Changes in mix of revenues and expenditures must be interpreted with care.

The data that follow were drawn from the city of Boulder, Colorados CAFR. Dates have been changed. They are from two statistical-section schedules showing the mix of revenue and expenditures for a 10-year period. They include amounts only from the general fund, special revenue funds, and debt service funds.

	2020	2021
	(amounts in thousands)
Revenues
Sales and use taxes	$97,397	$104,136
General property taxes	29,474	29,434
Other taxes	20,278	21,184
Charges for services	27,030	22,670
Intergovernmental	16,420	13,348
Proceeds from bonds and notes	54,830
Other	20,660	21,473
Total revenues	$266,089	$212,245
Expenditures
General government and administration	$27,717	$30,185
Public safety	47,825	48,202
Public works	22,178	27,896
Housing and human services	13,384	20,226
Culture and recreation	25,677	28,089
Capital outlay	29,111	19,218
Debt service	13,574	16,375
Other	16,425	27,180
Total expenditures	$195,891	$217,371

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 2020 with that of 2021. 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?