HomeMy WebLinkAboutVIII-06 Approve 2023 3rd Quarter Report
City Council Memorandum
To: Mayor Fasbender & City Council Members
From: Chris Eitemiller, Finance Manager and Ashley Bertrand, Senior Accountant
Date: November 20, 2023
Item: 2023 3rd Quarter Financial Report
Council Action Requested: Review and approve the attached third quarter
financial report.
Background Information: The third quarter financial report is a quarterly update
of 2023 activity through September 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 3rd Quarter Financials
Appendix A – 2023 Investment Holdings as of September 30, 2023
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2023 3rd Quarter Financial Update
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2023 3rd Quarter Financial Update
Government Funds
General Fund Revenue Summary:
The largest source of revenue is property tax levy. The City received the first-half settlement
in July. The second-half will be paid in two payments; we will receive an advance in
December, and the remainder in January, 2024.
Our investments are performing better than in 2022 and each department’s revenues reflect
this.
The Public Works-Engineering revenue is low because there is a one-time Engineering charge
applied to the annual street project, which doesn’t occur until December.
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General Fund Expense Summary:
Finance is below trend due to schedule changes related to the new Finance system project.
Any budgeted funds that remain at year-end will be carried forward to 2024 to complete the
project.
Most departments’ spending is at or near trend through 3 quarters.
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Parks - Fund 200
Revenues are showing less than expenditures due to planned fund balance use and carry
forward items.
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Aquatic Center – Fund 201
Heritage Preservation – Fund 210
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Fire & Ambulance – Fund 213
Charges for Services revenue item is Ambulance revenue, which are running below
projections. Since changing Ambulance billing provider, our revenue has improved.
The Miscellaneous category is higher, which consist of equipment sales, donations, and
insurance recoveries.
Ambulance spending is below trend. The department’s overall financial position may be
negative again in 2023, but with the change in billing service, should rebound in 2024.
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Police Reserve – Fund 221
Arena – Fund 615
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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 77% collected as of September 30th.
Expenditures are well below budget. The largest factor is capital outlay, because the utility’s
share of the annual street project has yet not been allocated. Overall expenditures will be
close to budget at year-end.
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Sewer – Fund 601
Storm Water – Fund 603
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Hydro – Fund 620
The hydro plant’s production has improved in the third quarter. Beginning in late summer,
the plant has been operating at maximum capacity.
For the final quarter of 2023, the plant is expected to continue producing at its highest
capacity, which should improve the year’s revenue.
The plant should stay within budget for the year.
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 3rd 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 September 30, 2022 September 30, 2023
General Fund 8,750,109 7,734,224
Parks 1,373,356 1,027,770
Aquatic Center 342,423 330,574
Cable TV 103,620 102,844
Cable Access 37,508 40,098
Heritage Preservation 87,839 91,658
Fire & Ambulance 366,752 (492,551)
LeDuc Historical Estate Operations 152,027 118,930
Police Reserves 27,717 35,771
DUI Enforcement & Forfeitures 48,243 50,264
2013 Equipment Certificates 83,584 85,764
2014 Equipment Certificates 16,461 16,461
Parks Capital Projects 119,448 1,199,978
Budget Stabilization Fund 345,232 345,514
Guardian Angels - TIF 7,064 7,290
HEDRA 1,059,552 527,906
NAPA-TIF (15,984) (483)
Downtown Redevelopment - TIF (21,288) (21,288)
Hudson Sprayers - TIF 11,152 12,098
School House Square – TIF (1,994) (3,324)
Block 28 - TIF 0 (19,723)
PW Cold Storage Building 473,149 194
2022 Improvements 1,598,090 173,208
2023 Improvements 0 782,743.03
2024 Improvements 0 (14,419)
Debt Redemption 987,187 968,738
2022A Cold Storage Building 0 (23,092)
2016A GO TIF (quasi refunding) Bonds 160,099 165,538
2012 GO Improvement Bonds 101,336 71,854
2013 GO Improvement Bonds 54,016 40,458
2014 GO Improvement Bonds 134,031 130,200
2015 GO Improvement Bonds 157,821 160,575
2016 GO Improvement Bonds 222,327 199,632
2017 GO Improvement Bonds 90,730 82,902
2018 GO Improvement Bonds 132 2,691
2019 GO Improvement Bonds 881,445 839,637
2020 GO Improvement Bonds 451,611 467,286
2021 GO Improvement Bonds 303,920 285,844
2022 GO Improvement Bonds 0 579,445
Water 3,909,871 3,832,684
Wastewater 1,857,691 2,233,613
Storm Water 1,004,285 1,370,160
Arena 492,075 581,960
Hydro Electric 153,673 305,232
Retiree Health 257,496 262,284
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Compensated Absences 63,128 142,888
Vehicle & Equipment Fund 682,650 844,610
Insurance Fund 594,796 798,328
Escrow -Dev/Eng/TIF-HRA 584,813 449,824
Ruth Doffing Trust Fund-Library 89,262 90,687
C. Simmons Trust 212,912 221,128
C. Simmons Residuary (358) (10,125)
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Investments
The City’s total investment portfolio was valued at $29,097,912 as of September 30, 2023.
Allocation of the City’s portfolio is as follows. Additional detail is available in Appendix A.
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Appendix A – Investment Holdings
Detail of Municipal Bonds, Agencies and CDs
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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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