HomeMy WebLinkAboutVIII-16 Approve 2024 Budget Amendment and Fund ClosuresCity Council Memorandum
To:Mayor Fasbender & City Councilmembers
From:Chris Eitemiller,Finance Manager
Date:April 7,2025
Item:2024 Budget Amendment and Fund Closures
Council Action Requested:
Council is asked to approve a budget amendment and Fund closures.All of these will
have an effective date of December 31,2024.
Background Information:
General Fund:The General Fund balance will decrease by approximately $196,405,
with the major revenue changes noted as follows: Investment gains were $322,000 higher
than budgeted. Non-Departmental recognized $529,055 of revenue from the ARPA
grant, $280,333 Solar Garden revenues and $631,941 of bond proceeds. The bond
proceeds completed funding for the City Hall renovation project.Police was $314,338
better than budgeted, largely due to Police pension relief aid which offsets related
spending.The engineering revenue is based on a percentage pertaining to the 2024 street
project. Since this is an estimate, it needs to be amended to the actual amount. The
Public Works Streets division saw revenues exceed budget by $179,605 due to more than
$96,000 of aggregate reimbursement paid to the City by MNDOT.The Parks
department’s General Fund revenue decreased because of fewer recycling licenses and
reduced recycling fees.
General Fund expenditures were nearly $1 million under the amended budget. One of the
largest positive variances was the Finance department, which was $224,318 below
budget. Of this total, $157,000 was due to the new Finance System project coming in
under budget. These resources have been shifted to the City Hall project and the
resources were added to the Facilities budget. Beyond this project, IT ($129,000) and
Public Works’ Streets division ($187,000) had the largest savings. Savings in personnel,
services,and capital spread across all other departments,comprise the remainder of this
variance.
Special Revenue Funds:The Aquatics Center had a positive variance of nearly $100,000.
Revenues were above budget by $83,000, while expenditures slightly below budget
account for the remainder. The Arena fund saw substantial budgeted increases in both
revenues and expenditures due to the Arena renovation project. The revenue increase
consisted of bond proceeds to fund the capital improvements. Spending was
approximately $1.6 million under budget because the project had not been completed by
year-end. The other special revenue fund of note is Fire/EMS. This fund was nearly $1.4
million below budget in revenue, but also $1.6 million below budget in spending. This
was due to paying for a new Ladder truck in 2023 in order to get a reduced price. The
Council approved using $900,000 in State Public Safety Aid to fund this purchase, which
was budgeted at $1.3 million in 2024. These two items impacted the 2023 budget rather
than 2024.This fund ends 2024 with a positive position of $258,809.
Enterprise Funds: None of the enterprise funds had a negative variance in 2024,
including the Hydro Plant.
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Fund closures-
Request authorization to close the following funds:
2013 Equipment Certificates
2012 GO Debt Fund
2013A GO Debt Fund
Public Works Cold Storage Building
2022 Street Improvements
2023 Street Improvements
2024 Street Improvements
Any residual amounts in these funds will be transferred to our Debt Redemption fund.
Hydro Plant transfers:
Because the General Fund’s budget-actual position fared better than planned, staff requests
authorization to forego the transfer of $221,000 from the Hydro Plant to the General Fund. The Hydro
plant will undergo a dewatering in 2025, which is a significant expense. Due to the plant’s financial
position, staff recommends this budgeted transfer not be done to provide more resources for the
dewatering project.
Financial Impact:
The budget amendment creates a significant reduction in the use of fund reserves. The amount of
budgeted use of reserves is $1,590,641, whereas the final use of reserves is $196,405. The final year-
end position for the fund may vary slightly as adjusting entries associated with our annual audit are
made.
Advisory Commission Discussion:
None.
Council Committee Discussion:
None.
Attachments:
•2024 Budget resolution,Fund closures
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CITY OF HASTINGS
DAKOTA COUNTY, MINNESOTA
RESOLUTION ____________
A RESOLUTION AMENDING THE 2024 BUDGET AND FUND CLOSURES
AND TRANSFERS
WHEREAS,the Mayor and City Council adopted the 2024 budget on December 4,
2023;and
WHEREAS,there is a need to amend the budget and close funds;
WHEREAS,there is also the need to transfer any residual monies from funds closing;
WHEREAS,any residual dollars from the following funds will be transferred to the
debt redemption fund for future council direction;
NOW THEREFORE LET IT BE RESOLVED THAT,the budget is amended as
follows with an effective date of December 31, 2024:
Fund closures
2013 Equipment Certificates
2012 GO Debt Fund
2013A GO Debt Fund
Public Works Cold Storage Building
2022 Street Improvements
2023 Street Improvements
2024 Street Improvements
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General Fund
Revenues by Major Category:
2024 Budget Change Amended 4/1/2025
w/rollovers
Non-Departmental 12,832,905 1,396,677 14,229,582
Investments 45,000 322,003 367,003
City Clerk 106,500 12,652 119,152
Finance 112,000 - 24,817
Facility Maintenance 700 (700) -
Planning 21,200 1,922 23,122
I.T.---
Police 551,895 314,338 866,233
Building & Inspections 691,200 303 691,503
Safety 10,000 (3,191)6,809
Public Works-Engineering 511,000 (27,389)483,611
Public Works-Streets 610,000 179,605 789,605
Public Works-Street Lights ---
Parks & Recreation 75,500 (46,941)28,559
Miscellaneous 2,000 400,335 402,335
Transfers In 511,892 (221,000) 290,892
Total Revenues 16,081,792 2,328,614 18,323,223
--
Expenditures by Major Function:
Council & Mayor 118,298 12,823 105,475
Adminstration 309,164 50,715 258,449
City Clerk 737,069 36,117 700,952
Finance 794,643 (86,772)881,415
Legal 267,500 58,177 209,323
Facility Management 553,143 (2,259,691)2,812,834
Planning 196,630 5,981 190,649
I.T.887,789 46,655 790,599
Police 6,898,098 54,156 6,843,942
Building & Inspections 976,259 86,746 889,513
Safety 10,000 3,080 6,920
Public Works-Engineering 613,751 76,468 537,283
Public Works-Streets 3,371,646 987,410 2,384,236
Public Works-Street Lights 224,579 (16,419)240,998
Public Works-Sidewalks 25,532 25,532 -
Parks & Recreation 128,281 (557)128,838
Miscellaneous/Transfers Out 1,223,583 (314,619)1,538,202
Total Expenditures 17,335,965 (1,183,663)18,519,628
Revenues less Expenditures (1,254,173)3,512,277 (196,405)
Appropriated Fund Balance 1,254,173 (3,512,277)196,405
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Adopted this 7th day of April 2025,
Mary Fasbender,Mayor
Attest:
Kelly Murtaugh,City Clerk
2024 Budget
Special Revenue Funds w/rollovers Change Amended 4/1/2025
Revenues:
Fire/EMS 6,577,528 (1,382,141)5,195,387
Arena 898,196 5,515,620 6,413,816
Total Revenues 7,475,724 4,133,479 11,609,203
Expenditures:
Fire/EMS 6,577,528 1,640,950 4,936,578
Arena 876,196 (3,925,063)4,801,259
Total Expenditures 7,453,724 (2,284,113) 9,737,837
Revenues less Expenditures 22,000 6,417,592 1,871,366
Appropriated Fund Balance 22,000 6,417,592 1,871,366
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