The 2017 Minnesota City Finances Report was released Dec. 18, 2018 by State Auditor Rebecca Otto. The report provides a summarization of the financial operations of Minnesota cities for the 2017 calendar year.
“The annual city finance report provides for transparency of city finances,” Auditor Otto said. "The report also provides analysis on long-term financial trends for large and small cities across Minnesota, which may be helpful for policymakers at the Capitol.”
Statewide, the current trends showed total revenues of the governmental funds for all Minnesota cities at $5.54 billion in 2017, an increase of 2.1 percent over 2016 revenues.
As of Dec. 31, 2017, the report shows Breckenridge, with a listed population of 3,289, had total revenues of $4,879,914. Of that amount, property taxes collected amounted to $854,198. By contrast, the city of Campbell, population of 144, shows total revenues of $125,436 with $32,341 collected from property taxes.
Total expenditures for Breckenridge were $5,237,925 and for Campbell were $94,294.
Total expenditures of the governmental funds for all Minnesota cities totaled $6.38 billion in 2017, an increase of 1.3 percent over 2016. The largest expenditures categories were streets and highways and public safety.
Over the 10-year period from 2008-2017, the report showed city revenues, after adjustments for inflation, increased 0.7 percent. Revenues derived from property taxes grew 39.7 percent, compared to an increase of 8.9 percent for revenues derived from intergovernmental sources. The proportion of total revenues derived from property taxes grew from 34.7 percent in 2008 to 40.8 percent in 2017.
Between 2008 and 2017, the report shows that, when adjusted for inflation, 2017 expenditure levels are below 2008 levels and decreased 2.2 percent over the ten-year period. Over the same period, actual total city expenditures grew from $5.53 billion to $6.38 billion, representing an increase of 15.4 percent.
Even though inflation-adjusted total expenditures decreased 2.2 percent over the 10-year period, a comparison of the two five-year periods of 2008-2012 and 2013-2017 reveals a significant reversal during the most recent period, the report shows. From 2008-2012, inflation-adjusted total expenditures decreased 9.5 percent, while from 2013-2017, inflation-adjusted total expenditures increased 12.1 percent.
To view the complete report, visit www.audi