Study Says Chicago, New York Worst Financial Shape - Irvine Is Best!
HERE'S SOME EYE-POPPING NEWS!
A study by The Fiscal Times, HERE, titled City Fiscal Strength Index 2017, tells us that among the 116 large American cities with a population greater than 200,000 studied, Chicago is in the worst financial shape, with New York City the next worst. And, in this study, Irvine is rated best! In fact, there are several southern California cities near the top of the list. Following Irvine, Fontana and Moreno Valley are at 2 and 3, Huntington Beach is 4, Santa Ana is 5 and Glendale is 6.
This is a fascinating study, particularly since it deals with how those cities manage - or don't manage - their pension and other post-employment benefits. It's not a long report and has a link to an informative chart for your review.
Five Factors were used for this study:
1 - The ratio of a city's general fund balance to its expenditures (40 percent weighting).
2 - The ratio of its long term obligations (including OPEB but excluding pensions) to total
government-wide revenues (30 percent weighting).
3 - The ratio of actuarially determined pension contributions to total government-wide revenues (10 percent weighting).
4 - Change in local unemployment rate (10 percent weighting).
5 - Change in property values (10 percent weighting).
It's informative to note that Chicago - the worst - currently has a crime rate that is astronomical.
TAKE A FEW MINUTES TO READ IT
Take a few minutes to read through this report. Specific details of each city included in the study may be of interest to you, as will related reports for which there are also links.