STATE OF MINNESOTA Office of the State Auditor

Transcription

1 STATE OF MINNESOTA Office of the State Auditor Rebecca Otto State Auditor Minnesota Town Finances 2016,, Debt

2 Description of the Office of the State Auditor The mission of the Office of the State Auditor is to oversee local government finances for Minnesota taxpayers by helping to ensure financial integrity accountability in local governmental financial activities. Through financial, compliance, special audits, the State Auditor oversees ensures that local government funds are used for the purposes intended by law that local governments hold themselves to the highest stards of financial accountability. The State Auditor performs approximately 150 financial compliance audits per year has oversight responsibilities for over 3,300 local units of government throughout the state. The office currently maintains five divisions: Audit Practice - conducts financial legal compliance audits of local governments; Information - collects analyzes financial information for cities, towns, counties, special districts; Legal/Special Investigations - provides legal analysis counsel to the Office responds to outside inquiries about Minnesota local government law; as well as investigates allegations of misfeasance, malfeasance, nonfeasance in local government; Pension - monitors investment, financial, actuarial reporting for approximately 650 public pension funds; Increment - promotes compliance accountability in local governments use of tax increment financing through financial compliance audits. The State Auditor serves on the State Executive Council, State Board of Investment, L Exchange Board, Employees Retirement Association Board, Minnesota Housing Finance Agency, the Rural Finance Authority Board. Office of the State Auditor 525 Park Street, Suite 500 Saint Paul, Minnesota (651) state.auditor@osa.state.mn.us This document can be made available in alternative formats upon request. Call (651) [voice] or [relay service] for assistance; or visit the State Auditor s web site:

3 Minnesota Town Finances 2016,, Debt November 14, 2017 Information Division Office of the State Auditor State of Minnesota Deputy State Auditor Greg Hierlinger Staff Kathy Docter, Director of Information Division John Jernberg, Research Analysis Specialist Christy John, Research Analyst Intermediate Mark Albarado, Management Analyst 2 Tiffany O Neil, Accounting Officer Erin Schutta, Accounting Officer

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5 TABLE OF CONTENTS Executive Summary...1 Scope...3 Overview al...5 al...9 Indebtedness...12 Towns Failing to Report...15 Economic Development Regions...17 Data Tables of Towns (Table 1)...22 of Towns (Table 2)...23 Classification of - al Funds Classification of (Table 3)...27 Classification of (Table 4)...84 Classification of Enterprise Funds Service Enterprises - Analysis of All Enterprise Operations (Table 5) Analysis of Outsting Indebtedness Outsting Indebtedness of Towns (Table 6) Summary of by Economic Development Region Summary of Town by Economic Development Region (Table 7) Summary of Town by Economic Development Region (Table 8) Glossary...169

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7 Executive Summary Current Five-Year Trends In 2016, Minnesota towns reported total revenues of $317.1 million. This amount represents a 2.3 percent increase over the total revenues reported in From 2012 to 2016, total town revenues increased 13.5 percent (pg. 5). Minnesota towns reported total expenditures of $310.8 million in This amount represents an increase of 9.9 percent over the amount reported in Over the five year period of 2012 to 2016, town total expenditures increased 22.5 percent (pg. 9). Towns had debt service expenditures of $11.2 million in This amount represents a decrease of 7.8 percent from Over the five-year period of 2012 to 2016, debt service expenditures decreased 15.5 percent (pg. 11). Outsting indebtedness totaled $57.4 million in This represents an increase of 4.9 percent over Outsting bonded indebtedness totaled $35.5 million in 2016, which represents an increase of 5.5 percent over the $33.6 million outsting in long-term debt totaled $21.4 million in 2016, which was an increase of 3.3 percent over In addition, towns reported $592,540 in short-term indebtedness in 2016, which was an increase of 42.6 percent over 2015 (pg. 13). Ten-Year Trends Between , total town revenues in actual dollars increased 30.9 percent. In constant, or inflation-adjusted, dollars, total town revenues increased 9.4 percent over this ten-year period (pg. 7). 1 Since 2007, the share of total revenues derived from taxes has increased from 67.8 percent in 2007 to 72.6 percent in 2016, the share of total revenues derived from intergovernmental sources has increased from 17.7 percent to 18.7 percent over that period (pg. 7). In constant, or inflation-adjusted, dollars, total town expenditures increased 7.0 percent between In actual dollars, total expenditures grew 28.0 percent over the ten-year period (pg. 11). 1 Constant dollars will refer to data adjusted for inflation using the Implicit Price Deflator for State Local s, setting 2007 as the base year (N.I.P.A. Table 1.1.9, October 2017). 1

