Agenda - Council Work Session - 06/09/2015

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GFE OVERNMENTAL UNDXPENDITURES 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 City of Ramsey State-Wide YearDecember 31, 2013201220132014 23,83524,30624,935 Population2,500–10,00010,000–20,00020,000–100,000 Current $ 117767$ 127$ General government129$ 100$ 83$ Public safety244 235 239 154162 153 160184 118 Street maintenance and lighting123 121 91 Parks and recreation83 99 85 4235 40 –– – All other66 73 91 628645 589 4731,148 438 29141 148 Capital outlay and construction303 288 219 Debt service 5462 63 Principal164 133 102 Interest and fiscal55 43 39 50112 47 104174 110 176219 141 $ 6061,463$ 696$ Total expenditures1,167$ 1,092$ 949$ 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 financial statement transparency, identifying changes from year-to-year. Total expenditures in the City’s governmental funds for 2014 were $17,368,873, an increase of $2,661,020 (18.1 percent) from the prior year. On a per capita basis, the City expended a total of $696 in 2014. Current expenditures decreased $35 per capita from last year. This decrease was primarily in street maintenance and lighting expenditures for joint project costs incurred in the prior year. Capital outlay expenditures were $119 more per capita than the prior year due to a larger street construction and park improvement expenditures in the current year. The change in debt service activity was due to scheduled debt repayment plans. -8-