City Manager Clears up Rumor That Snellville Is in Financial Ruin

With it being election season, many city council candidates are reaching out the community to talk one-on-one with residents in Snellville.

One issue that some candidates are running into is the rumor that the city is in financial ruins. 

City Manager Butch Sanders has provided details into debunking the rumor. 

"Snellville continues to only get stronger financially," he said in an email. "In and of themselves, unfounded financial rumors rarely cause real problems for a local government as they are easily refuted, but if they waft out to bankers, bond holders and the ratings folks, they can cause real damage because reputation and trustworthiness is very important in the market."

Sanders provided the following information to clear up the rumor. 

The city's last audited financial statement shows:

-Snellville's unrestricted fund balance in the general operating fund, or main fund, was $4.35 million. This amount is 37.2 percent of the total annual budget. According to almost all applicable financial sources, i.e. banks, ratings agencies and bond buyers, the goal/benchmark for local governments is 25 percent. The city exceeded this benchmark of financial strength by
50 percent.

-The city’s capital assets total $35.56 million. The capital assets grew more than $2 million in fiscal year 2012. Snellville continues to grow and add capital assets, Sanders wrote.

-The city's debt is decreasing. In FY-12 such debt decreased by $1.84 million. Snellville pays its long-term debt on time and has achieved such a strong financial reputation that a recent bond refinancing was sold at the lowest interest rate achieved by any other local government in Georgia, according to Sanders.

The city's unaudited revenue/expense report covering the entire fiscal year 2013 budget year shows:

-Total revenue for FY-13 was $10.49 million, or $218,129.97 above the projected budget amount.

-Total expenditures for FY-13 were $9.56 million, or $597,865.26 below budgeted expenditures.

-Taken as a whole, the city improved its financial status by a total of $815,995.23 in FY-13.