Hopkins Council Seeks to Rein In Spending

Hopkins council members plan to dig more aggressively into the city budget following news that 2012 expenses will be higher than .

The latest budget changes were actually more mixed than the council’s reaction suggests.

The bad news is that expenditures would grow by 3.26 percent instead of the original 2.96 percent. The good news is that the city would actually need to collect fewer taxes than originally expected.

That’s because the city expects to take in more money as well as spend more money—sometimes as a result of the same service.

For example, about $28,000 of the $31,000 in added expenses comes from contracting out electrical inspectors and upgrading the police department’s Enhanced 911 system.

Both of those contribute to the $45,000 in extra revenue, as well. The city will get to keep a share of permit fees that once went to the state, and it will receive money to help pay for the new E911 system.

The end result is that Hopkins’ tax levy would grow by 2.3 percent over 2011 under the latest plan, down from the 2.43 percent increase originally predicted.

But council members found the greater spending unpalatable amid the current economic turmoil—regardless of what happens to the total levy. They predicted that residents would zero in on that growth as proof that the council wasn’t responding to the tougher economy.

“3.2 (percent growth) isn’t going to be acceptable, I don’t think,” concluded Mayor Gene Maxwell.

At Tuesday’s council meeting, Councilwoman Cheryl Youakim peppered Finance Director Christine Harkess with questions about what caused the increases in various departments. What Youakim really wanted to see, she said, was a line-item breakdown of where the money is going.

“Not that I don’t trust the department heads to be looking for every penny, because I know they do,” Youakim added.

Acting City Manager Jim Genellie agreed that was reasonable and promised to have explanations by the end of the week.

Still, council members brainstormed various possibilities for cutting costs—including restructuring, furloughs, leaving positions unfilled and reducing the vacation that employees can carry over from year to year.

Staff will calculate savings from the various proposals as the budget process continues, so that council members can discuss them in greater detail.

“We’re not looking to beat anybody up here, but it’s a whole lot easier to ask the question before the process than after,” Councilman Rick Brausen said.

Hopkins general fund budgets