Agenda - Council Work Session - 06/13/2017

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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 2014 2015 2014 2015 2016 Population 20,000-100,000 20,000-100,000 24,935 25,598 25,868 Current General government $ 87 $ 89 $ 127 $ 122 $ 137 Public safety 254 261 153 157 164 Public works 114 99 118 71 85 Recreation 92 94 40 56 57 All other 98 89 645 632 438 406 443 Capital outlay and construction 276 286 148 247 107 Debt service Principal 115 117 63 343 67 Interest and fiscal 34 33 47 43 37 149 150 110 386 104 Total expenditures $ 1,070 $ 1,068 $ 696 $ 1,039 $ 654 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 2016 were $16,906,779, a decrease of $9,666,077 from the prior year. On a per capita basis, the City expended a total of $654 in 2016. Current expenditures increased $37 per capita over the prior year, which was primarily in general government and public works expenditures. Capital outlay expenditures were $140less per capita than the prior year, due to more street construction and Fire Station #2 expenditures in the prior year. The decrease of $282 per capita in debt service activity was due to scheduled debt repayment plans and the prepayment of bonds from the developer reimbursement proceeds that occurred in the prior year. -9-