Southaven received a clean audit for 2020 and remains in excellent financial shape.
Finance Director Edi McIlwain told the Board of Aldermen at its April 20 meeting that there were no significant deficiencies identified in the FY 2020, and that the report contained some additional good news.
Mcilwaine said the city’s unassigned fund balance - the net reserves after all bills have been paid - exceeded the city’s policy of keeping 12 percent of funds in reserve.
Mayor Darren Musselwhite said the city had $8,129,750 in reserve and added an additional $1.4 million from sale of the former Walmart at 385 Stateliness Road.
The city’s reserve policy requires the city keep $6.2 million on hand in reserve.
Musselwhite said reserves have quadrupled since 2013 and have allowed the city undertake a number of projects without having to raise taxes.
“The city is in outstanding financial condition,” Musselwhite said. “It’s a big compliment to this board, the decisions that y’all have made, and we do appreciate Edi and (City Administrator) Chris (Wilson) and all of our financial department for helping us with these reports.”
In other business, Musselwhite said most of the city streets on the list that were budgeted for overlay in 2021 are done, and the city is about to get started on a few more including Cat Tail Drive and Cove for a total of 84 roads.
“We’ve been very aggressive paving streets,” Musselwhite said. “They just finished up Lauderdale Estates. We are about to start the reclamation project on College and Rasco Road.”
The city was able to add more streets to its list because the city received double the amount of revenue expected from the state’s internet sales tax. The city has just over 1,100 streets and budgets $4 million for roads. They received $1.6 million from the internet sales tax.
“So we are making great progress there,” Musselwhite said.