Atlanta closed fiscal 2012 with $126.7 million in its general fund reserves, an increase of more than $119 million since January 2010 when Mayor Kasim Reed took office.
The city’s unrestricted fund balance is $107.1 million, according to the recently posted fiscal 2012 audit.
Reed said his administration has concentrated in increasing reserves, which were just over $7 million when he became mayor.
“Despite challenging economic conditions, we have cut unnecessary expenses and invested in public safety and our city’s young people,” Reed said. “We have sensibly managed our finances, hired more than 700 police officers and expanded services for our residents.”
Reed said the accomplishments occurred while balancing the budget and without raising property taxes.
“Atlanta’s fiscal house is in order and we will continue to make substantive strides which make the city stronger,” he said.
A major portion of the 2012 surplus was the adopted 5% budget reserve of $27.5 million, which was not available for spending at the department level, according to the recent audit.
The city plans to follow its reserve policy, and continue conservative budgeting and spending practices, said chief financial officer Jim Beard.
“With our unrestricted reserves at 20% of our annual budget, the finance team is looking toward tackling other critical needs of the city such as long-term investments in infrastructure,” Beard said.
Total general fund expenditures in fiscal 2012 were $459 million or 11.7% less than the final budgeted expenditures.
Atlanta general obligation bonds are rated A by Standard & Poor's and Aa2 by Moody’s Investors Service.
The city had $239.3 million of GO bonds outstanding as of June 30, according to the 2012 audit.
