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Oak Hill financial reserves above average
As we see news of the financial meltdown over the last year experienced nationwide, I wanted to take this opportunity to provide your family a view of Oak Hill's financial outlook.
As of June 30, 2009, the City had just over $7.9 million in reserve fund balance. Over the past five years these funds earned an average of $295,615 in interest from an average rate of 4.2% per year from various long-term investments.
As many of you know, municipalities, including Oak Hill, are limited in the type of investments they can utilize for investing fund balances. Since we are limited to the most conservative of investment tools, our rate of return is much lower than what a private company or individual might earn.
The reserves for the City have increased by $1.06 million since June 30, 2002. This equates to an increase of 2.15% per year for a total increase of 15% since that date. On average the City has been fortunate to be able to move more than $150,000 per year to the reserve fund balance at the end of each fiscal year.
A look at other cities around our state suggests Oak Hill is well above the average for reserve funds to budget ratio.
|
Comparison of Cities |
FY2002 |
FY2009 |
|
Oak Hill Fund Balance as |
579% |
473% |
|
Belle Meade Fund Balance |
203% |
190% |
|
Signal Mountain Fund Balance |
29% |
71% |
|
Athens Fund Balance |
30% |
58% |
|
Goodlettsville Fund Balance |
26% |
16% |
|
Columbia Fund Balance |
44% |
38% |
|
Gatlinburg Fund Balance |
36% |
28% |
|
Oak Ridge Fund Balance |
21% |
19% |
|
Johnson City Fund Balance |
10% |
29% |
|
Brentwood Fund Balance |
74% |
83% |
|
East Ridge Fund Balance |
47% |
43% |
|
White House Fund Balance |
13% |
18% |
|
Lakewood Fund Balance |
0% |
50% |
|
Sevierville Fund Balance |
71% |
53% |
|
Alcoa Fund Balance |
29% |
16% |
|
Kingsport Fund Balance |
26% |
26% |
|
Bristol Fund Balance |
42% |
43% |
|
GFOA Recommended Minimum |
5% |
17% |
|
MTAS Recommended Minimum |
N/A |
20% |
As noted in the above comparison, Oak Hill is well positioned, compared to other municipalities, to survive a financial meltdown. If revenues decrease, or worse yet dried up altogether, the City of Oak Hill could potentially continue operation with little or no change to current services for six to ten years.
In conclusion, I would like to address the issue of City revenue sources. The pie chart on page 1 shows the amount that the City received from various sources during the fiscal year ending June 30, 2009. I would like to point out that Oak Hill receives no property tax revenue. All of your property tax payment goes to Metro Nashville Davidson County Government. Oak Hill provides your services based primarily upon revenue received from State Shared Taxes distributed by the State of Tennessee with the largest portion of this distribution coming from the Hall Income Tax.
If you have questions about City finances, please contact the office.
Mayor Tommy Alsup
Mayor Tommy Alsup was first elected commissioner in June 2002. He served two terms as vice mayor from 2002 to 2006 and was elected mayor effective August 17, 2006, for a two-year term.
A lifelong resident of Nashville, he is a graduate of David Lipscomb University with a bachelor's degree in business administration. Alsup joined Corrections Corporation of America in May 2008 and is now senior director of business development in the Facility Support Center. Alsup also is a partner in ALLCraft Marine, a boat manufacturing company.
He and his wife, Katherine, have two children.