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HomeFinanceNorthport Leaders Tout Reserves, Metropolis's Monetary Stability

Northport Leaders Tout Reserves, Metropolis’s Monetary Stability


NORTHPORT, AL — The Northport Metropolis Council throughout its common assembly Monday will vote on a number of measures that officers consider underscore the town’s monetary stability and progress made towards boosting its reserves lately.


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Maybe probably the most impactful transfer will see metropolis leaders vote for a $1 million allocation of Northport First Funds to the town’s Normal Fund reserves — an quantity that may see its reserves rise to fifteen%.

Discover out what’s taking place in Tuscaloosawith free, real-time updates from Patch.

Northport First Funds are collected because the income from the town’s 1-cent gross sales tax. That is notable given previous monetary turbulence for Metropolis Corridor and the suggestion by the town’s bond ranking company to make it a precedence to spice up reserves to fifteen% for each its Normal Fund and the Water and Sewer fund.

The 1-cent gross sales tax, whereas initially obtained with skepticism by some, has confirmed fairly profitable, with the metropolis accumulating greater than $19 million during the last three years. The income has been used for all the things from instructional grants to paving tasks, standing out as a significant supply of pleasure for elected officers seeking to make a tangible impression of their districts.

Discover out what’s taking place in Tuscaloosawith free, real-time updates from Patch.

Northport’s reserve funds can, at the very least on paper, even be in comparison with the Metropolis of Tuscaloosa, which reported being at 20% of the prior 12 months’s Normal Fund working price range and 30% for Water and Sewer. Nonetheless, the development for Northport stands in stark distinction to the financial tumult and uncertainty skilled by the town previous to the present metropolis council.

It additionally represents an instance of the optimistic inhabitants progress skilled lately, with Patch beforehand reporting when Northport grew to become Alabama’s seventeenth largest metropolis within the information printed following the 2020 census.

Metropolis Finance Director Darren McGee instructed Patch that the town’s present monetary state and bettering reserves had been made attainable by means of conservative administration, together with an area economic system that’s rising and a dedication to a sturdy reserve fund.

“It exhibits that metropolis management is dedicated to conservative fiscal administration practices and that strategy is paying dividends for the town,” he stated. “Robust funds together with the conservative fiscal strategy has allowed the town to not solely present high-quality, increasing companies for residents however accumulate robust reserve balances for future wants.”

Metropolis Council President Jeff Hogg agreed, saying the previous few years of adhering to the town’s budgets and projecting future expenditures has allowed the town to set itself up to have the ability to capitalize on these measures for quite a few giant tasks — amongst these are three new main leisure tasks that intention so as to add a water park, journey sports activities park and large-scale upgrades to Kentuck Park.

ALSO READ: Northport Takes Large Steps On Three Main Leisure Initiatives

“This confirms that the residents of Northport are in good arms with their management and have set the usual of what a Metropolis ought to be like,” Hogg stated.

The Metropolis Council will even take into account a capital tasks price range of $2,715,000 for Water & Sewer, together with a $5,753,732 capital tasks price range for its Normal Fund.

One other measure that can be thought-about that underscores the town’s deal with whittling down debt can be a $825,000 allocation to repay an interfund mortgage to the town’s Water & Sewer Fund after the town in 2016 borrowed cash from the Water & Sewer Fund to cowl the town’s Normal Fund.

Hogg stated this might pay again the mortgage in full after a earlier timing concern prompted the interfund mortgage as the town modified to a fiscal 12 months schedule versus a calendar 12 months.

McGee went on to say that rising the town’s reserve balances, together with a robust and rising native economic system, are optimistic traits for a metropolis which might be seen favorably by ranking companies, which is a optimistic signal as the town has quite a few large-scale tasks within the works.

“These are a few of the objects included in consideration for retaining or bettering our bond ranking,” he stated. “The upper or higher a bond ranking, the decrease the borrowing prices.”

When trying on the metropolis’s speedy inhabitants and increasing tax base, McGee stated that Northport has confirmed a pretty place to dwell.

“Low crime charges, good roads, inviting residential developments and neighborhoods, employment alternatives, bettering leisure amenities and different robust high quality of life areas are all positives and causes for individuals to decide on Northport as their place to dwell and work,” he stated. “Environment friendly and conservative administration of metropolis assets, robust management, glorious employees, ongoing public involvement in choice making are all a few of the causes Northport is flourishing.”

However whereas McGee was fast to tout the town’s robust funds and its skill to offer the wanted companies to residents, he defined that there are nonetheless wants that should be met.

“Most [needs] are associated to progress and are subsequently optimistic challenges,” he stated. “We now have choices to make associated to how and the place we are able to and will develop and the way we accomplish that job. We now have infrastructure wants that may have to be addressed in addition to further high quality of life additions. Metropolis management is conscious of our wants and is at present engaged on plans to handle these objects and extra.”

Because the Northport Metropolis Council appears to be like forward to the longer term and the probabilities that abound from robust funds, Hogg was additionally fast to thank those that made it attainable.

“I need to thank [former councilmen] Rodney Sullivan and Jay Logan for beginning this imaginative and prescient from our earlier finance committee and for present committee members, Christy Bobo and John Hinton, for persevering with these practices in our present time period,” Hogg stated. “By being financially disciplined and taking this strategy, now we have set ourselves as much as doing a lot extra that Northport ever thought was attainable. The very best is but to return.”


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