City of Ferris announces bond rating

• Strong budgetary performance with revenue growth outpacing expenditures, leading to available reserves doubling over the past three years

• Good financial management policies and practices

• A strong institutional framework and a strong budget flexibility with available reserves 62.6% of operating expenditures

• A strong liquidity with total cash 108.1% of governmental fund expenditures

“Goal six in our strategic plan is to set the standard for sound governance and fiscal management – you are seeing the fruits of that labor,” city manager Brooks Williams said.

The release noted the days of operating capital exceed the 90-day recommendation of the Government Finance Officers Association Best Practices for Municipal Government. 

The improvement in the city’s financial position has been accomplished while increasing employees’ salaries and benefits, increasing investment and infrastructure with $630,191 in 2022, and maintaining a tax rate lower than that of 2018, according to the release.

Other financial highlights noted by the release include the assets and deferred outflows of resources of the city, which exceeded liabilities and deferred inflows of resources at the close of the most recent fiscal year by $8,490,997 in its net position. The release also noted $3,146,567 represents unrestricted net position, which may be used to meet the city’s ongoing obligations (a rainy-day fund). 

Williams said the city’s net position is expected to increase by about $500,000 in 2022, saying that number has increased overall by more than $500,000 each year for the past three years.  

“We have been intentional in our approach to fiscal management, and I have the absolute best CFO anyone could ask for,” Williams said. “Ferris is in the best financial position in our history, has a strong fund balance, and we are continuing to look for ways to ensure our financial stability and accountability remains strong.”