Spend Responsibly within Budget
The City of Memphis is committed to being fiscally responsible and a good steward of taxpayers' dollars. As such, we constantly track our spending in relation to our total budget. The city's total operating budget for FY20 is approximately $712 million. The chart below shows that we are spending within our limits and are on track to stay within this year's budget. You can find the city budget in its entirety here. The chart below shows the actual money spent by the City of Memphis in the current fiscal year (green line) compared to expected spending based on the current budget and historical trends (grey line). The blue lines show the upper and lower limits of what we should spend to stay on track.
Unrestricted Fund Balance
Governments must maintain an adequate unrestricted fund balance to protect against risks and ensure stable tax rates. "Unrestricted fund" refers to money in the general fund that is not reserved for a particular use. The Government Finance Officers Association (GFOA) recommends that governments maintain a minimum unrestricted fund balance equal to two months of operating expenditures.
Based on this guideline, the City of Memphis has a goal of maintaining an unrestricted fund balance of $110 million. As shown in the chart on the right, the City has increased its unrestricted fund balance by 71% since 2013, and continues to work towards this goal. This chart is updated annually at the end of the calendar year upon release of the Comprehensive Annual Financial Report.
Each year, the City of Memphis works with an actuary to determine the amount of money the City must contribute to its pension plan to ensure the plan remains adequately funded. This amount is known as the Actuarially Determined Contribution, or ADC. The City has made great strides in recent years, increasing its contribution from 20% of ADC in FY14 to 88% of ADC in FY18. The City is on track to meet its goal of funding 100% of the ADC by 2020. This chart is updated annually at the end of the calendar year upon release of the Comprehensive Annual Financial Report.