Popular Annual Financial Report FY23 / 9
THE CITY WAS IN A BETTER POSITION TO FILL VACANT POSITIONS AND HIRE NEW EMPLOYEES IN FY23
64
POSITIONS VACANT ( 102 vacant positions in FY21 and FY22 )
As a result , the City was in a better position to fill vacant positions and hire new employees in FY23 . The General Fund , which averaged 102 vacant positions in FY21 and FY22 , ended the year with 64 positions vacant .
Expenditure savings from these positions as well as savings from projects carried forward and programmed into future capital and operating budgets meant the General Fund ended the year under budget in expenditures , and all funds had positive ending balances .
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 % of recurring General Fund expenditures and designed to be used for emergencies and unanticipated expenses . This reserve was funded at $ 10,620,800 in the FY23 budget . The Working Capital Reserve sets aside one month ( 8.33 %) of recurring General Fund expenditures to provide adequate operating cash during normal revenue and expenditure cycles . This is the City ’ s largest reserve and was funded at $ 29,495,230 for the FY23 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 .
The Business Continuity Reserve is at $ 4.06 million in FY23 and was 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 FY23 budget is $ 63 million , or 20 % of the City ’ s General Fund budget , net of one-time expenditures . This amount is approximately $ 15.76 million in excess of the 15 % overall reserve level specified in our Financial Policies .
$ 29,495,230
Working Capital Reserve
$ 17.15 MILLION Landfill Reserve
$ 63 MILLION
Total Reserve Amount Adopted in the FY23 budget
Bond Rating
Moody ’ s , Standard & Poors , and Fitch rate our credit-worthiness , and they consider the city ’ s reserves as one of Arlington ’ s strongest assets .
All three agencies affirmed Aa1 / AAA / AAA ratings for the Permanent Improvement Bonds , Certificates of Obligation , Municipal Drainage Utility System Revenue Bonds ( Stormwater ), and the Water and Wastewater System Revenue bonds . These strong ratings allow us to issue municipal debt vital to the City ’ s infrastructure at a very low cost to the City .
The Special Tax Revenue Bonds for the Venues ( AT & T Stadium and Globe Life Field ) ratings have seen upgrades to Aa3 / AA / AA + by Moody ’ s , Standard & Poors and Fitch respectively . The City ’ s Tax Increment Revenue ( TIRZ ) Bonds for TIRZ 5 ( Entertainment District ) maintained their BBB rating by Standard & Poors .
AA1 / AAA / AAA RATINGS
Permanent Improvement bonds
Certificates of Obligation
Municipal Drainage Utility System Revenue bonds ( Stormwater )
The Water and Wastewater System Revenue bonds