Financial Trends Analysis

Financial Trends Analysis

October 2006 Annual Financial Trend Analysis (pdf/865kb/62pgs)

Each year the City of Scottsdale evaluates its current financial condition with existing programs, assesses future financial capacity, and integrates short- and long-term plans, City Council goals, objectives, and financial policy into its decision-making process. Analysis of the City’s financial and economic trends is an integral part of this process.

City staff performs financial trend analysis each year in conjunction with the annual audit and financial report preparation. The annual Financial Trends report combines budgetary and financial information with economic and demographic data to create a series of local government indicators to monitor changes in Scottsdale’s financial condition. These indicators, when considered as a whole, can help interested stakeholders gain a better understanding of the City’s overall financial condition. The report also provides information regarding existing and potential environmental, organizational, and financial problems that may affect the City’s future fiscal health. This type of analysis of key financial trends and other community factors is similar to the analysis that credit rating agencies undertake to determine Scottsdale’s bond rating – AAA.

Using this trend analysis and the framework of the financial policies adopted by City Council will enable management to strategically plan and budget, provide solutions to negative trends, and ultimately preserve the financial health of Scottsdale. It is a good ‘report card’ of the City’s current financial condition and reference point as staff begins work on the next year’s financial plan (budget).