2018 Adopted Annual Operating & Capital Improvement Budget

EXPENDITURE ASSESSMENT
Overview
To simplify financial reporting, the City of Greenwood Village has organized its expenditures into six categories:
Personnel, Purchased Services, Supplies/Non-Capital Equipment, Capital Outlay, Debt Service, and Miscellaneous
Expenditures.
2016
Audited
Actuals
2017
Amended
Budget
2018
Adopted
Budget
% Change
Expenditures:
Personnel $ 22,559,457 $ 23,760,018 $ 24,057,465 1.25%
Purchased Services 5,843,390 8,501,522 6,843,333 -19.50%
Supplies/Non-Capital Equipment 3,048,118 3,246,037 3,129,034 -3.60%
Capital Outlay 10,920,256 23,711,048 19,613,597 -17.28%
Debt Service 31,522 31,522 13,135 -58.33%
Miscellaneous Expenditures 2,566,943 580,256 746,230 28.60%
Total Expenditures $ 44,969,686 $ 59,830,403 $ 54,402,794 -9.07%
Supplies/Non-Capital
Equipment
6%
Total Expenditures by Category
Purchased Services
13%
Capital Outlay
36%
Personnel
44%
Debt Service
0%
Miscellaneous
Expenditures
1%
As reported in the above table, forecasted city-wide expenditures of $54.4 million are 9.1% below that of the current
year’s amended budget. Similar to revenues, the total expenditure figure is misleading without the benefit of additional
discussion. As per the Municipal Charter, appropriations related to capital improvement projects do not expire or
terminate at the close of the fiscal year. Thus, unspent appropriations from the prior year have been “carried over” to
the 2017 amended budget. The process inflates the prior year capital outlay appropriations and consequently, makes it
appear as though the City is reducing the capital improvement budget by $4.5 million. Additionally, one-time
expenditures such as the dissolution of the Greenwood Village Sewer General Improvement District #1 in 2017, as well
as the proposed offset of personnel expenditures via the use of retirement plan forfeitures also serves to distort the
year-to-year comparison. Omitting the above items from the budget comparison provides a much more accurate
assessment and results in an increase of $1.1 million or 3.0%.
The expenditure categories, as well as some of the more significant changes in spending authorization are discussed
in more detail below. Detail regarding individual changes in budgeted expenditures are contained in the departmental
budget variance justifications.
27