HomeMy WebLinkAboutCity of Hastings 2023 ACFRw w w .Ha s t i n g s mn .g o v /A C F R
City of Hastings,MN
Annual Comprehensive
Financial Report
For the fiscal year ended December 31,2023
Photo by Nick Egger
ANNUAL
COMPREHENSIVE FINANCIAL
REPORT
OF
THE CITY OF HASTINGS
MINNESOTA
For the Fiscal Year Ended
December 31, 2023
Prepared by the City's Finance Department
City of Hastings
Table of Contents
Reference Page
I.INTRODUCTORY SECTION
Letter of Transmittal 3
List of Officials 8
Organizational Chart 9
Certificate of Achievement for Excellence in Financial Reporting 10
II. FINANCIAL SECTION
A.Independent Auditor's Report 13
B.Management's Discussion and Analysis 17
C.Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position Statement 1 29
Statement of Activities Statement 2 30
Fund Financial Statements
Balance Sheet –Governmental Funds Statement 3 32
Reconciliation of the Balance Sheet to the Statement of
Net Position –Governmental Funds Statement 4 35
Statement of Revenues, Expenditures, and Changes in
Fund Balances –Governmental Funds Statement 5 36
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances to the Statement of Activities
–Governmental Funds Statement 6 38
Statement of Revenues, Expenditures, and changed in
Fund Balance –Budget and Actual –General Fund Statement 7 39
Statement of Revenues, Expenditures, and Changes in
Fund Balance –Budget and Actual –Fire and Ambulance Special
Revenue Fund Statement 8 40
Statement of Net Position –Proprietary Funds Statement 9 41
Statement of Revenues, Expenses, and Changes in Fund Net
Position –Proprietary Funds Statement 10 42
Statement of Cash Flows –Proprietary Funds Statement 11 44
Statement of Fiduciary Net Position Statement 12 48
Statement of Changes in Fiduciary Net Position Statement 13 49
Notes to Basic Financial Statements 51
D.Required Supplementary Information
Schedule of Changes in Total OPEB Lability and Related Ratios Schedule 1 96
Schedule of City's Proportionate Share of Net Pension Liability
–General Employees Retirement Fund Schedule 2 98
Schedule of City's Proportionate Share of Net Pension Liability
–Public Employees Police and Fire Retirement Fund Schedule 2 98
Schedule of City Contributions –General Employees Retirement Fund Schedule 3 99
Schedule of City Contributions –Public Employees Police and Fire
Retirement Fund Schedule 3 99
City of Hastings
Table of Contents
Reference Page
II.FINANCIAL SECTION (CONTINUED)
D.Required Supplementary Information (Continued)
Schedule of Changes in Net Pension Liability and Related Ratios
-Hastings Firefighters'Benefit Association Schedule 4 100
Schedule of City and Non-Employer Entity Contributions -
Hastings Firefighters'Benefit Association Schedule 5 102
Notes to Required Supplementary Information 104
E.Supplementary Information
Detailed Schedule of Revenues, Expenditures, and Changes in
Fund Balance –Budget and Actual -General Fund Statement 14 112
Schedule of Revenues, Expenditures, and Changes in Fund Balance
–Budget and Actual -Debt Service Fund Statement 15 113
Combining Balance Sheet –Nonmajor Governmental Funds Statement 16 114
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances –Nonmajor Governmental Funds Statement 17 115
Non-Major Governmental Funds –Special Revenue Funds 117
Combining Balance Sheet –Nonmajor Special Revenue Funds Statement 18 118
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances –Nonmajor Special Revenue Funds Statement 19 120
Schedule of Revenues, Expenditures, and Changes in Fund Balance
–Budget and Actual –Park and Recreation Special Revenue Fund Statement 20 122
Schedule of Revenues, Expenditures, and Changes in Fund Balance
–Budget and Actual –Cable Television Special Revenue Fund Statement 21 123
Schedule of Revenues, Expenditures, and Changes in Fund Balance
–Budget and Actual –Heritage Preservation Special Revenue Fund Statement 22 124
Schedule of Revenues, Expenditures, and Changes in Fund Balance
–Budget and Actual –Ice Arena Special Revenue Fund Statement 23 125
Schedule of Revenues, Expenditures, and Changes in Fund Balance
–Budget and Actual –DUI Enforcement/Equipment Special
Revenue Fund Statement 24 126
Schedule of Revenues, Expenditures, and Changes in Fund Balance
–Budget and Actual –Aquatic Center Special Revenue Fund Statement 25 127
Non-Major Governmental Funds –Capital Projects Funds 129
Combining Balance Sheet –Nonmajor Capital Projects Funds Statement 26 130
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances –Nonmajor Capital Project Funds Statement 27 132
Schedule of Revenues, Expenditures, and Changes in Fund Balance
–Budget and Actual –Park Projects Capital Projects Fund Statement 28 134
Balance Sheet –Nonmajor Permanent Fund Statement 29 135
Statement of Revenues, Expenditures, and Changes in
Fund Balances –Nonmajor Permanent Fund Statement 30 136
Internal Service Funds 137
Combining Statement of Net Position –Internal Service Funds Statement 31 138
Combining Statement of Revenues, Expenses, and Changes in
Fund Net Position –Internal Service Funds Statement 32 139
Combining Statement of Cash Flows –Internal Service Funds Statement 33 140
City of Hastings
Table of Contents
Reference Page
II. FINANCIAL SECTION (CONTINUED)
E. Supplementary Information (Continued)
Component Unit Hastings Economic Development and
Redevelopment Authority Balance Sheet Statement 34 144
Reconciliation of the Balance Sheet to the Statement of
Net Position Statement 35 145
Statement of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual Statement 36 146
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances to the Statement of Activities Statement 37 147
Subcombining Balance Sheet Debt Service Fund Schedule 6 148
Subcombining Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Debt Service Fund Schedule 7 152
III. STATISTICAL SECTION (UNAUDITED)
Net Position by Component Table 1 158
Changes in Net Position Table 2 160
Fund Balances, Governmental Funds Table 3 164
Changes in Fund Balances, Governmental Funds Table 4 166
Tax Capacity Value and Estimated Market Value of
Taxable Property Table 5 168
Direct and Overlapping Property Tax Rates Table 6 169
Principal Property Taxpayers Table 7 170
Property Tax Levies and Collections Table 8 171
Ratios of Outstanding Debt by Type Table 9 172
Ratio of Net General Obligation Bonded Debt to Assessed Value and
Net General Obligation Debt Per Capita Table 10 174
Direct and Overlapping Governmental Activities Debt Table 11 175
Legal Debt Margin Information Table 12 176
Pledged-Revenue Coverage Table 13 178
Demographic and Economic Statistics Table 14 180
Principle Employers Table 15 181
Full-Time Equivalent City Government Employees by
Function/Program Table 16 182
Operating Indicators by Function/Program Table 17 184
Capital Asset Statistics by Function/Program Table 18 186
1
INTRODUCTORY SECTION
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June 17, 2024
To the Honorable Mayor, Members of the City Council, and Citizens of the City of Hastings:
It is my honor to present the City’s Annual Comprehensive Financial Report (ACFR) to you. This
document is a thorough report of the City’s financial position, and I am pleased to affirm the City
is in a sound financial position and well positioned to continue to serve our constituents in a
fiscally responsible manner.
Minnesota state law requires that every city with a population in excess of 2,500 publish within
six months of the close of each fiscal year,a complete set of financial statements presented in
conformity with accounting principles generally accepted in the United States of America (GAAP)
and audited in accordance with auditing standards generally accepted in the United States of
America by a firm of licensed certified public accountants. This report is published to fulfill that
requirement for the fiscal year ended December 31, 2023.
Management assumes full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these
representations,management of the City of Hastings established a comprehensive internal
control framework designed both to protect the City assets from loss,theft, or misuse and to
compile sufficient reliable information for the preparation of the City of Hastings’financial
statements in conformity with GAAP. Because the cost of internal controls should not outweigh
the benefits,the City of Hastings’comprehensive framework of internal controls is designed to
provide reasonable rather than absolute assurance that financial statements will be free from
material misstatement. As management, we assert that, to the best of our knowledge and belief,
this financial report is complete and reliable in all material respects.
The City of Hastings’ financial statements were audited by BerganKDV, a firm of licensed
certified public accountants who issued an unmodified (“clean”) opinion on the
financial statements of the City of Hastings for the fiscal year ended December 31, 2023. The
independent audit involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the accounting principles used and the
significant estimates made by management; and evaluating the overall financial statement
presentation. The independent auditor concluded, based upon the audit, there was a
reasonable basis for rendering an unmodified opinion the City of Hastings’ financial
statements for the fiscal year ended December 31, 2023, are fairly presented in conformity
with GAAP. The Independent Auditors’ Report is presented as the first component of the
financial section of this report.
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GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management’s Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement MD&A and should be read in
conjunction with it. The City of Hastings’ MD&A can be found immediately following the report
of the independent auditors.
City Profile
The City of Hastings is a municipal corporation, incorporated in 1857, in the State of Minnesota,
within the corporate limits and boundaries established by the Home Rule Charter of the City. We
are located approximately 20 miles south of St. Paul at the junction of the Mississippi and St. Croix
Rivers in the east central part of the state. As a riverfront community, the City of Hastings was
the birthplace of many early commercial enterprises and is the county seat of Dakota County. A
small portion of the City is located in Washington County. The City is empowered to levy a
property tax on both real and personal property located within its boundaries. The City also has
statutory authority to extend its corporate limits by annexation, which is done periodically when
deemed appropriate by the governing City Council.
As a part of the seven-county Minneapolis/St. Paul Metropolitan area, Hastings is within the
jurisdiction of the Metropolitan Council, a regional planning agency for the Twin Cities
Metropolitan region. The City's population continues to grow from 15,478 in 1990 to an
estimated 22,634 in 2023. The Metropolitan Council projects that the city’s population will grow
to 25,500 by the year 2030. The City encompasses an area of 11.40 square miles.
The City Charter declares the City operate under a “Mayor-Council Plan” form of government.
Policymaking and legislative authority are vested in the City Council, which consists of a mayor
and six other members, all elected on a non-partisan basis. The Mayor and Council members are
elected to four-year staggered terms with a two-year difference between at-large and ward
council seats. Four Councilmembers are elected from within their respective wards and the
Mayor and two Councilmembers are elected at-large. The Council is responsible, among other
things, for passing ordinances, adopting the budget, appointing commissions and/or citizen
committees and hiring the City Administrator. The City Administrator is the chief administrative
officer of the City, and is responsible to the Council for the administration of the City’s affairs set
forth in the City’s Charter. This includes carrying out the policies and ordinances of the City,
overseeing the day-to-day operations of the City, and the heads of various departments and City
employees.
The City of Hastings provides a full range of services, including police and fire protection, advanced
and basic life support ambulance services, the construction and maintenance of highways, streets,
parks, infrastructure, recreational and cultural facilities and general administrative services. In
addition, the City provides enterprise activities such as: water, sewer and storm water services,
as well as hydroelectric power generation. The City operates the Hastings Family Aquatic Center
and Civic Arena, contributes to joint powers recreational operations, and supports several other
important community-based events and projects.
The Council is required to adopt a final budget no later than the close of the fiscal year. The annual
budget represents the financial plan and priorities of the City of Hastings. It is intended to clearly
communicate the City’s goals and how resources are allocated to those priorities in an easy-to-
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understand manner. In essence, the budget process is ongoing, whereby priorities and goals are
established and funded in alignment with Council directives, strategic plan, and our CORE values.
All departments are required to submit requests for appropriation to the City Administrator, who
must balance the competing needs against available resources. Based upon direction from the
City Council and the requests made, a proposed budget is prepared with input from the City’s
Finance Committee (a three-member committee of the council) and submitted to the City Council.
The preliminary levy is adopted no later than September 30th. The City Council may only make
adjustments that reduce the final levy from the adopted preliminary levy and is required to adopt
a final budget no later than December 31st, the close of the City of Hastings’ fiscal year.
Department Heads are held responsible for their budget performance. Department Heads may
request transfers of appropriations within their departments. Transfers between departments
require City Council approval. Budget-to-actual comparisons are provided in this report for each
individual governmental fund for which an annual budget is adopted. For the General Fund, this
comparison is presented as part of the basic financial statements for the Governmental Funds.
For the governmental funds with annual budgets, other than the General Fund and the Fire and
Ambulance Special Revenue Fund, this comparison is presented in the Governmental Fund
subsection of this report, as noted in the table of contents.
Local Economy
The City continues to see economic growth and local indicators point to continued stability in this
area. The region has a varied manufacturing/industrial base. Major industries with headquarters
or divisions located within the City’s boundaries or in close proximity include an office and
stationery supplies manufacturer, flour and other grain mill producer, plastics producer, and
several financial and insurance institutions. The state, county and school district also all have a
major economic presence in the area, as we are home to the Dakota County main governmental
complex and Hastings’ Independent School District 200 offices.
We experienced a decrease in the number of permits and the overall value of work done from the
prior year. While these numbers declined from 2022, They still represent the second highest value
of permits in the City’s recent history. Below is a chart that gives a brief building permit history.
Permits 2023 2022 2021 2020 2019 2018
New Residential 25 33 34 56 14 15
New Commercial 2 5 3 2 2 3
Residential remodel 88 100 77 71 77 65
Commercial remodel 76 68 55 81 48 54
All other permits 2,357 2,438 3,265 2,430 1,503 1,604
TOTAL 2,548 2,644 3,434 2,640 1,644 1,741
Dollar value of Permits
(in millions)75.5$ 87.0$ 47.9$ 45.4$ 41.7$ 39.8$
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Major Initiatives
In 2023 the City issued permits to construct 207 new residential units and 78 permits for
commercial and industrial expansion and development. Development included completion of
one apartment building with two additional apartments scheduled for completion in mid-
2024. The Confluence hotel was also completed adding 70 hotel rooms, banquet facility,
restaurant, and residential units.
The City received a total allocation of $2.5 million allocation through the federal government’s
ARPA grant to respond to the COVID-19 public health emergency. The remainder of these funds
will be spent toward repairing and preserving the historic City Hall Dome, as well as a new finance
system. The finance system is scheduled for completion in 2024 and will upgrade the City’s
cybersecurity, as well as bolster its financial management capabilities. The City Hall renovation is
well underway, with the goal being completed in 2025.
Long-Term Financial Planning
The City continues to focus on maintaining the quality of life in the City of Hastings in alignment
with our CORE Values—Communication, Optimal Service, Respect for Resources, and Enthusiasm.
These values drive the development of our strategic plan, our budget process, and our
communication strategy.
Council strategic planning goals and efforts center around Financial Resilience, Operational
Effectiveness, Responsive Community Development, Infrastructure Sustainability, and Strategic
Communication.
The Utility, Debt, and Capital plans were all reviewed internally to better position the community
for long-term fiscal health. As part of long-term planning efforts, the City has identified capital
equipment and facility improvement needs. The City updates its 5-year capital plan that is part
of the annual budget process. These Capital Improvement and Equipment Plans aid in scheduling
debt issuance, reserves, grant applications, and other funding sources for equipment and
infrastructure.
Beginning in 2021/2022, the City developed a five-year model to use as part of its budget planning
process. The City also conducts periodic rate studies to analyze water, sanitary sewer, and storm
sewer budgets, last done in September 2023.
Relevant Financial Policies
The City continues to improve and update its Capital Improvement and Capital Equipment Plans.
Policies cover such areas as debt management, investments, capital reserves, and internal
controls. The most recent update the City adopted was updating the capital asset policy in 2021
to increase the threshold for capitalizing assets from $5,000 to $10,000, and to begin depreciating
all capital items except road construction and utility projects the first month of the year following
purchase.
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The City of Hastingscurrently has a debt management policy in place in order to manage the City's
debt.The Council has placed three limits on the issuance of debt.Annual debt service percentage
calculated below is shown for governmental fund debt.
Policy 2023 Year End
a.)Total annual debt service for G.O.debt obligations per
legal debt limit to not exceed 25%of total budgeted
expenditures.
8.50%
b.)Net bonded debt outstanding will not exceed 3.5%of
Assessor's market value of taxable property..55%
c.)Gross bonded debt will not exceed $1,800 per capita.$645
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA)awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Hastings for its
Annual Comprehensive Financial Report (ACFR)for the year ended December 31,2022.This was
the 25th consecutive year the City received this prestigious award.In order to be awarded a
Certificate of Achievement,a government must publish an easily readable and efficiently
organized comprehensive annual financial report.This report must satisfy both generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only.The City believes that our
current comprehensive annual financial report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
The preparation of this report would not have been possible without the dedicated services of
the City staff.I would like to express my appreciation to the City Council for their leadership and
foresight in maintaining our financial position,the City's Management Team members for their
thoughtful and deliberate approach to developing and living within our annual budget,and
specifically to the Finance Department staff for their dedication and expertise throughout the
year.
Respectfully submitted,
Dan Wietecha
City Administrator
Chris Eitemiller
Finance Manager
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City of Hastings
Elected Officials and Administration
December 31, 2023
Elected Officials Position Term Expires
Mary Fasbender Mayor December 31, 2026
DawnMarie Vihrachoff 1st Ward December 31, 2024
Jen Fox 2nd Ward December 31, 2024
Lisa Leifeld 3rd Ward December 31, 2024
Tim Lawrence 4th Ward December 31, 2024
Angie Haus At-Large December 31, 2026
Dave Pemble At-Large December 31, 2026
Administration
Dan Wietecha City Administrator
Kelly Murtaugh Assistant City Administrator
Lonell Johnson Building Official
John Hinzman Community Development Director
John Townsend Fire & EMS Director
Chris Jenkins Parks & Recreation Director
David Wilske Police Chief
Ryan Stempski Public Works Director
Chris Eitemiller Finance Manager
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City of Hastings
City and Department Organizational Chart
December 31, 2023
City of Hastings Organizational Chart
City Administrator
Advisory Commissions
Mayor & Councilmembers
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n
t
s
a
n
d
T
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p
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s
Parks & Recreation Director
Public Works Director
Family Aquatic Center
Civic Arena
Operations & Maintenance
Engineering
Fire & EMS Director
Information Technology
Manager
Community Development
Director
Building Inspections
Code Enforecement
Community Development
Ci
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H
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s
Histroic Preservation
Facilities Maintenance
Finance Manager
HEDRA
City Clerk
Communications
Human Resources
Chief of Police
Assistant City Administrator
City of Hastings
Certificate of Achievement for Excellence in Financial Reporting
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(b
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Hastings
Minnesota
For its /Xnnual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31,2022
Executive Director CEO
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FINANCIAL SECTION
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13
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Hastings
Hastings, Minnesota
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, the discretely presented component unit, each major fund, and the aggregate
remaining fund information of the City of Hastings, Minnesota, as of and for the year ended
December 31, 2023, and the related notes to financial statements, which collectively comprise the
City's basic financial statements as listed in the Table of Contents.
In our opinion,the accompanying financial statements present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of Hastings, Minnesota, as of December 31, 2023, and the respective changes
in financial position and, where applicable, cash flows thereof, and the budgetary comparison for the
General Fund and the Fire and Ambulance Special Revenue Fund for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America (GAAS) and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities
under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. We are required to be independent of the City of Hastings
and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements
relating to our audit. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
The City of Hastings'management is responsible for the preparation and fair presentation of the
financial statements in accordance with accounting principles generally accepted in the United
States of America, and for the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about City of Hastings'
ability to continue as a going concern for twelve months beyond the financial statement date,
including any currently known information that may raise substantial doubt shortly thereafter.
