A sign of a healthy government in Tennessee, according to local CPA Jason Martin, is having between two and four months of operating expenses in reserve. The city of East Ridge has a little over four months’ worth on hand, reported Martin, of Henderson Hutcherson & McCullough.
At the East Ridge City Council’s final meeting of 2019, officials reviewed the city’s financial state through an independent audit by HHM.
“It’s always a challenge to meet the needs of any government and maintain an appropriate savings,” Martin said, applauding the city for maintaining a healthy reserve.
The audit analyzed FY 2019, which includes July 2018 to June 2019. Martin said the general fund, which covers the city’s chief operating costs, ended the fiscal year with about $5 million in equity, which is considered part of the reserve. The city had a total outstanding debt of $13,085,960, but the report notes that “all of this debt is backed by the full faith and credit of the government.”
Collegedale’s finances
The city of Collegedale released its FY 2019 audit by Johnson, Murphey & Wright on Nov. 13, 2019.Last fiscal year, the city received about $14,127,323 in revenues from grants and taxes. The city budgeted $13,099,253 in expenses, going toward programs including public safety, public works, the sewer and airport.The city has outstanding debts totaling $5,684,405. According to the report, $738,467 of that is due in fiscal year 2020.The report notes that the city keeps at least one-third of operating revenues in reserve.