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9 Scope This report analyzes the financial operations of 1,656 towns in Minnesota that provided financial information to the Office of the State Auditor for the calendar year ended December 31, The data used in preparing this report included annual town financial reporting forms, audits by certified public accountants, financial statements prepared by the town clerk or clerk-treasurer, county auditors reports of indebtedness, Minnesota Department of Revenue records. 3 Data received from the Department of Revenue includes state-shared tax distributions, grants, aids, taxable valuations, tax levies. In 2016, there were 1,781 towns compared to 853 cities 87 counties. The 2016 population estimates from the State Demographer show that 909,414 individuals reside in towns, representing about 16.4 percent of the state population. Town populations range from 11,078 in the Town of White Bear to 5 in the Town of Hangaard. Fifty-three percent of towns have a population of 300 or less. The data presented in this report reflects the activities of governmental funds enterprise funds. The governmental funds consist of the, Special Revenue, Capital Projects, Debt Service Funds. The enterprise funds are funds that report the financial operations of municipal public service enterprises, such as water or sewer utilities owned by the town. Tables 1 2 summarize the overall financial condition of Minnesota towns. More specifically, Table 1 displays governmental fund revenues, Table 2 shows governmental fund expenditures. Tables 3 4 present the data for governmental fund revenues expenditures by individual town, organized by county. Table 5 lists public enterprise funds, Table 6 details outsting bonded, other long-term, short-term debt of each individual town as of December 31, long-term debt refers to liabilities such as long-term lease agreements, installment purchase contracts, notes. Tables 7 8 provide a summary of town revenues expenditures by economic development region. This report does not analyze fund balances. The majority of towns use a cash basis of accounting, with the remainder using a modified accrual basis of accounting. Those towns using a cash basis of accounting report a single cash balance for all governmental funds at the end of the fiscal year. Towns using a modified accrual basis of accounting report separate fund balances for all of their governmental funds denote the amounts that fall under the following classifications: nonspendable, restricted, committed, assigned, unassigned. Because of these differences among towns, a comparative analysis of fund balances is not appropriate. 2 While there were 1,781 Minnesota towns in 2016, a total of 125 towns failed to comply with the statutory reporting requirement. In the previous reporting period, 95 towns failed to comply with the reporting requirement. The difference in the number of towns reporting from 2015 to 2016 may skew comparisons between the two years. 3 The underlying databases for Office of the State Auditor reports are available for downloading through the Office of the State Auditor s website at 3

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11 Overview al Principal of The principal sources of revenues for towns in 2016 were: taxes (mainly property taxes) state grants. These sources of revenues accounted for 89.5 percent of town revenues in Figure 1 below shows the components of revenues as a percent of total revenues in The share of total revenues derived from taxes decreased slightly from 73.0 percent in 2015 to 72.6 percent in The share of total revenues derived from state grants increased from 16.2 percent in 2015 to 16.8 percent in Figure 1: 2016 * $317,113,738 County/Local 1.4% Licenses Permits 0.9% Interest Earnings 0.7% Federal 0.5% Special Assessments 1.9% es 72.6% All 2.0% Charges for Services 3.1% State 16.8% *Due to rounding, percentages add up to 99.9 percent. Current Five-Year Trends In 2016, Minnesota towns reported total revenues of $317.1 million. This amount represents a 2.3 percent increase over the total revenues reported in From 2012 to 2016, total town revenues increased 13.5 percent. Between , tax revenues increased from $226.4 million to $230.3 million. This represents an increase of 1.7 percent. All categories of revenues, except federal grants licenses permits, increased between The categories of revenues showing an increase were county/local unit grants (48.7 percent), interest earnings (46.8 percent), all other revenues (16.3 percent), charges for services (11.1 percent), special assessments (7.9 percent), state grants (6.2 percent), taxes (1.7 percent). Federal grants decreased 74.2 percent licenses permits decreased 0.5 percent. 5

12 Figure 2 below shows the change in total revenues for towns over the five-year period. Figure 2:, (in Millions) $320 $310 $300 $290 $280 $270 $260 $250 $240 $230 $ Figure 3 below illustrates the five-year trend in federal state grants. Share of 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Figure 3: Federal State as a Percent of, State Federal 6

13 Ten-Year Trends Figure 4 below illustrates a long-term trend in total revenues in actual constant dollars. 4 As the chart shows, 2010 was the only year in which non-inflation adjusted revenues decreased during the ten-year period. Between , total town revenues in actual dollars increased 30.9 percent. In constant, or inflation-adjusted, dollars, total town revenues increased 9.4 percent over this ten-year period. Figure 4: Change in in Actual Constant Dollars, (in Millions) $330 $320 $310 $300 $290 $280 $270 $260 $250 $240 $230 $220 $210 $ Actual Dollars Constant Dollars Figure 5 on the following page shows the two major components of revenues: taxes intergovernmental revenues. These components have historically been the primary sources of revenues. Since 2007, the share of total revenues derived from taxes has increased from 67.8 percent in 2007 to 72.6 percent in 2016, the share of total revenues derived from intergovernmental sources has increased from 17.7 percent to 18.7 percent over that period. The underlying data displayed in Figures 1 through 5 for the years 2007 through 2011 is from previous town finance reports. Data displayed for the years 2012 through 2016 is in Table 1 on page Constant dollars will refer to data adjusted for inflation using the Implicit Price Deflator for State Local s, setting 2007 as the base year (N.I.P.A. Table 1.1.9, October 2017). 7

14 Percent of 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Figure 5: Primary of as a Percent of, es Intergovernmental 8

