Agenda - Council Work Session - 06/10/2014

Home

GOVERNMENTAL FUND EXPENDITURES The expenditures of governmental funds will also vary from state -wide averages and from year -to -year, based on the City's circumstances. Expenditures are classified into three types as follows: • Current — These are typically the general operating type expenditures occurring on an annual basis, and are primarily funded by general sources such as taxes and intergovernmental revenues. • Capital Outlay and Construction — These expenditures do not occur on a consistent basis, more typically fluctuating significantly from year -to -year. Many of these expenditures are project- oriented, and are often funded by specific sources that have benefited from the expenditure, such as special assessment improvement projects. • Debt Service — Although the expenditures for debt service may be relatively consistent over the term of the respective debt, the funding source is the important factor. Some debt may be repaid through specific sources such as special assessments or redevelopment funding, while other debt may be repaid with general property taxes. The City's expenditures per capita of its governmental funds for the past three years, together with state -wide averages, are presented in the following table: Governmental Funds Expenditures per Capita With State -Wide Averages by Population Class State -Wide City of Ramsey Year December 31, 2012 2011 2012 2013 Population 2,500 - 10,000 10,000 - 20,000 20,000- 100,000 23,702 23,835 24,306 Current General government $ 127 $ 101 $ 84 $ 205 $ 767 $ 117 Public safety 234 229 241 164 162 154 Street maintenance and lighting 114 105 92 209 184 160 Parks and recreation 82 95 86 36 35 42 All other 73 75 92 — — — $ 630 $ 605 $ 595 5 614 $ 1,148 $ 473 Capital outlay and construction $ 315 $ 313 $ 221 $ 278 $ 141 $ 29 Debt service Principal $ 187 $ 135 $ 103 $ 76 $ 62 $ 54 Interest and fiscal 58 46 39 52 112 50 $ 245 $ 181 $ 142 $ 128 $ 174 $ 104 The City has historically and consistently used limited expenditure functions for financial statement reporting purposes. As the City has grown and increased spending for community development and other areas, we encourage the City to review the format and level of functional detail presented in future comprehensive annual financial reports. We believe this will enhance comparisons to state -wide averages and improve fmancial statement transparency, identifying changes from year -to -year. Total expenditures in the City's governmental funds for 2013 were $14,707,853, a decrease of $20,208,527 (57.9 percent) from the prior year. On a per capita basis, the City expended a total of $606 in 2013. Current expenditures decreased $675 per capita from last year. This decrease was primarily for approved expenditures incurred in 2012 within Tax Increment District 14, for The COR (Center of Ramsey) Development project. Capital outlay expenditures for 2013 were $112 less per capita than the prior year due to fewer city street construction expenditures. Debt service expenditures for 2013 were $70 per capita lower than the prior year as scheduled, which were significantly higher in the prior year due to refunding bond activity. -8-