City Government Finances in 1965-66
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--'~"J-"'-" ~. 1:~ ":-:-~-. '-.:. ::~ .•...,.~ .• ,..I• GOVERNMENTAL FINANCES /GF No. 12 ,,_ •• II'. It' •• • • ....I' P ••.. • • •• ..•• .", "", ~ ~:. " v n' f," \ I ~ I • tI I •. i"I J • [ J 1\ f I Hl:!~~~~ ! \ I i! (, \ i : CITY GOVERNMENT FINANCES IN 1965-66 u.s. DEPARTMENT OF COM't'lERCE, Alexander B. Trowbridge, Secretary William H. Shaw, Assistant Secrltary, Economic Affairs BUREAU OF THE CENSUS. A. Ross Eckler, Director I, I' t ,I ,• 1 • BUREAU OF THE CENSUS A. ROSS ECKLER, Director HOWARD C. GRIEVES, Deputy Director Governments Division David P. McNeli s, Acting Chief ACKNOWLEDGMENTS Many staff members of the Governments Division participated in the preparation of this report. Statistics for the 43lar gest cities, and also for a limited proportion of smaller municipalities, were assembled by the Compilation Branch, headed by Francis M. Twiss. Other city finance data were examined by the Surveys Branch, headed by Kenneth E. Anderson. The Processing Division of the Bureau carried out machine pro ce ssrng work in accordance with specifications prepared by Sherman Landau of the Governments Division. Tabulation work within the Governments Division was handled mainly by the Management and Operations Branch, headed by Marjorie Ball. Lynden Mannen reviewed t he publication copy. Grateful acknowledgment is made of the cooperation of the numerous municipal finance officials who kindly provided information f or this report. July 1967 Library of Congress Catalog Card Number: 34-2B211 SUGGESTED CITATION U.S. Bureau of the Census, City Government Finances IN 1965-66. Series GF-No. 12. U.S. Government Printing Office, Washington, D.C., 1967. For sale by the Superintendent of Documents, Government Printing Office Washington, D.C., 20402 - Price 45 cents /I >1- Contents Page Intr oduction .••...... """"""""""". """"""""""""""""". """""""""""""""" 1 Table: 1. --National Summary of City Government Finances: 1965-66 and Prior Periods.. • • • • • • . • • • • . • • • • . • • • • . • • . • • . • . 5 2. --Finances of City ..Operated Utilities: 1965-66................. 6 3. --Selected City Finance Items, by Population-Size Groups: 1965-66""""""""""""""""""""""""""""""""""""""""" 7 4. --Per Capita Amounts of Selected City Finance Items, by Population-Size Groups: 1965-66 ••••.••••••••••••.••••• 8 5. --Finances of Individual Cities and Selected Urban Towns and Townships of over 50, 000: 1965-66 •••.••.••.•...•.••.. 9 6. --Finances of the 43 Largest Cities, in Detail: 1965-66......... 56 7. --Operating Staternent s-o-Utfl.itde s Operated by the 43 Largest Cities: 1965-66 •.•..••••••••••.•••••.•••••.••• 72 Definitions of Selected Terms. • • • • • • • • • • . • . • . • • • • . • • . 75 iii " ; ,> Introduction Revenue of city governments altogether, Sources other than taxes and intergovern- during fiscal 1965-66. amounted to $21.9 bil- mental revenue supplied $3.3 billion of munici- lion. as against $20.3 billion in 1964-65. pal general revenue in fiscal 1965-66. This included $2.1 billion from current charges (other Total revenue consists of all revenue re- than for utility services. classed separately as ceived from external sources by the city lltility revenue). i corporations and their dependent municipal j agencies. including any city-operated utilities f and employee-retirement systems. General I, GENERAL EXPENDITURE • J revenue--i. e., revenue excluding utility and r ' employee-retirement amounts--was approxi- As indicated by table 1, education takes a mately $17.3 billion in fiscal 1965-66. com- larger share of city expenditure than any other pared with $15.9 billion the previous year. function, even though most of this spending is by the small fraction of municipal governments City expenditure totaled $22.4 billion in (including New York City and some other very 1965-66, as against $20.7 billion in 1964-65. large units) that directly administer local public , ' General expenditure--i. e , , spending other 'than schools. In most cities, public schools are ad- for utility and employee-retirement purposes-- ministered by independent school districts, for totaled $17.4 billion in 1965-66. which financial data are not included in this report. National totals on the finances of cities are presented in tables 1 and 2. As suggested by Following is a summary functional distribu- i the column headings. there is some discontin- tion of municipal governments' general expend- uity in the statistics summarized historically iture in fiscal 1965-66: in table 1. Amounts shown there for "1963" pertain to municipal fiscal years which ended ,J, during that calendar year. while amounts shown for the more recent periods pertain to municipal fiscal years which closed within the 12 months Amount Per (millions Per- capita ended June 30 of the later year specified. Function of cent amount Table 3 shows a distribution of financial dollars) (dollars) amounts by city size groups. based on the 1960 Census of Population and 1962 Census of Gov- Total general ernments. 