15 al Principal for towns include current expenditures capital outlays for roads bridges, general government, fire, all other public safety, all other expenditures. 5 Debt service principal interest payments are also included in total expenditures for towns. Figure 6 below displays the categories of expenditures for The roads bridges expenditures category, which is the primary service provided by towns, is more than three times the size of the next largest category, which is general government. Figure 6: in 2016* $310,798,863 Fire 11.7% All 5.1% Debt Service 3.6% All 1.7% 18.3% Roads s 59.5% *Due to rounding, percentages add up to 99.9 percent. Current Five-Year Trends Minnesota towns reported total expenditures of $310.8 million in This amount represents an increase of 9.9 percent over the amount reported in Of total expenditures, $260.4 million (83.8 percent) was allocated to current expenditures, $39.1 million (12.6 percent) to capital outlay, $11.2 million (3.6 percent) to debt service payments. Over the five-year period of 2012 to 2016, town total expenditures increased 22.5 percent. Figure 7 on the following page illustrates total expenditures over the five-year period. 5 Current expenditures capital outlays for water sewer enterprises are included separately as enterprise fund activities in Table 5, pg

16 Figure 7: Town, (in Millions) $320 $300 $280 $260 $240 $220 $ for roads bridges totaled $184.9 million in Of this total, $159.1 million was allocated to current expenditures (maintenance, snowplowing, lighting, engineering, administration) $25.9 million to capital outlays (road construction purchase of equipment). Figure 8 below provides a comparison of the percent of total expenditures allocated to general government, fire, roads bridges spending during the years 2012 through % Figure 8: Categories of as a Percent of, % 50% 40% 30% 20% 10% 0% Roads s Fire 10

17 Capital Outlays Capital outlays are expenditures used for the acquisition or construction of capital assets, such as buildings roads. Capital assets have lives extending beyond a single reporting period. Town capital outlays totaled $39.1 million in This amount represents an increase of 22.4 percent over 2015 an increase of 28.6 percent over the five-year period beginning in The largest category of capital outlays for towns was roads bridges. Capital outlay expenditures for roads bridges increased 5.8 percent between comprised 66.1 percent of total capital outlay spending in Debt Service Debt service expenditures are the principal interest payments on outsting indebtedness. Towns had debt service expenditures of $11.2 million in This amount represents a decrease of 7.8 percent from Over the five-year period of 2012 to 2016, debt service expenditures decreased 15.5 percent. Ten-Year Trends Figure 9 below shows the change in total expenditures in actual constant dollars from 2007 to In constant, or inflation-adjusted, dollars, total town expenditures increased 7.0 percent between In actual dollars, total expenditures grew 28.0 percent over the ten-year period. 6 Figure 9: Growth in in Actual Constant Dollars, $330 $310 (in Millions) $290 $270 $250 $230 $210 $ Actual Dollars Constant Dollars 6 Constant dollars will refer to data adjusted for inflation using the Implicit Price Deflator for State Local s, setting 2007 as the base year (N.I.P.A. Table 1.1.9, October 2017). 11

18 Primary Categories of Figure 10 below illustrates the ten-year trend in current expenditures, capital outlays, debt service as a percent of total expenditures from 2007 to The chart shows that current expenditures are the primary expenditure for towns. In addition, the chart shows that the share of total expenditures allocated to current expenditures has been increasing. The underlying data displayed in Figures 7 through 10 for the years 2007 through 2011 can be found in the town finance reports for previous years. Data displayed for years 2012 through 2016 is in Table 2 on page % 80% 70% 60% 50% 40% 30% 20% 10% Figure 10: Components of as a Percent of, % Current Capital Outlays Debt Service Indebtedness Current Five-Year Trends Towns incur long-term debt through the issuance of bonds notes, certificates of indebtedness, tax anticipation certificates. Long-term lease agreements are also classified as long-term debt. Towns can borrow only as permitted by state law, generally to finance purchases or capital projects. The amount of outsting debt affects the amount available for current expenditures because towns must have sufficient funds available to make principal interest payments to service the debt. 12

19 Outsting indebtedness totaled $57.4 million in This represents an increase of 4.9 percent over Outsting bonded indebtedness totaled $35.5 million in 2016, which represents an increase of 5.5 percent over the $33.6 million outsting in long-term debt totaled $21.4 million in 2016, which was an increase of 3.3 percent over In addition, towns reported $592,540 in short-term indebtedness in 2016, which was an increase of 42.6 percent over Figure 11 below provides a summary of bonds outsting, classified by type of bond, for the years 2012 through $35 Figure 11: Outsting Bonded Indebtedness, $30 Bonds (in Millions) $25 $20 $15 $10 $5 $ Special Assessments Obligation All Ten-Year Trends Outsting long-term debt has trended downward over the ten-year period. Figure 12 on the following page illustrates outsting long-term debt, which includes total bonded indebtedness other long-term debt in actual constant dollars for the years 2007 through

20 Figure 12: Outsting Long-Term Debt in Actual Constant Dollars, Outsting Long-Term Debt (in Millions) $90 $80 $70 $60 $50 $ Actual Dollars Constant Dollars Figure 13 below displays outsting long-term debt as a percent of total revenues for the years 2007 to As Figure 13 shows, outsting long-term debt as a percent of total revenues has been trending downward. The highest percent was in 2007 when it reached 35.1 percent, while the lowest level was in 2015 when it fell to 17.5 percent. The underlying data displayed in Figures for the years 2007 through 2016 can be found in the town finance reports for previous years. Data for 2016 is in Table 6 starting on page % Figure 13: Outsting Long-Term Debt as a Percent of, % 30% 25% 20% 15%

