RESERVES
In accordance with the City ’ s Financial Policies , several cash reserves are maintained to mitigate the impact of a significant economic downturn on our ability to maintain service levels to our citizens . These reserves are an important consideration by bond rating agencies in determining the City ’ s overall credit-worthiness .
The major reserves include the Unallocated Reserve , which is targeted at 3.0 % of recurring General Fund expenditures and designed to be used for emergencies and unanticipated expenses .
This reserve was funded at $ 7,955,489 in the FY22 budget . The Working Capital Reserve sets aside one month ( 8.33 %) of recurring General Fund expenditures to provide adequate operating cash during normal
BOND RATING
Moody ’ s , Standard & Poor ’ s and Fitch rate our credit-worthiness , and they consider our reserves as one of our strongest assets .
All three agencies affirmed Aa1 / AAA / AAA ratings for the Permanent Improvement Bonds , Certificates of Obligation , Municipal Drainage Utility System Revenue Bonds ( Storm water ) and the Water and Wastewater System Revenue Bonds . These strong ratings allow us to issue municipal debt vital to Arlington ’ s revenue and expenditure cycles . This is the City ’ s largest reserve and was funded at $ 22,098,579 for the FY22 budget .
The next-largest reserve is the Landfill Reserve , at $ 17.15 million , which originated from a one-time payment to the City when the landfill was originally leased in May 2005 . Our newest reserve is the Business Continuity Reserve , at $ 4.06 million in FY22 , established to ensure continuing service delivery in the event of revenue shortfalls until sustainable solutions to the shortfalls can be identified . The total reserve amount adopted in the FY22 Budget is $ 52.99 million , or 20 % of the City ’ s General Fund budget , net of one-time expenditures . This amount is approximately $ 13.21 million in excess of the 15.0 % overall reserve level specified in our financial policies .
infrastructure at a very low cost to the City . The Special Tax Revenue Bonds for the venues ( AT & T Stadium and Globe Life Field ) have been rated A1 / A +/ AA + by Moody ’ s , Standard & Poor ’ s and Fitch respectively .
The City also issued Tax Increment Revenue ( TIRZ ) Bonds for TIRZ 5 ( Entertainment District ) which have been rated BBB by Standard & Poor ’ s .
Aa1 / AAA / AAA
Permanent Improvement Bonds
Certificates of Obligation , Municipal Drainage Utility System Revenue Bonds ( Storm water )
Water and Wastewater System Revenue Bonds
A1 / A +/ AA +
Special Tax Revenue Bonds for the venues ( AT & T Stadium and Globe Life Field )
Popular Annual Financial Report FY22 City of Arlington , Texas
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