Biggest cities get mixed ratings on financial management
Florida’s Largest Cities Receive Mixed Grades in Financial Report
A recent report on the financial statuses of U.S. cities has given Florida’s largest cities a range of grades. The 2024 Financial State of the Cities report by Truth in Accounting has revealed that Jacksonville and Miami received poor marks, while Orlando and Tampa passed with flying colors.
Examining the Methodology
The report’s methodology involves a thorough examination of each city’s bills and the number of taxpayers, ultimately determining whether there is a burden or surplus. Governments that meet their balanced budget requirements receive grades of “A” or “B,” while a passing grade of “C” is given to those that come close. However, grades of “D” and “F” are assigned to cities with unbalanced budgets and significant taxpayer burdens.
Jacksonville’s Financial Struggles
Florida’s largest city, Jacksonville, received a disappointing “D” grade and an overall ranking of 65th. The city’s financial situation has worsened by nearly $1 billion, with a taxpayer burden of $11,200. The report highlights that Jacksonville’s pension investments were negatively impacted by the investment market values, and the city had only set aside 47 cents for every dollar of promised pension benefits. In comparison, retiree health care benefits had a mere 11 cents per dollar set aside. The city’s financial health could further deteriorate due to decreased COVID-19 relief funds and slower tax collections.
Miami’s Debt Crisis
Miami also received a disappointing “D” grade, ranking 69th nationally. The report reveals that the city’s debts far exceed its ability to pay, with only $890.1 million available to cover $3.2 billion worth of bills. This creates a staggering shortfall of $2.3 billion. According to the report, each taxpayer would need to contribute $15,500 to address Miami’s outstanding debts. Additionally, the city has failed to set aside funds for promised retiree health care benefits.
Tampa’s Surplus and Success
In contrast, Tampa boasts a taxpayer surplus of $1,500, earning a solid “B” grade and an impressive overall ranking of 10th. The city had $1.7 billion available to cover $1.5 billion in bills. However, the report does note that Tampa’s surplus decreased by $382.2 million, standing at $189.7 million.
Orlando’s Mixed Results
Orlando received a ”C” grade, with a taxpayer burden of $800 and an $81.7 million shortfall in paying its debts. The report highlights that despite increased tax collections and federal COVID-19 relief funds, the city’s pension investment values have decreased.
What is Miami’s taxpayer burden per person according to the report?
E but fall short. Those cities that receive grades below a “C” are considered to have significant financial challenges.
Jacksonville and Miami’s Struggles
Jacksonville, Florida’s largest city, was given a grade of “D” in the report. The city has struggled with its financial position primarily due to its large amount of debt. According to the report, Jacksonville has a taxpayer burden of $5,299 per person, meaning that each resident would need to contribute that amount to fully cover the city’s debt. This burden is significantly higher than the national average of $2,900.
Miami, also a major city in Florida, fared even worse in the report, receiving a grade of “F.” The report cites Miami’s unsustainable debt and unfunded pension liabilities as contributing factors to its poor financial standing. Miami has a taxpayer burden of $28,300 per person, one of the highest in the country. The city’s unfunded pension liabilities alone total $18,400 per person.
Orlando and Tampa’s Successes
While Jacksonville and Miami face financial struggles, Orlando and Tampa have reason to celebrate. Both cities received grades of “B” in the report, indicating that they have balanced budgets but fall short of having a significant surplus.
Orlando’s financial position is due in part to its thriving tourism industry. The report notes that Orlando has a taxpayer surplus of $2,200 per person, meaning that the city has enough funds to cover its debts and still have money left over. Tampa also benefited from a strong economy and responsible financial management, resulting in a taxpayer surplus of $4,900 per person.
The Importance of Financial Responsibility
This report highlights the importance of financial responsibility in city governance. Cities with poor financial health may struggle to provide essential services and invest in much-needed infrastructure. They may also face challenges in attracting new businesses and residents. On the other hand, cities with strong financial positions can more easily weather economic downturns and invest in initiatives that improve the quality of life for their residents.
Looking Ahead
While the report sheds light on the current financial statuses of Florida’s largest cities, it should not be seen as a final verdict. The financial health of a city can change over time with the implementation of new policies and the success of economic development strategies. It is crucial for city officials to take note of the report’s findings and use them as a starting point for addressing any financial challenges they may face.
In conclusion, Florida’s largest cities received mixed grades in the 2024 Financial State of the Cities report. While Orlando and Tampa have shown responsible financial management and balanced budgets, Jacksonville and Miami continue to grapple with high levels of debt and unfunded liabilities. It is now up to city officials to prioritize financial responsibility and work towards improving the financial health of their respective cities.
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