Just did a couple hour review of the 2009 CAFR for the City Of Springfield, MO, which is 150,000 and about an hour from me. The local towns and counties here don't have available financials unless you go to them.
I must admit, that although the City has a lot of money, the Net Assets are around 750,000,000, most of which, say 460,000,000 is in capital assets (buildings, roads, trucks, equipment, computers, office furniture, etc.) there is about 160,000,000 of "slush" fund sitting there and the city in 2009 turned a 22,000,000 profit.
The pension funds for fire and cops were 55% funded and appeared to be within reasonable actuarial limits.
The most blatant piece of doo-doo I could find was the City Cemetary, which is a permanently restricted fund holding 1.2MM for care and maintenance, of which, zero dollars were spent and 7k was increase in the fund. This money is clearly not invested very well, and should not be permanently restricted to grow forever.
Aside from that, there was a lot of fascinating information on the public sewer system and more importantly the municipal power utility company. This was all pretty much as expected and I didn't see anything in the financials to set off any booga-booga in my mind. You can be assured that any city or gov. running anything will do it less efficiently than a private enterprise could do it, the results of the components (the utility and the sewerage) were pretty much to be expected.
There is a LOT of investing going on, as I suppose there should be when you are sitting on 160,000,000 to invest. The investments had clear boundaries and limits in credit exposure, sector exposure, equities v. bonds and gov's and etc.
So - if the city were to go polling for a new tax hike or cry about pensions, I would certainly be able to wave their paper at them and say "what for" (I don't live there, but the info is there to lodge an argument).
Thinking of it, there is about maybe 1,250 of every city resident's dollars sitting in the kitty at the City gov. for future use.
Perhaps when a resident leaves, they should inquire about getting their fair share to take when they leave.
I believe there are huge conflicts of interest and other issues regarding the corporatization of our S&L gov's, but the CAFR I reviewed indicated a relatively healthy gov (financially) with capital assets (streets, roads, lights, bridges, parks, trucks, etc) and income coming in and going out, with funds set aside to pay bonds and pensions, and funds for rainy day. I didn't see particularly evil blood sucking leaches - perhaps they hide them off balance sheet.
disclosure - I am a CPA.