Expenditures Summary - 2010

Expenditures Pie Chart

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Appropriations for all funds total $24,518,834.  This is more than anticipated revenues for 2010.  The shortfall of $1,207,369 is primarily in the tax increment funds where increment has been collected in previous years for developer costs that are being expenses in 2010.  The accompanying chart shows the city’s expenditures by expenditure category.

Expenditure uses

Employee Salaries & Benefits

The largest source of appropriations by category is employee salaries and benefits at $9,890,207. Employee salary and benefits make up 50.42% of the City’s annual appropriation. In 2010, employee salary and benefits were frozen, with the exception of one union that is in the last year of a 3-year-contract. That employee group, consisting of 21 employees, will receive a 3% wage increase for 2010. Hopkins has been fortunate to have a very stable long-term workforce, however we do have a number of employees near retirement age and in 2010 we expect to receive notice of several more retirements.

Expenditures Pie Chart

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Materials, Supplies & Services

Materials, supplies and services make up 29.07% of appropriations at $5,702,133. This amount represents a .53% decrease over last year’s budget. The decrease is due to the completion of various economic development projects that staff had been working on with developers. However, fuel products, heating and electricity, insurance and general inflationary increases contributed to an increase in the general fund. The costs in this category comprise of consulting, professional services, office and general supplies, disposal costs, expenditure reimbursements and general operating costs. 

Capital Outlay

Capital outlay and improvements can fluctuate substantially every year.  In 2010, the appropriated amount is $116,000 or .59% of total appropriations. Anticipated capital costs are for parking ramp improvements, upgrades in the City Council Chambers for televised council meetings and small items at the Depot Coffee House. Staff was instructed to keep capital items at a minimum as funding restrictions continue to present challenges in budgeting. In addition the City allocates equipment replacement costs to its general and special revenue funds to ensure that resources are available for replacement of equipment when scheduled or necessary. The charges for equipment replacement are recorded in the materials supplies and services categories as they do not directly relate to specific capital outlay expenditures but rather the cost of using city assets.

Debt Service

Debt service appropriations in 2010 decreased 22% as payments on bonds decrease the outstanding balance, one bond was called and another reached its maturity. Total appropriations for 2010 are $2,847,832 or 14.52% of appropriations and include debt paid within the Enterprise Funds.  Another 5.4% of appropriations are for depreciation of property and equipment.

Depreciation

Another 5% of appropriations are for depreciation expense of property and equipment.