Agenda - Council - 06/23/2020 - 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 2017 2018 2017 2018 2019 Population 20,000-100,000 20,000-100,000 26,251 26,462 27,051 Current General government $ 101 $ 104 $ 154 $ 159 $ 161 Public safety 287 294 180 181 198 Public works 101 106 97 90 93 Recreation 99 104 75 49 47 All other 77 78 665 686 506 479 499 Capital outlay and construction 263 307 73 135 56 Debt service Principal 121 109 79 79 84 Interest and fiscal 32 29 37 35 32 Total expenditures 153 138 116 114 116 $ 1,081 $ 1,131 $ 695 $ 728 $ 671 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 2019 were $18,168,289, a decrease of $1,106,911 from the prior year. On a per capita basis, the City expended a total of $671 in 2019. Current expenditures increased $20 per capita over the prior year, primarily in public safety. With fewer projects in the current year, capital outlay expenditures were $79 less per capita than the prior year. Debt service spending increased by $2 per capita as planned with debt financing agreements. Like revenues, expenditures have typically been less than the state-wide averages. -9-