The Office of the State Auditor (OSA) has released the 2012 City Finances Report along with the data set of revenues and expenditures for all Minnesota cities. Collectively, total city revenues increased 3 percent over 2011.
For large cities—those over 2,500 in population—this increase was 2 percent while the increase for small cities was 6 percent. However, when adjusted for inflation, 2012 revenues are below 2003 levels. Property taxes continue to make up a larger share of total revenues, growing to 39 percent in 2012. Conversely, the share comprised of intergovernmental revenues fell from 30 percent in 2011 to 25 percent in 2012 (see Figure 1 on page 7 of the report).
Similar trends are shown on the expenditure side. Total city expenditures increased 4 percent in 2012. Large city expenditures were up 3 percent, and small city expenditures grew by 13 percent. Over the last 10 years, when adjusted for inflation, total expenditures have fallen 16 percent. The largest categories of expenditures continue to be streets and highways and public safety.