6 berganKDV
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Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The risk
of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood
that, individually or in the aggregate, they would influence the judgment made by a reasonable user
based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of City of Hastings'internal control. Accordingly, no such
opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of
the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about City of Hastings'ability to continue as a going
concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control–related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis, which follows this report letter, and Required Supplementary
Information as listed in the Table of Contents be presented to supplement the basic financial
statements. Such information is the responsibility of management and, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board (GASB), who
considers it to be an essential part of financial reporting for placing the basic financial statements in
an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the Required Supplementary Information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
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Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Hastings' basic financial statements. The accompanying
supplementary information as identified in the Table of Contents is presented for purposes of
additional analysis and is not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to
the underlying accounting and other records used to prepare the basic financial statements. The
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our
opinion, the accompanying supplementary information is fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the Annual Comprehensive Financial
Report. The other information comprises the introductory and statistical sections but does not
include the basic financial statements and our auditor's report thereon. Our opinions on the basic
financial statements do not cover the other information, and we do not express an opinion or any
form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially
misstated. If, based on the work performed, we conclude that an uncorrected material misstatement
of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 5,
2024, on our consideration of the City of Hastings' internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements
and other matters. The purpose of that report is solely to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the effectiveness of internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City's internal control over financial reporting and compliance.
Minneapolis, Minnesota
June 5, 2024
M l-H
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City of Hastings
Management's Discussion and Analysis
December 31, 2023
As management of the City of Hastings, Minnesota (the City), we offer readers of the City of Hastings
financial statements this narrative overview and analysis of the financial activities of the City of
Hastings for the fiscal year ended December 31, 2023. We encourage readers to consider the
information presented here in conjunction with additional information that we have furnished in our
letter of transmittal, which can be found on pages 3-7 of this report.
Financial Highlights
The assets and deferred outflows of resources of the City of Hastings exceeded its liabilities
and deferred inflows of resources at the close of the most recent fiscal year (December 31,
2023) by $96,933,265 (net position). Of this amount, $13,923,757 (unrestricted net position)
may be used to meet the government's ongoing obligations to citizens or creditors in
accordance with the City's fund designations and fiscal policies.
The City's total net position increased by $3,885,428. Of this total, $2.5 million was due to
revenue increases in charges for services, state aid, and property taxes.
As of the close of the 2023 fiscal year, the City of Hastings governmental funds ending fund
balances were $20,089,427. Approximately 40.88% is restricted for special revenue-police
activities, debt service, capital project programs, tax increment financing, escrow deposits
and permanent trust fund—Leduc Historic Estate. Approximately 2.31% of the fund balance is
non-spendable. Approximately 14.01% is committed by City Council for the following
activities: special revenue funds-parks, police, aquatic, cable television, heritage
preservation, fire & ambulance, and the arena. Assigned fund balance for capital projects
results in 1.81% of the fund balance, the remaining 40.99% is unassigned and is available for
spending at the City's discretion.
At the end of the current fiscal year, unassigned fund balance for the General Fund was
$9,743,773 or 66.3% of the total 2023 General Fund expenditures.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City of Hastings' basic
financial statements. The City of Hastings' basic financial statements comprise three components:
1) government-wide financial statements, 2) fund financial statements, and 3) notes to financial
statements. This report also contains other supplementary information in addition to the basic
financial statements themselves.
Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the City of Hastings' finances, in a manner similar to a
private-sector business.
The Statement of Net Position presents information on all of the City of Hastings' assets and deferred
outflows of resources; and liabilities and deferred inflows of resources, with the difference between
the two reported as net position. Over time, increases or decreases in net position may serve as a
useful indicator of whether the financial position of the City of Hastings is improving or
deteriorating.
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City of Hastings
Management's Discussion and Analysis
December 31, 2023
Overview of the Financial Statements (Continued)
Government-wide financial statements (Continued). The Statement of Activities presents
information showing how the City's net position changed during the most recent fiscal year. All
changes in net position are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected
taxes).
Both of the government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities of the City include general
government, public safety, public works, health and sanitation, economic development and culture
and recreation. The business-type activities of the City include the following: water, sewer, storm,
and hydro-electric operations.
The government-wide financial statements include not only the City itself (known as the primary
government), but also a legally separate Hastings Economic Development and Redevelopment
Authority (HEDRA). Financial information for this component unit is reported separately from the
financial information presented for the primary government itself.
The government-wide financial statements can be found on pages 29-31 of this report.
Fund financial statements. A fund is a grouping of related accounts used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same function
reported as governmental activities in the government-wide financial statements. However, unlike
the government-wide financial statements, governmental fund financial statements focus on near-
term inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating a government's
near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the government's near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund statement
of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
19
City of Hastings
Management's Discussion and Analysis
December 31, 2023
Overview of the Financial Statements (Continued)
Governmental funds (Continued). The City maintains 21 individual governmental funds. Information
is presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances of the general fund, the fire and
ambulance fund, the debt service fund, and the downtown redevelopment tax increment financing
fund, all of which are considered to be major funds. Data from the other 16 governmental funds are
combined into a single, aggregated presentation. Individual fund data for each of these nonmajor
governmental funds is provided in the form of combining statements in the supplementary
information section of this report.
The City adopts an annual appropriated budget. Budgetary comparison statements have been
provided for the general and special revenue funds to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 32-40 of this report.
Proprietary funds. The City of Hastings maintains two different types of proprietary funds.
Enterprise funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The City of Hastings uses enterprise funds to account for its
water, sewer, storm water, and hydro-electric operations. Internal service funds are an accounting
device used to accumulate and allocate costs internally among the City of Hastings' various functions.
The City of Hastings uses internal service funds to account for its governmental vehicle expenses,
retiree health insurance costs, insurance expense, and compensated absences liability. These
services predominantly benefit governmental rather than business-type functions and have been
included within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for each of the operations mentioned above, all of which have been reported as major
funds of the City. Conversely, the four internal service funds are combined into a single, aggregated
presentation in the proprietary fund financial statements. Individual fund data for the internal
service funds is provided in the form of combining statements in the supplementary information
section of this report.
The basic proprietary fund financial statements can be found on pages 41-45 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the city. Fiduciary funds are not reflected in the government-wide financial statement
because the resources of those funds are not available to support the City of Hastings' own programs.
The accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on pages 48-49 of this report.
Notes to financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes
to the financial statements can be found on pages 51-94 of this report.
20
City of Hastings
Management's Discussion and Analysis
December 31, 2023
Government-Wide Financial Analysis (Continued)
Supplementary information. In addition to the basic financial statements and accompanying notes,
this report also presents certain supplementary information for the reader. The combining
statements referred to earlier in connection with nonmajor governmental funds, internal service
funds, and fiduciary funds are presented immediately following the notes to the financial report.
Combining and individual fund statements and schedules can be found on pages 112-155 of this
report.
Government-wide Financial Analysis
As noted earlier, net position may serve as a useful indicator of a government's financial position. In
the case of the City of Hastings, assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $96,933,265 at the close of the most recent fiscal year.
By far the largest portion of the City's net position (73.39%) reflects its investment in capital assets
(e.g., land, buildings, machinery, and equipment); less any related debt used to acquire those assets
that is still outstanding. The City of Hastings uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City of Hastings'
investment in capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets themselves
cannot be used to liquidate these liabilities.
City of Hastings' Net Position
Governmental Governmental Business-Type Business-Type
Activities Activities Activities Activities Total Total
2023 2022 2023 2022 2023 2022
Current and
other assets 37,038,069$ 38,289,056$ 13,305,011$ 11,804,063$ 50,343,080$ 50,093,119$
Capital assets 65,252,467 61,020,836 31,981,375 31,855,530 97,233,842 92,876,366
Total assets 102,290,536 99,309,892 45,286,386 43,659,593 147,576,922 142,969,485
Total deferred outflows 13,100,441 15,124,253 310,031 430,381 13,410,472 15,554,634
Long-term liabilities
outstanding 31,737,672 43,923,502 7,950,556 8,296,597 39,688,228 52,220,099
Other liabilities 7,951,274 7,339,143 1,565,774 1,028,503 9,517,048 8,367,646
Total liabilities 39,688,946 51,262,645 9,516,330 9,325,100 49,205,276 60,587,745
Total deferred inflows 14,569,168 4,862,810 279,685 25,727 14,848,853 4,888,537
Net Position
Net Investment in capital assets 46,775,856 43,579,389 24,367,726 24,584,961 71,143,582 68,164,350
Restricted
Police activities 226,081 82,112 - - 226,081 82,112
Tax Increment 53,131 21,990 53,131 21,990
Debt service 7,192,363 7,725,877 - - 7,192,363 7,725,877
Capital projects 1,395,686 1,015,753 - - 1,395,686 1,015,753
Escrow 26,832 4,497 - - 26,832 4,497
Permanent endowment
LeDuc Historic Estate - -
Fire relief pension 1,850,595 - - - 1,850,595 -
Unrestricted 2,491,081 4,803,200 11,432,676 10,154,186 13,923,757 14,957,386
Total net position 61,132,863$ 58,308,690$ 35,800,402$ 34,739,147$ 96,933,265$ 93,047,837$
1,075,8721,121,238 1,075,872 1,121,238
21
City of Hastings
Management's Discussion and Analysis
December 31, 2023
Government-Wide Financial Analysis (Continued)
City of Hastings' Net Position (Continued)
At the end of 2023, the City of Hastings had positive balances in the categories of net position for the
government as a whole, as well as for its separate governmental and business-type activities. The
unrestricted net position for the governmental activities continues to be positive due to positive
results in several funds' operations.
Governmental activities. Governmental activities increased the City of Hastings' net position by
$2,823,173. The key elements of this increase were in revenues. Investment earnings saw an increase
of $1,604,649 due to better market conditions, while Culture and Recreation saw an increase of
$656,639 in program revenues related to increase programs. Property taxes increased just over $1
million due to an increase in the levy, while unrestricted state aid increased $256,109.
City of Hastings' Changes in Net Position
Governmental Governmental Business-type Business-type
Activities Activities Activities Activities Total Total
2023 2022 2023 2022 2023 2022
Revenues
Program revenues
Charges for services 5,917,560$ 6,873,080$ 7,399,941$ 7,828,381$ 13,317,501$ 14,701,461$
Operating grants & contributions 878,421 1,125,789 30,461 - 908,882 1,125,789
Capital grants & contributions 3,649,123 2,185,950 69,086 800,611 3,718,209 2,986,561
General revenues:
Property taxes 17,505,561 16,487,748 - - 17,505,561 16,487,748
State aid 1,421,154 1,165,045 - - 1,421,154 1,165,045
Other income (loss) 1,930,075 (296,104) 436,207 (192,309) 2,366,282 (488,413)
Total Revenues 31,301,894 27,541,508 7,935,695 8,436,683 39,237,589 35,978,191
Expenses
General government 3,846,332 3,560,823 - - 3,846,332 3,560,823
Public safety 13,790,683 12,044,540 - - 13,790,683 12,044,540
Public works 5,841,383 6,017,835 - - 5,841,383 6,017,835
Culture & recreation 4,700,209 4,695,960 - - 4,700,209 4,695,960
Economic development 34,090 66,819 - - 34,090 66,819
Health & sanitation 69,481 50,726 - - 69,481 50,726
Interest on long-term debt 536,545 482,428 - - 536,545 482,428
Water - - 2,504,603 2,356,748 2,504,603 2,356,748
Sewer - - 2,815,475 2,716,736 2,815,475 2,716,736
Storm - - 609,981 491,006 609,981 491,006
Hydro - - 603,379 599,007 603,379 599,007
Total Expenses 28,818,723 26,919,131 6,533,438 6,163,497 35,352,161 33,082,628
Change in net position before transfers
and contributions 2,483,171 622,377 1,402,257 2,273,186 3,885,428 2,895,563
Transfers and contributions 341,002 335,286 (341,002) (335,286) - -
Change in net position 2,824,173 957,663 1,061,255 1,937,900 3,885,428 2,895,563
Net position-January 1 58,308,690 57,351,027 34,739,147 32,801,247 93,047,837 90,152,274
Net position-December 31 61,132,863$ 58,308,690$ 35,800,402$ 34,739,147$ 96,933,265$ 93,047,837$
On the following page are specific graphs, which provide comparisons of the governmental activities
revenues and expenses.
22
City of Hastings
Management's Discussion and Analysis
December 31, 2023
Government-Wide Financial Analysis (Continued)
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
$
i
n
t
h
o
u
s
a
n
d
s
Programs
Expenses and Program Revenues-Governmental Activities
Expenses Program Revenues
Property taxes, 57%
State aid, 5%
Operating grants
3%
Charges for
Services 19%
Capital grants,
12%
Investment earnings 3%Transfers
1%
Revenue Sources-Governmental Activities
Business-type activities. On the following page are graphs showing the business-type activities
revenue and expense comparisons.
23
City of Hastings
Management's Discussion and Analysis
December 31, 2023
Government-Wide Financial Analysis (Continued)
-
500
1,000
1,500
2,000
2,500
3,000
3,500
Water Sewer Storm water Hydro
$ i
n
t
h
o
u
s
a
n
d
s
Operating Expenses and Operating Revenues - Business Type Activities
Operating Revenues Operating Expenses
Financial Analysis of the Government's Funds
As noted earlier, the City of Hastings uses fund accounting to ensure and demonstrate compliance
with finance-related legal requirements.
Charges for
services
93.25%
Capital grants
0.87%
Investment
earnings
5.50%
Grants &
Contributions
0.38%
Revenue Sources - Business Type Activities
24
City of Hastings
Management's Discussion and Analysis
December 31, 2022
Government-Wide Financial Analysis (Continued)
Governmental funds. The focus of the City of Hastings' governmental funds is to provide information
on near-term inflows, outflows and balances of spendable resources. Such information is useful in
assessing the City of Hastings' financing requirements. In particular, unassigned fund balance may
serve as a useful measure of a government's net resources available for spending at the end of the
fiscal year.
As of the end of the current fiscal year, the City of Hastings' governmental funds reported combined
ending fund balances of $20,089,427. Approximately 40.99% of this total amount or $8,235,229
constitutes unassigned fund balance, which is available for spending at the government's discretion.
The remainder of fund balance is restricted or committed or assigned by the City Council to indicate
that it is not available for new spending. Activities such as Police activities, Debt service, and
Permanent Trust funds for the LeDuc Historic Estate are restricted or committed by council action.
Capital projects fund balance is assigned.
The City of Hastings governmental funds reported a combined ending fund balance decrease of
$1,543,407. The fund balance change is primarily due to the effect of the following factors:
The General fund balance decreased by $306,071. The largest change was a decrease of
$915,589 in cash and investments. Much of this decrease was for one-time capital projects
funded by fund equity. In fact, capital outlay increased by $664,993 from 2022. Additional
reserves were spent on projects funded by the City's ARPA allocation. Another significant
change was in lease proceeds, which decreased be $145,030. This recognition is mandated by
the GASB 87 lease reporting standard. The net decrease was reduced due to increased
revenues.
Fire and Ambulance fund's activity resulted in an increase of $465,795. This is a result of a
one-time revenue from a sale of equipment. There remains a significant challenge in charges
for ambulance service revenue. The City switched billing services to improve collections in
mid-2023.
Debt Service funds had a fund balance decrease of $403,636 due to transfers in moving
principal and interest payments from the Downtown Redevelopment Tax Increment Financing
fund to the debt service fund ($203,000), and planned use of cash reserves to fund debt
payments.
Road Improvement Construction fund had a fund balance increase of $735,960 due to the
timing of capital projects and related debt issuances.
The Downtown Redevelopment Tax Increment Financing fund had a fund balance decrease of
$203,000 due to continued payments on interfund loans.
The Park Projects fund had a fund balance increase of $167,798 due to transfers from other
funds exceeding expenditures.
Other Governmental Funds such as the Aquatic, Cable TV, Heritage Preservation, LeDuc, and
Arena had a cumulative decrease of $2,000,253. The Parks Special Revenue fund had a
decrease of $1,153,306, due to transferring approximately $279,000 of fund balance to parks
capital and planned capital expenditures. Arena had a decrease of $393,730. Capital
expenditures exceeded budget by $495,514, but this was planned. It was the beginning of a
large renovation project that will be reimbursed in 2024 from bond proceeds.
25
City of Hastings
Management's Discussion and Analysis
December 31, 2023
Financial Analysis of the Government's Funds (Continued)
Proprietary funds. The City of Hastings' proprietary funds provide the same type of information
found in the government-wide financial statements, but in more detail. Unrestricted net position in
the respective proprietary funds are:
Water 3,766,514$
Sewer 3,656,642
Storm 922,063
Hydro 123,330
The Water, Sewer and Stormwater fund's activities resulted in an increase in net position primarily
due to an increase in utility rates. All utility funds had rate increases due to the most recent utility
rate study in 2023 to maintain cash reserves to help meet capital equipment needs. The Hydro Plant
had a decrease to net position of $103,450. The largest factor in this was depreciation expense of
$179,787.
General Fund Budgetary Highlights
Actual expenditures were slightly lower than the amended expenditure budget. The most significant
differences from the final budget amounts are due to the following:
The Building and Inspections department was $221,430 below budget due to timing in hiring.
The Finance system project was delayed until 2024, resulting in $362,755 less spending than
planned.
These savings were largely offset by the Public Works department street division, which was
$506,054 over budget. Most of this was in street maintenance.
Actual revenues were higher than the amended revenue budget by $340,794. The difference from
the final budget amounts is primarily due to the following:
Police had a positive revenue variance of $212,716. This was due to $123,311 from
intergovernmental revenues, $19,703 charges for services and $67,608 in Police Relief Aid
exceeding budget. The Police Relief Aid is offset by a matching expense.
Building permit revenues decreased from 2022, but 2023 was still the second highest year
ever, and $114,119 above budget.
Significant changes between original and final budgets were a result of:
Increased spending authority for City Hall Renovation - $365,000.
Adding authority for several capital purchases after the City's available resources according to
the fund balance policy had been verified.
Capital assets. The City of Hastings' investment in capital assets for its governmental and business-
type activities as of December 31, 2023, amounts to $97,233,842 (net of accumulated depreciation)
an increase of $4,357,476. This investment in capital assets includes land, buildings, improvements,
machinery and equipment, park facilities, and infrastructure.
26
City of Hastings
Management's Discussion and Analysis
December 31, 2023
City of Hastings Capital Assets
(Net of Depreciation/Amortization)
2023 2022
2023 2022 Business- Business-
Governmental Governmental Type Type 2023 2022
Activities Activities Activities Activities Total Total
Land 3,801,111$ 3,693,211$ 349,300$ 349,300$ 4,150,411$ 4,042,511$
Construction in progress 3,951,545 287,252 77,400 2,420 4,028,945 289,672
Buildings 8,972,542 9,458,454 5,091,232 5,506,381 14,063,774 14,964,835
Improvement other
than buildings 3,535,543 2,983,902 2,357,485 2,516,074 5,893,028 5,499,976
Machinery and equipment 4,130,254 3,633,851 2,970,195 2,835,556 7,100,449 6,469,407
Leased equipment 292,080 368,572 45,484 61,957 337,564 430,529
Infrastructure 40,569,392 40,595,594 21,090,279 20,583,842 61,659,671 61,179,436
Total assets 65,252,467$ 61,020,836$ 31,981,375$ 31,855,530$ 97,233,842$ 92,876,366$
Additional information on the City of Hastings's capital assets can be found in Note 4 on pages 63-65.
Long-Term Debt.
At the end of the current fiscal year, the City of Hastings had outstanding G.O. Revenue debt of
$6,775,000 comprises debt backed by the full faith and credit of the government and $14,515,000 of
G.O. special assessment debt for which the government is liable in the event of default by the
property owners subject to assessment. The remainder of the City of Hastings' debt represents bonds
secured solely by specified revenue sources (i.e. revenue bonds) but still carries the City's backing
(government obligation).
More detailed information on debt administration can be found in Note 7 on pages 67-72.
Economic Factors
In 2023, the City experienced decreased levels all areas other than commercial remodels than 2022.
Still, the overall increase in taxable market value of residential and commercial new construction
was $75.5 million which is the second-highest total ever after 2022. The City experienced a
significant increase of tax capacity of $4,773,974 between pay year 2022 and pay year 2023.
Next Year's Budget
The 2024 budget included a levy increase of $1,276,525, or 7.348%. Of this, $523,375 was due to tax
capacity growth and the remainder of $753,150 was derived from the property tax rate, increased by
1.862%. The City anticipates receiving $1,277,478 of Local Government Aid from the State of
Minnesota, which is dedicated to funding one-time expenditures. Cost of Living and health insurance
increases and Capital projects and Capital equipment purchases made up the increase from 2023-
2024.
