#financedecoder
LightNews LightNews
spokanereimagined.org
We're going to be conducting an analysis to see if we can determine how we got into this position and whether the current administration and city council is doing enough to turn the ship around.
#financedecoder #dothemath
eriklowe.bsky.social Erik @eriklowe.bsky.social · Apr 5
I'm no finance guy, so it was incredibly helpful for @strongtowns.org to release their municipal finance decoder yesterday.

In the last decade, Spokane has seen its financial position weaken considerably.

See replies for a link to my spreadsheet and additional graphs.
#financedecoder #dothemath
Net Financial Position (In Thousands of Dollars) What it is: The difference between the city’s financial assets (like cash and receivables) and its liabilities (like debt and pensions). This is the cumulative surplus/deficit that the city has accumulated through successive budget cycles. What it tells you: A positive net financial position suggests the city has more financial assets than obligations and is in a better position to weather downturns, invest in infrastructure, or respond to emergencies without resorting to borrowing or service cuts. If this number is negative, the city has spent more than it has saved and is relying on future revenue to pay past bills. What the trend shows: A downward trend means the city is growing more reliant on borrowing or deferring payments. An upward trend means it’s becoming more financially secure. Financial Assets-to-Total Liabilities What it is: The city’s financial assets—such as cash, receivables, and other short-term holdings—divided by its total liabilities. This is a different way of presenting the Net Financial Position. What it tells you: This ratio shows whether the city has enough liquid financial resources to cover what it owes. A ratio below 1 means it would not be able to pay off its liabilities using only its financial assets, which is a sign of financial stress. What the trend shows: A rising trend means the city is improving its financial buffer. A falling trend suggests the city is becoming less able to handle its obligations without borrowing or cutting services. Total Assets-to-Total Liabilities What it is: The value of all the city’s assets (including infrastructure) divided by its total liabilities. What it tells you: A ratio above 1 means the city owns more than it owes (solvent). Below 1 means it owes more than it owns (insolvent). What the trend shows: A downward trend means the city is becoming less solvent. An upward trend shows improving financial resilience. Interest-to-Total Revenues What it is: The percentage of annual revenue spent on interest payments. What it tells you: This shows how much of the budget is consumed by past borrowing. The higher the percentage, the less room for services, maintenance, or investment. What the trend shows: An increasing trend limits future choices and can crowd out basic services. A decreasing trend improves flexibility and budget health.
April 5, 2025 at 3:25 PM
eriklowe.bsky.social
I'm no finance guy, so it was incredibly helpful for @strongtowns.org to release their municipal finance decoder yesterday.

In the last decade, Spokane has seen its financial position weaken considerably.

See replies for a link to my spreadsheet and additional graphs.
#financedecoder #dothemath
Net Financial Position (In Thousands of Dollars) What it is: The difference between the city’s financial assets (like cash and receivables) and its liabilities (like debt and pensions). This is the cumulative surplus/deficit that the city has accumulated through successive budget cycles. What it tells you: A positive net financial position suggests the city has more financial assets than obligations and is in a better position to weather downturns, invest in infrastructure, or respond to emergencies without resorting to borrowing or service cuts. If this number is negative, the city has spent more than it has saved and is relying on future revenue to pay past bills. What the trend shows: A downward trend means the city is growing more reliant on borrowing or deferring payments. An upward trend means it’s becoming more financially secure. Financial Assets-to-Total Liabilities What it is: The city’s financial assets—such as cash, receivables, and other short-term holdings—divided by its total liabilities. This is a different way of presenting the Net Financial Position. What it tells you: This ratio shows whether the city has enough liquid financial resources to cover what it owes. A ratio below 1 means it would not be able to pay off its liabilities using only its financial assets, which is a sign of financial stress. What the trend shows: A rising trend means the city is improving its financial buffer. A falling trend suggests the city is becoming less able to handle its obligations without borrowing or cutting services. Total Assets-to-Total Liabilities What it is: The value of all the city’s assets (including infrastructure) divided by its total liabilities. What it tells you: A ratio above 1 means the city owns more than it owes (solvent). Below 1 means it owes more than it owns (insolvent). What the trend shows: A downward trend means the city is becoming less solvent. An upward trend shows improving financial resilience. Interest-to-Total Revenues What it is: The percentage of annual revenue spent on interest payments. What it tells you: This shows how much of the budget is consumed by past borrowing. The higher the percentage, the less room for services, maintenance, or investment. What the trend shows: An increasing trend limits future choices and can crowd out basic services. A decreasing trend improves flexibility and budget health.
April 5, 2025 at 3:15 PM
strongtowns.org
Input a handful of your city's publicly-available financial numbers and automatically produce 7 indicator charts to visualize the financial trajectory of your place. Share them with your city and on social with #FinanceDecoder and #DoTheMath 📉
April 4, 2025 at 7:00 PM