By Parker Leavitt | The Republic | azcentral.com
Due in large part to the return of a residential- construction boom in Gilbert, the town has seen its cash reserves replenished as new revenue has poured in over the past three fiscal years, according to municipal financial data.
Gilbert’s available general fund balance swelled to nearly $70 million in fiscal 2013, more than double the amount of cash the town had in its savings account three years prior, according to the latest Comprehensive Annual Financial Report.
The reserve funds are one indicator used by credit rating agencies in determining the health of a city’s finances, and Gilbert has been able to improve its ratings in recent years.
Maintaining an adequate reserve is especially important in Arizona, where economically sensitive sales tax funds make up a large part of government revenue, town Budget Director Dawn Irvine said.
On the other hand, officials understand that much of the extra revenue Gilbert is seeing is not sustainable longterm, and the money is being set aside for one-time projects rather than for ongoing operations, Irvine said.
“A big portion of that is coming from really robust construction activity right now,” Irvine said. “We continue to lead the Valley in permits. We’re excited about that but we recognize that it’s temporary.”
