Fulton sits pretty despite downturn

Fulton County’s once-staggering $141 million cash reserve has allowed the county to survive the economic downturn without harsh cuts seen by Atlanta and other local governments.

County finance officials reported Wednesday ending 2008 with $59.7 million in the bank after two consecutive years of drawing down savings to make ends meet.

Patrick O’Connor, finance director, said he used $40 million from savings in 2008 to stave off a substantial deficit or forced drastic cuts.

“The bottom line is, the general fund is in great shape, given the condition of the economy,” said O’Connor. “In a relative sense, Fulton County is in great shape.”

Officials reported $637 million in expenses vs. $597 million in 2008 revenues for the general fund, the main source of money for departments that provide services to nearly 1 million Fulton residents.

The numbers were slightly better than Fulton expected as the county sustained about $23 million in losses of state funding and utility fees. Fulton’s property tax collections have remained close to projections because O’Connor typically sets a conservative collection rate.

O’Connor said he compensated for the revenue shortfall in 2008 by limiting spending as the year went on.

Fulton’s financial state is a source of pride for county commissioners, who say the county rarely gets proper credit for its wise use of money. During the past three years, Fulton has seen new cities rise up and take over services once provided by the county.

That’s cut the county’s income substantially but it also has forced the county to cut back on spending.

“This is a wonderful testimony to everybody sitting on this board,” said Commissioner Tom Lowe. He added the financial crisis in Atlanta that has the city cutting staff and closing recreation centers “could never have happened here.”

Still, the year-end balance was at $141 million two years ago.

Now that it’s been whittled down to cover expenses during tough times, the county has a limited cushion headed into 2009.

O’Connor said conservative budgeting will keep Fulton safe even as the recession continues.