Agenda - Council Work Session - 06/08/2021

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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 2018 2019 2018 2019 2020 Population 20,000-100,000 20,000-100,000 26,462 27,051 27,263 Current General government $ 104 $ 107 $ 159 $ 161 $ 178 Public safety 294 306 181 198 219 Public works 106 119 90 93 76 Recreation 104 106 49 47 54 All other 78 97 18 686 735 479 499 545 Capital outlay and construction 307 355 135 56 272 Debt service Principal 109 88 79 84 148 Interest and fiscal 29 28 35 32 32 138 116 114 116 180 Total expenditures $ 1,131 $ 1,206 $ 728 $ 671 $ 997 The City has historically 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 continue to review the format and level of functional detail presented in all funds in future 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 2020 were $27,169,329, an increase of $9,001,040 from the prior year. On a per capita basis, the City expended a total of $997 in 2020. Current expenditures increased $46 per capita over the prior year, with more public safety and COVID-19 personal protective equipment spending in the current year. With more projects in the current year, including the public works campus project, capital spending was $216 more per capita than the prior year. Debt service spending increased by $64 per capita as planned, with debt financing agreements and the prepayment of the 2011A bonds in the current year. Like revenues, the City's per capita expenditures have typically been less than the state-wide averages. -10-