Full Steam Ahead for D.C. Finances

Last week, I joined the Mayor, the Chairman of the Council, and the Chief Financial Officer to meet with the three major Wall Street rating agencies (Fitch, Moody’s, and Standard & Poor’s). These meetings are important because the rating agencies evaluate the fiscal health of cities, counties and states throughout the country. These ratings, in turn, impact the interest rate imposed on our borrowing to make capital improvements, such as work at our schools, libraries, and even roads. Because of the increase in our bond ratings, District residents have saved millions in interest costs over the years.

This year, the District delegation was pleased to share the results from our comprehensive financial annual report (CAFR) audit of FY 2014, which revealed a surplus of roughly $203 million and reserve balance of $1.87 billion. This recent audit was the 18th consecutive in which the District received a “clean” or unqualified opinion of our finances.

I made a presentation to each of the agencies regarding our eligibility for a ratings upgrade. I reminded the agencies that we have put a cap on our borrowing, replenished the fund balance in our “savings accounts,” and produced structurally sound budgets for a number of years. 

In short, our finances today are as strong as they have ever been and a far cry from the desperate straits we faced in the mid-1990s. Additionally, the CFO projected just last week that revenues for the current fiscal year will be $37 million higher than initially anticipated as our economy continues to grow and more people continue to move into the District.

Our first priority as elected officials is to be prudent stewards of taxpayers’ dollars. The presentation we made to the rating agencies expressed that sentiment and the CAFR indicates that we have continued to do that. While our financial house is strong, we still need to make smart investments in areas such as education, affordable housing, transportation and infrastructure. In the coming months, the Council will receive and review a budget from the Mayor. I will continue to push for these types of investments as we work to make the District even stronger in the years and decades to come

Jack Evans is the Ward 2 Councilmember, representing Georgetown since 1991.