HomeMy WebLinkAbout20091116 - VI-08
MEMO
TO: Honorable Mayor and City Council members
FROM: Charlene A. Stark, Finance Director
RE: 3rd Qtr Update
DATE: November 10, 2009
I have put together a brief report on the activity to date for the governmental and
enterprise funds through September 30, 2009.
Included is the following:
?
Summary of the City’s governmental and enterprise funds activity.
?
Graphs depicting revenues and expenditures for the governmental and
enterprise funds.
?
Summary of the Investment portfolio as of September 30, 2009.
?
Analysis of the general fund and projection of year end fund balance.
If there is any other information you would like to see or for more details on this report,
please feel free to call me at 651-480-2354.
Council Action
:
No action is needed.
us
CITY OF HASTINGS THIRD QUARTER SUMMARY FINANCIAL REPORT
This report is a sununary of the governmental and enterprise funds for the city. Tlus
report is intended to give council an overall view of the fields as of September 30, 2009.
Included in this report is a summary of revenue, expenditures and a prelinunary
projection of the general fund's fund balance for the year ended December, 31, 2009.
Summary of Governmental Funds
City of Hastings
Comparison of 3rd Cltr Financial Report for Yeats 2008 and 2609
Governmental Funds {Aclmin, Parks & Recreation, Pulalic Safety, Pulalic Works}
Percerrta~e
Actuals Actnals 2669 of 2409 Percema~e
Year to Date Year to Date Amended Amended Change from
as of 9:36?2648 as of 930:69 Bud{~et Bucl{~et d8 to d9
Total Revenues $ 10,d33,393 $ 9,953,952 $24,239,664 49.180% -4.60°I°
Salaries and Benefts 6,143,808 6,53d,211 ' 9,305,295 70. 220°/o- 6.35°/o-
Charges for Services 2,d78,694 2,415,381 3,307,389 73. 030°I° -2.55°I°
Supplies d90,226 461 ,910 994,384 46. 452°I° -5.78°I°
Capital 1 ,380,098 389,835 955,242 40. 810°I° -71.75°I°
Debt Service
Principal 3,790,000 4,154,370 4,155,000 99. 985% 9.61 °I°
Interest and Fees 1,129,217 1 ,111 ,776 1,087,693 102. 214°/o- -1.54°/o-
Total Expenditures $ 15,412,044 $ 15,067,483 $19,805,003 76. 479% -2.24°I°
Total Orginal Budget $20,334,087
All expenditure categories are below the expected third quarter marls of 75%.
Departments are continuing to monitor expenditures and when compared to 2008 all
categories are negative except salaries and debt principal payments. A change in how
the on call firefighters are paid was made in 2009. In 2008 they were paid quarterly in
2009 they are now paid monthly. The 2009 salary and benefits include two more months
when compared to the same quarter in 2008. This and the increase for PERA benefits
contribute to the 6.35% change from 08 to 09.
Expenses by Fund Comparison:
Cpmparisan cif 2{}il8-1~9~ Expenditures by Funds
7,000
N 6,000
~ 5,000
4,000
3,000
r 2,000
^ ~ 1,000
Q
~`~~
Funds
^ 2008
^ 2009
The chart above compares 2008 and 2009 third quarter for each of the major fiends
accounted for by the City. In 2009 the expenses are down or nearly the same as they
were in 2008. The General fund, Park fund, Pool fund, and Arena fiu7d are all lower in
2009. The Fire & Ambulance fiend is higher in 2009 again attributable to the change in
payments made to the on call firefighters.
Revenues by Fund Comparison:
Revenues are at the same as 2008 with the exception of the general fiu7d where a change
for 2009 was made. The adnunistrative charge that was implemented in 2009 is the
factor that is showing the increase for 2009 revenues.
C~nmparis+on +of 2~4S-2~UJ Revenues by Funds
s,ooo
5,000
4,000
s,ooo
~,ooo
' ~ ,ooo
0
eye ~~~
~~`Q
Funds
o coos
^ X009
of Enterprise Funds
atal Revenues
Salaries and Benefits
Charges for 5eraices
Supplies
Capital
Debt Service
Principal
Interest antl Fees
Transfer Out
Total Expenditures
rise Funcls {Hydro, Talc, Water, Sauer)
Actuals A~tual~ 2p49 Rerceittax~e Per~eina{~e
Year to Rate "fear to Date Anyentlerl of ?909 fltianse tr8m
as of 974?2908 a~ of 9~34if19 Buclnet Budrlet UB to 69
$ 2,246,470 $ 3,169,145 $ 5,893,892 53. 774°fP 43.63°fP
888,772 934,607 1 ,312,790 70. 888°1P 4.71 °1P
1 ,371 ,507 1 ,431 ,458 2,282,220 62. 722°fP 4.37°fP
127,764 107,023 222,950 48. 003°fP -16.23°fP
1 ,833,485 750 547,500 0. 137°fP -99.96°fP
155,000 195,000 535,000 36. 449°fP 25 .81°fP
295,834 279,609 383,055 72. 994°fP -5 .48°fP
3,456 278,664 303,664 91. 767°fP 7963 .19°fP
$ 4,675,817 $ 3,223,111 $ 5,587,179 57. 688°fP -31 .47°fP
Enterprise funds: Water, Sewer, Trac and Hydro funds are on track for year end balances
to come in as expected. No significant unexpected changes to budgets have occurred up
to this date and are not expected to occur.
