The City of Wichita's recently released 2015 financial report indicates slightly higher debt levels, but a strong reserve balance.
The report is required by the State of Kansas. City finances are also audited by an outside accounting firm.
According to the annual report, the city’s reserve balance is 11.4 percent, which exceeds the minimum reserve level of 10 percent. Wichita has also maintained a stable mill levy.
Shawn Henning, the city’s finance director, says the report indicates that Wichita is in good shape, which she says is important, as these numbers can impact Wichita’s credit rating when the city borrows money for things like roads, bridges and sewer projects.
“The higher the rating, the lower your interest cost," Henning says. "So that affects our financing costs over time.”
Debt levels from bonds did rise by about $100 million in 2015 for a total balance of $1.1 billion. Wichita issued $240 million in new bonded debt in 2015, while a bonded debt totaling $193.9 million was retired.
Henning says the increased bond indebtedness is due to refinancing, as well as large projects like the new airport terminal and the city’s aquifer storage and recovery project.
--
Follow Sean Sandefur on Twitter @SeanSandefur
To contact KMUW News or to send in a news tip, reach us at news@kmuw.org.