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Presentation by the Finance Interns on the 2017-2021 City of Wauwatosa Fiscal Health Indicators
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Submitted by:
John Ruggini
Department:
Finance Department
A. Issue
Each year, the City of Wauwatosa and other local governments publish their Annual Financial Report, which is publicly available on the City’s website. In order to better utilize the information as a diagnostic tool, a series of financial ratios were calculated and analyzed for the past 5 years. The analysis of financial condition is intended to be an annual report going forward and is capstone project completed by the City’s Finance Interns who will provide the presentation.
B. Background/Options
Many of the ratios analyzed were developed by the International City Management Association (ICMA) and presented in the book, Evaluating Financial Condition. Some of the indicators found in the book were adjusted to better fit the City of Wauwatosa and based on feedback from the City’s auditor. In addition, utility metrics were based on those used by the Moody’s bond rating agency. A stop-light analysis, included below, was used to evaluate the ratios. A green check mark indicates a positive trend, a yellow exclamation mark indicates a neutral trend, and a red “x” indicates a warning trend. Attachment one presents a graph for each ratio from 2017-2021.
It is important to note that these indicators are meant to be another tool to help evaluate the financial health of the City; however, they need to be considered in context with other information. Often the trend is most important and one-year deviations require additional explanations.
C. Recommendation
This report is for informational purposes only.