Requests for Information
This financial report is designed to provide a general overview of the City of Hastings' finances.
Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to the Finance Manager at 101 4th Street East, Hastings, MN
55033, FinanceDept@hastingsmn.gov or 651-480-2350.
27
BASIC FINANCIAL STATEMENTS
See notes to basic financial statements. 28
Statement 1
Governmental
Activities
Business-type
Activities Total
Assets
Cash and investments
(including cash equivalents)22,341,725$ 11,337,719$ 33,679,444$ 775,044$
Cash with fiscal agent 795,795 - 795,795 -
Restricted cash 92,366 - 92,366 -
Receivables
Accounts receivable 1,754,088 1,631,210 3,385,298 3,520
Interest receivable 143,209 27,563 170,772 2,553
Taxes receivable 1,480,092 3,518 1,483,610 40,774
Special assessments receivable 1,903,943 155,655 2,059,598 -
Loan receivable - - - 187,973
Lease receivable 2,669,722 - 2,669,722 -
Net pension asset 1,850,595 - 1,850,595 -
Due from other governments 3,741,470 - 3,741,470 1,478,739
Inventories 68,346 - 68,346 -
Prepaid items 196,718 149,346 346,064 33
Assets held for resale - - - 3,410,690
Capital assets not being depreciated
Land 3,801,111 349,300 4,150,411 -
Construction in progress 3,951,545 77,400 4,028,945 -
Capital assets net of accumulated
depreciation/amortization
Buildings and structures 8,972,542 5,091,230 14,063,772 82,499
Machinery and equipment 4,130,254 2,977,348 7,107,602 -
Leased equipment 292,080 45,484 337,564 -
Improvements other than buildings 3,535,543 2,350,324 5,885,867 -
Infrastructure 40,569,392 21,090,289 61,659,681 -
Total assets 102,290,536$ 45,286,386$ 147,576,922$ 5,981,825$
Deferred Outflows of Resources
Deferred outflows of resources related to
fire relief pensions 578,135 - 578,135 -
Deferred outflows of resources related to
City pensions 11,470,776 196,224 11,667,000 44,548
Deferred outflows of resources related to OPEB 1,051,530 113,807 1,165,337 20,153
Total deferred outflows of resources 13,100,441 310,031 13,410,472 64,701
Total assets and deferred outflows
of resources 115,390,977$ 45,596,417$ 160,987,394$ 6,046,526$
Hastings
Economic
Development
and
Redevelopment
Authority
City of Hastings
Statement of Net Position
December 31, 2023
See notes to basic financial statements.29
Statement 1 (Continued)
Governmental
Activities
Business-type
Activities Total
Liabilities
Accounts and contracts payable 1,666,588$ 393,660$ 2,060,248$ 7,505$
Interest payable 287,457 108,387 395,844 -
Salaries and benefits payable 545,728 62,225 607,953 8,840
Due to other governments 51,663 26,257 77,920 1,463,739
Deposits payable 212,221 -212,221 16,700
Unearned revenue 1,986,638 -1,986,638 -
Bonds payable, net
Payable within one year 2,525,000 900,000 3,425,000 -
Payable after one year 16,782,478 6,670,896 23,453,374 -
Lease payable
Payable within one year 123,332 14,872 138,204 -
Payable after one year 150,473 27,881 178,354 -
Compensated absences payable
Payable within one year 139,622 15,671 155,293 -
Payable after one year 1,869,603 250,311 2,119,914 -
Payable after one year
Net pension liability 10,151,741 700,224 10,851,965 158,971
Total other post employment benefits (OPEB) liability
Payable within one year 413,025 44,702 457,727 61,261
Payable after one year 2,783,377 301,244 3,084,621 -
Total liabilities 39,688,946 9,516,330 49,205,276 1,717,016
Deferred Inflows of Resources
Deferred inflows of resources related to
fire relief pensions 498,677 -498,677 -
Deferred inflows of resources related to
City pensions 11,133,114 228,873 11,361,987 51,961
Deferred inflows of resources related to leases 2,467,883 -2,467,883 -
Deferred inflows of resources related to OPEB 469,494 50,812 520,306 8,998
Total deferred inflows of resources 14,569,168 279,685 14,848,853 60,959
Net Position
Net investment in capital assets 46,775,856 24,367,726 71,143,582 82,499
Restricted for
Debt service 7,192,363 -7,192,363 -
Tax increment 53,131 -53,131 -
Capital projects 1,395,686 -1,395,686 -
Escrow 26,832 -26,832 -
Police activities 226,081 -226,081 -
LeDuc Historic Estate - unexpendable 200,000 -200,000 -
LeDuc Historic Estate - expendable 921,238 -921,238 -
Fire relief pension 1,850,595 -1,850,595 -
Unrestricted 2,491,081 11,432,676 13,923,757 4,186,052
Total net position 61,132,863 35,800,402 96,933,265 4,268,551
Total liabilities, deferred inflows of
resources, and net position 115,390,977$ 45,596,417$ 160,987,394$ 6,046,526$
December 31, 2023
Hastings
Economic
Development
and
Redevelopment
Authority
City of Hastings
Statement of Net Position
See notes to basic financial statements.30
Program Revenues
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Governmental activities
General government 3,846,332$ 373,304$ -$ -$
Public safety 13,790,683 3,411,939 485,046 900,000
Public works 5,841,383 811,485 297,837 1,442,472
Health and sanitation 69,481 6,300 36,599 -
Culture and recreation 4,700,209 1,314,532 58,939 1,306,651
Economic development 34,090 ---
Interest and fiscal charges 536,545 ---
Total governmental activities 28,818,723 5,917,560 878,421 3,649,123
Business-type activities
Water 2,504,603 2,951,876 30,461 69,060
Sewer 2,815,475 2,829,255 -26
Storm 609,981 864,150 --
Hydro 603,379 754,660 --
Total business-type activities 6,533,438 7,399,941 30,461 69,086
Total governmental and
business-type activities 35,352,161$ 13,317,501$ 908,882$ 3,718,209$
Component unit
Hastings Economic Development and
Redevelopment Authority 555,462$ 71,130$ -$ -$
General revenues
Property taxes
Lodging taxes
Unrestricted state aid
Unrestricted investment earnings
Insurance recoveries
Gain (loss) on sale of asset
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning
Net position - ending
Functions/Programs
City of Hastings
Statement of Activities
Year Ended December 31, 2023
31
Statement 2
Governmental
Activities
Business-Type
Activities Total
Hastings
Economic and
Redevelopment
Authority
(3,473,028)$ -$ (3,473,028)$ -$
(8,993,698)-(8,993,698)-
(3,289,589)-(3,289,589)-
(26,582)-(26,582)-
(2,020,087)-(2,020,087)-
(34,090)-(34,090)-
(536,545)-(536,545)-
(18,373,619)-(18,373,619)
-546,794 546,794 -
-13,806 13,806 -
-254,169 254,169 -
-151,281 151,281 -
-966,050 966,050
(18,373,619)$ 966,050$ (17,407,569)$ -$
-$ -$ -$ (484,332)$
17,501,787 -17,501,787 197,626
3,774 -3,774 -
1,421,154 -1,421,154 -
1,250,967 436,207 1,687,174 43,104
17,153 -17,153 -
661,955 -661,955 -
341,002 (341,002)--
21,197,792 95,205 21,292,997 240,730
2,824,173 1,061,255 3,885,428 (243,602)
58,308,690 34,739,147 93,047,837 4,512,153
61,132,863$ 35,800,402$ 96,933,265$ 4,268,551$
Net (Expense) Revenues
and Changes in Net Position
See notes to basic financial statements.32
Debt Service
General Fund
(101, 220, 221,
223)
Fire and
Ambulance
(213) Debt Service
Assets
Cash and investments 9,885,581$ -$ 5,391,966$
Cash with fiscal agent - - -
Restricted cash 92,366 - -
Interest receivable 106,220 - 16,533
Due from other governments 2,462,574 21,335 -
Accounts receivable 400,698 1,203,740 -
Due from other funds 102,324 - -
Property taxes receivable 873,830 183,914 206,039
Lease receivable 2,669,722 - -
Special assessments receivable 42,027 - 1,861,916
Advances to other funds 1,463,739 - -
Inventory 65,404 - -
Prepaid items 164,700 26,417 3,366
Total assets 18,329,185$ 1,435,406$ 7,479,820$
Liabilities
Accounts payable 658,027$ 64,124$ -$
Due to other governments 42,549 6,207 -
Deposits payable - - -
Salaries and benefits payable 341,414 146,829 -
Due to other funds - 58,913 -
Advances from other funds - - -
Unearned revenues 1,981,095 - -
Total liabilities 3,023,085 276,073 -
Deferred Inflows of Resources
Unavailable revenue - taxes and assessments 143,667 18,973 1,887,065
Advanced appropriations - state shared taxes 2,373,420 - -
Unavailable revenue - leases 2,467,883 - -
Unavailable revenue - grants 78,472 - -
Total deferred inflows of resources 5,063,442 18,973 1,887,065
Fund Balances
Nonspendable
Prepaid items 164,700 26,417 3,366
Inventory 65,404 - -
Permanent endowment-Leduc Historic Estate - - -
Restricted
Police activities 170,762 - -
Debt service - - 5,589,389
Capital projects - - -
Tax increment financing - - -
Leduc Historic Estate 98,019 - -
Escrow
Committed
Park maintenance - - -
Aquatic operations - - -
Cable TV activities - - -
Heritage preservation activities - - -
Fire and ambulance activities - 1,113,943 -
Arena activities - - -
Assigned
Capital - - -
Unassigned 9,743,773 - -
Total fund balances 10,242,658 1,140,360 5,592,755
Total liabilities, deferred inflows of resources, and fund balances 18,329,185$ 1,435,406$ 7,479,820$
City of Hastings
Balance Sheet - Governmental Funds
December 31, 2023
Special
Revenue
33
Statement 3
Road
Improvement
Construction
(470-484)
Downtown
Redevelopment
Tax Increment
Financing (409)
Park Projects
(401)
Other
Governmental
Funds
Total
Governmental
Funds
322,243$ -$ 1,364,675$ 2,937,431$ 19,901,896$
---795,795 795,795
----92,366
568 -3,533 9,629 136,483
--1,223,115 34,446 3,741,470
--16,885 132,765 1,754,088
----102,324
---187,738 1,451,521
----2,669,722
----1,903,943
----1,463,739
---2,942 68,346
354 --1,881 196,718
323,165$ -$ 2,608,208$ 4,102,627$ 34,278,411$
110,676$ -$ 201,542$ 580,587$ 1,614,956$
---2,907 51,663
---212,221 212,221
---57,485 545,728
-21,287 -22,124 102,324
-1,463,739 --1,463,739
---2,144 1,983,239
110,676 1,485,026 201,542 877,468 5,973,870
---22,519 2,072,224
----2,373,420
----2,467,883
--1,223,115 -1,301,587
--1,223,115 22,519 8,215,114
354 --1,881 196,718
---2,942 68,346
---200,000 200,000
---55,305 226,067
----5,589,389
212,135 -1,183,551 -1,395,686
---53,131 53,131
---823,219 921,238
---26,832 26,832
---864,613 864,613
---441,485 441,485
---148,631 148,631
---124,960 124,960
----1,113,943
---118,885 118,885
---364,274 364,274
-(1,485,026)-(23,518)8,235,229
212,489 (1,485,026)1,183,551 3,202,640 20,089,427
323,165$ -$ 2,608,208$ 4,102,627$ 34,278,411$
Capital Projects
34
See notes to basic financial statements.35
Statement 4
Total fund balances - governmental funds 20,089,427$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not current financial resources and, therefore,
are not reported as assets in governmental funds.
Cost of capital assets 163,318,631
Less accumulated depreciation/amortization (99,799,692)
Long-term liabilities, including bonds payable, are not due and payable in the current period and,
therefore, are not reported as liabilities in the funds.
Long-term liabilities at year-end consist of:
Bonds payable (18,065,000)
Unamortized bond premium and discount (1,242,478)
Lease payable (273,805)
Net pension liability (10,151,741)
Revenues in the Statement of Activities that do not provide current financial resources are deferred
in the funds.
Taxes and special assessments 2,072,224
Grants, state shared tax, and other 3,675,007
Deferred outflows of resources and deferred inflows of resources are created as a result of various
differences related to pensions that are not recognized in the governmental funds.
Deferred inflows of resources related to fire relief pensions (498,677)
Deferred inflows of resources related to city pensions (11,133,114)
Deferred outflows of resources related to fire relief pensions 578,135
Deferred outflows of resources related to city pensions 11,470,776
The Fire Relief Association net pension asset created through contributions to a defined benefit
pension plan which is not recognized in the governmental funds. 1,850,595
Governmental funds do not report a liability for accrued interest due and payable. (287,457)
Internal Service Funds are used by management to charge the costs of insurance and capital
equipment to individual funds. These assets and liabilities of the Internal Service Funds are
included in governmental activities in the Statement of Net Position. (469,968)
Total net position - governmental activities 61,132,863$
December 31, 2023
City of Hastings
Reconciliation of the Balance Sheet to
the Statement of Net Position - Governmental Funds
See notes to basic financial statements.36
Debt Service
General Fund
(101, 220, 221,
223)
Fire and
Ambulance
(213)Debt Service
Revenues
General property taxes 10,520,825$ 2,193,997$ 2,190,331$
Tax increment collections ---
Miscellaneous taxes 3,774 --
Licenses and permits 809,581 --
Intergovernmental 2,434,239 918,614 -
Special assessments --618,412
Charges for services 1,260,323 2,284,860 -
Fines and forfeitures 86,689 --
Investment income 545,466 78 233,879
Contributions and donations 100 2,024 -
Miscellaneous 35,745 --
Total revenues 15,696,742 5,399,573 3,042,622
Expenditures
Current
General government 3,511,124 --
Public safety 7,169,692 4,535,216 -
Public works 1,747,659 --
Health and sanitation 69,481 --
Culture and recreation 164,604 --
Economic development ---
Debt service
Principal 111,156 -2,310,000
Interest and fiscal charges --600,703
Capital outlay
General government 632,376 --
Public safety 207,093 2,233,510 -
Public works 1,075,246 --
Culture and recreation ---
Total expenditures 14,688,431 6,768,726 2,910,703
Excess of revenues over (under) expenditures 1,008,311 (1,369,153)131,919
Other Financing Sources (Uses)
Proceeds from sale of capital assets 27,821 758,224 -
Proceeds from bonds issued ---
Premium on bonds issued ---
Proceeds from leases issued 46,345 --
Insurance recovery 12,509 4,644 -
Transfers in 531,556 1,160,862 203,000
Transfers out (1,932,613)(88,782)(738,555)
Total other financing sources (uses)(1,314,382)1,834,948 (535,555)
Net change in fund balances (306,071)465,795 (403,636)
Fund Balances
Beginning of year 10,548,729 674,565 5,996,391
End of year 10,242,658$ 1,140,360$ 5,592,755$
Special
Revenue
City of Hastings
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds
Year Ended December 31, 2023
37
Statement 5
Road
Improvement
Construction
(470-484)
Downtown
Redevelopment
Tax Increment
Financing (409)
Park Projects
(401)
Other
Governmental
Funds
Total
Governmental
Funds
-$ -$ -$ 2,206,955$ 17,112,108$
---54,809 54,809
----3,774
----809,581
--16,884 -3,369,737
----618,412
---1,300,370 4,845,553
----86,689
31,338 -49,948 291,519 1,152,228
---28,165 30,289
--31,242 41,418 108,405
31,338 -98,074 3,923,236 28,191,585
----3,511,124
---7,288 11,712,196
----1,747,659
----69,481
--2,945 3,605,890 3,773,439
---34,090 34,090
----2,421,156
77,240 --16,357 694,300
----632,376
----2,440,603
3,260,097 ---4,335,343
--465,858 1,780,349 2,246,207
3,337,337 -468,803 5,443,974 33,617,974
(3,305,999)-(370,729)(1,520,738)(5,426,389)
---8,633 794,678
3,125,000 ---3,125,000
279,904 ---279,904
----46,345
----17,153
637,055 -538,527 642,633 3,713,633
-(203,000)-(1,130,781)(4,093,731)
4,041,959 (203,000)538,527 (479,515)3,882,982
735,960 (203,000)167,798 (2,000,253)(1,543,407)
(523,471)(1,282,026)1,015,753 5,202,893 21,632,834
212,489$ (1,485,026)$ 1,183,551$ 3,202,640$ 20,089,427$
Capital Projects
See notes to basic financial statements.38
Statement 6
(1,543,407)$
Capital outlays are reported in governmental funds as expenditures. However, in the Statement
of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation
expense.
Capital outlays 9,657,744
Depreciation/amortization expense (5,172,519)
Disposal of capital assets (132,723)
Governmental funds recognize pension contributions as expenditures at the time of payment in
the funds whereas the Statement of Activities factors in items related to pensions on a full accrual
perspective.
Pension expense (1,740,985)
Principal payments on long-term debt are recognized as expenditures in the governmental funds
but have no impact on net position in the Statement of Activities.
Bonds and Leases payable 2,421,156
Governmental funds report the effects of bond premiums and discounts when debt is first issued,
whereas these amounts are deferred and amortized in the Statement of Activities. (106,115)
Interest on long-term debt in the Statement of Activities differs from the amount reported in the
governmental funds because interest is recognized as an expenditure in the funds when it is due
and, thus, requires use of current financial resources. In the Statement of Activities, however,
interest expense is recognized as the interest accrues, regardless of when it is due. (16,034)
Proceeds from long-term debt are recognized as an other financing source in the governmental
funds but have no impact on net assets in the Statement of Activities. (3,171,345)
Certain receivables will be collected in subsequent years, but are not available soon enough to
pay for the current period's expenditures and, therefore, are deferred in the funds.
