DUNWOODY, Ga. — With residents and former officials questioning the financial health of the city, Dunwoody leaders pushed back against concerns surrounding the structural deficit.
While the City Council did not act on the item, Finance Director Richard Platto presented a budget amendment, “closing out and cleaning up” the fiscal year 2023 budget.
He said revenues in the general fund for city operations are up $1.1 million, or 3 percent, and expenses saw an increase of $606,200, or 2 percent.
While the numbers are unaudited and subject to change, the windfall means the budgeted use of fund balance, totaling $508,838, will not be needed, Platto said.
What’s more, the unreserved fund balance is anticipated to add $1.6 million, bringing the city to 10 months of fund balance.
According to internal estimates from city staff, 10 months of reserves is equivalent to some $25 million.
Communications Director Jennifer Boettcher said the final amount won’t be known until the year-end audit has been completed and the financial statements have been published.
While the city traditionally maintains a fund balance of four to six months as a safety net, the fund balance is estimated to exceed nine months for the first time, she said.
City officials attributed the increase in revenue to insurance tax premiums, building fees and interest.
City Councilman Tom Lambert said debates over spending priorities are welcome, but the figures and facts concerning Dunwoody finances are objective.
Citing another year of a surplus within the general fund, Lambert confirmed with Platto that the city has not used any reserves or unassigned fund balance to operate the city since 2020.
“I think it’s fair to state that conservative budgeting, sound fiscal policy, and effective financial controls and management are the reason why we are in the position we are in…
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