Budget Analysis Of The City Of Morristown, TN Budget Evaluation

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City of Morristown, TN Budget Evaluation
As stated by Hyman (2014), "governments are formed to exercise authority over the actions of people who live together in a society and to provide and finance essential services" (p. 7). In order for the government to provide these essential services, resources much be purchased by the government (Hyman, 2014). These purchases are either consumption expenditures that use resources to satisfy current needs, or gross investment that is used to purchase new capital in the form of roads, equipment, and structures (Hyman, 2014). The largest portion of Morristown's expenditures, almost 2/3, is spent on salaries and benefits for city employees (City of Morristown, 2017). Thus, leaving roughly 1/3 for other …show more content…

While the wage increases were used to alleviate compression of wages, Morristown changed the amount of health premiums they would pay. During the "Great Recession" employees were being put on furloughs to save money, and to offset this Morristown began paying 90% of health insurance premiums (City of Morristown, 2017). With the current economic upturn and the wage increases, the City of Morristown, will go back to paying only 85% of premiums (City of Morristown, 2017). In spite of the step raise due to the increased cost of insurance premiums paid by employees, there is a minimal marginal benefit gained from the income increase.
The two largest expenditure categories for Morristown are Public Safety and Public Works. On top of the salary and benefits of these two departments are the fleet and equipment costs. These two departments, while costly, provide some of the more important public goods and services that citizens consume in the form of: safety, infrastructure, building maintenance, fleet and equipment maintenance (City of Morristown, 2017).
Public Goods and Services
One of Morristown's primary goals is to maintain and improve infrastructure across the city. This can be seen through the previously mentioned $2,000,000 paving program; an upgrade of traffic signals that has and will continue to improve the flow of traffic throughout the East-West corridor of Morristown; the TDOT funded Greenway and Safe Routes to Schools program; and the finalized

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