Finance Department
Finance Department
The Finance Department of the City of Muscle Shoals is committed to upholding the City’s strong financial integrity through the dedicated service of qualified professionals who exemplify the highest ethical standards. The department ensures the responsible stewardship of public funds and supports transparency in financial decision-making across all levels of municipal government.
Strong Financial Performance and National Ratings
The City of Muscle Shoals continues to maintain a robust financial position, as reflected in its $7.96 million increase in net position during the fiscal year ending September 30, 2023—a 13.2% year-over-year improvement, bringing total net assets to $68.25 million.
Muscle Shoals has earned a “AA3” general obligation credit rating from Moody’s Investors Service, demonstrating strong fiscal management and the City's capacity to meet financial commitments.
Responsibilities of the Finance Department
The department’s key responsibilities include:
- Safeguarding City assets in compliance with Governmental Accounting Standards Board (GASB) guidelines.
- Preparing and distributing monthly financial reports to the Mayor, City Council, City Clerk, and department heads.
- Monitoring revenues and expenditures to ensure alignment with the City’s adopted budget.
- Managing bimonthly payroll and weekly accounts payable disbursements.
- Overseeing business licensing and compliance with alcohol and lodging tax collections.
- Providing support for annual audits, including coordination with external auditors.
- Developing and administering the annual budget, which for FY2024 reflects a conservative but increased revenue estimate of $30.1 million (up from $28.6 million in FY2023).
- Managing general obligation debt, which totaled $20.79 million at year-end—well below the legal debt ceiling of $60.6 million based on assessed property values.
Financial Highlights (FY2023)
- Total Revenues: $35.7 million
- Total Expenditures: $27.8 million
- Sales Tax Revenue: $19.86 million, representing 70% of all general revenue—a 6.5% increase from the prior year.
- General Fund Balance: Increased by $4.24 million to reach $25.66 million.
Capital Projects and Strategic Investments
The Finance Department helps manage funding for capital investments, including:
- Construction of a new fire station and two fire trucks.
- A veterans memorial at City Hall.
- Garbage fleet upgrades with the purchase of three new trucks.
- Infrastructure enhancements like sidewalk construction on Ford Street and storm drainage improvements along Buena Vista Avenue.
Transparency and Public Access
Transparency is a foundational principle. The City makes its annual budget, audited financials, and other reports available to the public, fostering accountability and trust. These documents provide insights into how public funds are allocated and ensure tax dollars are spent responsibly.
