Agenda - Council - 06/12/2018 - Laserfiche WebLink

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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 2015 2016 2015 2016 2017 Population 20,000-100,000 20,000-100,000 25,598 25,868 26,251 Current General government $ 89 $ 97 $ 122 $ 137 $ 154 Public safety 261 273 157 164 180 Public works 99 95 71 85 97 Recreation 94 95 56 57 75 All other 89 91 632 651 406 443 506 Capital outlay and construction 286 301 247 107 73 Debt service Principal 117 115 343 67 79 Interest and fiscal 33 34 43 37 37 150 149 386 104 116 Total expenditures $ 1,068 $ 1,101 $ 1,039 $ 654 $ 695 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 2017 were $18,237,741, an increase of $1,330,962 from the prior year. On a per capita basis, the City expended a total of $695 in 2017. Current expenditures increased $63 per capita over the prior year. Capital outlay expenditures were $34 less per capita than the prior year. Debt service spending increased by 12 per capita as planned with debt financing agreements. Like revenues, expenditures have typically been less than the state-wide averages. -9-