Audit: Minnesota towns facing more debt, less revenue

An audit shows that cities and towns across Minnesota are facing more debt but lower revenue rates and less help from the federal government.

The report from the Office of the State Auditor shows the financial changes faced by local government across Minnesota in 2018.

Over the course of 10 years, towns saw revenues increased by 20.5 percent. But, when adjusted for inflation, the actual revenue fell 1.9 percent compared to 2009. Statewide, that revenue figure totaled $317.3 million, which was also a 3.4 drop from the previous year.

According to the auditor, towns saw more money coming from taxes and the share from the federal government dropping.

At the same time, debt also increased for Minnesota towns, moving to $56.7 million in 2018, up 1.1 percent from 2017.