FY 2018 Popular Annual Financial Report FY 2018 Popular Annual Financial Report | Page 7

Repor t
opening of the new George W. Hawkes
Downtown Library, an 80,000-square-
foot building designed to adjust to new
technology and the needs of future
generations. It incorporates flexible
meeting spaces that focus on group
and community connection, as well as
spaces for reading, learning rooms that
can be used for classes and workshops,
and expansive areas for community
gatherings and events. Other features
include a digital creativity lab, an
adult literacy area and expanded
genealogy resources. 
Reserves

In accordance with the City’s
Financial Principles, several cash reserves
are maintained in order to mitigate
the impact of a significant economic
downturn on our ability to maintain
service levels to our citizens. These
reserves are an important consideration
by bond rating agencies in determining
the City’s overall credit-worthiness. The
major reserves include the Unallocated
Reserve, targeted at 3% of recurring
General Fund expenditures. It is designed
to be used for emergencies and
unanticipated expenses. The Working
Capital Reserve sets aside one month of
recurring General Fund expenditures to
provide adequate operating cash during
normal revenue and expenditure cycles. 
This is the City’s largest reserve, funded
at $21.1 million for FY19.  The next-largest
reserve is the Landfill Lease Reserve, in
excess of $17 million, which originated
from a one-time payment to the City
when the landfill was leased in May
2005. Our newest reserve is the Business
Continuity Reserve, originally targeted at
3% of General Fund expenditures. This
reserve is in place to ensure that in the
face of funding shortfalls, service delivery
will continue until sound solutions to
the shortfall can be identified. The total
reserve amount adopted in the FY19
Budget is $51.6 million, or 20.4% of
the City’s General Fund budget, net of
one-time expenditures. This amount is
approximately $13.7 million in excess of
the 15% overall reserve level specified in
our Financial Principles.
Bond Rating

Moody’s, Standard & Poor’s and
Fitch rate our credit-worthiness, and
they consider our reserves as one of
our strongest assets. All three agencies
affirmed Aa1/AAA/AAA ratings for
the Permanent Improvement Bonds,
Certificates of Obligation and Municipal
Drainage Utility System Revenue Bonds
(Stormwater).  Moody’s increased its
rating on the Water and Wastewater
System Revenue bonds to Aa1, while
Standard & Poor’s and Fitch affirmed their
AAA/AAA ratings. These strong ratings
allow us to issue municipal debt vital to
the City’s infrastructure at a very low cost
to the City.

The Special Tax Revenue Bonds for
the Venues (AT&T Stadium and Globe
Life Field) have been rated A1/A+/AA+
by Moody’s, Standard & Poor’s and Fitch
respectively.
Debt

During FY18, the City took
advantage of low cost borrowing and
issued $54.2 million in Permanent
Improvement Bonds and $5.1 million
in Certificates of Obligation to make
various capital improvements. The
City issued $48.8 million in Water and
Wastewater System Revenue Bonds to
improve and expand existing water and
wastewater infrastructure; and issued
$5.5 million in Municipal Drainage Utility
System Revenue Bonds (Stormwater) to
improve and expand existing drainage
infrastructure. During the year, the City
paid down principal of $33.6 million of
outstanding Permanent Improvement
Bonds and Certificates of Obligation.

In addition, the City issued Special Tax
Revenue Bonds to pay for the City’s portion
of construction of Globe Life Field (Texas
Rangers) in the amount of $465.4 million. 
Awards

The City continued to be recognized
for its outstanding financial reporting
efforts. In 2017 the City’s Finance
Department was proud to announce
that it is only the third local government
entity in the state to receive all five
transparency stars through the Texas
Comptroller’s transparency program.
The Comptroller’s Office launched the
Transparency Stars program in March
2016 to recognize cities, counties and
school districts working for greater
government transparency through easy
online access to important financial
data. The City of Arlington has earned
transparency stars in Traditional Finances,
Contracts and Procurement, Economic
Development, Public Pensions and Debt
Obligations.

We again received the Certificate of
Achievement for Excellence in Financial
Reporting for our 2017 Comprehensive
Annual Financial Report (CAFR), the
Certificate for Outstanding Achievement
in Popular Annual Financial Reporting
for our 2017 PAFR, and the Distinguished
Budget Award for our 2018 budget
from the Government Finance Officers
Association. We also received our 15 th
consecutive Achievement of Excellence
in Procurement Award from the National
Procurement Institute, Inc.
Financial
Priorities

Each year, the City Council identifies
community priorities that guide us in
allocating the City’s resources. Council
met at a strategic retreat in the spring of
2017 and chose the following priorities
for FY18:
• Enhance Regional Mobility
• Invest in Our Economy
• Support Quality Education
• Champion Great Neighborhoods
• Put Technology to Work
PAGE
7