The data that follow were drawn from the CAFR of the city of Boulder, Colorado. Dates have been changed. They are from two statistical-section schedules showing the mix of revenue and expenditures for a ten-year period. They include amounts only from the general fund, special revenue funds, and debt service funds.
2014 2015 (amounts in thousands)
Revenues Sales and use taxes $41,941 $18,750
General property taxes 9,501 4,900
Other taxes 9,673 3,756
Charges for services 5,004 2,52
4 Intergovernmental 10,114 6,840
Proceeds from bonds and notes 16,330
Other 8,2465,692
Total revenues $84,479 $58,792
Expenditures General government and administration $10,222 $ 3,975
Public safety 17,466 10,786
Public works 16,472 7,499
Housing and human services 6,195 4,093
Culture and recreation 16,764 9,016
Acquisition of real estate and open spaces 11,315 11,706
Debt service 10,816 2,886
Other 2,323
— Total expenditures $91,573 $49,961
1. As a consultant for a citizens’ association, you have been asked to determine whether there have been significant changes in the way the city acquires and spends its resources. Prepare a schedule in which you compare the mix of revenues and of expenditures of 2014 with that of 2015. Note and comment on any items that might distort a straightforward comparison of revenues and expenditures.
2. Comment on any changes between the two years that you consider significant.
3. Expenditures for debt service increased significantly. What are the most likely reasons for the increase? Is it necessarily a sign of increased financial stress?