City on Track for Balanced Budget

February 19, 2015

Metro Government should be able to end the 2015 fiscal year with a balanced budget, despite revenues being down slightly through the year’s midpoint.

Interim Chief Financial Officer Daniel Frockt said that revenues coming into the city’s General Fund are expected to be 1.4 percent lower than projected. However, the lower revenues are expected to be largely offset by lower than expected expenses – including lower than budgeted fuel prices, savings on overtime and effective management of personnel expenses.

Frockt will provide an update at 5 p.m. today to the Metro Council Budget Committee on city finances for the second quarter of the fiscal year.

The projected decrease in city revenues is largely tied to employee wages and corporate net profits—both of which are expected to be above last year’s levels but not quite reach projections for this fiscal year.

Frockt will also report to council that the city anticipates ending the current fiscal year with an unassigned ending fund balance, commonly called the “rainy day” fund, of $63 million, about half a million more than the prior year.

This is a healthy rainy day balance, according to the city's rating agencies.

“The long term rating on the city reflects…[a} diverse economy {and} management with strong financial policies and practices,” said rating agency Standard & Poors, commenting on the city’s bond ratings in November, 2014.