The City of Richmond's financial management is operating with a "clean bill of health," according to the independent auditing firm, KPMG.

KPMG's findings are shown in the recent release of the City's Comprehensive Annual Financial Report (CAFR), a stellar example of the stability and improvement that my Administration has brought to the City of Richmond. From small changes to larger ones, we have worked diligently to insure that the City is prepared to weather the harsh economic times that the nation is now experiencing.
 
The CAFR is a more complete analysis of the City's financial portfolio than the City's annual budget, which is more familiar to many citizens. The CAFR looks at the longer term and details the City's cumulative assets, investments, and income from all City departments and various sources at the end of each fiscal year. 
 
The CAFR not only speaks to financial management but also notes programs and initiatives that have either steadily advanced or been accomplished in the last four years. It details the progress the City has made by reviewing initiatives like the "City of the Future" program, RichmondWorks, stormwater solutions for the Shockoe and Battery Park and other public utility gains, such as making commercial and residential water rates equitable for the first time in memory. The report also details the tremendous progress the City has made in Public Safety.
 
You can find information about the Human and Social Services programs we have begun, from Early Childhood Development, At-Risk Youth Intervention, the Senior Advocacy and Special Needs Registry, Teen Pregnancy Prevention, and the Youth Summer Employment Academy.  
 
So many things have been done during these four years that even one-time critics now have come to acknowledge that they were totally unaware as to what had been accomplished. There should be no surprise as to the lack of awareness because even one of the candidates for this office did everything known to discredit the achievements by the City. Others may have believed that, since he was closely involved with City issues, he may have known what he was talking about. The record clearly shows he did not.
 
In fact, I invite anyone who reads this and who has questions to respond to me if they claim ([email protected]) that any of these things have not occurred. The facts are virtually unassailable.
 
Many citizens have seen the City's progress and want it to continue. The latest such example is a recent article about the ongoing success of Downtown development projects. That is why you saw 81% of citizens in a survey conducted by Council say that they like the direction the City is headed, are very encouraged by improvements in our quality of life and our neighborhoods, and give our City departments high marks in many areas. We know there is more to be done, such as KPMG's recommendation to hire a City Controller and additional support staff. Most citizens realize that further success means continuing to change and improve the way things have been done.
 
hereAs I mentioned, the CAFR is the long-term view of the City's financial and strategic vision. It is different than the City's annual budget, which details spending amounts for a 12-month period. The CAFR analyzes the state of City finances at the end of each fiscal year and puts it in a longer term perspective.
 
In the private sector, publicly-traded businesses are required by law to provide an Annual Financial Report, which you would receive as a stockholder. 
 
The CAFR details all of the City's information on long-term obligations, investments, debt rating and amounts, as well as other statistical and financial data. Also important is that the CAFR is often the tool by which investment companies gauge a government's fiscal integrity and issue bond rates.
 
As you may know, favorable bond ratings enable the City to borrow money at a cheaper rate, thus saving valuable taxpayer dollars for other necessities. In the last three years, the City has conducted three bond refinancings that led to saving the City a cumulative $32.5 million in bond debt service.
 
For the foreseeable future, good bond ratings will be absolutely essential given the current squeeze on the nation's credit and bond markets. My Administration has worked hard to streamline City finances and make improvements that will allow future borrowing to be as inexpensive as possible so that the City can continue to address problems that were long-ignored.
 
Due to the economic crisis, many municipalities across the nation have either been unable to borrow money or face paying exorbitant interest rates. Richmond is fortunate to have established creditworthiness that, while not immunizing us from the current storm, will help us save money.
 
Responsible financial planning and management have long been a trademark of my public service, initially in the State Senate, then as Governor when faced with a $2 billion shortfall, and now as Mayor. In all of these instances, I have maintained a steady grip on the wheel while some others around me had swerved.
 
As I mentioned, the changes we have implemented in the City's finances range from smaller things like standardizing six different forms into one common form to increasing the speed by which we collect delinquent taxes.
 
Other significant long-term changes include overhauling the City Grants Process, establishing the RichmondWorks performance management program, and creating the "City of the Future" program to fund more than $300 million in community improvements without raising taxes.

We have worked hard to get our City on stable financial ground, with common-sense financial practices that are standard in the private sector, but for too long were not practiced at City Hall. This responsible budgeting must continue in order to keep us moving forward, so that the City will be able to continue addressing many long-neglected needs.
 
The CAFR's long-term outlook on City finances will undoubtedly be stronger as additional improvements become the standard by which the City moves ahead through good times and bad.
 
The converse of continued improvements, however, will jeopardize the City's ability to endure this economic crisis, and subsequent ones, without resorting to the massive layoffs and cutbacks you already see occurring in some other cities.
 
All citizens should support and encourage the Mayor-elect to continue with our financial management philosophy, as the realities that stem from this current economic crisis will make borrowing and budgeting more difficult than many of us have ever before seen. 
 
The key to enduring the storm will be to continue to keep the wheel steady and the ship on course.