HomeMy WebLinkAboutVIII-04 2023 2nd Quarter Financial Report
City Council Memorandum
To: Mayor Fasbender & City Council Members
From: Chris Eitemiller, Finance Manager and Ashley Bertrand, Assistant Finance Manager
Date: August 21, 2023
Item: 2023 2nd Quarter Financial Report
Council Action Requested: Review and approve the attached second quarter financial
report.
Background Information: The second quarter financial report is a quarterly update of
2023 activity through June 30, 2023. Consistent with past practice, some numbers in the
report are adjusted to take into consideration the effects of year-end accruals and year-
to-year allocation differences.
Detail of the City’s investments holdings is provided in Appendix A.
Financial Impact: N/A
Advisory Commission Discussion: N/A
Council Committee Discussion: N/A
Attachments:
▪ 2023 2nd Quarter Financials
▪ Appendix A – 2023 Investment Holdings as of June 30, 2023
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2023 2nd Quarter Financial Update
Governmental Funds
General Fund
General Fund Revenue Summary:
• The largest source of revenue is property tax levy. The City received an advance payment in June,
while the second half will be received in July.
• Our investments have begun performing better in the second quarter this year, and represents the
best performance since prior to the pandemic.
• Public Works-Engineering charges a fee for engineering work related to the annual street project in
the fall. Because that has not yet been charged, Engineering shows at just 2% of budgeted revenue.
• Public Works-Streets has state aid payments for summer street maintenance and construction
budgeted but not yet charged.
• Building Inspection fees continue to perform strongly, and are on track to meet an increased budget
for 2023.
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General Fund Expense Summary:
• None of the General Fund Departments have any budget concerns at this point in the year.
• Variances from the typical mid-year spending pattern are largely due to capital or supplies purchases
that are expected to be close to budget by year-end.
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Parks - Fund 200
• Income is tracking as expected with investment earnings better than recent years.
• Joint Facility revenue is lower than anticipated; we are awaiting the second quarter payment.
• Expenditures look on target at 37% of budget spent at the mid-point during the year.
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Aquatic Center – Fund 201
• Budgeted Capital Outlay, including lifeguard stands and shade structures, remains mostly
unspent as of June 30, which is the most significant reason that spending so low at mid-year.
• This fund will expend the bulk of its budget by the end of August.
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Fire & Ambulance – Fund 213
Fire & Ambulance Revenue Summary:
• In early 2023, a new Rural Fire Contract was agreed to. Payments in 2023, will be about
$33,000 higher than budgeted, due to the timing of negotiations.
• None of the $505,078 in transfers have been made as of June 30. These funds will be
transferred from the General Fund to support capital outlay purchases.
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Fire & Ambulance Expense Summary:
• Fire expense is more in 2023, due primarily to capital outlay. Fire purchased a new Tender
truck at $453,000.
• Other Services & Charges expense is higher in Ambulance for 2023. Increased paramedic
training accounts for this increase.
• Capital Outlay is higher in Fire for 2023. Purchase of a new Tender truck accounts for the
variance. Additional equipment budgeted for 2023, at approximately $233,000 remains to
be spent in 2023.
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Arena – Fund 615
• Arena Sales Income has increased from 2022, appears to be on pace to meet budget.
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Enterprise Funds
The Enterprise funds consist of our three utility funds and the hydro plant.
Water – Fund 600
• Water revenue is steady with 24% collected as of June 30th.
• Personnel expense is again lower than budgeted in 2023, due to the vacancy of the PW
Director position, which has been filled with a consultant. This trend is seen in the other
enterprise funds as well.
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Sewer – Fund 601
• The sewer revenue is also steady at 31% collected since June 30th.
• Expense is in line with the budget. Capital outlay expects a large increase in the second half
of the year.
Storm Water – Fund 603
• The storm water fund revenue in line with the other utilities.
• A street sweeper was purchased in the first half of 2022, which accounts for the large
decrease from 2022-23.
