The California Policy Center, a non-profit think tank, analyzed audited financial statements from over 400 cities statewide, basing its rankings on objective financial metrics like reserves, debts, and funding allocations. It ranked Ukiah dead last. Ukiah Finance Director Dan Buffalo questioned the fairness of the assessment.
Buffalo noted that it emphasized the general fund—Ukiah’s main discretionary fund—while overlooking the broader budget and substantial capital projects underway. According to Buffalo, Ukiah is executing on an ambitious agenda of $100 million in ongoing projects that temporarily drain reserves but are largely reimbursable through state and federal grants.
“The data doesn’t accurately characterize our financial position,” Buffalo said. “Our reserves have been temporarily depleted because we’re cash-flowing these projects. The report treats this as a red flag, but it’s a strategic decision for long-term infrastructure.” Among the project is the rehabilitation and expansion of the waste water treatment plant.
Buffalo further addressed how pension fund management also impacted the ranking. Following the financial crisis, Ukiah issued $40 million in bonds to lower its pension liabilities, a move he says saved taxpayers but increased the city's debt profile in the short term.
Christensen and the California Policy Center acknowledge the limitations, noting that the rankings represent a snapshot of fiscal health but not a comprehensive verdict. Buffalo emphasized that 2024 will likely show a more balanced financial outlook once capital project reimbursements are realized, which he expects to reflect a healthier fiscal score. And Christensen agreed that Ukiah's ranking can change dramatically.
This story underscores the importance of local reporting in exploring context and nuance behind metrics. As cities like Ukiah navigate financial complexities, it's important that citizens have the information they need to accurately evaluate the performance of local government.