City ends fiscal year with $1.3M reserve

Special to the Eagle
Posted 9/15/16

Jasper Mayor Sonny Posey announced this week that the city is expected to end the current fiscal year with a fund balance of $1,370,000.

“We’re very proud of this reserve, as it shows that we have been very wise with …

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City ends fiscal year with $1.3M reserve

Posted

Jasper Mayor Sonny Posey announced this week that the city is expected to end the current fiscal year with a fund balance of $1,370,000.

“We’re very proud of this reserve, as it shows that we have been very wise with our spending decisions,” Posey said. “The city has invested strongly during my tenure as mayor in economic and industrial development, and we are now seeing the benefits of that investment strategy, as retail revenues are up, and as the economy emerges from the shadow of the recent recession.”

The city had a reserve of $1,270,000 at the end of fiscal year 2015, according to Posey.

He attributed the growth of the reserve to a combination of factors.

“We’ve had retail growth fueled both by the city’s development efforts and the economic recovery, which has been a lot slower than we would have liked. We’ve also had to delay some projects that we really wanted to do, and there have even been a few things that we wanted to do that we have been unable to do, because we’ve been committed to a sound approach to our city’s finances,” Posey said

Recent years have seen the development of various retail and industrial sites in the area near the city’s easternmost exit from Interstate 22, and the redevelopment of other vacant properties along the Highway 118 corridor which runs through the middle of Jasper.

Also expected to begin operations in the latter part of 2016 or early 2017 is Yorozu Automotive Alabama, LLC, which is constructing a plant in the Jasper Industrial Park on Whitehouse Road.

Posey also noted that the city’s credit rating had been raised to an “A2” level by Moody’s Investment Service and “A+” by Standard and Poor’s Rating Services, which he said was an “excellent” rating for a municipality of Jasper’s size.

“We have a sound property tax base to complement our retail sales, and we have implemented a number of conservative fiscal policies which led to this increase in our credit rating,” he commented.