City Shows 3rd Straight Positive Year in Latest Independent Audit

The City of Fresno has completed its Comprehensive Annual Financial Report (CAFR) for the fiscal year which ended June 30, 2017.

Highlights from the City’s CAFR:

• City assets continue to set records, reaching a total of $3.6 billion for the first time in the City’s history.
• The City also received a record $804.3 million of revenue in the fiscal year 2017, surpassing the previous record of $752.8 million set in the fiscal year 2016.
• The City continues to enjoy a Net Pension Asset, which was valued at $147.7 million. Fresno is the only city in California and one of only seven in the nation with a pension surplus.
• Standard and Poor’s Global Ratings and Moody’s Investors Service significantly upgraded the City of Fresno’s investment ratings, with Standard and Poor’s giving the City an unprecedented five-level increase to A+ in April 2017.

The report was prepared by the City’s Finance Department in conformance with current accounting and financial principles established by the Governmental Accounting Standards Board (GASB).  The audit was completed by the outside accounting firm of Brown Armstrong, LLP.

“The City’s continued strengthening of its financial position is proof positive that Fresno has firmly established itself as a financially stable agency,” said City Controller Michael Lima. “However, since we still lag behind other cities when it comes to assets available to support our population, it is imperative that we maintain our fiscal prudence and that the plan to build all our assets, especially cash and capital assets, is continued.”

In addition to the results provided in the CAFR, the Finance Department reports that the Unrestricted Fund Balance for the General Fund Emergency Reserve increased from $15.7 million to $20.5 million at the end of FY2017, but is still short of the 10% goal of $30 million in reserves.

“This is just another indication that our strong fiscal strategy, combined with the dramatic improvement in our ratings outlook and our steady increase in job and wage growth, is the right formula for long-term stability,” said Mayor Lee Brand. “We have more work to do, but it’s encouraging to see our efforts continue to meet with success and move us closer to our goal of improving the quality of life for everyone in Fresno.”

The full Comprehensive Annual Financial Report was presented to the City Council today and is available for public review on the City’s website.