21 Towns Failing to Report Out of 1,781 towns in Minnesota in 2016, 125 failed to comply with the statutory reporting requirement. The chart below shows the number of towns that have not reported their financial information to the Office of the State Auditor, as required by law, in each of the last five years. Number of Towns Failing to Report, Year # of Towns The list below indentifies the towns (in alphabetical order, with the county s name in parantheses) that have not reported their financial information to the Office of the State Auditor, as required by law. *Failed to report in **Failed to report in 2014, 2015, Aetna (Pipestone) Buzzle* (Beltrami) East Valley (Marshall) Alango (Saint Louis) Byron (Waseca) Eastern* (Otter Tail) Alvwood** (Itasca) Camp Lake (Swift) Eddy (Clearwater) Amiret (Lyon) Clark (Aitkin) Eidsvold (Lyon) Antrim (Watonwan) Clinton** (Rock) Eldorado* (Stevens) Arcter (Kiyohi) Clover Leaf (Pennington) Fairmont* (Martin) Badger (Polk) Crate** (Chippewa) Featherstone** (Goodhue) Barry (Pine) Crow River* (Stearns) Felton (Clay) Beaulieu (Mahnomen) Dale** (Cottonwood) Fisher** (Polk) Beaver** (Roseau) Deer** (Roseau) Flom** (Norman) Beaver Falls (Renville) Deerwood (Kittson) Fountain Prairie* (Pipestone) Birch Cooley (Renville) Des Moines** (Jackson) Good Hope** (Itasca) Birch Lake (Cass) Donnelly (Marshall) Grass Lake (Kanabec) Bloomer (Marshall) Drammen (Lincoln) Hamlin* (Lac qui Parle) Brunswick (Kanabec) Eagle Point* (Marshall) Hersey* (Nobles) Butterfield (Watonwan) East Park (Marshall) Highling (Pennington) 15

22 Holy Cross** (Clay) Minneota (Jackson) Ross** (Roseau) Hubbard** (Polk) Mol (Clay) Rost** (Jackson) Iosco (Waseca) Moose Park** (Itasca) Saint Mary (Waseca) Johnson (Polk) Moranville (Roseau) Sauk Centre (Stearns) Knute (Polk) Nevada** (Mower) Seely (Faribault) Krain (Stearns) Nickerson (Pine) Shelly* (Norman) Kurtz (Clay) Oscar (Otter Tail) Sinclair (Clearwater) La Crosse (Jackson) Palmyra** (Renville) Skelton (Carlton) Lake (Roseau) Parker** (Morrison) Southbrook (Cottonwood) Lake George* (Stearns) Peace (Kanabec) Spruce** (Roseau) Laona** (Roseau) Pembina* (Mahnomen) Stokes (Roseau) Leiding** (Saint Louis) Pleasant Prairie** (Martin) Stony River* (Lake) Lessor** (Polk) Pohlitz** (Roseau) Stowe Prairie (Todd) Leven* (Pope) Pokegama (Pine) Sturgeon (Saint Louis) Lien (Grant) Polonia (Roseau) Sugar Bush (Becker) Little Rock (Nobles) Poppleton** (Kittson) Tegner** (Kittson) Logan** (Grant) Prairie Lake** (Saint Louis) Thief Lake (Marshall) Lucas* (Lyon) Preston (Fillmore) Tunsberg* (Chippewa) Luverne (Rock) Quiring* (Beltrami) Tynsid** (Polk) Marble (Lincoln) Redpath (Traverse) Weimer (Jackson) Marshall (Mower) Remer** (Cass) Westbrook (Cottonwood) McGregor (Aitkin) Rheiderl** (Chippewa) Whitefield** (Kiyohi) McKinley** (Cass) Riceville (Becker) Wild Rice** (Norman) Melrose** (Stearns) Richmond (Winona) Winnebago (Faribault) Merton** (Steele) River (Red Lake) Worthington** (Nobles) Minneiska (Wabasha) Rosendale** (Watonwan) 16

23 Economic Development Regions Minnesota has 13 economic development regions. The following section summarizes town financial information by economic development region. The number of towns listed data presented reflects only those towns that reported 2016 financial information to the Office of the State Auditor. revenues, total expenditures, total debt service are summarized on a regional basis. The underlying data for this section is in Tables 7 8 (pages ). The map on page 20 shows the location of each economic development region. Metro Area (7-County Twin Cities) There were 42 towns in this region that reported 2016 financial information. revenues in this region increased 1.1 percent totaled $29.8 million in 2016, accounting for 9.4 percent of total town revenues. expenditures in this region increased 3.8 percent to $30.7 million, accounting for 9.9 percent of total town expenditures. Debt service in this region decreased 41.9 percent totaled $1.7 million, accounting for 15.0 percent of total town debt service. Arrowhead There were 167 towns in this region that reported 2016 financial information. revenues in this region increased 9.1 percent totaled $37.5 million in 2016, accounting for 11.8 percent of total town revenues. expenditures increased 21.1 percent totaled $39.0 million, accounting for 12.6 percent of total town expenditures. Debt service in this region increased 3.1 percent totaled $1.8 million, accounting for 16.1 percent of total town debt service. Central There were 69 towns in this region that reported 2016 financial information. revenues in this region increased 6.5 percent totaled $33.8 million, accounting for 10.7 percent of total town revenues. expenditures in this region decreased 4.9 percent totaled $31.3 million, accounting for 10.1 percent of total town expenditures. Debt service in this region increased 51.0 percent totaled $2.0 million, accounting for 18.2 percent of total town debt service. East Central There were 81 towns in this region that reported 2016 financial information. revenues in this region increased 1.5 percent totaled $20.4 million, accounting for 6.4 percent of total town revenues. expenditures in this region increased by 8.0 percent totaled $19.4 million, accounting for 6.2 percent of total town expenditures. Debt service in this region increased 38.1 percent totaled $703,623, accounting for 6.3 percent of total town debt service. 17

