- Total Taxes Receivable less Allowance for Uncollectibles as a % of Total Taxes Levied
- Net Financial Assets or Net Debt as a % of Own Source Revenues
- Total Reserves and Discretionary Reserve Funds as a % of Municipal Expenses
- Cash Ratio (Total Cash and Cash Equivalents as a % of Current Liabilities)
- Debt Servicing Cost as a % of Total Revenues
- Closing Amortization Balance as a % of Total Cost of Capital Assets (Asset Consumption Ratio)
- Annual Surplus (Deficit) as a % of Own Source Revenues
Page two of Appendix A attached also provides more descriptive notes relative to each of these financial indicators so that users can readily understand the impact of each of these measures.
Based on this most recent review, the City's financial risk profile is very good with all of the measures being classified in the low risk category.
Following are some noteworthy indicators:
Outstanding Taxes Receivable compared to the Total Taxes Levied. In this category, through to 2014 we had previously been rated above 10% indicating a moderate risk. Enhanced collection activities, focused on the collection of long standing tax arrears accounts, together with improved economic conditions has resulted in an overall indicator value of 7.3% which is considered low risk.
Debt Servicing Cost as a % of Total Revenue. The City's pay-as-you-go capital investment strategy coupled with early debt retirement implemented in recent years has allowed this ratio to drop to a rate of 1.3%, which is on the low end of the low risk range, and well below our comparators average and median.
Total Reserves and Discretionary Reserve Funds as % of Municipal Expenses. The level of reserves has remained within the low risk category. This speaks largely to City Council's Reserve Enhancement Plan. It should be noted however that this indicator is still close to the moderate risk level cut-off and is well below our comparators average and median.
Risk Analysis:
The financial indicators reflect a low level of risk in The City of Windsor's financial position. The profile is based on a snapshot at a point in time; continual diligence is required to ensure the positive trends continue.