Town of Henning Overcomes Big Financial Challenges
The small town of Henning, Tennessee (population 871) in Lauderdale County has made extraordinary progress in improving its financial health after it found itself in a troubling situation that threatened the town’s solvency.
Less than 10 years ago, the Town of Henning was spending too much money and was improperly borrowing from its water, sewer, and gas funds to support general government operations. By fiscal year 2015, the town owed its utility funds more than $500,000, which was greater than the total amount of revenue collected by the town that year.
The Comptroller’s Office, in cooperation with the Municipal Technical Advisory Service, worked with the town to establish a corrective action plan to repay the town’s interfund debt to its utility funds. The town government, under the leadership of former Mayor Marva Temple, also had to make difficult decisions to reduce its spending so that it could operate on a balanced budget.
According to the recently released audit report for the fiscal year ended June 30, 2021, Henning has successfully repaid its utility funds and has saved nearly two years of annual expenditures in its general fund – a remarkable improvement.
“I want to commend the town’s leaders for making an incredible turnaround,” said Comptroller Jason Mumpower. “Henning’s governing body demonstrated leadership and took personal responsibility to change the town’s future. By following a corrective action plan, the Mayor and Board of Aldermen has shown its respect for the town’s financial health and its citizens.
To view the most recent audit of the Town of Henning, click here.
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