24 Headwaters There were 102 towns in this region that reported 2016 financial information. revenues in this region increased 7.7 percent to $13.2 million, accounting for 4.2 percent of total town revenues. expenditures in this region increased 20.5 percent to $12.8 million, accounting for 4.1 percent of total town expenditures. Debt service in this region decreased 99.9 percent totaled $100, accounting for 0.0 percent of total town debt service. North Central There were 146 towns in this region that reported 2016 financial information. revenues in this region increased 3.7 percent totaled $25.9 million, accounting for 8.2 percent of total town revenues. expenditures in this region increased 6.1 percent totaled $25.6 million, accounting for 8.2 percent of total town expenditures. Debt service in this region decreased 22.2 percent totaled $840,077, accounting for 7.5 percent of total town debt service. Northwest There were 191 towns in this region that reported 2016 financial information. revenues in this region decreased 5.7 percent totaled $13.8 million, accounting for 4.3 percent of total town revenues. expenditures in this region decreased 4.8 percent totaled $12.3 million, accounting for 4.0 percent of total town expenditures. Debt service in this region increased 0.2 percent totaled $25,206, accounting for 0.2 percent of total town debt service. South Central There were 137 towns in this region that reported 2016 financial information. revenues in this region decreased 4.7 percent totaled $23.6 million, accounting for 7.4 percent of total town revenues. expenditures in this region increased 5.5 percent totaled $22.1 million, accounting for 7.1 percent of total town expenditures. Debt service in this region decreased 16.1 percent totaled $600,450, accounting for 5.4 percent of total town debt service. Southeast There were 187 towns in this region that reported 2016 financial information. revenues in this region increased 0.4 percent totaled $39.5 million, accounting for 12.5 percent of total town revenues. expenditures in this region increased 7.6 percent totaled $38.2 million, accounting for 12.3 percent of total town expenditures. Debt service in this region decreased 29.4 percent totaled $557,527, accounting for 5.0 percent of total town debt service. 18

25 Southwest There were 143 towns in this region that reported 2016 financial information. revenues in this region decreased 7.1 percent totaled $17.4 million, accounting for 5.5 percent of total town revenues. expenditures in this region increased 0.9 percent totaled $15.8 million, accounting for 5.1 percent of total town expenditures. Debt service in this region decreased 18.1 percent totaled $616,555, accounting for 5.5 percent of total town debt service. Southwest Central There were 77 towns in this region that reported 2016 financial information. revenues in this region increased 2.0 percent totaled $16.0 million, accounting for 5.0 percent of total town revenues. expenditures in this region increased 30.4 percent totaled $17.0 million, accounting for 5.5 percent of total town expenditures. Debt service in this region decreased 5.0 percent totaled $551,586, accounting for 4.9 percent of total town debt service. Upper Southwest There were 89 towns in this region that reported 2016 financial information. revenues in this region increased 4.7 percent totaled $9.2 million, accounting for 2.9 percent of total town revenues. expenditures in this region increased 10.0 percent totaled $8.2 million, accounting for 2.6 percent of total town expenditures. Debt service in this region decreased 40.6 percent totaled $18,069, accounting for 0.2 percent of total town debt service. West Central There were 225 towns in this region that reported 2016 financial information. revenues in this region increased 5.1 percent totaled $37.0 million, accounting for 11.7 percent of total town revenues. expenditures in this region increased 28.4 percent totaled $38.4 million, accounting for 12.4 percent of total town expenditures. Debt service in this region increased 10.1 percent totaled $1.8 million, accounting for 15.9 percent of total town debt service. 19

26 Economic Development Regions Region 1 Region 2 Region 3 Region 4 Region 6W Region 8 Region 5 Region 7E Region 7W Region 6E Region 11 Region 9 Region 10 Economic Regions 1... Northwest 2... Headwaters 3... Arrowhead 4... West Central 5... North Central 6E... Southwest Central 6W... Upper Southwest 7E... East Central 7W... Central 8... Southwest 9... South Central Southeast Metro Area Graphic by the Office of the State Auditor. 20

