There were days that Cedartown City Commissioner Dale Tuck can remember not knowing where the city would get the money to cover its costs.
Now, she and her fellow commissioners are able to be confident in the city’s financial status as its fiscal year 2019 audit review revealed at the board’s July meeting last Monday.
City Manager Bill Fann provided the city commission with an overview of the clean, unmodified report that included an updated fund balance of $3.34 million.
That’s enough to cover 147 days of operation for the city, well above the industry standard of 90 days, according to Fann.
“That represents nearly five months of revenue for the city,” Fann said. “We have no need to borrow money, and city employees don’t need to worry about furloughs, layoffs or pay cuts.”
The news comes as many cities and counties worry about what effect economic shutdowns because of the COVID-19 pandemic might have on local tax revenue.
The current fund balance, which is used as a rainy-day fund to help governments continue to provide services when revenue does not meet expectations, is a jump from 2010 when the city’s fund balance would cover only two days. In 2011, the city had a negative fund balance.
Commissioners gave praise to City Manager Bill Fann for changing the way the city approached finances.
“It got that scary,” Tuck said. “We always had to borrow money to pay bills. Bill Fann came in and had a vision of where this community could be financially.”
Fann, who has been with the city since 2011, plans to retire in September.
In other news, the city commission unanimously approved the annexation of five lots into the city limits as part of the Philpot Springs subdivision south of downtown.
The request was made by the property owner Jolo Homes, along with Buildmore Enterprise Services, LLC.
A representative from Buildmore told the commissioners that single family homes will be on the small lots and they were requesting annexation in order to provide sewer service.
The five contiguous lots total 1.49 acres and are in the area of Pinecrest Road and Bryant Circle.
The board also unanimously approved beer and wine package licenses for two stores, one at 329 N. Main St. and the other at 844 N. Main St.
Commissioner Jessica Payton discussed being elected as Georgia Municipal Association’s District 1 first vice president during a recent virtual meeting. Payton is line to become president of the district and will serve as a liaison between GMA and municipal officials in GMA’s District 1.
“I’m grateful to be a part of a fantastic and dedicated group of locally elected officials serving the citizens of GMA District 1,” Payton said in a release. “I just really enjoy learning and helping and I’m grateful to be elected to do that.”