Fiscal Year 2018 Comprehensive Annual Financial Report Shows District Continues to Advance Strong Economic Position
(Washington, DC) – This week, Mayor Bowser and Chief Financial Officer Jeffrey Dewitt presented the Fiscal Year 2018 Comprehensive Annual Financial Report (CAFR) which presented the District’s 22nd consecutive clean audit opinion. Citing no materials weaknesses or significant deficiencies for the fourth consecutive year, the FY 2018 CAFR continues to demonstrate the District’s positive economic growth. The FY 2018 CAFR follows the District’s General Obligation Bonds upgrade by Moody’s Investors Service to Triple A (Aaa)—the highest possible rating.
“Many of the investments we are able to make in our residents and neighborhoods today are possible because we stand on such a solid foundation and because we have been such strong stewards of taxpayer dollars,” said Mayor Bowser. “We have worked hard to build a fiscally responsible city—a city that is a great place to not only live and work, but to invest in and do business. We don’t take this progress for granted, and as we continue working to make our city’s prosperity more inclusive, we will continue to implement strong fiscal policies that keep our city moving forward.”
“The FY2018 Comprehensive Annual Financial report (CAFR) reflects the District’s strong financial position with fully funded pensions, strong reserves, and revenue growth that resulted in the recent upgrade of our bond rating to Aaa,” said Chief Financial Officer DeWitt.
Highlights of the FY 2018 CAFR show:
- the District’s General Obligation Bond ratings were upgraded by all three rating agencies (to Aaa by Moody’s) and Income Tax Bond ratings remain strong;
- pension and retiree health care trust funds remain fully funded (above 100 percent);
- federally and locally mandates reserves (working capital/liquidity) increased by $143.5 million to $1.34 billion providing 58 days for operating reserves, up from 54 days a year ago;
- the District’s total General Fund balance increased by $100.1 million;
- local source revenue growth over FY 2017 was strong with real property taxes increasing 3.4 percent; general sales and use tax growing 4.6 percent, boosted by strong growth in hotels, restaurants, and e-commerce; and individual income tax growth at 5.5 percent and business income tax growth at 3.7 percent
The Council of the District of Columbia will hold a hearing on the FY 2018 Comprehensive Annual Financial Report on Monday, February 4, 2019 at 10 am.