the extreme southeastern corner of the state. Cleveland is located 25 miles northeast of Chattanooga, 82 miles southwest of Knoxville, 124 miles north of Atlanta, 172 miles north of Birmingham, and 181 miles southeast of Nashville. It is located on Interstate 75, US Highways 11 and 64, and State Routes 60, 74, 40 and 2. The City was incorporated on February 4, 1903, with a population of 400. The county is bordered on the south by Whitfield County, Georgia, to the west by Hamilton and Meigs counties, to the north by McMinn County, and to the east by Polk County, which is adjacent to North Carolina. Cleveland boasts the sixth largest number of manufacturing companies in the State of Tennessee. Major private-sector employers in Cleveland are: Lonza Group, Resolute Forest Products – Calhoun Operations, Brown Stove Works, Renfro Corporation, Cleveland Chair Co., Procter & Gamble, Hardwick Clothes, Jackson Manufacturing, Johnston Coca-Cola Bottling Co., Mars Snackfoods, Whirlpool, Amazon, Wacker Polysilicon, SkyRidge Medical Center, Newlywed Foods, Olin Corporation, Peyton’s Southeastern, President Baking, Rubbermaid, Merck, and United Knitting. The city is also recognized as a regional shopping destination and health care provider for surrounding counties in Tennessee, Georgia, and North Carolina. ii The state-certified population for 2010 was 41,285. The City and County are both growing at a moderate rate. The City has shown consistent growth throughout its history, as the following table demonstrates: Census Population City of Cleveland Bradley County Population Square Miles Population Square Miles 1930 9,136 2.0 22,870 338 1940 11,357 2.0 28,498 338 1950 12,605 4.0 32,338 338 1960 16,196 7.0 38,324 338 1970 21,446 9.2 50,686 338 1980 26,415 13.3 67,547 338 1990 30,354 19.5 73,712 338 2000 37,192 25.0 87,965 338 2010 41,285 30.0 98,963 338 According to the 2010 census, the City’s population is 81.4% Caucasian, 7.2% African-American, 7.5% Hispanic, and 3.9% Asian or Other. The median age is 34.8 years. Those 19 years of age and younger are 26.3% of the population, and those 55 years of age and older are 25.3%. The median income per household is $32,257 and the per capita income is $25,572. The housing stock totals 17,841 units, of which 7,820 (48.6%) are owner occupied. The rental vacancy rate in 2010 was 9.9%. The median value of owner occupied was $141,600. Housing costs in Cleveland and Bradley County are 16.6% below the national average as reflected in the third quarter 2009 ACCRA cost of living survey. The unemployment rate for Cleveland in March 2016 was 4.0%. The unemployment rate for Bradley County was 3.8%, the State of Tennessee was 4.2% and the national average was 5.0%.