The City of Fayetteville is on solid footing. According to Miller Edwards with Mauldin & Jenkins, CPA, in his presentation at the June 20 City Council meeting, Fayetteville’s finances are in good shape.
Edwards offered up an overview of the FY2018 Comprehensive Annual Financial Report (CAFR) from the annual audit process, and he said there’s a lot to like about it.
“It’s a healthy looking balance sheet overall. You’ve got about $131 million worth of assets, and you’ve only got liabilities of about $36 million, so you’ve got equity or net worth of about $95 million,” he said, noting there is also about $18.7 million in cash and investments. “You demonstrate a lot of liquidity.
“That’s a good place to be in for a city of this size.”
The city is also prepared for a rainy day, should another recession hit. The city’s general fund, which Miller calls the “heart of soul” of a city’s financial package, is in great shape. With a general fund balance of $4.8 million and $4.2 million worth of cash and investments, the city has an impressive 88 percent liquidity of fund balance. He laid it out in layman’s terms.
“You’ve got the wherewithal to continue with your initiatives without having to hesitate or wait on the revenue stream to come in,” he said. “You’ve got about four months worth of fund balance. If you took in no money during August, September, October, November, you’d actually be okay,”
For Miller, the bottom line was a simple one.
“It is a good report.”