Taxes and assessments (71,177)
Grants, state shared tax, and other 2,026,059
Internal Service Funds are used by management to charge the costs of insurance and capital
equptment to individual funds. The net revenue of certain activities of Internal Service Funds
is reported with governmental activities in the government-wide financial statements. 673,519
2,824,173$ Change in net position - governmental activities
Net change in fund balances - governmental funds
Amounts reported for governmental activities in the Statement of Activities are different because:
City of Hastings
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances to
the Statement of Activities - Governmental Funds
Year Ended December 31, 2023
See notes to basic financial statements.39
Statement 7
Original Final Actual Amounts
Revenues
General property taxes 10,231,988$ 10,231,988$ 10,520,825$ 288,837$
Lodging taxes 3,255 3,255 3,774 519
Special assessments 1,000 1,000 -(1,000)
Licenses and permits 707,683 707,683 809,581 101,898
Intergovernmental revenues 3,449,604 3,449,604 2,434,239 (1,015,365)
Charges for services 940,896 940,896 1,260,323 319,427
Fines and forfeitures 100,500 100,500 86,689 (13,811)
Investment income 49,500 49,500 545,466 495,966
Contributions and donations --100 100
Other revenues 2,000 2,000 35,745 33,745
Total revenues 15,486,426 15,486,426 15,696,742 210,316
Expenditures
General Government 3,531,110 3,531,110 3,622,280 91,170
Public safety 7,269,732 7,269,732 7,169,692 (100,040)
Public works 1,854,431 1,854,431 1,747,659 (106,772)
Health and sanitation 47,589 47,589 69,481 21,892
Culture and recreation 161,482 161,482 164,604 3,122
Capital outlay 1,240,261 1,240,261 1,914,715 674,454
Total expenditures 14,104,605 14,104,605 14,688,431 583,826
Excess of revenues over (under) expenditures 1,381,821 1,381,821 1,008,311 (373,510)
Other Financing Sources (Uses)
Proceeds from sale of capital assets --27,821 27,821
Insurance recoveries --12,509 12,509
Proceeds from leases --46,345 46,345
Transfers in 532,260 542,910 532,187 (10,723)
Transfers out (1,958,244)(1,958,244)(1,933,244)25,000
Total other financing sources (uses)(1,425,984)(1,415,334)(1,314,382)100,952
Net change in fund balances (44,163)$ (33,513)$ (306,071)(272,558)$
Fund Balances
Beginning of year 10,548,729
End of year 10,242,658$
2023
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
City of Hastings
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund
Year Ended December 31, 2023
See notes to basic financial statements.40
Statement 8
Original Final Actual Amounts
Revenues
Property taxes 2,209,918$ 2,209,918$ 2,193,997$ (15,921)$
Intergovernmental 178,000 178,000 918,614 740,614
Charges for services 2,981,030 2,981,030 2,284,860 (696,170)
Investment income 2,000 2,000 78 (1,922)
Contributions and donations --2,024 2,024
Total revenues 5,370,948 5,370,948 5,399,573 28,625
Expenditures
Current
Public safety 5,092,244 5,092,244 4,535,216 (557,028)
Capital outlay
Public safety 695,000 695,000 2,233,510 1,538,510
Total expenditures 5,787,244 5,787,244 6,768,726 981,482
Excess of revenues under expenditures (416,296)(416,296)(1,369,153)(952,857)
Other Financing Sources (Uses)
Proceeds from sale of capital asset --758,224 758,224
Insurance recoveries --4,644 4,644
Transfers in 505,078 505,078 1,160,862 655,784
Transfers out (88,782)(88,782)(88,782)-
Total other financing sources (uses)416,296 416,296 1,834,948 1,414,008
Net change in fund balance -$ -$ 465,795 461,151$
Fund Balance
Beginning of year 674,565
End of year 1,140,360$
2023
Budgeted Amounts Variance with
Final Budget -
Over (Under)
City of Hastings
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Fire and Ambulance Special Revenue Fund
Year Ended December 31, 2023
See notes to basic financial statements.41
Statement 9
Water (600)Sewer (601)Storm (603)Hydro (620)Total
Governmental
Activities -
Internal Service
Funds
Assets
Current assets
Cash and cash equivalents 5,764,355$ 3,624,669$ 1,464,965$ 370,122$ 11,224,111$ 2,553,437$
Taxes receivable 3,518 ---3,518 28,571
Interest receivable 14,181 7,142 4,761 1,208 27,292 6,997
Accounts receivable - net 572,659 750,026 235,477 73,048 1,631,210 -
Special assessments receivable
Deferred 144,952 10,703 --155,655 -
Prepaid items 480 148,803 56 7 149,346 -
Total current assets 6,500,145 4,541,343 1,705,259 444,385 13,191,132 2,589,005
Noncurrent assets
Capital assets, not being depreciated
Land 349,300 ---349,300 -
Construction in progress 2,927 74,473 --77,400 50,992
Capital assets, being depreciated
Buildings 8,046,482 144,798 -6,831,566 15,022,846 -
Infrastructure 24,198,401 21,146,171 357,927 -45,702,499 -
Right to use 32,437 33,455 --65,892 -
Machinery and equipment 2,922,900 860,985 508,798 3,806,459 8,099,142 2,426,796
Improvements other than buildings 4,918,084 -183,442 -5,101,526 -
Total capital assets 40,470,531 22,259,882 1,050,167 10,638,025 74,418,605 2,477,788
Less: accumulated depreciation/amortization (21,447,495)(12,293,242)(198,757)(8,497,736)(42,437,230)(744,260)
Net capital assets 19,023,036 9,966,640 851,410 2,140,289 31,981,375 1,733,528
Total noncurrent assets 19,023,036 9,966,640 851,410 2,140,289 31,981,375 1,733,528
Total assets 25,523,181 14,507,983 2,556,669 2,584,674 45,172,507 4,322,533
Deferred Outflows of Resources
Deferred outflows of resources related to pensions 71,772 58,959 57,103 8,390 196,224 -
Deferred outflows of resources related to OPEB 47,420 32,009 29,637 4,741 113,807 1,051,530
Total deferred outflows of resources 119,192 90,968 86,740 13,131 310,031 1,051,530
Total assets and deferred outflows of resources 25,642,373$ 14,598,951$ 2,643,409$ 2,597,805$ 45,482,538$ 5,374,063$
Liabilities
Current liabilities
Accounts payable 88,409$ 272,713$ 5,678$ 26,860$ 393,660$ 51,632$
Due to other governments 22,655 -3,600 2 26,257 -
Interest payable 80,497 27,890 --108,387 -
Salaries payable 25,004 18,222 16,805 2,194 62,225 -
Compensated absences - current portion 6,513 4,667 3,934 557 15,671 139,622
Unearned revenue -----3,399
Lease payable - current portion 7,635 7,237 --14,872 -
Total OPEB liability - current portion 18,626 12,572 11,641 1,863 44,702 413,025
Bonds payable - current portion 705,000 195,000 --900,000 -
Total current liabilities 954,339 538,301 41,658 31,476 1,565,774 607,678
Noncurrent liabilities
Compensated absences 111,147 74,664 71,193 8,978 265,982 2,009,225
Bonds payable, net 5,647,243 1,923,653 --7,570,896 -
Lease payable 21,949 20,804 --42,753 -
Total OPEB liability 144,144 97,299 90,089 14,414 345,946 3,196,402
Net pension liability 256,119 210,395 203,772 29,938 700,224 -
Less amount due within one year (737,774)(219,476)(15,575)(2,420)(975,245)(552,647)
Total noncurrent liabilities 5,442,828 2,107,339 349,479 50,910 7,950,556 4,652,980
Total liabilities 6,397,167 2,645,640 391,137 82,386 9,516,330 5,260,658
Deferred Inflows of Resources
Deferred inflows of resources related to pensions 83,714 68,769 66,604 9,786 228,873 -
Deferred inflows of resources related to OPEB 21,171 14,291 13,233 2,117 50,812 469,494
Total deferred inflows of resources 104,885 83,060 79,837 11,903 279,685 469,494
Net Position
Net investment in capital assets 13,353,844 8,022,183 851,410 2,140,289 24,367,726 1,733,528
Unrestricted 5,786,477 3,848,068 1,321,025 363,227 11,318,797 (2,089,617)
Total net position 19,140,321 11,870,251 2,172,435 2,503,516 35,686,523 (356,089)
Total liabilities, deferred inflows of resources,
and net position 25,642,373$ 14,598,951$ 2,643,409$ 2,597,805$ 45,482,538$ 5,374,063$
Total net position - enterprise funds 35,686,523
Adjustment to reflect the consolidation of internal
service fund activities related to enterprise funds 113,879
Total business-type acitivites net position 35,800,402$
City of Hastings
Statement of Net Position - Proprietary Funds
December 31, 2023
Business-Type Activities - Enterprise Funds
See notes to basic financial statements.42
Water (600)Sewer (601)Storm (603)Hydro (620)
Operating Revenues
Charges for services 2,931,841$ 2,810,176$ 835,063$ 743,322$
Other income 19,282 18,541 -11,197
Total operating revenues 2,951,123 2,828,717 835,063 754,519
Operating Expenses
Personnel services 580,940 445,897 420,696 58,388
Supplies 107,712 5,452 4,269 73
Professional services 617,176 141,505 113,293 365,863
Metro waste control charge -1,660,172 --
Depreciation 1,020,725 518,842 74,860 179,786
Total operating expenses 2,326,553 2,771,868 613,118 604,110
Operating income (loss)624,570 56,849 221,945 150,409
Nonoperating Revenues (Expenses)
Investment income 221,708 120,439 73,369 16,408
Special assessments 69,060 (327)--
Intergovernmental 30,461 -28,483 -
Gain (loss) on disposal of capital assets -(1,254)--
Property taxes ----
Interest expense (181,974)(46,982)--
Total nonoperating revenues (expenses)139,255 71,876 101,852 16,408
Income (loss) before transfers 763,825 128,725 323,797 166,817
Transfers in -18,333 --
Transfers out (40,822)(39,158)(9,088)(270,267)
Change in net position 723,003 107,900 314,709 (103,450)
Net Position
Beginning of year 18,417,318 11,762,351 1,857,726 2,606,966
End of year 19,140,321$ 11,870,251$ 2,172,435$ 2,503,516$
Net change in net position - enterprise funds
Amounts reported for business-type activities in the statement of activities are different because:
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Change in net position- business-type activities
City of Hastings
Statement of Revenues, Expenses, and Changes
in Fund Net Position - Proprietary Funds
Year Ended December 31, 2023
Business-Type Activities Enterprise Funds
43
Statement 10
Business-Type Governmental
Activities Activities -
Enterprise Internal
Funds Service
Total Funds
7,320,402$ 1,161,826$
49,020 -
7,369,422 1,161,826
1,505,921 443,323
117,506 -
1,237,837 871,612
1,660,172 -
1,794,213 314,999
6,315,649 1,629,934
1,053,773 (468,108)
431,924 103,023
68,733 -
58,944 -
(1,254) -
- 336,597
(228,956) -
329,391 439,620
1,383,164 (28,488)
18,333 721,100
(359,335) -
1,042,162 692,612
34,644,361 (1,048,701)
35,686,523 (356,089)$
1,042,162
19,093
1,061,255$
See notes to basic financial statements.44
Water (600)Sewer (601)Storm (603)Hydro (620)
Cash Flows - Operating Activities
Receipts from customers 2,856,865$ 2,766,072$ 817,358$ 739,789$
Interfund services provided and used ----
Payments to suppliers for goods and services (765,450)(1,567,908)(114,681)(356,055)
Payments to employees for services (630,959)(423,110)(398,454)(54,734)
Other operating revenues 19,282 18,541 -11,197
Net cash flows - operating activities 1,479,738 793,595 304,223 340,197
Cash Flows - Noncapital Financing Activities
Property taxes ----
Transfer to other funds (40,822)(39,158)(9,088)(270,267)
Transfer from other funds -18,333 --
Net cash flows - noncapital financing activities (40,822)(20,825)(9,088)(270,267)
Cash Flows - Capital and Related Financing Activities
Principal paid on debt (517,265)(126,885)--
Interest paid on debt (233,416)(58,329)--
Special assessments 69,756 2,497 --
Intergovernmental receipts 30,461 -28,483 -
Bond proceeds 610,000 360,000 --
Bond premium issued 51,787 30,749 --
Acquisition of capital assets (964,379)(933,569)(25,783)-
Proceeds from disposal of capital assets -2,419 --
Net cash flows - capital and related financial activities (953,056)(723,118)2,700 -
Cash Flows - Investing Activities
Investment income 216,668 117,987 70,863 15,765
Net change in cash and cash equivalents 702,528 167,639 368,698 85,695
Cash and Cash Equivalents
5,061,827 3,457,030 1,096,267 284,427
5,764,355$ 3,624,669$ 1,464,965$ 370,122$
Reconciliation of Operating Income (Loss) to
Net Cash Flows - Operating Activities
Operating income (loss)624,570$ 56,849$ 221,945$ 150,409$
Adjustments to reconcile operating income
(loss) to net cash flows - operating activities
Depreciation 1,020,725 518,842 74,860 179,786
Pension expense (53,754)23,905 23,152 3,402
Accounts receivable (74,976)(44,104)(17,705)(3,533)
Prepaid items 409 (10,479)(3)-
Accounts payable (47,581)249,700 (716)15,298
Salaries payable 2,732 2,041 2,081 89
Due to other governments 6,610 -3,600 (2)
Deposits ---(5,415)
Unearned revenue ----
OPEB expense (10,379)(10,212)(9,692)(1,037)
Compensated absences payable 11,382 7,053 6,701 1,200
Total adjustments 855,168 736,746 82,278 189,788
Net cash flows - operating activities 1,479,738$ 793,595$ 304,223$ 340,197$
January 1
December 31
City of Hastings
Statement of Cash Flows - Proprietary Funds
Year Ended December 31, 2023
Business-Type Activities -
Enterprise Funds
45
Statement 11
Business-Type
Activities -
Enterprise Funds
Total
Governmental
Activities -
Internal Service
Funds
7,180,084$ -$
-1,161,727
(2,804,094)(1,094,218)
(1,507,257)(315,875)
49,020 -
2,917,753 (248,366)
-341,559
(359,335)-
18,333 721,100
(341,002)1,062,659
(644,150)-
(291,745)-
72,253 -
58,944 -
970,000 -
82,536 -
(1,923,731)(142,496)
2,419 -
(1,673,474)(142,496)
421,283 99,068
1,324,560 770,865
9,899,551 1,782,572
11,224,111$ 2,553,437$
1,053,773$ (468,108)$
1,794,213 314,999
(3,295)-
(140,318)-
(10,073)-
216,701 (2,137)
6,943 -
10,208 -
(5,415)-
-(99)
(31,320)(220,469)
26,336 127,448
1,863,980 219,742
2,917,753$ (248,366)$
46
47
TRUST FUNDS
See notes to basic financial statements.48
Statement 12
Library
Private-
Trust Fund
Assets
Cash and investments 92,889$
Interest receivable 297
Total assets 93,186$
Net Position
Held in trust for library 93,186$
City of Hastings
Statement of Fiduciary Net Position
December 31, 2023
See notes to basic financial statements.49
Statement 13
Library
Private-
Purpose
Trust Fund
Additions
Investment earnings 5,024$
Deductions
Other services and charges 2,000
Change in net position 3,024
Beginning net position 90,162
Ending net position 93,186$
Year Ended December 31, 2023
City of Hastings
Statement of Changes in Fiduciary Net Position
50
51
City of Hastings
Notes to Basic Financial Statements
NOTE 1 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.Reporting Entity
The City of Hastings is a municipal corporation formed under the Home Rule Charter of the City and
operates under a Mayor-Council form of government. The seven-member Council and Mayor are
elected on rotating terms in each odd-numbered year. The accompanying basic financial statements
present the City and its component unit for which the City is considered to be financially
accountable. The Hastings Economic Development and Redevelopment Authority (HEDRA), a
discretely presented component unit is reported in a separate column in the government-wide
financial statements to emphasize that it is legally separate from the City.
Discretely Presented Component Unit. The City's HEDRA with Housing and Redevelopment Authority
(HRA)powers is a component unit that operates for the purpose of providing economic development
and redevelopment services to the City of Hastings. The governing body consists of a seven-member
board of commissioners appointed by the Hastings City Council. The HEDRA Board has the power to
levy taxes, issue debt and enter into contracts and agreements. The Hastings City Council can impose
its will upon the HEDRA board and has the ability to veto, overrule, or modify decisions made by the
HEDRA board. The HEDRA does not prepare separate financial statements.
B.Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities) report information on all of the nonfiduciary activities of the City and its component unit.
For the most part, the effect of interfund activity was removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business-type activities, which rely to a significant extent on fees and
charges for support. Likewise, the primary government is reported separately from the legally
separate component unit for which the primary government is financially responsible.
The Statement of Activities demonstrates the degree to which the direct expenses of a given
function or segment, are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include: 1) charges to customers
or applicants who purchase, use or directly benefit from goods, service or privileges provided by a
given function or segment and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. Taxes and other items that
are properly not included in program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate
columns in the fund financial statements.
C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of the related cash flows.
Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have
been met.
52
City of Hastings
Notes to Basic Financial Statements
NOTE 1 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as
they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current
period. For this purpose, the City considers revenues to be available if they are collected within 60
days of the end of the current fiscal period. Expenditures generally are recorded when a liability is
incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures
related to compensated absences,claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses,and interest associated with the current fiscal period are
all considered to be susceptible to accrual and so have been recognized as revenues of the current
fiscal period. Only the portion of special assessments receivable due within the current fiscal period
is considered to be susceptible to accrual as revenue of the current period. All other revenue items
are considered to be measurable and available only when cash is received by the City.
Description of Funds:
Major Governmental Funds:
General Fund –This fund is the City's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
Fire and Ambulance –Special Revenue Fund accounts for resources and payments related to
the operations of the City's firefighting and ambulance services. Revenue sources are fire and
ambulance services, state aid, interest and tax levy.
Debt Service Fund –This fund accounts for resources accumulated and payments for principal
and interest on long term general obligation debt and general obligation special assessment
debt.
Road Improvement Construction Fund –This fund accounts for the activities related to street
construction and improvements.
Downtown Redevelopment Tax Increment Financing Capital Projects Fund –This fund
accounts for the activities the Downtown Redevelopment Tax Increment Financing District.
Parks Projects Capital Projects Fund –This fund accounts for revenues and expenditures
related to the construction, development, and improvements to the City's parks.
Proprietary Funds:
Water Fund –This fund accounts for the activities related to the operation of a water
distribution system.
53
City of Hastings
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Description of Funds: (Continued)
Sewer Fund – This fund accounts for resources and payments related to the operation of a
sanitary collection system.
Storm Fund – This fund accounts for resources and payments related to the operation of the
storm water system.
Hydro Fund – This fund accounts for the funds generated by the hydroelectric plant. These
funds are used to finance the hydroelectric operating expenses.
The City also reports the following fund types:
Internal Service Funds – This fund accounts for the retiree health insurance expenses and the
related liability, work comp insurance and related liability, the expenses for the compensated
absences paid out upon termination or retirement as well as, expenses for vehicle revolving
services provided to other departments, on a cost reimbursement basis.
Trust Fund – This fund accounts for a trust created for the Dakota County Library. Ruth
Doffing donated money to the City for the sole purpose of funding materials for the Dakota
County Library.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are charges between the City's utility functions
and various other functions of the City. Elimination of these charges would distort the direct costs
and program revenues reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenue of
the City's enterprise funds and internal service funds are charges to customers for sales and services.
Operating expenses for enterprise funds and internal service funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, and then unrestricted resources as needed.
54
City of Hastings
Notes to Basic Financial Statements
NOTE 1 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D.Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
1.Deposits and Investments
Cash and investments include balances from all funds that are combined and invested to the
extent available in various securities as authorized by state law. Earnings from the pooled
investments are allocated to the individual funds based on the average of month-end cash and
investment balances.
The City's cash and cash equivalents are considered to be cash on hand, demand deposits and
short-term investments with original maturities of three months or less from the date of
acquisition.
Minnesota Statutes § 118A outlines authorized investments for the City, including obligations of
the U.S. Treasury, agencies and instrumentalities, shares of investment companies whose only
investments are in the aforementioned securities, obligations of the State of Minnesota or its
municipalities, bankers'acceptances, future contracts, repurchase and reverse repurchase
agreements, and commercial paper of the highest quality with a maturity of no longer than 270
days and in the Minnesota Municipal Investment Pool.
Certain investments for the City as well as for its component unit are reported at fair value as
disclosed in Note 3. The City categorizes its fair value measurements within the fair value
hierarchy established by generally accepted accounting principles.The Hierarchy is based on the
valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in
active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3
inputs are significant unobservable inputs.
In accordance with GASB Statement No. 79, the Minnesota Municipal Investment Pool securities
are valued at amortized cost, which approximates fair value. There are no restrictions or
limitations on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be
deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period
will be subject to a penalty equal to seven days interest on the amount withdrawn. Seven days'
notice of redemption is required for withdrawals of investments in the 4M Term Series withdrawn
prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the
Series for any charges, losses, and other costs attributable to the early redemption.
2.Receivables
All trade and property tax receivables are shown at a gross amount since both are assessable to
the property taxes and are collectible upon the sale of the property.The City levies its property
tax for the subsequent year during the month of December. December 28 is the last day the City
can certify a tax levy to the County Auditor for collection the following year.
Such taxes become a lien on January 1 and are recorded as receivables by the City at that date.
The property tax is recorded as revenue when it becomes measurable and available. Dakota
County is the collecting agency for the levy and remit the collections to the City three times a
year. The tax levy notice is mailed in March with the first half of the payment due on May 15 and
the second half due on October 15. Taxes not collected as of December 31 each year are shown
as delinquent taxes receivable.
55
City of Hastings
Notes to Basic Financial Statements
NOTE 1 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D.Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
2.Receivables (Continued)
The County Auditor prepares the tax list for all taxable property in the City, applying the
applicable tax rate to the tax capacity of individual properties, to arrive at the actual tax for
each property. The County Auditor also collects all special assessments, except for certain
prepayments paid directly to the City.
The County Auditor submits the list of taxes and special assessments to be collected on each
parcel of property to the County Treasurer in January of each year.
All trade and accounts receivable are shown net of allowance for uncollectible accounts which is
determined by analysis of historical collection trends. The allowance for ambulance receivable is
equal to 75% of outstanding receivables at year end.
