(The Center Square) – Memphis and Nashville governments are operating at a deficit, but Nashville improved its finances in the past year, according to a report released Thursday by Truth in Accounting.
The Metropolitan Government of Nashville & Davidson County needs $389.1 million to meet its financial obligations, with $6.8 billion in bills and $6.4 billion available. The deficit places a $1,600 burden on each city taxpayer, according to the report.
The city’s coffers grew by $566.6 million but dropped by $284.5 million due to pension liabilities, the organization said.
“Nashville made significant progress in reducing retiree health care liabilities by $218.8 million, primarily through changes to the School Professional Employees’ Insurance Plan,” the report said. “The city streamlined healthcare costs by making the Medicare Advantage Plan the exclusive option for retirees on Medicare.”
The report is based on data from “Nashville’s 2023 audited Annual Comprehensive Financial Report and retirement plans’ reports,” according to Truth in Accounting.
Nashville ranked 32nd out of the 75 cities evaluated, earning a “C” grade.
Memphis earned a “D” grade and ranked 58th, according to the report.
The city of Memphis had $2.8 billion but $4.8 billion in bills, the organization said. The $2 billion shortfall is a $9,100 burden on each city taxpayer.
“Memphis reported total revenues exceeding expenses by $510.7 million, but the funds required to cover its bills grew due to unrealized investment losses from the city’s retirement systems,” the report said. “The Memphis Light, Gas, and Water Division Pension Plan saw a $367 million loss for 2022, with unrealized losses of 11.22%. Additionally, its retiree health care liability increased by over $100 million.”
The organization used information from Memphis’ 2023 audited Annual Comprehensive Financial Report and reports on its retirement plans.
New York took the top spot in the report with a deficiency of $56,800 per taxpayer, according to the organization. The most financially stable city is Washington, D.C., which has a $9,000 surplus per taxpayer.
