Projections: Knox BOE budget on pace for $14M increase for upcoming FY

Chris Caldwell address the BOE

The Knox County school system’s upcoming budget could jump by as much as $14 million when officials put together next fiscal year’s spending plan, according to revenue projections.

During Wednesday’s Board of Education meeting, county finance director Chris Caldwell told school leaders that property and sales tax revenues are up, as is the Basic Education Program allocation from the state.

The school system currently operates on a $438 million budget.

Caldwell said property tax revenues project a roughly $1.6 million increase, raising total collections to $96.8 million. He noted that sales tax collections are on pace to bring in an additional $5.1 million, which would raise those collections to $143 million.

In addition, officials are expecting an additional $11.4 million in BEP funding form the state, which would increase that total to more than $194 million.

Caldwell said “other revenue sources” would eventually lead to an overall $14 million increase if “everything remains on pace.”

If the projections hold steady, that could lead to a $452 million spending plan for the school system’s upcoming fiscal year, which begins July 1. The overall difference amounts to about a 3.2 percent increase from the current budget.

County audit report to show problems

Knox County is expected to receive a clean bill of health from its auditor, but some departments will have problems that will need to be quickly fixed, officials said Tuesday.

If not, they could jeopardize the county's bond rating.

"There will be some findings," said Knox County Finance Director Chris Caldwell, who declined to elaborate. "A government our size will have some findings, but at least everything from 2012 has been cleared."

As it stands, the county's external auditor, Pugh & Company, should finish the Comprehensive Annual Financial Report, or CAFR, by the end of the week. Auditors will then issue local leaders a management letter that provides more insight into the report and list any deficiencies and weaknesses in the county's overall organization structure for fiscal year 2013, which ended June 30.

The rest of the story, right smack here.

'Casual' county coin report part IV

Finance Director Chris Caldwell

And . . . . it's that time again, as the county's top bean counter today explained to commissioners during their monthly luncheon (yes, I did skip a month) just how much money we all can expect when the finance department closes the books this summer.

Or not expect.

As usual, Casual Chris Caldwell throw out a lot of financial mumbo jumbo, voodoo, hoodoo, and whatever detailing the dollars.

As it stands, general fund revenues are up $4.1 million compared to this time last year. And the schools general purpose fund is up $10.3 million.

However, don't start spending it just yet.

General fund expenditures also are up by $5.4 million more than this time last year, although Caldwell said that includes all transfers and designations. In other words, they're including the spending spree the commission went on last March when the county reaped a surplus. It also includes the $2.8 million to cover the literary program the mayor asked to fund.

So, really, all this is nothing more than a moment in time, in constant flux. Or whatever.

School expenditures are up by $12. million, but that, too, includes the $14 million in surplus that the board of education set aside for construction projects.

Caldwell also gave commissioners a sales tax analysis. According to the composite trend – a trend that includes a 12-year average, the prior year and some other stuff – the county is up about $163,000 right now compared to this point last year.

The schools are trending up about $811,500.

Caldwell said they're waiting to finish out March before putting together a composite trend for preopty tax revenues. He said from September 2012 through February the general fund is up $5.4 million and the schools are up $6 million in property tax collections.

This equates to a 6 percent growth, but March is “weird,” Caldwell said, in that if you pay taxes on March 1, then the finances – for accounting purposes – roll back to February. He said he wants to see whether the 6 percent growth is sustained through March or if there is a fall off, which is what he expects (probably about a 2 percent drop), before putting together another composite.

County after unclaimed property coin

I saw this quirky little nugget on the Knox County Commission agenda: a resolution requesting the unclaimed balance of accounts remitted to the state under the Unclaimed Property Act.

So, what's that mean?

Well, the state might end up cutting the county a big check. Although technically it's already the county's money. Or not.

Let me explain: 

Say for example, the county owes someone $10k, for whatever reason (a lawsuit settlement for example, or jury duty pay, whatever). The county will cut that person a check. If the person doesn't cash the check within a year or so, the county sends the money to the state.

Now, granted this part makes no sense and you'll see why in a minute.

So, the money sits in a state bank account where it no doubt collects interest that the county will never see. But, the state – somewhere on it's website (no link, sorry, do your own work for once) – will have a list of folks who are owed money.

After another year or so, if no one claims the coin, then the state cuts the county a check for whatever is not claimed. (Note, however, that at any time, the person who is owed the money can still collect it from the county – even years and years later. I told you it made no sense to send it to the state. Seriously.)

Last July, the county received a check for $167,039.04, all of which went directly into the general fund, even though some of it might have been from a fee office or whatever. (Yes, this is how it works.)

At this point, officials don't know how much they'll get back. But, head county bean counter and finance guru Casual Chris Caldwell has asked one of his minions to begin looking into the accounts, checking to see what hasn't been cashed. Or something like that.

