The trends tracked for this section are each city’s Full-Time Equivalents per 1,000 Residents and the most recent Bond Rating. All of the influencing factors accounted for in past reports remain the same for this report.
Valley Benchmark Communities
Finance and Administration Services
Influencing Factors
As a city’s population increases, so do the demands for service and corresponding staffing levels. Cities with a larger population are often able to generate more revenue to support these services, providing increased flexibility for unique or enhanced programs. In addition to a city’s resident population, a community’s non-resident daytime population can influence the amount and level of services required.
Staffing levels are influenced by whether services are performed by internal staff or provided by contract, which can vary between cities.
Some cities (primarily Phoenix) have regional responsibilities that require additional staffing. Examples include Sky Harbor Airport and Phoenix Convention Center.
Over time, cities have decided to enhance or improve certain services, thus requiring additional revenue sources. For example, some cities use a Primary Property Tax to generate additional operating funds.
The fiscal health of a community can be difficult to summarize with one measure, but a commonly accepted approach is to compare bond ratings. A high bond rating is an indicator of financial health, since rating agencies look for acceptable financial practices, consistent revenue streams, expenditure control, healthy fund balance reserves, the socioeconomic composition of the community, and the value of the tax base.