3.Prepaid Items and Inventories
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both government wide and fund financial statements using the
consumption method.Materials and supplies, if material, are recorded at cost using first in first
out (FIFO) method and reported under the consumption method in the Governmental Funds and
Activities.
4.Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position and balance sheet will sometimes report
a separate section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of net assets that applies to a future
period(s)and so will not be recognized as an outflow of resources (expense/expenditure) until
then. The City presents deferred outflows on the Statements of Net Position for deferred
outflows of resources relating to pensions and OPEB for various estimate differences that will be
amortized and recognized over future years.
In addition to liabilities, the statement of financial position and fund financial statements will
sometimes report a separate section for deferred inflows of resources. This separate financial
statement element represents an acquisitions of net assets that applies to a future period(s) and
so will note recognized as an inflow of resources (revenue) until that time.
The city has three items that qualify for reporting in this category. The city presents deferred
inflows of resources on the Government Fund Balance Sheet as unavailable revenue and advanced
appropriations. The governmental funds report unavailable revenues from four sources, taxes and
assessments, grants and other credits. The governmental funds report advanced appropriations
for state shared tax. These amounts are deferred and recognized as an inflow in the period that
amounts become available. The City also presents deferred inflows of resources on the
Statements of Net Position related to pensions and OPEB for various estimate differences that
will be amortized and recognized over future years. Deferred inflows of resources related to
lease receivable is reported in both the government-wide Statement of Net Position and the
Governmental Funds Balance Sheet.
56
City of Hastings
Notes to Basic Financial Statements
NOTE 1 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D.Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
5.Capital Assets
Capital assets, which include property,plant, equipment, intangible,and infrastructure assets
(e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental
or business-type activities columns in the government-wide financial statements. Capital assets
are defined by the City as assets with an initial, individual cost of more than $10,000 and an
estimated useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. In the case of the initial capitalization of
general infrastructure assets (i.e., those reported by governmental activities) the government
chose to include all such items regardless of their acquisition date or amount. The government
was able to estimate the historical cost for the initial reporting of these assets through back
trending (i.e., estimating the current replacement cost of the infrastructure to be capitalized
and using an appropriate price-level index to deflate the cost to the acquisition year or estimated
acquisition year). As the government constructs or acquires additional capital assets each period,
including infrastructure assets, they are capitalized and reported at historical cost. In the case of
donations,the government values these capital assets at the acquisition value of the item at the
date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized.Major outlays for capital assets and
improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business-type activities is included as part of the
capitalized value of the asset constructed.
Pursuant to GASB Statement 51, in the case of initial capitalization of intangible assets, the City
chose not to retroactively report permanent easements. The City had already accounted for
temporary easements and computer software at historical cost and therefore retroactive
reporting was not necessary. The amounts of these assets are not material to the financial
statements and therefore, have not been reported separately from other capital assets. The City
acquired no intangible assets for the year ending December 31, 2023,other than right to use
assets resulting from the implementation of GASB Statements Number 87 and 96 that are
reported separately in Note 4.
57
City of Hastings
Notes to Basic Financial Statements
NOTE 1 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D.Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
5.Capital Assets (Continued)
Capital assets of the City and its component unit are depreciated using the straight line method
over the following estimated useful lives:
Assets
Buildings 15 - 50
Furniture and fixtures 5 - 20
Motor vehicles 5
Heavy equipment 10
Fire trucks 10
Park trails 25 - 30
Streets and public infrastructure 20
Utility distribution systems 40
Sirens 10
Bridges 45
Improvements other than buildings 10 - 20
Years
6.Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation,
compensatory time, and sick pay benefits. Under the City's personnel policy and union contracts,
City employees are granted vacation and sick leave in varying amounts based upon length of
service. Certain City employees are also granted compensatory time. Unused accumulated
vacation leave, compensatory time and vested sick leave is paid to employees upon termination.
Unvested sick leave is available to employees in the event of illness-related absences and is not
paid to employees at termination. The liabilities for the compensated absences are paid for by the
fund that incurs the charge, the liability is shown in the internal service fund,Enterprise Funds
and Government-wide Statement of Net Position.
7.Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial
statements, long-term debt and other long-term debt reported as liabilities in the applicable
governmental activities, business-type activities, and proprietary fund type Statement of Net
Position. Bond premiums and discounts, are deferred and amortized evenly over the life of the
bonds. Bonds payable are reported net of the applicable bond premium or discount.
58
City of Hastings
Notes to Basic Financial Statements
NOTE 1 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D.Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
7.Long-Term Obligations(Continued)
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources.Premiums received on debt issuances are reported
as other financing sources while discounts on debt issuances are reported as other financing uses.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as
debt service expenditures.
8.Pensions
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and
pension expense, information about the fiduciary net position of the Public Employees
Retirement Association (PERA) and the fire relief association and additions to/deductions from
PERA's and the fire relief association's fiduciary net position are determined on the same basis as
they are reported by PERA and the fire relief association except that PERA's fiscal year end is
June 30th. For this purpose, plan contributions are recognized as of employer payroll paid dates
and benefit payments and refunds are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
9.Fund Balance
In the fund financial statements, governmental funds report fund balances in classifications that
disclose constraints for which amounts in those funds can be spent. These classifications are as
follows:
Nonspendable –Portions of fund balance related to prepays, inventories, long-term
receivables, and corpus on any permanent fund which are not in spendable form.
Restricted –These funds are constrained by external parties (statute, grantors, bond
agreements, etc.).
Committed –These fund constraints are established and modified by a resolution approved
by the City Council prior to year-end.
Assigned –These funds consists of internally imposed constraints. These constraints are
established by City Council and/or management. The City Council also delegates the
authority to assign fund balance to the Finance Manager or his/her designee.
Unassigned –This is the residual classification for the General Fund and also reflects
negative residual amounts in other funds.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund
balance is available, it is the City's policy to use restricted first, then unrestricted fund balance.
When an expenditure is incurred for purposes for which committed, assigned, and unassigned
amounts are available, it is the City's policy to use committed first, then assigned, and finally
unassigned amounts.
59
City of Hastings
Notes to Basic Financial Statements
NOTE 1 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D.Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
9.Fund Balance (Continued)
The City formally adopted a fund balance policy for the governmental funds. The policy
establishes a fund balance range of 35% -45% of the subsequent year's budgeted expenditures.
Any unassigned surplus exceeding 45% upon the completion of the previous year's audit, will be
available for the City Council to transfer to a capital project fund, or other special reservation
made for those funds.
10.Net Position
Net position represents the difference between assets and deferred outflows of resources; and
liabilities and deferred inflows of resources in the government-wide financial statements. Net
investment in capital assets, consists of capital assets, net of accumulated depreciation, reduced
by the outstanding balance of any long-term debt used to build or acquire the capital assets. Net
position is reported as restricted in the government-wide financial statement when there are
limitations on use through external restrictions imposed by creditors, grantors, or laws or
regulations of other governments.
E.Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements. Estimates also affect the reported amounts of revenue and
expenditures/expense during the reporting period. Actual results could differ from those estimates.
F.Endowment
On April 27, 1987, the City was a recipient of a $200,000 endowment for the LeDuc Historic Estate.
The net appreciation on the endowment as of December 31, 2023,was $958,219. Both the initial
endowment of $200,000 and the net appreciation of $958,219 are classified as restricted in the
Statement of Net Position. The net appreciation is allowed to be spent for the preservation, repair,
and operating needs of the LeDuc Historic Estate.
NOTE 2 –STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A.Budgetary Information
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in
the United States of America for all governmental funds except Budget Stabilization and the Road
Improvement Capital Projects Funds, which adopt project-length budgets, Guardian Angels TIF, NAPA
TIF, Downtown Redevelopment TIF, Hudson Sprayers TIF,Schoolhouse Square Tax Increment
Financing,Public Works Cold Storage Building, Escrow, Capital Project Funds,TIF 9 Block 28 and the
Permanent Fund, which are not budgeted. All annual appropriations lapse at fiscal year-end.
60
City of Hastings
Notes to Basic Financial Statements
NOTE 2 –STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED)
A.Budgetary Information (Continued)
On or before mid-June of each year, all departments and agencies of the City submit requests for
appropriations to the City Administrator so that a budget may be prepared. Before September 15th,
the proposed budget is presented to the City Council for review and approval. By September 15th,
the proposed budget and tax levy must be submitted to the county auditor. The Council holds public
hearings,and a final budget and tax levy must be prepared, adopted,and submitted to the county
auditor, no later than December 28th.
The appropriated budget is prepared by fund and department. The City's department heads may
request transfers of appropriations within a department. Transfers of appropriations between
departments require the approval of the Council. The legal level of budgetary control (i.e.,the level
at which expenditures may not legally exceed appropriations) is at the department level. The Council
made several supplementary budgetary appropriations for the general fund and various special
revenue funds in 2023. Several of the budgets changed in total as a result of the Council-approved
appropriations.
B.Deficit Fund Equity
The Downtown Redevelopment TIF had a deficit of $1,485,026. The TIF 9 Block 28 had a deficit of
$23,518.These fund's deficits are expected to be covered from future tax increment revenues. The
Compensated Absences internal service fund had a deficit of $1,794,572. The Retiree health
insurance internal service fund had a deficit of $2,344,248. These fund’s deficits are expected to be
covered from future transfers in from other funds.
NOTE 3 –DEPOSITS AND INVESTMENTS
A.Deposits
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks
authorized by the City Council, all of which are members of the Federal Reserve System.Minnesota
Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The
market value of collateral pledged must equal 110% of the deposits not covered by insurance or
bonds.Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the
City Treasurer or in a financial institution other than that furnishing the collateral. As of
December 31, 2023, the City was not exposed to custodial credit risk because deposits were fully
insured and collateralized. As of December 31, 2023, the City has the following deposits:
Checking 2,660,079$
61
City of Hastings
Notes to Basic Financial Statements
NOTE 3 –DEPOSITS AND INVESTMENTS (CONTINUED)
B.Investments
As of December 31, 2023,the City had the following investments and maturities:
GASB 72 Rating Fair Less than Greater than
level (Moody/S&P)Value One Year 1-5 Years 6-10 Years 10 Years
Pooled Investments
Federal National Mortgage Association 2 AAA 314,421$ -$ -$ 314,421$ -$
U.S. Treasury 2 N/A 495,115 495,115 ---
Taxable Municipals 2 Aa2/AA 8,317,932 277,376 4,786,823 3,253,733 -
Brokered Certificates of Deposit 1 NR 5,992,283 1,879,763 3,656,155 456,365 -
External Investment Pool - 4M Fund N/A NR 12,967,699 12,967,699 ---
Money Market N/A NR 3,890,589 3,890,589 ---
Total Pooled Investments 31,978,039 19,510,542 8,442,978 4,024,519 -
Non-Pooled Investments
Brokered Cash N/A N/A 12,077 12,077 ---
Equity 1 N/A 499,730 499,730 ---
Fixed Income Securities 2 N/A 261,373 261,373 ---
Real Estate 2 N/A 22,615 22,615 ---
Total Non-Pooled Investments 795,795 795,795 ---
Total 32,773,834$ 20,306,337$ 8,442,978$ 4,024,519$ -$
Investment Type
Investment Maturities
The City has the following recurring fair value measurements as of December 31, 2022:
$6,492,013 of $32,773,834 are valued using a quoted market prices (Level 1 inputs)
$9,411,456 of $32,773,834 are valued using a matrix pricing model (Level 2 inputs)
Interest Rate Risk –The City's investment policy requires the City to diversify its investment portfolio
to eliminate the risk of loss resulting from over concentration of assets in a specific maturity. The
policy also states that investments should be purchased to match expected cash flow needs,
minimizing the market risk associated with the early sale of investments.
Credit Risk –The City's investment policy is silent with regards to Credit Risk. Investments are rated
as noted above.
Concentration of Credit Risk –The City's investments in PGIM Total Return Bond, Ishares Core,Ishares
Core MSCI Emerging Markets,and Ishares Core US Aggregate Bond exceeds 5% of the City's nonpooled
investment portfolio.
Custodial Credit Risk –Investments in Securities and Custodial Credit: This is the risk that in the
event of a failure of the counterparty, the City will not be able to recover the value of its investment
securities that are in possession of an outside party. Investments in investment pools and money
markets are not evidenced by securities that exist in physical or book entry form, and therefore are
not subject to custodial credit risk disclosures. The City's investment policy requires that when
securities are held in safekeeping by a broker/dealer, that they must provide asset protection
through SIPC and at least another $10,000,000 supplemental insurance protection.
62
City of Hastings
Notes to Basic Financial Statements
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
Summary of cash deposits and investments as of December 31, 2023, were as follows:
Deposits (Note 3.A.)2,660,079$
Investments (Note 3.B.)32,773,834
Petty cash 1,625
Total deposits and investments 35,435,538$
Deposits and investments are presented in the December 31, 2023, basic financial statements as
follows:
Statement of Net Position
Cash and investments - City 33,679,444$
Cash and investments - HEDRA 775,044
Cash with fiscal agent 795,795
Restricted cash 92,366
Statement of Fiduciary Net Position
Cash and investments 92,889
Total deposits and investments 35,435,538$
63
City of Hastings
Notes to Basic Financial Statements
NOTE 4 –CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2023,was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets not being
depreciated/amortized
Land 3,693,211$ 107,900$ -$ 3,801,111$
Construction in progress 287,252 6,959,338 (3,295,045)3,951,545
Total capital assets
not being depreciated 3,980,463 7,067,238 (3,295,045)7,752,656
Capital assets being
depreciated/amortized
Buildings 22,635,737 82,272 -22,718,009
Machinery and equipment 12,660,620 1,228,955 (2,419,003)11,470,572
Improvements other than buildings 5,166,423 782,402 -5,948,825
Leased equipment 469,679 49,630 -519,309
Infrastructure 113,976,661 3,936,419 (526,032)117,387,048
Total capital assets
being depreciated 154,909,120 6,079,678 (2,945,035)158,043,763
Less accumulated depreciation/
amortization for
Buildings (13,227,275)(518,192)-(13,745,467)
Machinery and equipment (8,958,146)(668,453)2,286,281 (7,340,318)
Improvements other than buildings (2,201,152)(212,130)-(2,413,282)
Leased equipment (101,107)(126,122)-(227,229)
Infrastructure (73,381,067)(3,962,621)526,032 (76,817,656)
Total accumulated
depreciation/amortization (97,868,747)(5,487,518)2,812,313 (100,543,952)
Total capital assets being
depreciated/amortized, net 57,040,373 592,160 (132,722)57,499,811
Governmental activities capital
position, net 61,020,836$ 7,659,398$ (3,427,767)$ 65,252,467$
64
City of Hastings
Notes to Basic Financial Statements
NOTE 4 –CAPITAL ASSETS (CONTINUED)
Beginning Ending
Balance Increases Decreases Balance
Business-type activities
Capital assets not being
depreciated/amortized
Land 349,300$ -$ -$ 349,300$
Construction in progress 2,420 77,400 (2,420)77,400
Total capital assets not
being depreciated/amortized 351,720 77,400 (2,420)426,700
Capital assets being
depreciated/amortized
Buildings 15,022,846 --15,022,846
Machinery and equipment 8,278,652 397,183 (576,693)8,099,142
Leased equipment 65,892 --65,892
Improvements other than buildings 5,075,743 25,783 -5,101,526
Infrastructure 44,357,615 1,423,366 (78,482)45,702,499
Total capital assets
being depreciated/amortized 72,800,748 1,846,332 (655,175)73,991,905
Less accumulated depreciation/
amortized for
Buildings (9,516,465)(415,149)-(9,931,614)
Machinery and equipment (5,443,096)(261,290)575,439 (5,128,947)
Leased equipment (3,935)(16,473)-(20,408)
Improvements other than buildings (2,559,669)(184,372)-(2,744,041)
Infrastructure (23,773,773)(916,929)78,482 (24,612,220)
Total accumulated
depreciation/amortized (41,296,938)(1,794,213)653,921 (42,437,230)
Total capital assets being
depreciated/amortized, net 31,503,810 52,119 (1,254)31,554,675
Business-type activities
capital assets, net 31,855,530$ 129,519$ (3,674)$ 31,981,375$
65
City of Hastings
Notes to Basic Financial Statements
NOTE 4 –CAPITAL ASSETS (CONTINUED)
Depreciation/amortization expense was charged to functions/programs of the City as follows:
Governmental activities
General government 165,298$
Public safety 345,778
Public works 4,091,873
Cultural and recreation 569,570
Internal service funds 314,999
Total depreciation/amortization expense - governmental activities 5,487,518$
Business-type activities
Water 1,020,725$
Sewer 518,842
Storm 74,860
Hydro 179,786
Total depreciation/amortization expense - business-type activities 1,794,213$
Discretely Presented Component Unit
Activity for the HEDRA for the year ended December 31, 2023, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Capital Assets being depreciated
Buildings and Structures 476,890$ -$ -$ 476,890$
Less accumulated depreciated for
Buildings and Structures (388,891)(5,500)-(394,391)
Total capital assets being
depreciated, net 87,999 (5,500)-82,499
Component unit capital
assets, net 87,999$ (5,500)$ -$ 82,499$
66
City of Hastings
Notes to Basic Financial Statements
NOTE 5 –INTERFUND ASSETS/LIABILITIES
The composition of interfund balances as of December 31, 2023, is as follows:
Receivable Fund Payable Fund Amount
General Fund Fire and Ambulance 58,913$
General Fund Downtown Redevelopment TIF 21,287
General Fund Other Government Funds 22,124
Total 102,324$
Advances To/From Other Funds
Receivable Fund Payable Fund Amount
General Fund Downtown Redevelopment TIF 1,463,739$
The due from/due to other funds balances represent borrowing to resolves deficit cash balances.
The $1,463,739 from the General Fund was money to make the Bond principal and interest payments
for the Downtown Redevelopment TIF District due to delays in development and collection of tax
increment revenue. The advance will be paid back when the District starts producing sufficient tax
increment revenue.
NOTE 6 –INTERFUND TRANSFERS
Road Non-major
Fire and Debt Improvement Park Governmental Internal
Transfers Out General Ambulance Service Construction Projects Funds Service Sewer Total
General -$ 480,078$ -$ -$ 259,050$ 472,385$ 721,100$ -$ 1,932,613$
Debt service -101,500 -637,055 ----738,555
Fire and ambulance 88,782 -------88,782
Downtown Redevelopment TIF --203,000 -----203,000
Non-major governmental funds 101,772 579,284 --279,477 170,248 --1,130,781
Water 40,822 -------40,822
Sewer 39,158 -------39,158
Storm 9,088 -------9,088
Hydro 251,934 ------18,333 270,267
Total 531,556$ 1,160,862$ 203,000 637,055 538,527 642,633$ 721,100$ 18,333$ 4,453,066$
Transfers In
Inter-fund transfers allow the City to allocate financial resources to the funds that receive benefit
from services provided by another fund. The transfers from the Enterprise funds, Fire and ambulance
and Non-major governmental funds to the General fund fall under that category. The transfers to the
Road Improvement Construction, Park Projects and Non Major Funds were for contributions to capital
projects. The transfer to the Internal Service Funds was budgeted to contribute for retiree health
insurance, compensated absences, and vehicle replacement costs.The transfer to the debt service
fund were transfer of tax increment for debt service costs.
67
City of Hastings
Notes to Basic Financial Statements
NOTE 7 –LONG-TERM DEBT
The City issues general obligation bonds to provide for financing of major facilities, street
improvements,and certain city equipment. Debt service for some of the major facilities is covered in
part through agreements with the Hastings'School District with the difference paid from general tax
levies. Street improvements are covered by special assessments against benefited properties with
any shortfalls being paid from general tax levies. The Equipment Certificates are covered completely
by general tax levies.
A.G.O. Improvement Bonds
Bonds generally are issued as 12-year serial bonds with equal debt service payments each year. The
original amount of general obligation bonds for the issues listed below is $20,360,000. The G.O.
