Appropriations for all funds total $20,004,797. This is less than anticipated revenues for 2011. The excess of $89,957 representing approximately 0.41% of budgeted expenditures is due to conservative budgeting across all departments as the city tries to do more with current revenue sources and less expenses.
The accompanying charts show the City’s expenditures by expenditure category and by use.
The largest source of appropriations by category is employee salaries and benefits at $10,218,069, which make up 48% of the City’s annual appropriation. In 2011, employee salary and benefits increased slightly following 2010 when salaries were frozen. Hopkins has been fortunate to have a very stable long-term workforce, however we do have a number of employees near retirement age and expect to receive notice of several retirements in 2011.
Materials, supplies and services make up 27% of appropriations at $5,794,972.
This amount represents a 1.6% increase over last year’s budget. The increase is primarily due to costs associated with providing safe drinking water, sanitary sewer treatment and refuse collection costs. However, fuel products, heating and electricity, insurance and general inflationary increases contributed to an increase in several funds.
The costs in this category are comprised of consulting, professional services, office and general supplies, disposal costs, expenditure reimbursements and general operating costs.
Capital outlay and improvements can fluctuate substantially every year. In 2011, the appropriated amount is $116,000 or 1% 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" category as they do not directly relate to specific capital outlay expenditures, but rather the cost of using city assets.
Debt service appropriations in 2011 increased slightly due to a new bond issue for street and utility projects. Due to market lows in interest rates, the City took this opportunity to refinance three bond issues, significantly lowering the interest rate and saving the City in interest costs.
Total appropriations for debt payments in 2011 are $2,635,315 or 19% of appropriations.
Another 5% of appropriations are for depreciation expenses of property and equipment.