27 DATA TABLES

28 Table 1 of Towns For the Years Ended December 31, 2012 Through Year Percent Change 5-Year Percent Change Population* 919, , , , , % -1.0% Number of Towns* 1,784 1,783 1,783 1,781 1, % -0.2% able Capacity* $1,550,280,622 $1,635,634,365 $2,000,749,792 $1,990,764,195 $1,971,438, % 27.2% Levy* $217,394,623 $221,128,052 $230,144,989 $228,973,862 $234,647, % 7.9% REVENUES** Amount % Amount % Amount % Amount % Amount % % % es $208,049, % $213,669, % $223,057, % $226,435, % $230,339, % 1.7% 10.7% Special Assessments 6,697, % 6,825, % 7,058, % 5,659, % 6,106, % 7.9% -8.8% Licenses Permits 2,068, % 2,082, % 2,516, % 2,784, % 2,770, % -0.5% 33.9% 22 Intergovernmental Federal 9,615, % 2,996, % 7,615, % 5,987, % 1,542, % -74.2% -84.0% State 32,154, % 34,362, % 46,389, % 50,314, % 53,426, % 6.2% 66.2% County Highway 819, % 105, % 274, % 311, % 625, % 100.7% -23.7% All 990, % 1,516, % 1,153, % 1,132, % 1,525, % 34.7% 54.0% Local Unit 1,101, % 1,380, % 1,203, % 1,457, % 2,163, % 48.4% 96.4% TOTAL INTERGOVERNMENTAL REVENUES $44,682, % $40,361, % $56,636, % $59,203, % $59,284, % 0.1% 32.7% Charges for Services 8,925, % 9,030, % 8,396, % 8,986, % 9,985, % 11.1% 11.9% Interest Earnings 2,147, % 1,629, % 2,723, % 1,558, % 2,286, % 46.8% 6.5% All 6,774, % 6,193, % 6,374, % 5,452, % 6,340, % 16.3% -6.4% TOTAL REVENUES $279,345, % $279,792, % $306,763, % $310,080, % $317,113, % 2.3% 13.5% OTHER FINANCING SOURCES*** Borrowing 7,618,669 8,892,976 3,761,321 8,461,786 10,753, % 41.2% 415, ,332 2,342,462 1,840,586 1,192, % 187.3% Transfers In 14,269,120 14,557,057 15,638,633 14,048,538 11,881, % -16.7% TOTAL REVENUES AND OTHER FINANCING SOURCES $301,648,063 $304,002,302 $328,506,099 $334,431,315 $340,941, % 13.0% *Includes all towns. **Excludes data from towns that failed to report. ***Starting in 2013, this category includes. It has also been added to the 2012 year to make it comparable.

29 Table 2 of Towns For the Years Ended December 31, 2012 Through 2016 EXPENDITURES 7,8 1 Year 5 Year Percent Percent Amount % Amount % Amount % Amount % Amount % Change Change Current $44,677, % $42,829, % $48,730, % $47,190, % $51,855, % 9.9% 16.1% Capital Outlay 3,839, % 5,561, % 3,164, % 3,763, % 4,978, % 32.3% 29.7% 9 48,516, % 48,390, % 51,894, % 50,954, % 56,833, % 11.5% 17.1% Fire Current 28,164, % 28,753, % 30,712, % 31,797, % 32,424, % 2.0% 15.1% Capital Outlay 3,357, % 1,602, % 3,854, % 2,070, % 4,059, % 96.1% 20.9% 31,522, % 30,355, % 34,566, % 33,867, % 36,483, % 7.7% 15.7% All 10 Current 4,734, % 4,645, % 5,212, % 4,758, % 5,103, % 7.3% 7.8% Capital Outlay 327, % 353, % 218, % 130, % 262, % 100.3% -19.9% 5,062, % 4,998, % 5,431, % 4,888, % 5,365, % 9.8% 6.0% 23 Road Current 120,963, % 135,211, % 149,879, % 144,027, % 159,060, % 10.4% 31.5% Capital Outlay 20,137, % 20,389, % 20,581, % 24,434, % 25,855, % 5.8% 28.4% 141,100, % 155,601, % 170,461, % 168,461, % 184,915, % 9.8% 31.1% All Current 11,429, % 11,435, % 13,638, % 10,940, % 11,994, % 9.6% 4.9% Capital Outlay 2,765, % 3,610, % 1,401, % 1,571, % 3,983, % 153.5% 44.0% 14,194, % 15,045, % 15,039, % 12,511, % 15,977, % 27.7% 12.6% TOTAL CURRENT EXPENDITURES $209,969, % $222,874, % $248,173, % $238,714, % $260,437, % 9.1% 24.0% TOTAL CAPITAL OUTLAY $30,427, % $31,516, % $29,220, % $31,970, % $39,138, % 22.4% 28.6% DEBT SERVICE Principal 11,247, % 10,973, % 12,426, % 10,514, % 9,684, % -7.9% -13.9% Interest Fiscal Charges 2,031, % 1,845, % 1,660, % 1,651, % 1,538, % -6.8% -24.3% Debt Service 13,279, % 12,818, % 14,086, % 12,165, % 11,222, % -7.8% -15.5% TOTAL EXPENDITURES $253,676, % $267,209, % $291,479, % $282,850, % $310,798, % 9.9% 22.5% OTHER FINANCING USES 11,12 Debt Redemption - Refunded Bonds - 302, , , , , , , , % -12.4% Transfers Out 14,779,580 15,060,540 16,255,518 13,867,288 12,593, % -14.8% TOTAL EXPENDITURES AND OTHER FINANCING USES $269,237,064 $282,715,107 $308,817,500 $298,112,677 $324,076, % 20.4% 7 for Water Sewer are shown as enterprise fund activities in Table 5 on page Data for is included in the All category in Table 2. In Tables 4 8, appears as a separate category. 9 percentages may not equal the sum of the percentages above due to rounding. 10 Data for Fire All displayed in Table 2 is included in in Tables Starting in 2013, this category includes Debt Redemption -Refunded Bonds. These categories have also been added to the 2012 year to make it comparable. 12 Data for displayed in Table 2 is aggregated into a single column in Table 4.

