RubinBrown Public Sector Stats 2012

St. Louis Metropolitan Area

The 2011 results for the St. Louis area reflect the modest economic recovery. The average increase in net assets for St. Louis municipalities was 8.6% in 2011, as compared with 0.2% in 2010 and 6.9% in 2009. Furthermore, only two of the 39 St. Louis municipalities (or 5%) reported a decrease in government-wide net assets in 2011, as compared with 29% in 2010. The cause of this improvement in net assets is evident when tax revenue per capita and expenses per capita are examined. As indicated in the below chart, tax revenue per capita for St. Louis municipalities increased from $722 in 2009, to $853 in 2010, to $924 in 2011. This is caused primarily by growth in sales tax revenue due to increased economic activity.

Meanwhile, per capita expenses for St. Louis municipalities have declined, as the below chart indicates. Per capita expenses decreased from $1,130 in 2010 to $1,075 in 2011. Expenses for municipalities have decreased in part due to more conservative budgeting practices resulting from a decreased revenue base over the past few years. Additionally, in spite of the economic environment, St. Louis municipalities have managed to maintain sufficient liquidity to meet their ongoing financial needs. The average liquidity ratio for St. Louis municipalities in 2011 was 3.93, an increase from the 2010 average of 3.79. This certainly is a positive indicator for the region, as it demonstrates that area municipalities are well positioned to withstand short-term cash shortfalls. Indeed, 29 of the 39 participating St. Louis municipalities had a liquidity ratio of 2.0 or greater.

Tax Revenues Per Capita

Expenses Per Capita

$1,100 $1,200 $1,300

$1,100 $1,200 $1,300

$1,130

$1,075

$1,000

$1,000

$924

$917

$895

$885

$853

$600 $700 $800 $900 $500 $400 $300 $200 $100

$600 $700 $800 $900 $500 $400 $300 $200 $100

$751

$722

$697

$0

$0

2007

2008

2009

2010

2011

2007

2008

2009

2010

2011

4 | RubinBrown Public Sector Stats 2012