Here’s the city spending that sparked bond agency worry
Memphis Mayor Paul Young said the city had hired a forensic auditor for the Memphis Area Transit Authority, which is facing a $60 million deficit. (Benjamin Naylor/The Daily Memphian file)
A bond rating agency recently expressed worry about the City of Memphis’ use of its fund balance, noting it had spent $74.5 million in the previous fiscal year.
Fitch Ratings revised the city’s bond outlook to negative — meaning it could downgrade the city’s bond rating — in large part due to the city’s spending of its fund balance.
The number, $74.5 million, surprised many people when it was first reported, and some wondered how else the city had spent the money — appropriations that would’ve needed Memphis City Council approval.
The Daily Memphian filed a Tennessee Public Records Act request for how the city spent the money from its fund balance, which has three classifications: unassigned (or rainy day), restricted and assigned.
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Samuel Hardiman
Samuel Hardiman is an enterprise and investigative reporter who focuses on local government and politics. A native Rhode Islander who lives in Midtown, he enjoys tennis, golf and reading.
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