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31 CLASSIFICATION OF REVENUES AND EXPENDITURES - GOVERNMENTAL FUNDS

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33 Table 3 Classification of Intergovernmental able Capacity Levy Payable 2016 es Special Assessments Licenses Permits Federal State County/ Local Unit Charges for Services Interest Earnings All Borrowing Transfers In & Aitkin County - (Arrowhead Region) 27 Aitkin 1,029, , , , ,343 1, , , ,446 Ball Bluff* 315, , , ,701 6,644 31,345 37, , , , ,714 Balsam 61,624 6,800 6, , , , ,424 Beaver 136,349 49,000 51, , , , ,166 Clark [1] 180,812 44, Cornish 144,008 10,000 21,715 6, , , , ,117 Farm Isl 2,743, , , , ,018 6, , , ,439 Fleming* 973, , , , ,810 6,748 8,918 22, , ,621 Glen 1,091,729 98,561 89,977 17, ,398 3,346 32,656 6, , , ,572 Haugen 325,481 52,002 58, , , ,848 99, ,646 Hazelton 1,974, , , , ,328 6, , , ,796 Hill Lake 507,811 93,001 91, , ,751 2,100 4, , ,272 Idun 279,974 57,296 61, , , , ,610 Jevne 496, , , , , , , ,196 Kimberly 306,397 91,836 94, , ,145 1, , , , ,098 Lakeside 1,110, , , , ,210 2, , ,453 Lee 87,268 10,327 15, , , , ,902 Libby 231,014 22,894 22, , , , ,338 Logan 236,597 64,167 55, , ,958 2,109 1, , ,211 Macville 155,184 36,001 39, , ,366 9,118 1, , ,371 Malmo 670,744 90,336 94, , ,210 3, , ,204 McGregor [1] 118,579 9, Millward 111,713 14,250 15, , , , ,750 Morrison 194,719 42,063 40, , , , ,000 80,299 Nordl 1,848, , , ,578 31, ,601 3, , , ,580 Pliny 128,136 15,763 23, , ,206 1, , ,537 Rice River 202,548 68,700 68, , , , ,647 Salo 109,109 26,200 29, , , ,393 49, ,973 Seavey* 125,076 29,001 32, , , , ,856 Shamrock 4,039, , , ,130 36, ,266 18,451 3,775 18, , , ,308 Spalding 259,713 45,998 46, , , , ,223 66,266 Spencer 506, , , , ,497 5,996 2,538 1, , ,557 Turner 497,664 97, , , ,125 4, , ,015 50,000 7, ,515 Verdon 90,147 21,974 24, , , , ,000 46,882

34 Table 3 Classification of 28 able Capacity Levy Payable 2016 es Special Assessments Licenses Permits Federal Intergovernmental State County/ Local Unit Charges for Services Interest Earnings All Borrowing Transfers In & Wagner 641,983 80,505 83, , ,464 1,657 1, , ,671 Waukenabo 774,490 95,448 94, ,393 3,939 19,332 1, , , ,803 Wealthwood 604,620 39,760 37, , , , ,000 79,126 White Pine 45,832 4,025 3, ,062 4,950 10, , ,235 Williams 209,732 33,700 39, , , , ,130 Workman 547,630 79,992 82, , ,178 6, , , , ,769 County $24,114,322 $3,832,383 $3,856,399 $24,617 $450 $8,413 $692,247 $20,857 $721,517 $129,630 $31,106 $122,968 $4,886,687 $50,000 $26,100 $258,713 $5,221,500 Anoka County - (7-County Twin Cities Region) Linwood 4,159,395 1,265,038 1,520, , ,815 54,879 97,694 33,432 11, ,321 1,864, , ,405 2,269,591 County $4,159,395 $1,265,038 $1,520,162 $--- $69,776 $--- $42,815 $54,879 $97,694 $33,432 $11,801 $131,321 $1,864,186 $300,000 $--- $105,405 $2,269,591 Becker County - (West Central Region) Atlanta 690, , , ,500 1,189 26, , ,958 Audubon 1,226, , ,795 16, ,448 26, , , , ,867 Burlington 1,408, , , , , , , ,513 Callaway 403,010 49,999 48, , , , ,645 Carsonville 311, , , ,511 1,650 21, , , , , ,063 Cormorant 3,781, , , , ,632 3,574 39,206 16,717 2,286 32, , ,145 Cuba 695,035 75,001 72, , ,689 1, , , ,103 Detroit 2,973, , , , , , ,210 Eagle View 477,964 63,003 72,681 5, , , , ,306 Erie 2,064, , , , , , ,236 Evergreen 328, , , , ,069 24,016 1,050 2, , ,265 Forest 1,080,936 55,213 65, , , , ,724 Green Valley 453, , , ,118 1,126 29, ,012 1, , , ,167 Hamden 589,316 81,000 76, , , , , ,563 Height of L 917, , , ,503 28,979 75,482 3, , , ,588 Holmesville 850, , , , , , ,759 Lake Eunice* 4,154, , ,995 42, , ,403 18,850 5,890 1, , ,290 Lake Park 826, , , ,872 24, ,910 2, , , ,199 Lake View 4,234, , , , ,056 7,830 51,886 33, , , , ,576 Maple Grove 658,811 46,379 49, , , , ,793 Osage 1,102, , ,702 19, ,385 1,055 29,440 1, , , , ,164 Pine Point 307,762 83,002 78, , ,312 8, , ,297 Riceville [1] 606,214 64,

