Reed Administration Grows City of Atlanta’s Reserves to $94.4 Million [up from $7.4 million]

City’s reserve fund was $7.4 million when Mayor Kasim Reed was inaugurated in January 2010.

The City of Atlanta has $94.4 million in its general fund reserves, an increase of $87 million since January 2010 when Mayor Kasim Reed was inaugurated. The audited data was released as part of the city’s Comprehensive Annual Financial Report for the fiscal year ended June 30, 2011.

One of the primary goals of the Reed administration is to restore the city’s fiscal health to ensure future growth and encourage greater economic investment by local, national and global companies. Mayor Reed, in partnership with the Atlanta City Council, has passed two budgets with cash surpluses that included funds to hire more than 400 police officers and open all of the city’s recreation centers for young people. Mayor Reed’s administration also reformed the city’s pension plan, enabling the city to continue investing in critical public safety and operational priorities, while strengthening the city’s fiscal position. The pension reform plan is expected to save the city more than $270 million over the next 10 years.

“By restoring the city’s fiscal strength, its leaders can focus on the safety and quality of life issues that matter most to residents and business owners,” said Mayor Reed. “I am proud that in the midst of the worst economic downturn since the Great Depression, the City of Atlanta has managed its finances in a manner that has led to the growth of the city’s reserve fund to $94 million from $7 million in two years. We have governed prudently, while also investing in public safety personnel and equipment, parks and recreation centers and transportation infrastructure – all without raising property taxes.”

State law requires that all general-purpose local governments publish, within six months of the close of each fiscal year, a complete set of audited financial statements, presented in conformity with generally accepted accounting principles in the United States. The city’s FY 2011 financial statements were audited by Banks, Finley, White & Co with additional support provided by Tabb & Tabb. The goal of the independent audit is to provide reasonable assurance that the city’s financial statements for the fiscal year ending June 30, 2011, are free of material misstatement.

“Strong cost controls, targeted capital investments and conservative revenue projections have allowed the city to generate a general fund operating surplus,” said Jim Beard, Chief Financial Officer for the City of Atlanta. “The city is on its way to achieving the Reed administration’s goal of more than $100 million in reserves. Once this is accomplished, we look forward to addressing the city’s various capital and infrastructure needs in a fiscally prudent manner.”