Agenda - Council - 06/11/2019 - 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 2016 2017 2016 2017 2018 Population 20,000-100,000 20,000-100,000 25,868 26,251 26,462 Current General government $ 97 $ 101 $ 137 $ 154 $ 159 Public safety 273 287 164 180 181 Public works 95 101 85 97 90 Recreation 95 99 57 75 49 All other 91 77 651 665 443 506 479 Capital outlay and construction 301 263 107 73 135 Debt service Principal 115 121 67 79 79 Interest and fiscal 34 32 37 37 35 Total expenditures 149 153 104 116 114 $ 1,101 $ 1,081 $ 654 $ 695 $ 728 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 2018 were $19,275,200, an increase of $1,037,459 from the prior year. On a per capita basis, the City expended a total of $728 in 2018. Current expenditures decreased $27 per capita from the prior year, primarily in recreation spending. Capital outlay expenditures were $62 more per capita than the prior year. Debt service spending decreased by $2 per capita as planned with debt financing agreements. Like revenues, expenditures have typically been less than the state-wide averages. -9-