RubinBrown Public Sector Stats 2017

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ST. LOUIS METROPOLITAN AREA

41 NUMBER OF

22,000 AVERAGE POPULATION

3.1% MEDIAN CHANGE IN NET POSITION

MUNICIPALITIES

Unrestricted General Fund Balance as % of Expenditures (median – all cities)

Unrestricted General Fund Balance as % of Expenditures (median – all cities) As xpe t , the results for the St. Louis area prior to 2015 reflected a significant slowing down of th economic recovery and related revenue growth. The median change in net position for St. Louis municipalities went from 6.3% to 3.3% from 2012 to 2014. This was a time of growth but at a very slow pace. In 2015, the median change in net position was a much healthier 4.4%. More cites ended the year with a surplus than in the past. That did not continue in 2016. Of the 41 St. Louis municipalities, 11 (or 27%) reported a decrease in government- wide net position in 2016 and at an average decrease of over 30%. In 2015, only 10 cities out of 41 had a deficit and only at an average of 22%. The cause of the decreased growth in net position in 2016 is evident when examining revenue per capita and expenses per capita. As indicated in the graph below, median revenue per capita for St. Louis municipalities remained flat in 2016 but expenses per capita increased 4.4%. This represents a significant increase in costs compared to prior years and a strong reflection of a slowly improving economy. Another important indicator of financial strength is how much debt the region’s taxpayers are taking on. Median long-term debt per capita in the St. Louis region (which excludes pension or other non-bonded debt) had been decreasing prior to 2014. During 2014 to 2016, increased debt activity took place due to low interest rates. Finally, the most scrutinized ratio is the general fund’s unrestricted fund balance as compared to operating expenditures. This shows a very strong financial position for the St. Louis area governments, as they are maintaining unrestricted fund balances equal to almost 50% of annual expenditures. 2015 2016

56.1%

2012

56.9%

2013

48.3%

2014

46.1%

2015

45.6%

2016

45% 50% 55% 60%

Median Dollars Per Capita

$1,250

$1,062

$1,017

$1,008

$996

$1,000

Tax Revenue Expenses Total Debt

$840

$834

$780

$760

$745

$750

$776

$730

$715

$680

$620

$500

$250