Western and Midwestern municipalities show slight growth
Most municipalities in the heartland and western states saw slight revenue growth in 2013, according to data released by RubinBrown, a national accounting and professional consulting firm. The data reflects the economic rebound of 2011, and its subsequent regional slowdown.
Surveying over 100 municipalities around St. Louis, Kansas City and Denver, RubinBrown found most municipalities’ tax revenues increased from 2012 to 2013. However, this growth was at a much slower pace than in 2011 or 2012.
In the St. Louis area, the study found that the average tax revenue per capita decreased in 2013 by $35 to $928, while average expenses per capita had a smaller decrease of $5 to $1,159.
The average tax revenue for Kansas City-area municipalities increased to $792 in 2013 after remaining consistent in 2011 and 2012 at around $775. However, the study found the average expenses per capita in the area increased at a faster rate than revenues, from $1,101 in 2012 to $1,191 in 2013.
Denver-area municipalities’ average tax revenue per capita increased from $897 in 2012 to $925 in 2013. Expenses per capita increased at a slower rate than revenues, from $1,187 in 2012 to $1,214 in 2013.
“Overall, the fiscal condition of municipalities in these areas reflect a slowing down of the economic recovery happening throughout the country,” Jeff Winter, CPA and partner-in-charge of RubinBrown’s Public Sector Services Group said in a statement.
“The average change in net position was still positive but at a much smaller rate of growth than in 2012 or 2011. The average change in net position rose only 2.5 percent compared to 3.2 percent in 2012.” He added. “Costs also increased at a faster pace in 2013 as compared to revenue growth, resulting in continued net position growth for municipal governments but slower than in the prior year.”
To learn more or see a detailed breakdown, download the full report here.