35 Table 3 Classification of 29 able Capacity Levy Payable 2016 es Special Assessments Licenses Permits Federal Intergovernmental State County/ Local Unit Charges for Services Interest Earnings All Borrowing Transfers In & Richwood 757, , , , , , ,119 Round Lake 733,120 76,145 80, , ,388 2, , ,494 Runeberg 402, , , , , , , ,563 Savannah 514,790 51,880 57, , , , ,391 Shell Lake 629,299 79,971 82, , , , ,296 Silver Leaf 396,161 70,406 65, , , ,195 91, ,848 Spring Creek 553,788 62,152 61, , , , ,954 Spruce Grove 339,149 76,197 58, ,763 1,922 43,685 2, , ,471 Sugar Bush [1] 745,619 80, Toad Lake 697, , , , , , , ,923 Two Inlets 573,744 69,495 68, , , , ,073 Walworth 682,881 65,001 60, , , , ,679 White Earth 336,994 47,362 44, , , ,204 77, ,394 Wolf Lake 241,786 50,001 46, , , , ,742 County $37,745,921 $4,922,533 $4,945,301 $83,250 $4,560 $9,685 $947,000 $50,943 $1,007,628 $218,263 $22,753 $107,363 $6,389,118 $--- $--- $132,260 $6,521,378 Beltrami County - (Headwaters Region) Alaska* 256,644 60,699 51, , ,066 6, , ,951 Battle* 40,194 3,000 2, , , , ,394 Bemidji 2,300, , , , ,502 4,470 40, ,626 3, , , ,237 Benville 129,438 19,510 17, ,904 4,533 19, , ,183 Birch 105,133 10,000 11, ,797 4, , , ,678 Buzzle [1] 713,948 46, Cormant 142,127 10,501 13, , , , ,361 Dur 198,292 31,102 25, ,567 10,244 15, , ,594 Eckles 1,630, , ,536 23, , ,710 5, , , , ,251 Frohn 1,360, , , , , , , , ,914 Grant Valley 1,768, , ,341 57, , ,603 1,912 2,334 1, , ,953 Hagali 367,347 45,003 44, , , , ,992 Hamre* 72,524 2,800 2, ,974 7,263 12, , ,037 Hines 468,285 91,198 92, , ,664 1, , ,227 Hornet 146,337 24,119 27, , , , ,903 Jones 165,336 25,629 29, ,091 1,787 11, , ,271 Kelliher 93,174 9,000 8, , , , ,574 Lammers 994, , , , ,906 4, , , ,636 Langor 145,882 19,799 17, , , , ,158

36 Table 3 Classification of 30 able Capacity Levy Payable 2016 es Special Assessments Licenses Permits Federal Intergovernmental State County/ Local Unit Charges for Services Interest Earnings All Borrowing Transfers In & Lee 81,378 9,776 9, , , , ,115 Liberty 462,371 89,996 88, , , , ,080 Maple Ridge 107,779 13,141 14, , , , ,738 Minnie 57,752 7,430 7, ,864 15,224 28,088 1, , ,744 Moose Lake 333,964 40,119 38, , ,973 1, , ,478 Nebish 207,975 35,000 34, , , , , ,425 Northern 3,685, , ,996 1,483 2, , ,050 5,754 5,910 3, , ,000 1,196,470 O'Brien 102,907 7,000 6, , , , ,706 Port Hope 574, , , , , , , ,345 Quiring [1] 70,118 6, Roosevelt 248,400 44,103 49, , , , ,811 Shooks 152,450 16,001 14, , , , ,283 Shotley 207,937 27,073 29, , ,272 5, , ,501 Spruce Grove 54,346 5,400 2, ,944 14,671 26, , ,196 Steenerson 60,316 6,595 6, ,624 3,023 12,647 1, , ,953 Sugar Bush 172,276 52,098 71, , , , ,473 Summit 166,285 33,001 31, , , ,066 44, ,000 45,815 Taylor 163,617 16,000 15, ,047 3,984 12, , ,029 Ten Lake 1,136, , , ,158 2,930 19, ,499 1, , , ,599 Turtle Lake 1,735, , , , , , , , ,303 Turtle River 1,343, , ,591 44, , ,377 5, , , , ,341 Waskish 252,716 51,003 58, ,842 18,727 37,569 4, , , ,666 Woodrow 94,554 14,299 17, , ,220 2, , ,476 County $22,570,913 $4,100,017 $4,224,137 $127,993 $34,264 $12,823 $707,561 $84,731 $805,115 $55,286 $19,539 $23,589 $5,289,923 $384,619 $--- $388,319 $6,062,861 Benton County - (Central Region) Alberta 646, , , , , , , ,739 Gilmanton 832, , , , ,785 4, , ,774 Glendorado 746,095 98, , , , , , , ,446 Graham 643,969 94,598 90, ,986 22, , , , ,808 Granite Ledge 573,454 68,998 62, , ,394 12, ,717 97, ,223 Langola 1,226, , , ,169 35,100 25,813 2,625 63, , ,775 Mayhew Lake 850, , , , , , ,464 Maywood 755, , , , , , ,440 Minden 2,268, , , ,940 2,929 26, , , ,206 Saint George 1,090, , , , , , , ,937