Given the current uncertain economic climate, the budget process this year was focused and challenging. The story has been told many times in the local media, like many other municipalities Collierville's revenue sources have been adversely affected by the national economic crisis.

Although this year's budget has received much attention from the public, The Board of Mayor and Aldermen (BMA) actually began working to reduce the Town's budget by cutting expenses during the 2008-09 budget process. We knew that it was critical to make significant reductions in the Town's budget to offset the decrease in revenues. From 2008-2011, every department's budget has seen cuts in operating costs across the board. The BMA implemented its first work force reduction by cutting 13 positions in 2009 and another 8 positions in 2010. Additionally, the BMA withheld salary increases for employees in FY2010 and FY2011.

Our efforts to reduce the Town's budget have been reflected in the fact that overall expenditures for the FY 2010 budget decreased $2,531,278 from the FY 2009 budget. Operating expenses were down by $857,701 and personnel costs were down $595,113 and we began the FY 2011-12 budget process with $1.5 million less in revenue than in 2008.

After three years of making significant cuts to the Town's budget, the BMA was faced with the very difficult decision of either setting a new property tax rate or cutting services that would have an adverse impact on Collierville residents. I can assure you that no elected officials want to find themselves in this position. Nevertheless, I was especially proud of the way that the BMA and the Town Administration worked to educate and engage the public in the process.

The FY2011-12 budget is a "bare bones" budget. It will allow us to maintain the services levels that Collierville residents expect but it does not include the expansion of any existing services or the creation of any new programs. The next few years are going to be just as challenging in our efforts to balance the budget. Our projections indicate that it might be 2-3 years before we see improvements in the economy that will have a positive impact on our revenues.

This is certainly not a financial scenario that we would have planned or wanted for our community or our employees. However, I believe we have responded responsibly to a significant financial challenge and adopted a sound budget that maintains our commitment to the long term goals that make Collierville a great place to live and work.

I want to express my thanks and appreciation to the employees of the Town. We have asked a lot of them and they have responded to every challenge with dedication and professionalism. As we begin the transition into next year I am very confident in the experience and ability of the Town Administration to keep the Town moving forward in a positive direction.

Very truly yours,

Stan Joyner, Mayor