Improvement Bonds currently outstanding are as follows:
Issue Interest Original Final Balance Due Within
Date Rates Issue Maturity End of Year One Year
G.O. Improvement Bonds, Series 2013B 11/20/13 0.40%-2.45%1,265,000$ 02/01/24 130,000$ 130,000$
G.O. Improvement Bonds, Series 2014A 11/25/14 0.65%-2.50%2,345,000 02/01/25 535,000 265,000
G.O. Improvement Bonds, Series 2015A 09/03/15 2.00%-2.20%360,000 02/01/26 115,000 35,000
G.O. Improvement Bonds, Series 2016B 11/03/16 2.00%995,000 02/01/27 425,000 105,000
G.O. Improvement Bonds, Series 2017A 11/02/17 2.75%-2.875%1,015,000 02/01/28 530,000 105,000
G.O. Improvement Bonds, Series 2018A 07/18/18 3.00%- 4.00%1,580,000 02/01/29 990,000 155,000
G.O. Improvement Bonds, Series 2019A 08/08/19 5.00%2,595,000 02/01/30 1,990,000 245,000
G.O. Improvement Bonds, Series 2020A 10/01/20 2.00%-4.00%2,045,000 02/01/31 1,715,000 190,000
G.O. Improvement Bonds, Series 2021A 08/02/21 1.00%-3.00%925,000 02/01/32 850,000 85,000
G.O. Improvement Bonds, Series 2022A 06/01/22 3.00%-5.00%4,110,000 02/01/33 4,110,000 330,000
G.O. Improvement Bonds, Series 2022A 06/29/23 4.00%-5.00%3,125,000 02/01/34 3,125,000 -
Total 14,515,000$ 1,645,000$
Annual debt service requirements to maturity for G.O. Improvement Bonds are as follows:
Year Ending
December 31, Principal Interest Total
2024 1,645,000$ 605,708$ 2,250,708$
2025 1,810,000 518,994 2,328,994
2026 1,595,000 446,241 2,041,241
2027 1,620,000 374,214 1,994,214
2028 1,580,000 301,064 1,881,064
2029-2033 5,885,000 588,026 6,473,026
2034 380,000 7,600 387,600
Total 14,515,000$ 2,841,847$ 17,356,847$
Governmental Activities
68
City of Hastings
Notes to Basic Financial Statements
NOTE 7 –LONG-TERM DEBT (CONTINUED)
B.Equipment Certificates
Equipment Certificates are general obligations of the city and generally are issued as three-to-five-
year serial bonds with equal debt service payments each year. They have been used sparingly as a
means to purchase certain equipment for the City. The original amount of these certificates for the
issues listed below is $1,410,000. The equipment certificates currently outstanding are as follows:
Issue Interest Original Final Balance Due Within
Date Rates Issue Maturity End of Year One Year
Certificate of Participation, Series 2013B 11/20/13 0.40%-2.45%1,410,000$ 02/01/24 95,000$ 95,000$
Annual debt service requirements to maturity for these equipment certificates are as follows:
Year Ending
December 31, Principal Interest Total
2024 95,000$ 1,164$ 96,164$
Governmental Activities
C.G.O. Revenue Bonds
The City also issues bonds where the city pledges income derived from certain enterprise fund
activities to pay debt service. These bonds also are backed by the full faith and credit of the
government (general obligation). Bonds generally are issued as 12-year serial bonds with equal debt
service payments each year. The original amount of general obligation revenue bonds for the issues
listed below is $9,455,000.
The general obligation revenue bonds currently outstanding are as follows:
Issue Interest Original Final Balance Due Within
Date Rates Issue Maturity End of Year One Year
G.O. Refunding Bonds, Series 2013A 02/21/13 2.00%2,565,000$ 02/01/27 1,075,000$ 265,000$
G.O. Improvement Bonds, Series 2018A 07/18/18 3.00%-4.00%1,260,000 02/01/29 810,000 125,000
G.O. Improvement Bonds, Series 2019A 08/08/19 5.00%675,000 02/01/30 515,000 65,000
G.O. Improvement Bonds, Series 2020A 10/01/20 2.00-4.00%1,135,000 02/01/31 950,000 105,000
G.O. Improvement Bonds, Series 2021A 08/02/21 1.00-3.00%1,145,000 02/01/32 1,055,000 105,000
G.O. Improvement Bonds, Series 2022A 06/01/22 3.00%-5.00%1,705,000 02/01/33 1,705,000 140,000
G.O. Improvement Bonds, Series 2023A 06/29/23 4.00%-5.00%970,000 02/01/33 970,000 95,000
Total 7,080,000$ 900,000$
69
City of Hastings
Notes to Basic Financial Statements
NOTE 7 –LONG-TERM DEBT (CONTINUED)
C.G.O. Revenue Bonds (Continued)
Future revenue pledged for the payment of long-term debt is as follows:
Percent of Pledged
Use of Total Debt Term of Principal and Revenue
Proceeds Type Service Pledge Interest paid Received
1,211,357$ -$ 5,742,017$
G.O. Improvement Bonds,
Series 2023A
Utility
Infrastructure Utility Charges 100%2023-2033
1,148,806$ 141,089$ 5,742,017$
G.O. Improvement Bonds,
Series 2021A
Utility
Infrastructure Utility Charges 100%2021-2032
Current Year
573,500$
295,500$
177,500$
255,900$
2,931,841$
5,742,017$
2,931,841$
5,742,017$
2014-2027
2019-2029
2019-2030
2020-2031
Revenue Pledged
Utility Charges
Utility Charges
Utility Charges
Utility Charges
100%
100%
100%
100%
Remaining
Principal and
Interest
1,118,350$
891,025$
609,875$
1,070,400$
G.O. Refunding Bonds,
Series 2013A
G.O. Improvement Bonds,
Series 2018A
G.O. Improvement Bonds,
Series 2019A
G.O. Improvement Bonds,
Series 2020A
Utility
Infrastructure
Utility
Infrastructure
Utility
Infrastructure
Utility
Infrastructure
2,061,675$ 85,692$ 5,742,017$
G.O. Improvement Bonds,
Series 2022A
Utility
Infrastructure Utility Charges 100%2022-2033
Annual debt service requirements to maturity for general obligation revenue bonds are as follows:
Year Ending
December 31, Principal Interest Total
2024 900,000$ 238,894$ 1,138,894$
2025 895,000 202,838 1,097,838
2026 930,000 170,387 1,100,387
2027 960,000 136,813 1,096,813
2028 710,000 105,462 815,462
2029-2033 2,685,000 177,094 2,862,094
Total 7,080,000$ 1,031,488$ 8,111,488$
Business-Type Activities
70
City of Hastings
Notes to Basic Financial Statements
NOTE 7 –LONG-TERM DEBT (CONTINUED)
D.Charter Bonds
The City also issues bonds that use its power under the City Charter to issue debt. These bonds are
backed by the full faith and credit of the government (general obligation). Bonds generally are issued
as 12-year serial bonds with equal debt service payments each year. The original amount of general
obligation bonds for the issues listed below is $5,735,000. The general obligation charter bonds
currently outstanding are as follows:
Issue Interest Original Final Balance Due Within
Date Rates Issue Maturity End of Year One Year
G.O. Improvement Bond, Series 2014A
- Charter 11/25/14 0.65%-2.50%650,000$ 02/01/25 150,000$ 75,000$
G.O. Improvement Bond, Series 2015A
- Charter 09/03/15 2.00%-2.20%2,100,000 02/01/26 675,000 220,000
G.O. Improvement Bond, Series 2016B
- Charter 11/03/16 2.00%2,005,000 02/01/27 910,000 220,000
G.O. Improvement Bond, Series 2018A
- Charter 07/18/18 3.00%-4.00%980,000 02/01/29 635,000 95,000
Total 2,370,000$ 610,000$
Annual debt service requirements to maturity for general obligation charter bonds are as follows:
Year Ending
December 31, Principal Interest Total
2024 610,000$ 50,723$ 660,723$
2025 625,000 36,047 661,047
2026 565,000 21,680 586,680
2027 345,000 10,750 355,750
2028 110,000 5,100 115,100
2029 115,000 1,725 116,725
Total 2,370,000$ 126,025$ 2,496,025$
Governmental Activities
E.General Obligation Tax Increment Revenue Bonds
In August 2016, the City issued $2,265,000 GO Tax Increment Revenue bonds. The bonds are backed
by the full faith and credit of the City of Hastings. Tax increment revenue from District 7 is pledged
to repay the bonds.
Issue Interest Original Final Balance Due Within
Date Rates Issue Maturity End of Year One Year
G.O. Tax Increment Bonds, Series 2016A 01/21/16 2.00%-2.75%2,265,000$ 02/01/29 1,085,000$ 175,000$
71
City of Hastings
Notes to Basic Financial Statements
NOTE 7 –LONG-TERM DEBT (CONTINUED)
E.General Obligation Tax Increment Revenue Bonds (Continued)
Annual debt service requirements to maturity for general obligation tax increment revenue bonds are
as follows:
Year Ending
December 31, Principal Interest Total
2024 175,000$ 24,500$ 199,500$
2025 180,000 20,950 200,950
2026 185,000 16,838 201,838
2027 185,000 12,212 197,212
2028 195,000 7,219 202,219
2029 165,000 2,269 167,269
Total 1,085,000$ 83,988$ 1,168,988$
Governmental Activities
F.Lease Obligations
The City entered into multiple lease agreements shown per schedules below. These leases have
varying start dates, monthly lease payment amounts, and end dates.
Year Ending
December 31, Principal Interest Total Principal Interest Total
2024 123,332$ 12,158$ 135,490$ 14,873$ 1,800$ 16,673$
2025 75,862 6,111 81,973 15,633 1,039 16,672
2026 52,678 2,343 55,021 12,248 257 12,505
2027 16,507 565 17,072 ---
2028 5,426 99 5,525 ---
Total 273,805$ 21,276$ 295,081$ 42,754$ 3,096$ 45,850$
Business Type ActivitiesGovernmental Activities
72
City of Hastings
Notes to Basic Financial Statements
NOTE 7 –LONG-TERM DEBT (CONTINUED)
G.Changes in Long-Term Liabilities
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Governmental activities
Bonds payable
GO improvement debt 12,835,000$ 3,125,000$ (1,445,000)$ 14,515,000$ 1,645,000$
Equipment certificates 190,000 -(95,000)95,000 95,000
City charter bonds 2,965,000 -(595,000)2,370,000 610,000
Tax increment bonds 1,260,000 -(175,000)1,085,000 175,000
Lease obligations 338,616 46,345 (111,156)273,805 123,332
Total OPEB liability 3,971,708 -(775,306)3,196,402 413,025
Net pension liability 21,929,588 -(11,777,847)10,151,741 -
Plus (less) deferred amounts
for premium and discount 1,136,363 279,904 (173,789)1,242,478 -
Total bonds payable 44,626,275 3,451,249 (15,148,098)32,929,426 3,061,357
Compensated absences 1,881,177 956,215 (828,167)2,009,225 139,622
Total governmental activities 46,507,452$ 4,407,464$ (15,976,265)$34,938,651$ 3,200,979$
Ending Ending Due Within
Balance Additions Deductions Balance One Year
Business-type activities
Bonds payable
G.O. revenue bonds 6,740,000$ 970,000$ (630,000)$ 7,080,000$ 900,000$
Lease obligations 56,903 -(14,150)42,753 14,872
Total OPEB liability 440,303 -(94,357)345,946 44,702
Net pension liability 1,014,790 -(314,566)700,224 -
Plus (less) deferred amounts
for premium or discount 473,666 82,537 (65,307)490,896 -
Total bonds payable 8,725,662 1,052,537 (1,118,380)8,659,819 959,574
Compensated absences payable 239,646 143,763 (117,427)265,982 15,671
Total business-type activities 8,965,308$ 1,196,300$ (1,235,807)$ 8,925,801$ 975,245$
The governmental activities, compensated absences, pensions,and other post-employment benefit
obligations are generally liquidated by the general,special revenue,and internal service funds.
73
City of Hastings
Notes to Basic Financial Statements
NOTE 8 –RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of,damage to, and the destruction
of assets; errors and omissions; injuries to employees and natural disasters. The City participates in
the League of Minnesota Cities Insurance Trust (LMCIT), a public entity risk pool for its general
property and casualty, workers'compensation, and other miscellaneous insurance coverage. The
LMCIT operates as a common risk management and insurance program for approximately 1,200
members. The city pays an annual premium to the LMCIT for insurance coverage. The LMCIT
agreement provides that the Trust will be self-sustaining through member premiums and will reinsure
through commercial companies for claims in excess of certain limits. The major reinsurance points
are generally $1,000,000 per occurrence for property loss or damage and $500,000 per occurrence
for workers'compensation. The City also carries commercial insurance for certain other risks of loss,
including employee health insurance. Settled claims resulting from these risks have not exceeded
commercial insurance coverage in any of the past three fiscal years.There were no significant
reductions in insurance from the prior year.
NOTE 9 –PENSION PLANS
The City participates in various pension plans. Total pension expense for the year ended
December 31, 2023, was $3,203,999, the discretely presented component unit's portion of this
expense is $8,938. The components of pension expense are noted in the following plan summaries.
The General fund, HEDRA, Water, Sewer, Storm and Hydro Funds typically liquidate the liability
related to pensions.
Public Employees'Retirement Association
A.Plan Description
The City of Hastings participates in the following cost-sharing multiple-employer defined benefit
pension plans administered by the Public Employees Retirement Association of Minnesota (PERA).
PERA's defined benefit pension plans are established and administered in accordance with Minnesota
Statutes Chapters 353 and 356. PERA's defined benefit pension plans are tax qualified plans under
Section 401 (a) of the Internal Revenue Code.
General Employees Retirement Plan
All full-time and certain part-time employees of the City are covered by the General Employees Plan.
General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are
covered by Social Security.
Public Employees Police and Fire Plan
The Police and Fire Plan, originally established for police officers and firefighters not covered by a
local relief association, now covers all police officers and firefighters hired since 1980. Effective
July 1, 1999, the Police and Fire Plan also covers police officers and firefighters belonging to local
relief associations that elected to merge with and transfer assets and administration to PERA.
74
City of Hastings
Notes to Basic Financial Statements
NOTE 9 –PENSION PLANS (CONTINUED)
Public Employees'Retirement Association (Continued)
B.Benefits Provided
Public Employees Police and Fire Plan (Continued)
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statute and can only be modified by the state Legislature. Vested, terminated employees who are
entitled to benefits,but are not receiving them yet, are bound by the provisions in effect at the time
they last terminated their public service.
General Employees Plan Benefits
General Employees Plan benefits are based on a member's highest average salary for any 5 successive
years of allowable service, age, and years of credit at termination of service. Two methods are used
to compute benefits for PERA's Coordinated Plan members. Members hired prior to July 1, 1989,
receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after
June 30, 1989. Under Method 1, the accrual rate for a Coordinated members is 1.2% for each of the
first 10 years of service and 1.7% for each additional year. Under Method 2, the accrual rate for
Coordinated members is 1.7% for all years of service. For members hired prior to July 1, 1989, a full
annuity is available when age plus years of service equal 90 and normal retirement age is 65. For
members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social
Security benefits capped at 66.
Benefit increases are provided to benefit recipients each January. The postretirement increase is
equal to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase
of at least 1% and a maximum of 1.5%. Recipients that have been receiving the annuity or benefit for
at least a full year as of the June 30 before the effective date of the increase will receive the full
increase. Recipients receiving the annuity or benefit for at least one month but less than a full year
as of the June 30 before the effective date of the increase will receive a reduced prorated increase.
In 2023, legislation repealed the statute delaying increases for members retiring before full
retirement age.
Police and Fire Plan Benefits
Benefits for the Police and Fire Plan members first hired after June 30, 2010, but before July 1,
2014, vest on a prorated basis from 50% after five years up to 100% after 10 years of credited service.
Benefits for Police and Fire Plan members first hired after June 30, 2014, vest on a prorated basis
from 50% after 10 years up to 100% after 20 years of credited service. The annuity accrual rate is 3%
of average salary for each year of service. For Police and Fire Plan members who were first hired
prior to July 1, 1989,a full annuity is available when age plus years of service equal at least 90.
Benefit increases are provided to benefit recipients each January. The postretirement increase is
fixed at 1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of
the June 30 before the effective date of the increase will receive the full increase. Recipients
receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30
before the effective date of the increase will receive a reduced prorated increase.In 2023,
legislation repealed the statute delaying increases for members retiring before full retirement age.
75
City of Hastings
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
C.Contributions
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions.
Contribution rates can only be modified by the state Legislature.
General Employees Plan Contributions
Coordinated Plan members were required to contribute 6.5% of their annual covered salary in fiscal
year 2023 and the City was required to contribute 7.5% for Coordinated Plan members. The City's
contributions to the General Employees Fund for the year ended December 31, 2023, were $442,776
of this amount, the discretely presented component unit contributed $17,507. The City's
contributions were equal to the required contributions as set by state statute.
Police and Fire Plan Contributions
Police and Fire Plan members were required to contribute 11.8% of their annual covered salary in
fiscal year 2023 and the City was required to contribute 17.7% for Police and Fire Plan members. The
City's contributions to the Police and Fire Fund for the year ended December 31, 2023, were
$987,969. The City's contributions were equal to the required contributions as set by state statute.
D. Pension Costs
General Employees Fund Pension Costs
At December 31, 2023, the City reported a liability of $4,020,567 for its proportionate share of the
General Employees Fund's net pension liability, of this amount, the discretely presented component
unit was allocated $158,971. The City's net pension liability reflected a reduction due to the State of
Minnesota's contribution of $16 million. The State of Minnesota is considered a non-employer
contributing entity and the State's contribution meets the definition of a special funding situation.
The State of Minnesota's proportionate share of the net pension liability associated with the City
totaled $110,860.
The net pension liability was measured as of June 30, 2023, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The
City's proportionate share of the net pension liability was based on the City's contributions received
by PERA during the measurement period for employer payroll paid dates from July 1, 2022, through
June 30, 2023, relative to the total employer contributions received from all of PERA's participating
employers. The City's proportionate share was 0.0719% at the end of the measurement period and
0.0695% for the beginning of the period.
City's proportionate share of the net pension liability 4,020,567$
State of Minnesota's proportionate share of the net pension
liability associated with the City 110,860
Total 4,131,427$
76
City of Hastings
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
General Employees Fund Pension Costs (Continued)
For the year ended December 31, 2023, the City recognized pension expense of $654,985 for its
proportionate share of General Employees Plan's pension expense of this amount, the discretely
presented component unit was allocated $8,938.Included in the amount, the City recognized $498 as
pension expense (and grant revenue) for its proportionate share of the State of Minnesota's
contribution of $16 million to the General Employees Fund, of this amount, the discretely presented
component unit was allocated $20.
At December 31, 2023, the City reported its proportionate share of the General Employees Plan's
deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources, of these amounts, the discretely presented component unit was allocated $44,548
of deferred outflows of resources and $51,961 of deferred inflows of resources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic
experience 130,978$ 26,888$
Changes in actuarial assumptions 631,755 1,102,004
Net difference between projected and actual investment earnings - 160,863
Change in proportion 142,560 24,392
Contributions paid to PERA subsequent to the measurement
date 221,388 -
Total 1,126,681$ 1,314,147$
77
City of Hastings
Notes to Basic Financial Statements
NOTE 9 –PENSION PLANS (CONTINUED)
D.Pension Costs (Continued)
General Employees Fund Pension Costs (Continued)
The $221,388 reported as deferred outflows of resources related to pensions resulting from City of
Hastings contributions subsequent to the measurement date will be recognized as a reduction of the
net pension liability in the year ended December 31, 2024, of this amount the discretely presented
component unit contributed $17,507 subsequent to year end. Other amounts reported as deferred
outflows and inflows of resources related to pensions will be recognized in pension expense as
follows:
Year Ended Pension
December Expense
2024 109,402$
2025 (555,238)
2026 124,202
2027 (87,220)
Total (408,854)$
Police and Fire Fund Pension Costs
At December 31, 2023, the City reported a liability of $6,990,370 for its proportionate share of the
Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30,
2023, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of that date. The City's proportionate share of the net pension liability was
based on the City's contributions received by PERA during the measurement period for employer
payroll paid dates from July 1, 2022, through June 30, 2023, relative to the total employer
contributions received from all of PERA's participating employers. The City's proportionate share was
0.4048%, at the end of the measurement period and 0.4063% for the beginning of the period.
