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(Draft January 2002) Key Financial Strategies <br /> For Elk River <br /> <br />Another way of looking at the cost of city services is type of expenditure. <br /> <br />· Services are driven by people costs. <br />· Over 70% of General Fund spending goes for wages, benefits and other <br /> personnel expense. <br />· This trend has remained consistent over time. <br /> <br />6,000,000 <br />5,000,000 <br />4,000,000 <br />3,000,000 <br />2,000,000 <br />1,000,OO0 <br />0 <br /> <br />r~ Contractual services <br /> & c~arges <br /> <br />· Su~ies <br /> <br />[] Persona services <br /> <br />Fi#ute 9 - General Fund £xpend/tures <br /> <br />100% <br /> <br /> 90% <br /> <br /> 80% <br /> <br /> 70% <br /> <br /> 60% <br /> <br /> 5O% <br /> <br />40% <br /> <br />30% <br /> <br />20% <br /> <br /> 10% <br /> <br /> 0% <br /> <br />o Contractual senates & <br /> charges <br />· Olfier ser~4ces & charges <br /> <br />· Supplies <br /> <br />r~ Personal services <br /> <br />Figure 10- Genera/Fund 5xpenditures <br /> <br />The role of personnel expense is another key financial strategy. <br /> · Wage and benefit expense will increase regardless of growth. <br /> · Service capacity expands to meet the demands of growth by adding staff. <br /> Expenditures will "spike" up when new personnel are added. <br /> <br />Page <br /> 28 <br /> <br /> <br />