Recently, there are those who have compared our city to Detroit in terms of demographics, crime and finances.
On July 18, the City of Detroit filed bankruptcy in an effort to seek protection from all its creditors. This week, the Chapter 9 petition was challenged but nothing will change for the next six months.
Detroit is the largest American city ever to file for bankruptcy. Its long-term debts are estimated at more than $18 billion, which averages out to $27,000 worth of debt for each resident.
On the surface, St. Louis and Detroit have some similar problems. But in terms of money, there is a big difference.
I have worked hard on the city’s finances for more than 17 years to protect taxpayer’s dollars. I have implemented policies that support strong fiscal management.
While St. Louis has its challenges, our city is on solid financial footing. Our conservative debt profile is moderately high, yet manageable.
In St. Louis, 21 percent of our city’s families incomes fall below the poverty line, in Detroit, that figure is 31 percent.
St. Louis has a positive financial outlook. Our credit rating is Aa3 from Moody’s, A-plus from Standard & Poor’s and AA- with a stable outlook from Fitch Ratings.
Since 1995, I have invested the city’s money wisely. Additionally, I have implemented five-year budget forecasting, have kept a close eye on debt and have built up solid reserve funds.
The city’s reserves now total more than $40 million, compared with just $1.5 million 20 years ago.
It is safe to say that the City of St. Louis is financially stable.Â