Investments
The next following three graphs show the City's Investment portfolio diversification in
length of maturity, types of investments, and brokers. The portfolio value is at
$22,421,488. In December a larger pay out for the Hydro bond is expected thus a larger
balance in short term investments is being reported.
It is the practice of this city to diversify the portfolio by not keeping more then 40% with
any one broker. As you can see by the above graph the portfolio is kept with 7 different
brokerage firms and no brokerage firm has more then 21% of the total portfolio.
At this time the city has no money invested in commercial paper. Most of the short ten11
money for meeting payroll and accounts payable cash flow needs is in money market
accounts.
+~ITY CrF HATIrd IN'VETMEIVT ~s ofi ~1~:'3U 2~~9
9,000,000.00
8,000,000.00
7,000,000.00
6,000,000.00
~ °_' 5,000,000.00
4,000,000.00
3,000,000.00
2,000,000.00
1 ,000,000.00
0.00
^ MM
^ 1 Yr and Under
^ 1 yr-3 yr
^ 3-5 yr
^ 5-1 0 yr
^10-15yr
+~ITY F HATING IN~fETt+~1ENT BY BROKER
1596
2196
1 S 96
396
^VUells Fargo
^ UBS Financial
^ Merchants Bank
^VUachovia
^ Smith Barney
^ Minnesota 4M
^ Dain Bosvti+orth
CITY +}F HASTIII~aS IIIidE5TIv1EI1T~ BY ~E1~"URITY TYPE
396 ., cw_
8096
96
^ CD's
^ Money Market
^ Commercial Paper
^ Farm Credits
^ Federal Home Loan Bank
^ Fannie Mae
^ Federal Home Loan Note
^ Freddie Mac
^ Taxable Municipals
Leiu~tl~ of Maturity
Projection of the General Fund's Year End Fund Balance:
The 2008 fiscal year resulted in the general fund to fall below the worl~lg capital
requirement of 40%. The result was due to loss of revenue and not overspending. The
loss of State Aid, revenue reduction in building permits, interest and taxes collected
during 2008 caused the reserve of fund balance in the general fiend to be depleted to 26%.
The City Council in early spring of 2009 made cuts to all fiends in order to reduce the
deficit in the general field as well as offset the un-allocation of the 2008-2009 LGA.
Below is a projection of where the general hind's fund balance is anticipated to be at the
end of 2009. The goal to get to 30-35% of working capital is still attainable, as long as
the departments remain diligent in the spending for the rest of the year and revenues
continue to remain constant.
08 Fund f3alanoe $ 2.321,088.00
urent Aotual ReUenues 4,712,328
Prajeokians
Taxes 3,212,454
Bands 278,504
Aid 350,000
Interest 12,000
Lioenses 37,000
Fines 30,000
Polioe Relief 180,000
Permiks 15,000
Engineering 314,126
Cammunikg Ed 2,000
Charges far Ser~ioes-Miso. 8,000
TOTAL PROJECTED REVENUES 4,450,080
1TAL ESTIMATED REVENUES 9,162,408
fidgeted Expenditures 9,066,483
Prajeoked Savings:
Caunoil -28,000
AdminisUatian -16,000
Cikg Clerk -5,500
Faoilitg Management -14,000
Planning -1,400
IT -13,600
Polioe -13,500
Building & Inspectians~Cade Enfarcemenk -31,500
Engineering -2,000
Skreeks -6,500
Street Lights -21,500
Miso. -33,500
Unfilled Offioer -30,000
Capital -119,500
Miso. -150,000
TOTAL SAVINGS -486,500
1TAL ESTIMATED E}CPENDITURES 8,579,983
iOJECTED CHANGE IN FUND BALANCE 582,425
iOJECTEd 2009 FUND BALANCE 2,903,513
ojeoted 2010 Budget 8,928,665
ojeoted Working Capital Requiremenk 3,571,466