Houston Republic

The most recent Annual Comprehensive Financial Report (ACFR) of the City of Houston for the fiscal year ending June 2023, which provides a snapshot of the City's overall financial position and a detailed look at its finances, has recently been completed.

Based on the report, the City's financial health is the strongest in 20 years, a result of several policy reforms implemented by Mayor Sylvester Turner's administration, in addition to careful planning and strategic management of federal COVID-19 funding.

The City's net position, a strong indicator of a government's financial standing, has trended upward in the last five fiscal years of Mayor Turner's term. After being negative $95 million at the end of fiscal year 2016, the net position was the highest in the last 20 years at $7.6 billion as of the end of FY23, an increase of $1.7 billion compared to FY22. This is attributable to an increase of approximately $802.6 million in total assets as well as a decrease in total liabilities of $919.5 million. The decrease in liabilities is mainly due to a decrease in total other post-employment benefit (OPEB) liability of $576.6 million and a decrease of $407.8 million in total outstanding debt.

The City's unrestricted portion of the net position has improved by approximately $1.3 billion and has a deficit of $5.0 billion at the end of FY 23.

The improved financial standing resulted from the following:

•    Sound fiscal management

•    Historic Pension Reform in 2017

•    Addressing the OPEB liability situation

•    Reduction of debt

•    Increased federal financial assistance.

Pension Reform in 2017: When Mayor Turner was elected, the unfunded pension liability was approximately $8.2 billion and rising. Since the City enacted reforms, the liability decreased to $1.49 billion in FY21, but with the market volatility, it is currently at an estimated $2.4 billion.

Original source can be found here.