The MD&A for the 2019 City and County of Denver CAFR is included as Appendix B in this chapter. Following are two tables that have been adapted from the statistical section of the CAFR. Use the MD&A and the provided statistical tables to complete this case.

Required

a. What are the three largest sources of governmental funds revenue? What percentage of the governmental funds revenue is from each of these sources?

b. Sales tax is a large part of Denver’s tax revenue. Using information from the MD&A and trend information from both statistical tables provided, discuss trends in Denver’s sales tax revenues and your projection for sales tax revenues over the next two to three years.

c. What are the three largest sources of governmental funds expenditures? What percentage of the governmental funds expenditures does each of the three sources represent and what has been the trend for each over the past few years?

d. Compare the growth in revenue to the growth in expenditures over the past 10 years. Discuss any changes in the overall expenditure growth patterns you have seen and would expect to see over the next two to three years.

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Revenues Property taxes Sales and use taxes Other taxes Special assessments Licenses and permits Intergovernmental revenues Charges for services Investment and interest income Fines and forfeitures Contributions Other revenue Total revenues Expenditures General government Public safety Public works Health Human services Parks and recreation Cultural activities Community development Economic opportunity Principal retirement Interest Bond issuance costs Capital outlay Total Expenditures Deficiency of revenues under expenditures 2010 $295,381 447,071 124,855 1,397 29,907 213,568 196,642 CITY AND COUNTY OF DENVER, COLORADO Changes in Fund Balances of Governmental Funds (Partial Statement) Last 10 Fiscal Years (dollars in thousands-modified accrual basis of accounting) 2012 2013 2014 2015 2011 3,041 142,706 1,553,686 481,023 132,259 1,429 31,094 227,776 200,728 23,680 58,075 8,661 64,905 $ 288,106 $ 287,062 $ 331,914 $347,079 $ 349,176 $ 399,859 $ 299,320 $ 472.995 $479,346 762,201 229,725 494,495 539,348 608,307 140,123 146,875 165,584 1,702 1,913 44,415 49,963 1,422 35,393 236,892 219,691 225,169 10,738 55,964 6,515 51,030 243,697 239,138 242,091 499,293 514,421 545,395 149,812 155,204 207,205 53,035 52,415 119,083 114,004 58,212 63,895 77,547 80,599 50,240 49,882 25,860 22,939 70,387 81,269 60,773 79,425 289 52,848 110,784 61,761 87,984 40,505 21,482 206,878 218,206 237,077 87,393 75,351 21,225 2,003 47,628 57,469 7,086 5,961 53,840 1,437,475 1,517,736 1,539,325 1,618,523 1,757,252 1,850,323 1,954,277 55,664 (116,211) (91,011) (87,408) 258,408 552,663 170,129 54,205 114,079 66,992 98,038 35,030 21,321 99,525 72,842 155,267 93,934 45,877 1,608,747 1,626,733 1,589,109 14,413 54,472 29,414 5,578 54,660 304,479 574,812 221,813 59,469 113,799 70,301 107,138 640,251 676,916 180,745 1,575 187,427 1,282 61,235 61,530 213,643 265,105 46,378 14,998 53,540 4,657 65,103 332,024 607,077 192,462 64,036 2016 123,095 73,222 110,427 39,469 44,791 21,085 19,813 95,885 104,667 69,427 64,622 500 491 32,697 35,194 1,710,874 1,771,921 78,402 223,296 267,170 18,661 49,433 6,709 62,289 2017 64,469 64,981 101,593 1,257 431 211,345 278,238 71,668 279,037 374,605 606,983 188,078 61,822 135,733 75,752 115,446 46,968 14,588 107,346 149,079 60,908 64,927 2,073 99,506 1,889,808 205,575 75,714 139,248 13,139 2018 - 12,902 81,525 1,305 68,005 19,417 6,873 10,984 1,688 9,975 51,828 825,070 2,267,170 2,488,291 37,540 45,032 29,960 63,132 687,895 309,140 59,532 2019 168,061 101,208 133,983 68,699 745 896,924 250,162 160,127 56,510 1,818 69,322 425,260 466,523 718,924 364,098 280,421 313,008 83,371 39,579 7,147 67,193 107,223 164,274 99,177 142,806 75,051 9,641 146,112 75,097 121,666 170,325 57,959 826,358 2,292,826 2,539,251 (1,288) (25,656) (50,960)