78
City of Hastings
Notes to Basic Financial Statements
NOTE 9 –PENSION PLANS (CONTINUED)
D.Pension Costs (Continued)
Police and Fire Fund Pension Costs (Continued)
The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year
ended June 30, 2023. The contribution consisted of $9 million in direct state aid that meets the
definition of a special funding situation and $9 million in supplemental state aid that does not meet
the definition of a special funding situation. The $9 million direct state aid was paid on October 1,
2022. Thereafter, by October 1 of each year, the State will pay $9 million to the Police and Fire Fund
until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental
state aid will continue until the fund is 90% funded, or until the State Patrol Plan (administered by
the Minnesota State Retirement System) is 90% funded, whichever occurs later. The State of
Minnesota's proportionate share of the net pension liability associated with the City totaled
$281,573.
City's Proportionate share of the net pension liability 6,990,370$
State of Minnesota's proportionate share of the net pension
liability associated with the City 281,573
Total 7,271,943$
The State of Minnesota is included as a non-employer contributing entity in the Police and Fire
Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by Employer
(pension allocation schedules) for the $9 million in direct state aid.Police and Fire Plan employers
need to recognize their proportionate share of the State of Minnesota's pension expense (and grant
revenue) under GASB 68 special funding situation accounting and financial reporting requirements.
For the year ended December 31, 2023, the City recognized pension expense of $2,074,326 for its
proportionate share of the Police and Fire Plan's pension expense. Included in this amount, the City
recognized ($16,959)as pension expense (and grant revenue) for its proportionate share of the State
of Minnesota's contribution of $9 million to the Police and Fire Fund.
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire
Pension Plan pension allocation schedules for the $9 million in supplemental state aid. The City also
recognized $36,432 for the year ended December 31, 2023,as revenue and an offsetting reduction of
the net pension liability for its proportionate share of the State of Minnesota's on-behalf
contributions to the Police and Fire Fund.
79
City of Hastings
Notes to Basic Financial Statements
NOTE 9 –PENSION PLANS (CONTINUED)
Public Employees'Retirement Association (Continued)
D.Pension Costs (Continued)
Police and Fire Fund Pension Costs (Continued)
At December 31, 2023, the City reported its proportionate share of the Police and Fire Plan's
deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources.
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic
experience 1,912,387$ -$
Changes in actuarial assumptions 7,983,208 9,826,018
Difference between projected and actual investment earnings -162,610
Change in proportion 195,287 111,173
Contributions paid to PERA subsequent to the measurement
date 493,985 -
Total 10,584,867$ 10,099,801$
The $493,985 reported as deferred outflows of resources related to pensions resulting from City of
Hastings contributions subsequent to the measurement date will be recognized as a reduction of the
net pension liability in the year ended December 31, 2024. Other amounts reported as deferred
outflows and inflows of resources related to pensions will be recognized in pension expense as
follows:
Year Ended Pension
December Expense
2024 376,161$
2025 119,406
2026 1,683,225
2027 (442,470)
2028 (1,745,241)
Total (8,919)$
80
City of Hastings
Notes to Basic Financial Statements
NOTE 9 –PENSION PLANS (CONTINUED)
Public Employees'Retirement Association (Continued)
E.Long-Term Expected Return on Investment
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return using a building-block
method in which best-estimate ranges of expected future rates of return are developed for each
major asset class. These ranges are combined to produce an expected long-term rate of return by
weighting the expected future rates of return by the target asset allocation percentages. The target
allocation and best estimates of geometric real rates of return for each major asset class are
summarized in the following table:
Domestic equity 33.5 %5.10 %
International equity 16.5 5.30
Fixed income 25.0 0.75
Private markets 25.0 5.90
Total 100.0 %
Target Allocation
Long-Term
Expected Real
Rate of ReturnAsset Class
F.Actuarial Assumptions
The total pension liability in the June 30, 2023, actuarial valuation was determined using an
individual entry-age normal actuarial cost method. The long-term rate of return on pension plan
investments used in the determination of the total liability is 7.0%. This assumption is based on a
review of inflation and investments return assumptions from a number of national investment
consulting firms. The review provided a range of return investment return rates deemed to be
reasonable by the actuary. An investment return of 7.0% was deemed to be within that range of
reasonableness for financial reporting purposes.
Inflation is assumed to be 2.25% for the General Employees Plan and 2.25% for the Police and Fire
Plan. Benefit increases after retirement are assumed to be 1.25% for the General Employees and 1%
for the Police and Fire Plan
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25%
after one year of service to 3.0% after 27 years of service. In the Police and Fire Plan, salary growth
assumptions range from 11.75% after one year of service to 3.0% after 24 years of service.
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee
Mortality Table. Mortality rates for the Police and Fire Plan are based on the Pub-2010 Public Safety
Employee Mortality tables. The tables are adjusted slightly to fit PERA's experience.Actuarial
assumptions for the General Employees Plan are reviewed every four years. The most recent four-
year experience study for the General Employees Plan was completed in 2022. The assumption
changes were adopted by the Board and became effective with the July 1, 2023, actuarial valuation.
The most recent four-year experience study for the Police and Fire Plan was completed in 2020 and
was adopted by the Board and became effective with the July 1, 2021, actuarial valuation.
81
City of Hastings
Notes to Basic Financial Statements
NOTE 9 –PENSION PLANS (CONTINUED)
Public Employees'Retirement Association (Continued)
F.Actuarial Methods and Assumptions (Continued)
The following changes in actuarial assumptions and plan provisions occurred in 2023:
General Employees Fund
Changes in Actuarial Assumptions
The investment return assumption and single discount rate were changed from 6.5% to 7.0%.
Changes in Plan Provisions
An additional one-time direct state aid contribution of $170.1 million will be contributed to
the Plan on October 1, 2023.
The vesting period of those hired after June 30, 2010, was changed from five years of
allowable service to three years of allowable service.
The benefit increase delay for early retirements on or after January 1, 2024, was eliminated.
A one-time, non-compounding benefit increase of 2.5% minus the actual 2024 adjustment will
be payable in a lump sum for calendar year 2024 by March 31, 2024.
Police and Fire Fund
Changes in Actuarial Assumptions
The investment return assumption and single discount rate were changed from 6.5% to 7.0%.
The single discount rate changed from 5.4% to 7.0%.
Changes in Plan Provisions
Additional one-time direct state aid contribution of 19.4 million will be contributed to the
Plan on October 1, 2023.
Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year
vesting schedule to a graded 10-year vesting schedule, with 50% vesting after five years,
increasing incrementally to 100% after 10 years.
A one-time, non-compounding benefit increase of 3.0% will be payable in a lump sum for
calendar year 2024 by March 31, 2024.
Psychological treatment is required effective July 1, 2023, prior to approval for a duty
disability benefit for a psychological condition relating to the member's occupation.
The total and permanent duty disability benefit was increased, effective July 1, 2023.
G.Discount Rate
The discount rate used to measure the total pension liability in 2023 was 7.0%. The projection of
cash flows used to determine the discount rate assumed that contributions from Plan members and
employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary
net positions of the General Employees and Police and Fire Plans were projected to be available to
make all projected future benefit payments of current plan members. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
82
City of Hastings
Notes to Basic Financial Statements
NOTE 9 –PENSION PLANS (CONTINUED)
Public Employees'Retirement Association (Continued)
H.Pension Liability Sensitivity
The following presents the City's proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as
what the City's proportionate share of the net pension liability would be if it were calculated using a
discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in Current 1% Increase in
Discount Rate Discount Rate Discount Rate
(6.00%)(7.00%)(8.00%)
General Employees Retirement Fund net pension liability 6,828,199$ 3,861,596$ 1,418,078$
Discretely presented component unit 284,508 158,971 59,087
1% Decrease in Current 1% Increase in
Discount rate Discount Rate Discount Rate
(6.00%)(7.00%)(8.00%)
Police and Fire Fighters net pension liability 13,869,727$ 6,990,370$ 1,334,618$
City of Hastings proportionate share of
City of Hastings proportionate share of
I.Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in a separately
issued PERA financial report that includes financial statements and required supplementary
information. That report may be obtained on the Internet at www.mnpera.org.
At December 31, 2023, the City reported its total proportionate share of Net Pension Liability
(Asset), Deferred Outflows of Resources, and Deferred Inflows of Resources, related to pensions from
the following sources:
Net Pension Deferred Deferred
Liability Outflows of Inflows of
(Asset)Resources Resources
General Employees 4,020,567$ 1,126,681$ 1,314,147$
Police and Fire 6,990,370 10,584,867 10,099,801
Total 11,010,937$ 11,711,548$ 11,413,948$
83
City of Hastings
Notes to Basic Financial Statements
NOTE 9 –PENSION PLANS (CONTINUED)
Single Employer Defined Benefit Pension Plan -Volunteer Fire Relief Association
A.Plan Description
Firefighters of the City of Hastings are members of the Hastings Firefighters Relief Association. The
Association is the administrator of the single employer defined benefit pension plan available to
firefighters. The association is governed by a board of six officers and trustees elected by the
members of the Association for three-year terms. The Mayor, City Clerk, and Fire Chief are ex-officio
members of the Board of Trustees. The plan is administered pursuant to Minnesota Statutes Chapter
69, Chapter 424A, and the Association's by-laws. As of January 1, 2023, membership includes 35
active members and 19 deferred or inactive members entitled to benefit but not yet receiving them.
The plan issues a stand-alone financial statement as it is not a component unit of the City of
Hastings.
The Association issues a publicly available financial report that includes financial statements and
required supplementary information for the Hastings Firefighters'Relief Association. That report may
be obtained by writing to the Hastings Firefighters'Relief Association, 115 West 5th Street, Hastings,
MN 55033.
B.Benefits Provided
Authority for payment of pension benefits is established in Minnesota Statutes § 69.77 and may be
amended only by the Minnesota State Legislature. Each member who is at least 50 years of age, has
retired from the Fire Department, has served at least 20 years of active service with such
department before retirement shall be entitled to a lump sum service pension in the amount of
$7,000 for each year of active Fire Department service.
Minnesota Statutes §424A.10 provides for the payment of a supplemental benefit equal to 10% of a
regular lump sum distribution up to a maximum of $1,000. The supplemental benefit is in lieu of
state income tax exclusion for lump sum distributions and will no longer be available if state tax law
is modified to exclude lump sum distributions from state income tax. The Association qualifies for
these benefits.
The Association provides retirement benefits as well as disability benefits to members and benefits
to survivors upon death of eligible members. Benefits are established by the Association with
approval by the Hastings City Council under the applicable state statutes. The defined retirement
benefits are based on members'years of service. Vesting begins after the 5th year of service with a
40% benefit increasing by 4% per year to 100% after the 20th year of service.
Pursuant to Minnesota Statutes §424A.02, Subd.2 and 4, members who retire with five years of
service and reached the age of 50 years are eligible for a retirement benefit. Members who retire
before full retirement age and years of service requirements are eligible for a reduced benefit,
based on the vesting schedule as set forth in Minnesota Statutes §424A.02, Subd. 2(c). During the
time a member is on early vested pension, they will not be eligible for disability benefits.
If a member of the Association shall become permanently or totally disabled, the amount to be
determined in accordance with the 20-year cumulated table contained in Minnesota Statutes
§69.772, for each year of service prior to disability as a firefighter in the Fire Department of the City
of Hastings. A death benefit is also available, which is payable to a survivor.
84
City of Hastings
Notes to Basic Financial Statements
NOTE 9 –PENSION PLANS (CONTINUED)
Single Employer Defined Benefit Pension Plan -Volunteer Fire Relief Association (Continued)
B.Benefits Provided (Continued)
A member of the Association, who has completed five or more years of active service with the Fire
Department prior to reaching age 50, has the right to retire from the Department without forfeiting
the right to a service pension. The member shall be placed on the deferred pension roll. Upon
reaching age 50, and provided that at that time the individual has been a member of the Association
for at least five years, the member may apply for the standard service pension as described above.
The Association shall pay interest on the deferred service pension during the period of deferral. The
interest rate will be compounded annually, at the rate actually earned on the assets of the Pension
Fund, not to exceed 5% per year.
A member of the Association who becomes sick or temporarily disabled to the extent that he/she is
unable to perform their regular occupation for a period of seven consecutive days or more, and who
is under the care of a physician, is entitled to a sick benefit of $4 per day, not to exceed $225 in one
calendar year.
The benefit provisions stated in the previous paragraphs of this section are current provisions which
apply to active plan participants. Vested, terminated firefighters, who are entitled to benefits and
are not receiving them yet, are bound by the provisions in effect at the time they choose to start
their benefit.
C.Contributions
Minnesota Statutes Chapter 424A.092 specifies minimum support rates required on an annual basis.
The minimum support rates from the municipality and from State aids are determined as the amount
required to meet the normal cost plus amortizing any existing prior service costs over a ten year
period. The City's obligation is the financial requirement for the year less state aids. Any additional
payments by the City shall be used to amortize the unfunded liability of the relief association. The
Association is comprised of volunteers: therefore, there are no payroll expenditures (i.e.,there are
no covered payroll percentage calculations).
D. Pension Costs
At December 31, 2023, the City reported an asset of $1,850,595 for the Association's net pension
asset. The net pension asset was measured as of December 31, 2022, and the total pension liability
used to calculate the net pension asset was determined by an actuarial valuation as of January 1,
2023.
85
City of Hastings
Notes to Basic Financial Statements
NOTE 9 –PENSION PLANS (CONTINUED)
Single Employer Defined Benefit Pension Plan -Volunteer Fire Relief Association (Continued)
D.Pension Costs (Continued)
For the year ended December 31, 2023, the City recognized pension expense of $474,688. At
December 31, 2023, the City reported deferred outflows of resources and deferred inflows of
resources from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual liability -$ 255,846$
Changes in actuarial assumptions 2,723 242,831
Net difference between projected and actual earnings on
pension plan investments 331,333 -
City contributions subsequent to the measurement date 244,079 -
Total 578,135$ 498,677$
Other amounts reported as deferred outflows and inflows of resources related to the Association's
pension will be recognized in pension expense as follows:
Year Ended Pension
December Expense
2024 (117,504)$
2025 (13,687)
2026 44,137
2027 90,817
2028 (49,859)
Thereafter (118,525)
Total (164,621)$
86
City of Hastings
Notes to Basic Financial Statements
NOTE 9 –PENSION PLANS (CONTINUED)
Single Employer Defined Benefit Pension Plan -Volunteer Fire Relief Association (Continued)
E.Actuarial Assumptions
The actuarial total pension liability was determined as of December 31, 2023, using the following
actuarial assumptions, applied to all periods included in the measurement:
Actuarial cost method Entry Age Normal
Amortization method Level Dollar Closed
Actuarial assumptions
Discount rate 7.75 %
Investment rate of return 7.75
Age of service retirement 50.00
January 1, 2023Valuation Date
The value of death benefits is similar to the value of the retirement pension. Because of low
retirement ages, the plan assumes no pre-retirement morality. Post retirement morality does not
apply as the benefit structure and form of payment do not reflect lifetime benefits.
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best-estimates of expected future real rates of return (expected returns, net
of pension plan investment expense, and inflation) are developed for each major asset class. These
asset class estimates are combined to produce the portfolio long-term expected rate of return by
weighting the expected future real rates of return by weighting the expected future real rates of
return by the current asset allocation percentage (or target allocation, if available) and by adding
expected inflation.
The best-estimate of expected future real rates of return were developed by aggregating data from
several published capital market assumption surveys and deriving a single best-estimate based on the
average survey values. These capital market assumptions reflect both historical market experience as
well as diverse views regarding anticipated future returns. The expected inflation assumption was
developed based on an analysis of historical experience blended with forward-looking expectations
available in market data.
87
City of Hastings
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Single Employer Defined Benefit Pension Plan - Volunteer Fire Relief Association (Continued)
E. Actuarial Assumptions (Continued)
Best estimates of geometric real and nominal rates of return for each major asset class included in
the pension plan's asset allocation as of December 31, 2023, are summarized in the following table:
Equities 100.00 % 7.75 %
Asset Class
Allocation at
December 31,
2023
Long-Term
Expected Real
Rate of Return
F. Discount Rate
The discount rate used to measure the total pension liability was 7.75%. Assets were projected using
expected benefit payments and expected asset returns. Expected benefit payments were discounted
by year using expected assets return assumption for years in which the assets were sufficient to pay
all benefit payments. Any remaining benefit payments after the trust fund is exhausted are
discounted at the municipal bond rate of return. The equivalent single rate is the discount rate.
Based on those assumptions, the pension plan's fiduciary net position was projected to be available
to make all projected future benefit payments of current plan members.
G. Pension Liability Sensitivity
The following presents the City of 100% proportionate share of the net pension asset of the
Association, calculated using the discount rate of 7.75%, as well as what the Association's net pension
liability would be if it were calculated using a discount rate that is one percentage point lower
(6.75%) or one percentage point higher (8.75%) than the current rate:
1% Decrease in Current 1% Increase in
Discount Rate Discount Rate Discount Rate
(6.75%) (7.75%) (8.75%)
Net pension liability (asset) (1,724,359)$ (1,850,595)$ (1,969,601)$
88
City of Hastings
Notes to Basic Financial Statements
NOTE 9 –PENSION PLANS (CONTINUED)
Single Employer Defined Benefit Pension Plan -Volunteer Fire Relief Association (Continued)
H.Plan's Fiduciary Net Position
Information about the Plan's fiduciary net position is as follows:
2023
Total Pension Liability
Service cost 106,076$
Interest 135,835
Plan changes 766,193
Changes of assumptions (206,077)
Gain or loss (149,508)
Benefit payments, including member contribution refunds (24,800)
Net Change in Total Pension Liability 627,719
Total Pension Liability - Beginning 2,268,675
Total Pension Liability - Ending (a)2,896,394
Plan Fiduciary Net Position
State contributions 220,587
Net investment income 300,130
Gain or loss (863,570)
Benefit payments (24,800)
Administrative expenses (14,236)
Net Change in Fiduciary Net Position (381,889)
Fiduciary Net Position - Beginning 5,128,878
Fiduciary Net Position - Ending (b)4,746,989
Association's Net Pension Liability (Asset) - Ending (a) - (b)(1,850,595)$
89
City of Hastings
Notes to Basic Financial Statements
NOTE 10 -RETIREE HEALTH INSURANCE
A.Plan Description
The City provides a single employer defined benefit OPEB dependent health care plan to retirees
after (ten)years of service, that were hired prior to 1993. The benefit commences upon retirement
or age 55 (whichever is later) and terminates after ten years or upon reaching Medicare age,
whichever comes first. The expenditures for this benefit are accounted for within the internal
service fund.The Other Post Employment Benefit (OPEB)plan is administered by the City. The
authority to provide these benefits is established in Minnesota Statutes §471.61 Subd. 2a, and
299A.465. The benefits, benefit levels, employee contributions and employer contributions are
governed by the City and can be amended by the City through its personnel manual and collective
bargaining agreements with employee groups. The Plan is not accounted for as a trust fund,and no
funds are accumulated in a trust as a trust fund has not been established to account for the plan.
The Plan does not issue a separate report.
B.Benefits Provided
1.Retirees
In addition to the benefits described above, The City is required by State Statute to allow
retirees to continue participation in the City's group health insurance plan if the individual
terminates service with the City through service retirement or disability retirement. Eligibility for
continuing group health and dental insurance for City retirees is defined as follows:
a.Retirees who are at least 55 years of age and are PERA Basic, PERA Coordinated, or PERA
Defined Contribution eligible; or
b.Retirees who are members of the PERA Police and Fire Fund who are at least 50 years of
age and are PERA Police and Fire Pension eligible; or
c.Former employees approved for disability retirement by PERA.
Employees may obtain spouse coverage at retirement or add spouse coverage at the beginning of
an enrollment year. Covered spouses may continue coverage after the retiree's death.
All health care coverage is provided through the City's group health insurance plans. The retiree
is required to pay 100% of their premium cost for the City-sponsored group health insurance plan
in which they participate. The premium is a blended rate determined on the entire active and
retiree population. Since the projected claims costs for retirees exceed the blended premium
paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels
are the same as those afforded to active employees. Retirees and spouses are eligible to remain
in the City-sponsored group health insurance plan until death or the obtainment of Medicare,
provided the applicable premiums are paid.
