Agenda - Council - 07/27/1982 - Laserfiche WebLink

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I I I ARNE H. CARLSON STATE AUDITOR SUITE 400; 555 PARK STREET ST. PAUL, MINNESOTA 55103 For Further Information: (612) 296-2551 FOR IMMEDIATE RELEASE I I I STATE AUDITOR ARNE CARLSON ISSUES RAMSEY FISCAL HEALTH PROFILE In issuing Ramsey's Fiscal Health Profile today, State Auditor Arne Carlson said, "This profile provides a framework for assembling I I I information, analyzing the data, and focusing on trends to help policy-makers determine a future financial course of action." Carlson commented that, "The Ramsey study shows ~ny of the same trends we have seen in other growing communities - increased population, adjusted taxable valuation of real estate up by 100%, and total governmental revenues up by 319%, while total expenditures rose by 220%. Overall, we think the match between revenues and expenditure is quite favorable." I'i~'~'~..~' Carlson's office has,designed the Minnesota. Financial-Health I I I I ! I Program (MFHP) which is a five-year fiscal stress analysis (1976-1980) for cities with populations of 2,500 or more. Carlson, Beth Sullivan, Director of MFHP, and Paul Damrow, Fiscal Analyst for MFHP, are providing assistance to cities in the interpretation of their profiles. "Large increases in current expenditures are common in rapidly growing areas because the base year tends to be quite low. So when we see the per capita increase in this expenditure category up 55%, we compare it to the five year inflation rate of 45.8%. This leads us to conclude that the increase is not out of line." Carlson moved on to discuss the undesignated general fund balance. "Ramsey's fund balance represents 73% of intergovernmental revenues - which is a very healthy position to be in. Then we see that the fund balance equals 19.8% of the total expenditures for 1980. This compares to an 11% average for cities of the same size. The financial management must be complimented for building and maintaining this important reserve fund."