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<br />Shelby County (...continuedfrompage 1)
<br />
<br />including; City and County Schools, Memphis!
<br />Shelby County Library, Sheriff's Office, Health
<br />Services, Regional Medical Center, Shelby County
<br />Jail, Division of Corrections, Criminal Justice (Ju-
<br />venile Court).
<br />
<br />In addition, TA was asked to compile information
<br />on what other urban and suburban areas are doing
<br />to address the issues of fiscal equity, regional co-
<br />operation, and!or efficiency in service delivery.
<br />The information compiled includes examples of
<br />sharing of revenues and services and public!
<br />private partnerships.
<br />
<br />There is a net Shelby County tax
<br />subsidy to Memphis of over $44 million
<br />
<br />The analysis allocates the demand for various
<br />Shelby County public services to residents and
<br />
<br />businesses of the City of Memphis and Shelby
<br />County (For purposes of this study, County is de-
<br />fined as the areas of the County outside ofrhe City
<br />of Memphis, including the other municipalities).
<br />The FY98 budget was used since it is representa-
<br />tive of the current fiscal year operations.
<br />
<br />As a first step in this analysis, TA conducted onsite
<br />interviews with department heads and staff repre-
<br />senting the various services. Based on informa-
<br />tion collected during these interviews, TA was able
<br />to allocate demand based on the current levels of
<br />service.
<br />
<br />Rather than using a simplistic per capita or per
<br />capita and job approach to allocate demand, wher-
<br />ever possible TA used a methodology specific to
<br />the service being evaluated. For example, to allo-
<br />cate demand for the Shelby County Jail, TA uti-
<br />
<br />Net County Tax Subsidy to the City of Memphis, FY98
<br />($1,000's)
<br />
<br />$100,000
<br />$90,000
<br />$80,000
<br />$70,000
<br />$60,000
<br />$50,000
<br />$40,000
<br />$30,000
<br />$20,000
<br />$10,000
<br />$0
<br />
<br />
<br />County Subsidy
<br />
<br />$44,525
<br />
<br />$44,026
<br />
<br />lized a cost per arrest methodology. Using FY98
<br />budget information, TA was able to determine the
<br />cost per arrest. These costs were then allocated
<br />based on the total number of probable cause ar-
<br />rests in the City of Memphis and Shelby County.
<br />
<br />Possible solutions for greater
<br />fiscal equity were analyzed
<br />
<br />This methodology results in County demand of
<br />$2,828,122. The County conrribution to the
<br />Shelby County Jail is $28,288,675. Once the
<br />County demand of $2,828,122 and County prop-
<br />erty tax revenues ($14,234,861) received from City
<br />residents and businesses is subtracted (the City
<br />does not make a direct General Fund contribution
<br />to the Jail), the net County subsidy is $11,225,692.
<br />
<br />The County subsidizes 10 activities
<br />and the City 6 services
<br />
<br />Other methodologies used included cost per li-
<br />brary visit, cost per fire call, cost per inmate, cost
<br />per capita, and cost by percentage of activity. Af.
<br />ter evaluating the 16 public services, TA calcu.
<br />lated the net result is that Shelby County provides
<br />a subsidy of $44,026,234. (See chart on this page.)
<br />
<br />1 st Interim Service Fees
<br />Adopted in Utah
<br />The City of Pleasant Grove, located about 40 miles
<br />south of Salt Lake City, recently adopted interim
<br />service fees. This is the first city to adopt these
<br />fees, which capture revenues in states that have
<br />no partial year assessments. TA prepared the in-
<br />terim service fee report.
<br />
<br />
<br />. City Subsidy
<br />
<br />= Net County
<br />Subsidy
<br />
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