August 23, 2012
On Monday I talked about the City of Memphis 2011 CAFR. Today I will look at the 2011 Shelby County CAFR. As of June 30, 2011 both the City of Memphis and Shelby County had similar amounts of reserve funds, $81 million for Memphis and $85 million for the County. Of course after June 30, 2011 Memphis raided the reserve fund and the separate OPEB fund for a total of $40 million dollars in order to balance their 2012 budget.
For the County, total government-wide net assets increased by $87.8 million as a result of activity for the fiscal year with $87.6 million from governmental activities and only $0.2 million from business type activities.
Then consider the OPEB fund with the county having an unfunded liability of $261 million in 2010 and Memphis having an unfunded liability of $1.33 billion. Also look at the pension details. Shelby County has an unfunded liability in their pension fund of $120 million whereas Memphis has $609 million of unfunded pension liability. They both have similar size active employee bases.
There are many other items I could point out but you get the idea. The County is not perfect but they have addressed their problems and acted. Memphis continues in the “KICK THE CAN DOWN THE ROAD AND COME TO US ALL YEE WHO SEEK A JOB AND WE WILL BLESS YOU AGTTITUDE”.