RubinBrown Public Sector Stats 2014

Executive Summary

by displaying the ratio value that separates each quartile. For a description and interpretation of the ratios, please refer to the “Financial Ratio Interpretations” section of the report. The conclusions reached as to which results are more or less favorable are based upon what is most commonly accepted in the industry while taking into consideration what the majority of cities are likely to believe. Each statistic may be viewed differently or may be more or less meaningful based upon each city’s situation. For example, a small city may view a large amount of funding being spent on public safety as favorable, whereas our analysis places this in a less favorable quartile. In addition, per capita ratios may be adversely affected if a city serves a large non-resident population due to a significant daily influx of workers.

Analysis The results of this year’s survey seem to indicate that 2013 was a year of continued growth, but at a much slower pace than in 2011 or 2012. After several years of decreases in tax and other revenues, these amounts increased as the economy began to rebound in 2011. During 2013 revenue growth slipped in some regions or increased at a slower pace in others while costs continued to grow at a increased pace compared to 2012. This has resulted in continued net asset growth for municipal governments, but at a slower pace as evidenced by the chart below. Fund balance of the general fund is a focal point of a city’s financial health, at least from a short-term perspective. Surprisingly, unrestricted fund balance, which includes assigned and unassigned fund balance categories as defined in GASB Statement No. 54, has remained relatively stable since 2009 as a percent of total revenues in the general fund, in spite of the economic downturn that has taken place during that time frame. In the analysis that follows, the results for each metropolitan area are examined, with an emphasis placed on the impact of current economic conditions upon each metropolitan area. Use of the Study Finance officers may use the study to determine how their cities compare to others of similar size and geographic area in key financial ratio measurements. Both quartile and average ratio values are provided for comparison. The finance officer may wish to share the results of the analysis with the municipality’s chief executive officer and governing body to help key officials understand the impact of decisions on the financial condition of municipality.

15% Average Change in Net Position (All Regions)

10%

5.2%

4.6%

3.2%

2.5%

5%

1.6%

0%

2009

2010

2011

2012

2013

Unrestricted General Fund Balance as a Percent of Revenue

70%

60.1%

59.2%

58.1%

60%

51.7%

50.0%

50%

40%

36.2%

35.7%

34.8%

32.9%

32.2%

34.0%

30%

33.0%

32.5%

30.9%

20%

10%

0%

2009

2010

2011

2012

2013

Kansas City

St. Louis

Denver

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