HomeMy WebLinkAboutIX-01 Presentation and Approval of 2024 Comprehensive Financial ReportCity Council Memorandum
To:Mayor Fasbender & City Councilmembers
From:Chris Eitemiller,Finance Manager
Date:June 16,2025
Item:Presentation and approval of the 2024 Comprehensive Financial Report
Council Action Requested:
Presentation of the 2024 Annual Comprehensive Financial Report by Bergan KDV and
Acceptance of the 2024 Annual Comprehensive Financial Report (CAFR).
Background Information:
The annual audit has been completed.Bergan KDV will review the results of the audit
and the Auditor’s report and is available for questions tonight.
The City earned an unmodified opinion or “clean”opinion which is the best opinion an
auditor is able to offer.
Financial Impact:
No financial impact.
Advisory Commission Discussion:
N/A
Council Committee Discussion:
N/A
Attachments:
Bergan KDV presentation will be provided as soon as available
The 2024 Certified Annual Financial Report will be posted on the City of Hastings’ website after it is
formally accepted by the City Council.
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City of Hastings
Ryan Engelstad, CPA
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The Audit
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Opinion on the City’s Basic Financial Statements
Management is responsible for the financial statements
Auditor is responsible for expressing an opinion on the financial
statements
Unmodified Opinion –best opinion an auditor is able to offer
Provides assurance that the financial statements are fairly
presented in all material respects
Independent Auditor’s Report IX-01
Report on the results of an audit performed in
accordance with Government Auditing Standards
◊One material weakness matter reported in relation to the
audit adjustments/corrected misstatements identified
◊Prescribed materiality thresholds are rather low at the
specific opinion unit/fund level
◊No instances of noncompliance noted
Government Audit Standards Report IX-01
Required by the Minnesota Office of the State Auditor
Tests the City’s compliance with seven areas of relevant statutes
that apply to municipalities: deposits and investments, conflicts
of interest, public indebtedness, claims and disbursements,
contracting and bidding, tax increment financing and
miscellaneous provisions
No findings for 2024
Minnesota Legal Compliance Report IX-01
Required Communication Items
Financial Analysis
Emerging Issues
Communications Letter IX-01
Financial Analysis
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General Fund Balance IX-01
General Fund Revenues IX-01
General Fund Revenues 2024
Taxes and
Assessments
66%
7%
General Fund Revenues 2023
Taxes and
Assessments
8%
General Fund Revenues IX-01
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
-Taxes and
Assessments
Licenses and
Permits Intergovernmental Charges for Services Fines and
Forfeitures Miscellaneous
2020 $8,221,064 $468,688 $2,776,050 $1,200,031 $72,131 $138,766
2021 9,748,718 635,721 3,069,698 1,017,830 80,879 16,790
2022 9,971,781 966,071 2,342,079 1,405,128 85,710 40,251
2023 10,524,599 809,581 2,358,253 1,290,622 86,689 593,799
2024 11,514,169 717,275 3,316,024 1,253,438 79,185 579,122
General Fund Expenditures IX-01
General Fund Expenditures 2024
Government
21%
General Fund Expenditures 2023
Public Works Health and Culture and
Government
24%
General Fund Expenditures
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_r
General
Government Public Safety Public Works Health and
Sanitation
Culture and
Recreation Debt Service Capital Outlay
$2,971,879 $5,684,371 $1,520,193 $28,794 $141,769 $-$627,836
2,891,454 6,051,294 1,683,867 59,362 144,474 -1,938,615
3,217,280 6,511,233 1,846,612 50,726 204,282 97,671 1,249,782
3,478,822 7,169,692 1,747,659 69,481 164,604 143,458 1,914,715
3,800,071 7,822,976 1,657,817 14,874 186,412 123,332 4,233,725
$9,000,000 -
$8,000,000 -
$7,000,000 -
$6,000,000
$5,000,000 -
$4,000,000 -
$3,000,000 -
$2,000,000 -
$1,000,000 -
$--
2020
2021
2022
2023
(12024
General Fund Budget and Actual
Final Actual Over (Under)
Budget Amounts Budget
Revenues
Property taxes 11,268,385$ 11,471,796$ 203,411$
Special assessments 1,000 42,373 -
Licenses and permits 706,383 717,275 10,892
Intergovernmental 4,873,527 3,316,024 (1,557,503)
Charges for services 1,109,396 1,253,438 144,042
Fines and forfeitures 100,500 79,185 (21,315)
Miscellaneous 60,400 579,122 518,722
Total revenues 18,119,591 17,459,213 (701,751)
Expenditures
General government 3,969,792 3,923,403 (46,389)
Public safety 7,841,638 7,822,976 (18,662)
Public works 1,860,508 1,657,817 (202,691)
Health and sanitation 43,000 14,874 (28,126)
Culture and recreation 208,164 186,412 (21,752)
Capital outlay 5,246,105 4,233,825 (1,012,280)
Total expenditures 19,169,207 17,839,307 (1,329,900)
Other Financing Sources (Uses)
Proceeds from sale of capital asset -104,770 104,770
Insurance recovery -4,770 4,770
Proceeds from bonds -570,000 570,000
Premium from bonds -61,941 61,941
Transfers in 569,092 323,951 (245,141)
Transfers out (1,152,431)(1,152,431)-
Total other financing sources (uses)(583,339)(86,999)496,340
Net change in fund balances (1,632,955)$ (467,093)$ 1,124,489$
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Fire and Ambulance Special Revenue Fund
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Parks and Recreation Special Revenue Fund
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Water Fund
Note: The operating expenses/income above for 2024 exclude costs related to the PFAS project
which are funded by a non-operating revenue source.
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Sewer Fund
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$3,900,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000 nirinirin
2020 2021 2022 2023 2024
Total Operating Revenues $2,612,847 $2,754,704 $3,019,636 $2,828,717 $2,897,459
Total Operating Expenses 2,292,753 2,538,419 2,6tp,467 2,771,868 2,907,202
Operating Income (Lass)320,094 216,285 356,169 56,849 (9,743)
Operating Income without
Depreciation 769,743 692,890 849,962 575,691 529,573
Storm Water Fund
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Hydro Fund
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Tax Capacity Rates
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70%
2020 2021 2022 2023 2024
Tax Levies and Capacities
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$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$-
Certified Tax Levy Net Taxable Tax Capacity
Auditor
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Ryan Engelstad, CPA
AUDIT SHAREHOLDER
612-716-3389
RYAN.ENGELSTAD@BERGANKDV.COM
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Thank You
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This commentary is provided for general information purposes only, should not be construed as investment, tax or legal advice, and does not constitute an
attorney/client relationship. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained
from sources deemed reliable but is not guaranteed.
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berganKDV