Strong Fiscal Management

At the heart of the County's stability - even in times of uncertainty - is its fiscal discipline and systemic financial planning and monitoring. It is important for the County to have strong fiscal management to ensure the County can continue to provide core services and the mix of other services sought by members of the public. In part, strong fiscal management tracks a few key indicators the operating ratio and the debt ratio.

The operating ratio demonstrates the ability to generate revenues to fund current or desired service levels. A ratio of 1:1 or higher indicates budget solvency. The ratio is measured by comparing audited General Fund expenditures to audited General Fund revenues. The measure focuses on the General Fund as it is the County's chief operating fund.

The debt ratio shows the County's debt in relation to the revenues each year. This shows the burden of long-term debt on the County's budget. Generally, a smaller ratio means that less of the County's resources (revenues) will have to go towards paying debt - which means more resources for other needed programs that the County provides to the public.  This ratio is calculated by comparing annual principal and interest payments on long-term obligations of the General Fund to budgeted General Fund revenue. The limit, as set in the County's Administrative code, is set at 5%.