MD&A and Statistical Tables. $($LO$9-4)$ 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.

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$)$

$2010,2011,2012,2013,2014,2015,2016,2017,2018,2019$

Revenues

Property taxes $ $295,381$ $ $288,106$$ $287,062$$ $331,914$$ $347,079$$ $349,176$$ $399,859$$ $299,320$$ $472,995$$ $479,346$

Sales and use taxes $447,071481,023494,495539,348608,307640,251676,91664,981762,201896,924$

Other taxes $124,855132,259140,123146,875165,584180,745187,427101,593229,725250,162$

Special assessments $1,3971,4291,4221,7021,9131,5751,2821,2571,3051,818$

Licenses and permits $29,90731,09435,39335,39349,96361,53061,23543168,00569,322$

Intergovernmental revenues $213,568227,776236,892206,878218,206213,643223,296211,345278,238280,421$

Charges for services $196,642200,728219,691219,691237,077265,105267,17071,668279,037313,008$

Investment and interest income $21,22523,68010,7382,00314,41314,99818,66110,98437,54083,371$

Fines and forfeitures $47,62858,07555,96457,46954,47253,54049,4331,68845,03239,579$

Contributions $5,9618,6616,5157,0865,5784,6576,7099,97529,9607,147$

Other revenue

Total revenues Expenditures

General government $243,697239,138242,091258,408304,479332,024374,605205,575425,260466,523$

Public safety $499,293514,421545,395552,663574,812607,077606,98375,714687,895718,924$

Public works $149,812155,204207,205170,129221,813192,462188,078139,248309,140364,098$

Health $53,03552,41552,84854,20559,46964,03661,82213,13959,532107,223$

Human services $119,083114,004110,784114,079113,799123,095135,733168,061164,274$

Parks and recreation $58,21263,89561,76166,99270,30173,22275,75212,902101,20899,177$

Cultural activities $77,54780,59987,98498,038107,138110,427115,44681,525133,983142,806$

Community development $50,24049,88240,50535,03039,46944,79146,96819,41768,69975,051$

Economic opportunity $25,86022,93921,48221,32121,08519,81314,5886,8737459,641$

Principal retirement $70,38781,26987,39399,52595,885104,667107,346149,079160,127146,112$

Interest $60,77379,42575,35172,84269,42764,62260,90864,92756,51075,097$

Bond issuance costs $3,0412895004912,073$Capital outlay Total expenditures Excess $($deficiency$)$