A new report on the financial condition of the 75 most populous cities

A new report on the financial condition of the 75 most populous cities ranks Plano #10 in the nation. The report is based on the cities’ 2021 annual comprehensive financial reports, which are not analyzed on this scale by any other organization.

The analysis by Truth in Accounting, a nonprofit government finance watchdog group, found Plano has $313.1 million available to pay future bills. This surplus equates to $3,700 for each city taxpayer.

According to the fiscal watchdog's annual Financial State of the Cities report, Plano had $335.1 million in bills and $648.2 million in available assets to pay those bills after capital and restricted assets were excluded. This resulted in a Taxpayer Surplus™, which is each taxpayer's share of the municipal surplus after its bills are paid.

While it appeared that Plano bettered its standing from 2020, the data can be deceiving. Based upon the city’s latest audited financial report for the fiscal year 2021, Plano had $313.1 million available to pay future bills. The resulting surplus was $3,700 for each Plano taxpayer, earning the grade of "B" from Truth in Accounting. Importantly, the improvement included increases in the market value of pension assets, which are not considered spendable except to pay pension benefits.

The $313.1 million available to pay Plano's bills is an upgrade over last year’s report. The city’s fiscal improvement occurred primarily due to a temporary decrease in its pension liability. Plano's pension liability is calculated by subtracting earned and promised benefits from the market value of pension assets. The pension assets' values were high based on an exceptionally good year in the markets in 2021. The result was a dramatic decrease in Plano's pension liability and increased money available to pay future bills.

You can read the full report here and Plano's individual report here.