The City of Atlanta reported this week that the level of its general fund balance hit a record high despite economic uncertainty created by the pandemic.
Last year, the city’s reserves reached more than $240 million — which was more than $53 million over the previous year, or a 28% increase.
According to the city, the growth is mainly due to an increase in revenues from general business licenses, which climbed post-pandemic. Revenues from licenses and permits, property taxes, local option sales taxes and hotels also contributed to the extra funds.
District 6 Councilman Alex Wan, who chairs the council’s Finance/Executive Committee, said in a statement that the record high surplus is a “testament to the City’s careful fiscal stewardship of taxpayer dollars.”
“An accomplishment made even more impressive when considered against the timing of the recent economic uncertainty brought on by the pandemic,” he said. “These resources will provide ongoing financial stability as we prepare both to address issues and initiatives important to our stakeholders and to weather potential economic slowdowns in the future.”
The surplus funds led to an additional $9.5 million investment in the city’s workforce. Dickens announced in November that starting this year, all city employees would see an increased cost-of-living adjustment in their wages — with the biggest pay hikes going to first responders.
The city’s Fiscal Year 2022 Annual Comprehensive Financial Report also notes around a 5% increase in the city’s long-term debts to $7.6 billion, mainly linked to the issuance of new debt related to Hartsfield-Jackson International Airport, and servicing of existing debt.
In October 2022, two top rating services assigned high marks to Atlanta’s general obligation bonds. Moody’s Investors Service and Fitch Ratings gave Atlanta Aa1 and AA+ ratings, respectively. The high credit ratings allows the city to issue bonds at lower interest rates.
“The City of Atlanta is on solid financial ground with strong credit ratings, placing Atlanta on a path to sustainable growth while making smart investments into our communities along the way,” Mayor Andre Dickens said in a statement.
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