City of Moreno Valley Rated as One of the Most Financially Strong Cities in the United States
For immediate release: January17, 2017
The City of Moreno Valley was ranked one of the financially strongest cities in the United States, according to an analysis of city fiscal strength by The Fiscal Times. Moreno Valley was ranked third in the survey of 116 cities with populations over 200,000.
Chicago and New York City ranked at the bottom of the analysis of fiscal strength based largely on 2015 financial reports.
The Fiscal Times credited Moreno Valley’s modest debt loads and large general reserve funds for helping the city rise to the top of the rankings.
Moreno Valley’s “presence near the top of the list is testimony to California’s economic recovery, but it also suggests that sound financial management practices make a difference,” The Fiscal Times wrote.
Despite facing similar challenges that bankrupted other cities, Moreno Valley avoided a fiscal crisis during the Great Recession, “apparently because officials showed greater discipline with respect to spending and borrowing,” according to The Fiscal Times.
The ratings were based on five factors:
- The ratio of a city’s general fund balance to its expenditures
- The ratio of its long term obligations to total government-wide revenues
- The ratio of actuarially determined pension contributions to total government-wide revenues
- Change in local unemployment rate
- Change in property values
Moreno Valley took a highly disciplined, methodical approach to meet the challenges of the nationwide recession. A multi-year Deficit Elimination Plan carefully phased spending cuts, while preserving key public services. Swift action by the City Council completely erased Moreno Valley’s structural deficit even sooner than planned, balancing the budget in 2013. As a result, the City’s General Fund has remained fully balanced for four consecutive years and the General Fund Reserve has increased to pre-recession levels.
“The City of Moreno Valley is proud of our continued commitment to fiscal responsibility which allows us to continue delivering the services our residents expect and deserve in the most cost-efficient manner,” said Moreno Valley Mayor Yxstian A. Gutierrez. “It is clear that our efforts to create jobs – including 9,000 new jobs over the last three years - and to compete locally, nationally and internationally to attract businesses to Moreno Valley are working to expand the local economy and enhance the quality of life for our residents.”
Read the Fiscal Times article here. See the complete rankings here.
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