1 Per capita amounts. by city size- expenditure .••...• 17,404 100.0 149.55 groups. appear in table 4. Education••....•...•• 2,747 15.8 23.60 GENERAL REVENUE Police protection ••.• 1,887 10.8 16.21 Highways•..•.•..•.•.• 1,885 10.8 16.20 City-imposed taxes yielded $9.8 billion in Fire protection •.••.• 1,211 7.0 10.41 fiscal 1965-66 or nearly three-fifths of all gen- Sewerage.•..••.....•. 1,100 6.3 9.45 eral revenue of city governments. Property Public welfare .•....• 1,049 6.0 9.01 taxation continued as the predominant revenue Hospitals ••••..•••... 977 5.6 8.40 source supplying $6. 9 billion. Other municipal Parks and recreation. 832 4.8 7.15 tax amounts. as shown in table 1. consisted of Sanitation other than approximately $1.2 billion from general sales sewerage•••..•.••.•. 776 4.5 6.67 and gross receipts taxes. $611 billion from selective sales taxes. and $1. 1 billion from Housing and urban renewal. ••••••.• , ••• licenses and miscellaneous other taxes. 763 4.4 6.56 Interest on general debt................ Municipalities received about $3.3 billion 638 3.7 5.49 from State governments in fiscal 1965-66. This. General control •..•.• 506 2.9 4.35 together with lesser sums received directly Financial adminis- from the Federal Government and frODl other tration .••••..••..•• 304 1.7 2.61 local governments (mainly counties). made the Generltl public total of city intergovernmental revenue $4.1 bil- buildings •.•••..•••• 303 1.7 2.60 lion. or almost one-fourth of general revenue All other functions •• 2,426 13.9 20.85 from all sources. lSize-class distributions of municipal gov- ernments, together with related population fig- Table 1shows annual functional expenditure s ures, are shown nationally and for States and for 1965-66 and selected previous years, with metropolitan areas in GovernmentalOrganization distributions indicating capital outlay amounts (Vol. I of the 1962 Census of Governments). separately for several major functions. i: 1 " , "il ': --, ", 2 Introduction EXPENDITURE BY CHARACTER data for these various type s of utilities are \,," AND OBJECT shown in table 2. In a few States. certain mu- nicipal governments also have liquor store sys- Nearly two-thirds of all municipal expend- tems. Summary figures for these undertakings iture in fiscal 1965-66 (including amounts for appe.ar in table 1. utility and insurance-trust purposes as well as general-government purposes) was for current City utility revenue in fiscal 1965-66 totaled operation. Expenditure of this nature amounted $3.9 billion. including $1. 7 billion for water to $14.9 billion. supply systems and $1.5 billion for electric power systems. Utility expendi.ture amounted Capital outlay--mostly for construction. but to $4.2 billion. of which $2.5 billion was for also including spending for equipment and the current operation. $1. 3 billion was capital out- purchase of land and existing structures-- lay. and the other $374 million was interest on amounted to $4.9 billion. or nearly one-fourth utility debt. of all municipal expenditures. Municipal indebtedness for utilities at the Payments of interest on debt (including utility end of the fiscal year amounted to $11.2 billion. as well as general municipal debt) amounted to or nearly one-third of all city debt outstanding. $1. 0 billion. insurance benefits and repayments were $656 million. and intergovernmental ex- FINANCES OF MUNICIPAL penditure amounted to $268 million. Cash EMPLOYEE-RETIREMENT SYSTEMS assistance payments totaled $587 million. Municipal revenue in 1965-66 included Expenditure for personal services was about employee-retirement revenue of $595 million. $9.8 billion in fiscal 1965-66. and thus ap- consisting of employee contributions and the proached one -half of all municipal expenditure. earnings on retirement system investments. In Personal service costs are mainly for current addition. these retirement systems received operation but include also some amounts for $742 million of employer contributions from personnel engaged in construction wor-k, their parent municipalities (including $18 million of State payments for this purpose). INDEBTEDNESSAND DEBT TRANSACTIONS Benefits and withdrawals paid by municipal retirement systems in 1965-66 totaled $648 At the end of fiscal 1965-66. municipal in- million. and their financial assets at the end of debtedness totaled $33.7 billion. or 5.8 percent the fiscal year amounted to $8.3 billion, as more than a year earlier. The debt total in- shown in table :J... cluded $19.0 billicm of long-term indebtedness pledging the cities