I think he said we'd know more by April or May, although he felt the amount could be close to what the county got back last summer.

In the meantime, the county commission has to actually approve the resolution, so the county can get back the money. 

And also, so the commission can spend it. 

Heh.

Knox Commish to get 'magic' budget?

We're still a little ways away but county officials are already making plans for budget discussions.

According to top county bean counter Casual Chris Caldwell, the administration will hold a meeting with department heads on Jan. 10. At that point, directors will get whatever documents they need to prepare their budget requests.

In addition, the administration at the end of January will know just how much they have to contribute to pension funds for the upcoming fiscal year, which doesn't start until next July. (This current year it was $8.2 million for the three pension plans, including two that are closed.)

Knox County Mayor Tim Burchett plans to present his budget on May 1 and then the county commission will vote on it June 6.

Caldwell invited commissioners during their monthly luncheon to come hang out with him and his crew early next year. He said he'd provide a brief overview “about what we do in this process, what we do from start to finish and go over the projection process, so you can see what we do.”

He added: “I don't think it's bad to have too much information, and seeing how the process works may give you a better understanding of what we go through and let you see how some of the decisions are made.”

The Casual One was more than likely suggesting that maybe the board won't be so hard on the administration the next time revenue projections are off by, oh say, $24.2 million.

Caldwell later said: “Once we get all the requests in we're out $11 million to $15 million, so you'll get to see how we get there (balancing the budget), how we make that work. It's magic.”

Said Commissioner Mike Hammond: “So, I guess we can start calling you Magic Chris.”

Chris: “No, cause you're Magic Mike.”

Heh. Magic Mike. Heh. Hahahaha.

You had to be there.

Finance office wins fancy award

The Knox County Finance Department won the 2012 Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award for the FY 2012-13 budget. (That's the current budget by the way.)

“This award is the highest form of recognition in governmental budgeting,” GFOA top dog Stephen J. Gauthier wrote in a Dec. 6 letter to Casual Chris Caldwell, county finance director. “Its attainment represents a significant achievement by your organization."

The county has won this thing for the past 17 years, according to Michael “Big Sexy” Grider, the most underpaid communications manager in the county. The official release is right smack here.

Apparently a bunch of math-heads read through the proposed spending plan and made sure it includes certain things. (I imagine it's got to balance, too.)

So, congrats, Chris.

Knox County finance director leaving job

UPDATE: Story can be found right smack here.

Man, I can't believe it. My boy, John Troyer, the Super Destroyer, is leaving the county. The rogue also has a note about it over right smack here.

Troyer, who took over the county's finance department amidst the infamous P-card scandal, has accepted a job with the city of Alcoa to serve as its finance director.

(It should be noted that he never had his own P-card, which by the way, the current administration is laughably trying to call E-cards, but we all know that's not what they really are. Heh.)

Anyhoo, Here's what Big John wrote to his colleagues earlier this afternoon. (The email actually went out around 5:20 p.m.):

It is with a heavy heart I share this news: I have accepted the position of Finance Director at the City of Alcoa. It is not a position I sought, but rather I have known and worked with both the current City Manager and the current Finance Director for over 20 years. They sought me.

A lower-profile position with much less of a media component to the job are appealing to me at this point in my career. City government is a much more straightforward organization structure to work in – compared to county government.

Please accept my sincere thanks for all you have done for me and the citizens of Knox County over the last 11 years. I tell everyone I know that I could not ask for a better staff or co-workers – capable, conscientious and caring. You all have the taxpayers interest at heart.

We will stay to finish the budget and the capital plan for Mayor Burchett – with my last day being April 13th.

Again, thank you for all your hard work and everything you do.

John

I'll have a short story about JT's resignation in tomorrow's paper. It will probably be buried in the election coverage mess.

Finance department honored for its math

The Knox County Finance Department continues to add and subtract big numbers correctly and make it all look pretty.

The Government Finance Officers Association for the 16th year in a row – see, Screams from da Porch can count, too – honored officials with the Distinguished Budget Presentation Award for the FY 2011-12 budget.

In a spin release, issued from the Deathstar's 8th floor of evilness, Knox County Mayor Tim Burchett brags about finance director John Troyer, saying the honor is well-deserved because it makes him look good.

In return, Troyer brags about his staff cause they make him look good to the mayor.

“No, you're the best,” the mayor says.

“No, you are,” Troyer counters.

“We both are,” they say at the same time.

(Yeah, I made that up.)

To qualify for the award, the finance department needed to . . . . Well, I'm not exactly sure. The spin release doesn't really say, other than satisfy some national guidelines. Whatever that means.

Anyhoo, good job.

Now, get back to work, cause you've got next year's budget to do.

(Must be a slow news day or something.)