Truth in Accounting Report: Missoula County and City
Our Republican Central Committee wants local government to sit on a solid financial foundation. We want those who pay local taxes be well informed about how their hard-earned money is being used by elected officials. Our first step was to turn to a group of accounting professionals who, each year, examine the fiscal condition of all 50 states and 53 major cities. We asked them to look at the annual financial reports of Missoula County, run by three County Commissioners, and of the City of Missoula, run by a Mayor and a City Council of twelve.
TIA’s approach is straightforward. They add up (a) the Assets Available to Pay Bills and (b) the Total Bills. The key is that they include unfunded Pension Benefits and Retiree Health Care Benefits in Total Bills. These future costs are usually not obvious to citizens.
Then TIA subtracts the bills from the assets available. A result greater than zero means that a Taxpayer Burden exists.
For the City of Missoula, the Taxpayer Burden is $5,300 for each taxpayer. The City earns a Financial Grade “D”.
For Missoula County, the Taxpayer Burden is $900 for each taxpayer. The County earns a Financial Grade “C”.
The Republican-run State of Montana has a surplus $4,300 per taxpayer and a Financial Grade “B”.
Read the full report HERE
The calculations for Missoula and a short discussion of the risks that come from under-funded pensions are explained in a brief 10-pages. If you’d like to know more, send your questions to [email protected]