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Hydro – Fund 620
• A study examining the long-term viability of the Hydro Plant, at a cost of $100,000 accounts
for the budget increase from 2022. Current year spending is on track to remain within
budget for 2023.
City-Wide Debt Service
• Debt Service expenditures are as anticipated. The principal payment due date is February
1st; all principal payments were made as of the end of the first quarter. Interest payments
are made on February 1st as well as August 1st.
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Transfers
2023 Transfers
• Quarterly transfers are made for administrative charges, internal funding, and savings needs.
Transfers posted for 2nd quarter 2023 were all budgeted transfers or budgeted use of stabilization
funds.
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Cash and Investments Balances
• Cash balances fluctuate throughout the year based on planned spending, receipt of fund revenues
and the timing of property tax payments. The cash balance within a fund can be one indicator of the
health of the fund.
FUND DESCRIPTION June 30, 2022 June 30, 2023
General Fund 7,463,718 8,499,951
Parks 1,497,847 608,025
Aquatic Center 448,166 464,744
Cable TV 105,617 103,444
Cable Access 37,852 39,601
Heritage Preservation 88,136 95,371
Fire & Ambulance 189,198 (1,053,152)
LeDuc Historical Estate Operations 145,641 129,403
Police Reserves 23,437 33,517
DUI Enforcement & Forfeitures 44,944 44,444
2013 Equipment Certificates 64,042 63,146
Parks Capital Projects 99,266 963,940
Budget Stabilization Fund 352,232 345,514
HEDRA 948,209 556,559
TIF 3 Guardian Angels (099) 570 9,840
TIF 5 NAPA (116) 23,226 517
TIF 4 Downtown Redevelopment (007) (21,288) (21,288)
TIF 7 Hudson Sprayers 12,161 12,976
TIF 8 Schoolhouse Square 6 2,610
PW Cold Storage Building 902,106 192
2022 Improvements 3,252,840 171,508
2023 Improvements 0 (454,683)
Debt Redemption 989,875 961,761
2022 Cold Storage Building 0 (13,183)
2016A GO TIF (quasi refunding) Bonds 125,992 129,523
2012 GO Improvement Bonds 70,525 36,516
2013 GO Improvement Bonds 35,414 13,234
2014 GO Improvement Bonds 76,621 60,458
2015 GO Improvement Bonds 105,414 103,572
2016 GO Improvement Bonds 168,600 138,317
2017 GO Improvement Bonds 75,566 66,010
2018 GO Improvement Bonds (25,301) (37,315)
2019 GO Improvement Bonds 896,429 833,266
2020 GO Improvement Bonds 430,148 455,011
2021 GO Improvement Bonds 308,624 288,275
2022 GO Improvement Bonds 0 588,420
Water 3,997,077 3,076,098
Wastewater 1,840,306 1,781,675
Storm Water 934,673 1,256,066
Arena 575,908 518,616
Hydro Electric 116,825 264,974
Retiree Health 252,219 255,237
Compensated Absences 78,013 118,257
Vehicle Revolving Fund 605,891 708,288
Insurance Fund 508,367 771,269
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Escrow -Dev/Eng/TIF-HRA 556,236 451,575
Ruth Doffing Trust Fund-Library 89,930 89,797
C. Simmons Trust 214,505 218,958
C. Simmons Residuary (358) (10,126)
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Investments
• The City’s total investment portfolio was valued at $32,896,386 as of June 30, 2023.
• Allocation of the City’s portfolio is as follows. Additional detail is available in Appendix A.
Additional Information
Further detail of the information presented here may be obtained by contacting the Finance Department. The
Finance Manager may be reached for questions at 651-480-2347 or CEitemiller@hastingsmn.gov. The Assistant
Finance Manager may be reached at 651-480-2354 or ABertrand@hastingsmn.gov.
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Appendix A – Investment Holdings
Detail of Municipal Bonds, Agencies and CDs
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