Report of the State Auditor of MN Year Ended 6/30/1978

Home Search

INTRODUCTION SCOPE This report covers the financial operations of the 855 cities in Minnesota for the calendar year 1977. The sources of these data are annual city financial statements, reports of audits by public accountants and the State Auditor, county auditor's tax abstracts and reports of indebtedness, and the Department of Revenue records of state shared tax distribu- tions and grants, taxable valuations, and tax levies. The larger cities generally report on the modified accrual basis of accounting, or accrual basis for certain types of funds, . and this data is taken from audited reports. Most cities under 2,500 in population are not audited, and the data in this re- port is taken from statements of cash receipts and disburse- ments. Financial operations reported in Tables 1 through 5 in- clude the general fund and other governmental funds. The tables have been changed beginning in calendar year 1977, to more nearly reflect revenues and expenditures of the cities. Cash purchases and sales of investments, trust and agency, intergovernmental service funds, and other miscellaneous receipts and disbursements have been dropped from the reports, although still available to researchers on computer files. Comparison of total revenue receipts and borrowing and total expenditures and debt redemption should not be made to totals of receipts and disbursements in the publications of prior years. Detailed line items, total revenue receipts, ex- penditures, borrowing and debt redemption are comparable. The financial operations of the municipal public service enterprises are presented separately from the governmental operations. These enterprises operate wholly or in large part from revenue derived from the sale of goods or services. When possible, each enterprise is presented separately on a revenue and expenditure basis. However, in some municipalities the operations of two or more enterprises are combined or the governmental function of sanitary sewers and sewage disposal are combined with the operations of the water utility. In these instances they are presented with appropriate footnotes. Ten cities failed to submit financial statements. The com- bined population of these cities represents Tess than two tenths of one percent of the total city populations. Nine municipal hospitals and nursing homes failed to report for 1977 or the years ended through June 30, 1978, and their operations are omitted from Tables 8 and 9. " Receipts and disbursements for governmental functions are summarized by population groups based on the Federal census, as revised by Municipal Board orders, and Metropolitan Council estimates. The population groups correspond to the legal definitions of the 1st, 2nd, 3rd and 4th class cities. The latter group is further divided between those over and under 2,500 in population. This grouping is for the purpose of making comparison of financial data between groups as well as between municipalities of similar size. The fiscal year of cities ends on various dates during the year. Two cities changed their fiscal years to December 31st during 1977. The financial data in this report are for the periods shown below. Class of Unit Fiscal Year Ended All Statutory Cities ) December 31, 1977 Eighty -seven home rule charter cities ) Four cities Five cities Two cities Three cities One city February 28, 1978 March 31, 1978 May 31, 1978 June 30, 1978 September 30, 1977 Statutory cities operate under the laws of the State. Effective July 1, 1975, cities operating under general special incorporation acts became statutory cities. The remaining cities are governed by home rule charter.