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GOVERNMENTAL FUND EXPENDITURES <br />The expenditures of governmental funds will also vary from state-wide averages and from year-to-year, <br />based on the City's circumstances. Expenditures are classified into three types as follows: <br />• Current — These are typically the general operating type expenditures occurring on an annual <br />basis, and are primarily funded by general sources, such as taxes and intergovernmental revenues. <br />• Capital Outlay and Construction — These expenditures do not occur on a consistent basis, more <br />typically fluctuating significantly from year-to-year. Many of these expenditures are <br />project -oriented and are often funded by specific sources that have benefited from the <br />expenditure, such as special assessment improvement projects. <br />• Debt Service — Although the expenditures for debt service may be relatively consistent over the <br />term of the respective debt, the funding source is the important factor. Some debt may be repaid <br />through specific sources, such as special assessments or redevelopment funding, while other debt <br />may be repaid with general property taxes. <br />The following table presents the City's governmental funds expenditures by type for the last two fiscal <br />years: <br />Current <br />General government <br />Public safety <br />Streets and highways <br />Culture and recreation <br />All other <br />Total current <br />Capital outlay <br />Debt service <br />Governmental Funds Expenditures by Type <br />2025 2024 <br />Percent <br />Expenditures of Total <br />$ 5,479,491 15.2 % <br />8,865,263 24.6 <br />4,787,571 13.3 <br />2,044,948 5.7 <br />1,342,690 3.7 <br />22,519,963 62.5 <br />9,174,063 25.5 <br />4,307,526 12.0 <br />Total expenditures $ 36,001,552 <br />Year -to -Year Change <br />Percent <br />Expenditures of Total <br />$ 4,881,806 <br />8,160,476 <br />4,054,306 <br />1,883,848 <br />1,488,674 <br />Dollar <br />Change <br />11.9 % $ 597,685 <br />19.9 704,787 <br />9.9 733,265 <br />4.6 161,100 <br />3.6 (145,984) <br />20,469,110 49.9 2,050,853 <br />15,862,434 38.8 <br />4,625,140 11.3 <br />(6,688,371) <br />(317,614) <br />Percent <br />Change <br />12.2 % <br />8.6 % <br />18.1 % <br />8.6 % <br />(9.8) % <br />10.0 % <br />(42.2) % <br />(6.9) % <br />100.0 % $ 40,956,684 100.0 % $ (4,955,132) (12.1) % <br />Total expenditures in the City's governmental funds for 2025 were $36,001,552, a decrease of $4,955,132 <br />(12.1 percent) from the prior year. <br />Natural inflationary increases in most current spending areas were more than offset by the reduction in <br />capital outlay spending in comparison to the prior year. Capital spending was down in the current year for <br />street reconstruction projects, equipment purchases, and improvements completed in the City's Center of <br />Ramsey (COR) development. <br />-9- <br />