2.Disabled Police and Firefighter
In accordance with Minnesota Statute § 299A.465, the City is responsible to continue payment of
the City's contribution toward health coverage for police officers or the firefighters disabled in
the line of duty; or a surviving spouse and/or dependents of a police officer or the firefighters
killed in the line of duty. The contribution continues until the police officer, firefighters or
surviving spouse reaches age 65 or the dependent is no longer eligible under the contract.
90
City of Hastings
Notes to Basic Financial Statements
NOTE 10 -RETIREE HEALTH INSURANCE (CONTINUED)
C.Contributions
Contribution requirements are established by the City. The required contributions are based on
projected pay-as-you-go financing requirements. For year 2023, the City contributed $492,635 to the
plan, of this amount the discretely presented component unit was allocated $8,375. As of
December 31, 2023, there were 27 retirees receiving health benefits from the City's health plan.
D.Members
As of January 1, 2022, the following were covered by the benefit terms:
Retirees or beneficiaries currently receiving benefits 27
Active employees 102
Total 129
E.Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2022,with a
measurement date of January 1, 2023.Using the following actuarial assumptions, applied to all
periods included in the measurement, unless otherwise specified:
Investment rate of return 4.00%, net of investment expense
Salary increases Service graded table
Inflation 2.50%
Healthcare cost trend increases 6.25% in 2023, decreasing over five years
to rate of 5.00% and then 4.00% over 48 years.
Mortality assumption Pub-2010 Public Retirement Plans Headcount-
Weighted Mortality Tables (General, Safety) with
MP-2021 Generational Improvement Scale.
Key Methods and Assumptions Used in Valuation of Total OPEB Liability
The actuarial assumptions used in the January 1, 2022, valuation were based on the results of an
actuarial experience study for the period January 1, 2021 through January 1, 2022.
The discount rate used to measure the total OPEB liability was 4.00% based on 20 year municipal
bond index.
F.Total OPEB Liability
The City's total OPEB liability of $3,603,609 was measured as of January 1, 2023, and was determined
by an actuarial valuation as of January 1, 2022, of this amount the discretely presented component
unit was allocated $61,261.
91
City of Hastings
Notes to Basic Financial Statements
NOTE 10 -RETIREE HEALTH INSURANCE (CONTINUED)
F.Total OPEB Liability (Continued)
Changes in the total OPEB liability are as follows:
Total
OPEB
Liability
Balances at January 1, 2022 4,492,883$
Changes for the year
Service cost 75,533
Interest 86,580
Assumption changes (570,147)
Benefit payments (481,240)
Net changes (889,274)
Balances at January 1, 2023 3,603,609$
Changes of assumptions and other inputs reflect an update to the healthcare trend rates, mortality
tables, salary increase rates, and retirement and withdrawal rates. The discount rate was changed
form 2.00% to 4.00%. The inflation rate was also changed from 2.50% to 2.00%.
G.OPEB Liability Sensitivity
The following presents the City's total OPEB liability calculated using the discount rate of 2.00% as
well as the liability measured using 1% lower and 1% higher than the current discount rate.
1% Decrease in
Discount Rate
(3.00%)
Current
Discount Rate
(4.00%)
1% Increase in
Discount Rate
(5.00%)
Primary government $ 3,814,421 3,542,348$ 3,307,150$
Discretely presented component unit 65,967 61,261 57,194
Total OPEB Liability (Asset)
92
City of Hastings
Notes to Basic Financial Statements
NOTE 10 -RETIREE HEALTH INSURANCE (CONTINUED)
G.OPEB Liability Sensitivity (Continued)
The following presents the total OPEB liability of the City, as well as what the City's total OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1% lower and 1%
higher than the current healthcare cost trend rates.
1% Decrease in
Discount Rate
Current
Discount Rate
1% Increase in
Discount Rate
Primary government 3,257,426$ 3,542,348$ 3,876,212$
Discretely presented component unit 56,334 61,261 67,035
(5.50%
Decreasing to
3.0%)
(6.50%
Decreasing to
4.0%)
(7.50%
Decreasing to
5.0%)
Total OPEB Liability/(Asset)
H.OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
For the year ended December 31, 2023, the City recognized OPEB expense of $233,229, of this
amount $3,965 was allocated to the discretely presented component unit. At December 31, 2023, the
City reported deferred outflows of resources and deferred inflows of resources related to OPEB from
the following sources of these amounts, the discretely presented component unit was allocated
$20,153 of deferred outflows of resources and $8,998 of deferred inflows of resources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Assumption Changes 340,423$ 529,304$
Liability Losses 352,432 -
Subsequent contributions 492,635 -
Total 1,185,490$ 529,304$
93
City of Hastings
Notes to Basic Financial Statements
NOTE 10 -RETIREE HEALTH INSURANCE (CONTINUED)
H.OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB (Continued)
The $492,635 reported as deferred outflows of resources related to OPEB resulting from City of
Hastings contributions subsequent to the measurement date will be recognized as a reduction of the
Total OPEB liability in the year ended December 31, 2024,of this amount the discretely presented
component unit contributed $8,375 subsequent to year end. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB
expense as follows:
Year Ended Pension
December Expense
2024 71,116$
2025 71,116
2026 71,121
2027 81,257
2028 (11,916)
Thereafter (119,144)
Total 163,550$
NOTE 11 –CONTINGENCIES
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently
determinable, in the opinion of the City's attorney, the resolution of these matters will not have a
material adverse effect on the financial condition of the City.
NOTE 12 –TAX INCREMENT FINANCING
There are two pay-as-you-go Tax Increment Districts in the City of Hastings. Minnesota Statute
§ 469.174 to 469.1794 provide authority for Tax Increment Districts. The City agreed to rebate real
estate taxes based on the increased property value from improvements on the owned property. The
amount rebated is equal to 90% of the tax increment received until the earlier of a maximum dollar
value or 2027 tax year. For the year ended December 31, 2023,the City generated $54,809 in tax
increment revenue and made $34,090 in payments to developers. No other commitments were made
by the City as part of these agreements.
94
City of Hastings
Notes to Basic Financial Statements
NOTE 13 –COMMITMENTS
A.Construction Commitments
Remaining
Commitment
Fund Project Amount
General Fund City Hall 4,431,450$
Nonmajor Capital Project
- Arena Arena Refrigeration 4,920,848
- Park Projects Lake Isabel Redevelopment 624,662
Nonmajor Capital Project
- Road Construction 2023 Neighborhood Improvements 61,904
Water Water Meter Replacement 50,000
Sewer 2023 Sanitary Sewer Lining 208,544
Total 10,297,408$
NOTE 14 –LEASE RECEIVABLE
The City has implemented GASB 87 effective December 31, 2022,and has recognized a Lease
Receivable of $2,669,722 and Deferred Inflow of Resources of $2,467,883. Leases included in the
lease receivable is the leased space above the water towers to several communication companies.
NOTE 15 -SUBSEQUENT EVENT
On April 17, 2024,the City issued $9,330,000 of General Obligation Charter Bonds, Series 2024A
for capital improvements.
95
REQUIRED SUPPLEMENTARY INFORMATION
OTHER THAN MD&A
See notes to required supplementary information.96
December 31,December 31,December 31,December 31,
2018 2019 2020 2021
Total OPEB Liability
Service cost 79,277$ 74,791$ 89,043$ 106,253$
Interest 129,783 125,673 136,813 122,960
--465,526 -
Changes of assumptions -(81,147)279,831 287,722
Benefit payments (329,263)(328,960)(354,697)(341,958)
Net change in total OPEB liability (120,203)(209,643)616,516 174,977
Beginning of year 4,016,829 3,896,626 3,686,983 4,303,499
Net OPEB liability 3,896,626$ 3,686,983$ 4,303,499$ 4,478,476$
7,919,006$ 8,156,576$ 8,548,373$ 8,804,824$
49.21%45.20%50.34%50.86%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
Covered-employee payroll
Net OPEB liability as a percentage of
covered-employee payroll
Difference between expected and actual
experience
City of Hastings
Schedule of Changes in Total OPEB Liability
and Related Ratios
97
Schedule 1
December 31,December 31,
2022 2023
101,368$ 75,533$
87,994 86,580
159,560 -
27,580 (570,147)
(362,095)(481,240)
14,407 (889,274)
4,478,476 4,492,883
4,492,883$ 3,603,609$
8,799,920$ 9,063,918$
51.06%39.76%
See notes to required supplementary information.98
Schedule 2
City's Covered
Payroll
2015 0.0723%3,746,961$ -$ 3,746,961$ 4,181,240$ 89.6%78.19%
2016 0.0671%5,448,187 71,180 5,519,367 4,164,467 130.8%68.91%
2017 0.0706%4,507,057 56,664 4,563,721 4,547,520 99.1%75.90%
2018 0.0697%3,866,670 126,858 3,993,528 4,686,667 82.5%79.53%
2019 0.0684%3,781,683 117,495 3,899,178 4,839,880 78.1%80.23%
2020 0.0710%4,256,774 131,283 4,388,057 5,062,387 84.1%79.06%
2021 0.0698%2,980,773 91,113 3,071,886 5,026,427 59.3%87.00%
2022 0.0695%5,504,423 161,514 5,665,937 5,207,533 105.7%76.67%
2023 0.0719%4,020,567 110,860 4,131,427 5,715,507 70.3%83.10%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
For Fiscal Year
Ended June
30,
City's
Proportion of
the Net
Pension
Liability
(Asset)
City's
Proportionate
Share of the
Net Pension
Liability
(Asset)
State's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
Associated
with the City
City's
Proportionate
Share of the
Net Pension
Liability and
the State's
Proportionate
Share of the
Net Pension
Liability
Associated
with the City
City's Covered
Payroll
City's
Proportionate
Share of the
Net Pension
Liability
(Asset) as a
Percentage of
its Covered
Payroll
Plan Fiduciary
Net Position
as a
Percentage of
the Total
Pension
Liability
2015 0.3670%4,169,979$ N/A 4,169,979$ 3,267,043$ 127.64%86.61%
2016 0.3900%15,651,932 N/A 15,651,952 3,757,019 416.61%63.88%
2017 0.3880%5,203,542 N/A 5,203,542 3,980,438 130.73%85.43%
2018 0.3693%3,903,121 N/A 3,903,121 4,120,810 94.72%88.84%
2019 0.3943%4,144,492 N/A 4,144,492 4,066,897 101.91%89.26%
2020 0.3783%4,952,352 117,467$ 5,069,819 4,178,463 118.52%87.19%
2021 0.3830%2,921,884 132,903 3,054,787 4,526,390 64.55%93.66%
2022 0.4063%17,680,571 772,477 18,453,048 4,935,944 358.20%70.53%
2023 0.4048%6,990,370 281,573 7,271,943 5,315,768 131.50%86.50%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
City of Hastings
Schedule of City's Proportionate Share
of Net Pension Liability
General Employees Retirement Fund
Last Ten Years
Last Ten Years
For Fiscal Year
Ended June
30,
State's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
Associated
with the City
City's
Proportionate
Share of the
Net Pension
Liability and
the State's
Proportionate
Share of the
Net Pension
Liability
Associated
with the City
Public Employees Police and Fire Retirement Fund
Schedule of City's Proportionate Share
of Net Pension Liability
City's
Proportionate
Share
(Percentage)
of the Net
Pension
Liability
(Asset)
City's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(Asset)
City's
Proportionate
Share of the
Net Pension
Liability
(Asset) as a
Percentage of
its Covered
Payroll
Plan Fiduciary
Net Position
as a
Percentage of
the Total
Pension
Liability
See notes to required supplementary information.99
Schedule 3
2014 306,216$ 306,216$ -$ 4,223,670$ 7.25%
2015 323,987 323,987 -4,319,887 7.50%
2016 322,594 322,594 -4,302,155 7.50%
2017 332,019 332,019 -4,426,920 7.50%
2018 362,596 362,596 -4,834,613 7.50%
2019 333,441 333,441 -4,445,880 7.50%
2020 363,873 363,873 -4,851,640 7.50%
2021 381,065 381,065 -5,080,867 7.50%
2022 411,531 411,531 -5,487,080 7.50%
2023 428,663 428,663 -5,715,507 7.50%
2014 514,007$ 514,007$ -$ 3,359,522$ 15.30%
2015 593,750 593,750 -3,665,120 16.20%
2016 626,529 626,529 -3,867,466 16.20%
2017 644,831 644,831 -3,980,438 16.20%
2018 658,441 658,441 -4,064,451 16.20%
2019 753,093 753,093 -4,443,027 16.95%
2020 761,102 761,102 -4,300,011 17.70%
2021 837,964 837,964 -4,734,260 17.70%
2022 906,616 906,616 -5,122,124 17.70%
2023 940,891 940,891 -5,315,768 17.70%
City of Hastings
Schedule of City Contributions -
General Employees Retirement Fund
Last Ten Years
Contributions
in Relation to
the Statutorily
Required
Contributions
Contribution
Deficiency
(Excess)
Contributions
in Relation to
the Statutorily
Required
Contributions
City's Covered
Payroll
Contribution
Deficiency
(Excess)
Last Ten Years
City's Covered
Payroll
Statutorily
Required
Contribution
Contributions
as a
Percentage of
Covered Payroll
Contributions
as a
Percentage of
Covered Payroll
Fiscal Year
Ending
December 31,
Schedule of City Contributions -
Public Employees Police and Fire Retirement Fund
Fiscal Year
Ending
December 31,
Statutorily
Required
Contribution
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
See notes to required supplementary information.100
December 31, December 31, December 31, December 31,
2014 2015 2016 2017
Total Pension Liability (TPL)
Service cost 71,430$ 77,609$ 75,046$ 90,905$
Interest 158,649 143,266 157,420 150,634
Gain or loss ----
Changes of assumptions --21,819 -
Changes of benefit terms ---408,102
Benefit payments, including refunds or
member contributions (539,157)(120,042)(21,445)(505,314)
Net change in total pension liability (309,078)100,833 232,840 144,327
Beginning of year 2,756,871 2,447,793 2,548,626 2,781,466
End of year 2,447,793$ 2,548,626$ 2,781,466$ 2,925,793$
Plan Fiduciary Net Pension (FNP)
State contributions 168,589$ 176,928$ 177,612$ 182,415$
Net investment income 168,892 (29,966)231,494 504,320
Gain or loss ----
Benefit payments, including refunds of
member contributions (492,023)(120,042)(31,037)(505,314)
Administrative expense (5,963)(5,354)(5,329)(5,329)
Other 1,612 1,464 (1,790)-
Net change in plan fiduciary net position (158,893)23,030 370,950 176,092
Beginning of year 3,909,740 3,750,847 3,773,877 4,144,827
End of year 3,750,847$ 3,773,877$ 4,144,827$ 4,320,919$
Net pension liability (NPL)(1,303,054)$ (1,225,251)$ (1,363,361)$ (1,395,126)$
Plan fiduciary net position as a percentage of
the total pension liability 153.2%148.1%149.0%147.7%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become
City of Hastings
Schedule of Changes in Net Pension Liability
and Related Ratios - Hastings Firefighters' Benefit Association
Measurement Date
101
Schedule 4
December 31, December 31, December 31, December 31, December 31,
2018 2019 2020 2021 2022
111,448$ 100,316$ 107,881$ 103,489$ 106,076$
165,333 141,474 137,263 132,832 135,835
(154,138)-(82,834)-(149,508)
(134,222)---(206,077)
-100,388 131,954 -766,193
(323,775)(460,667)(385,293)(348,567)(24,800)
(335,354)(118,489)(91,029)(112,246)627,719
2,925,793 2,590,439 2,471,950 2,380,921 2,268,675
2,590,439$ 2,471,950$ 2,380,921$ 2,268,675$ 2,896,394$
187,040$ 192,649$ 205,703$ 215,715$ 220,587$
244,368 220,150 248,986 270,175 300,130
(452,848)519,294 289,121 233,367 (863,570)
(323,775)(460,667)(385,293)(348,567)(24,800)
(5,329)(15,351)(12,917)(13,862)(14,236)
-----
(350,544)456,075 345,600 356,828 (381,889)
4,320,919 3,970,375 4,426,450 4,772,050 5,128,878
3,970,375$ 4,426,450$ 4,772,050$ 5,128,878$ 4,746,989$
(1,379,936)$ (1,954,500)$ (2,391,129)$ (2,860,203)$ (1,850,595)$
153.3%179.1%200.4%226.1%163.9%
Measurement Date
See notes to required supplementary information.102
December 31, December 31, December 31, December 31,
2014 2015 2016 2017
Employer
Statutorily determined
contribution (SDC)-$ -$ -$ -$
Contribution in relation
to the SDC ----
Contribution deficiency
(excess)-$ -$ -$ -$
Non-employer
2% state aid 163,589$ 174,928$ 177,612$ 180,415$
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
City of Hastings
Schedule of City and Non-Employer Entity Contributions -
Hastings Firefighters' Benefit Association
103
Schedule 5
December 31, December 31, December 31, December 31, December 31, December 31,
2018 2019 2020 2021 2022 2023
-$ -$ -$ -$ -$ -$
------
-$ -$ -$ -$ -$ -$
185,040$ 190,649$ 202,703$ 212,715$ 219,587$ 244,079$
104
City of Hastings
Notes to Required Supplementary Information
General Employees Fund
2023 Changes
Changes in Actuarial Assumptions
The investment return assumption and single discount rate were changed from 6.5% to 7.0%.
Changes in Plan Provisions
An additional one-time direct state aid contribution of $170.1 million was contributed to the
Plan on October 1, 2023.
The vesting period of those hired after June 30, 2010, was changed from five years of
allowable service to three years of allowable service.
The benefit increase delay for early retirements on or after January 1, 2024, was eliminated.
A one-time, non-compounding benefit increase of 2.5% minus the actual 2024 adjustment will
be payable in a lump sum for calendar year 2024 by March 31, 2024.
2022 Changes
Changes in Actuarial Assumptions
The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2021 Changes
Changes in Actuarial Assumptions
The investment return and single discount rates were changed from 7.5% to 6.5% for financial
reporting purposes.
The mortality improvement scale was changed from scale MP-2019 to scale MP-2020.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2020 Changes
Changes in Actuarial Assumptions
The price inflation assumption was decreased from 2.5% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.0%.
Assumed salary increase rates were changed as recommended in the June 30, 2019,
experience study. The net effect is assumed rates that average 0.25% less than previous
rates.
Assumed rates of retirement were changed as recommended in the June 30, 2019, experience
study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of
90 and early retirements.
Assumed rates of termination were changes as recommended in the June 30, 2019,
experience study. The new rates are based on service and are generally lower than the
previous rates for years 2-5 and slightly higher thereafter.
Assumed rates of disability were changed as recommended in the June 30, 2019, experience
study. The change results in fewer predicted disability retirements for males and females.
The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for
disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the
Pub-2010 General/Teacher disabled annuitant mortality table, with adjustments.
The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
The assumed spouse age difference was changed from two years older for females to one year
older.
105
City of Hastings
Notes to Required Supplementary Information
General Employees Fund (Continued)
2020 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
The assumed number of married male new retirees electing the 100% Joint and Survivor
option changed from 35% to 45%. The assumed number of married female new retires electing
the 100% Joint and Survivor option changed from 15% to 30%. The corresponding number of
married new retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions
Augmentation for current privatized members was reduced to 2.0% for the period July 1,
2020, through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for
privatizations occurring after June 30, 2020.
2019 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
The employer supplemental contribution was changed prospectively, decreasing from $31.0
million to $21.0 million per year. The State's special funding contribution was changed
prospectively, requiring $16.0 million due per year through 2031.
2018 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2015 to MP-2017.
The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per
year thereafter to 1.25% per year.
Changes in Plan Provisions
The augmentation adjustment in early retirement factors is eliminated over a five-year period
starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024.
Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1,
2018.
Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that
has already accrued for deferred members will still apply.
Contribution stabilizer provisions were repealed.
Annual increases were changed from 1.00% per year with a provision to increase to 2.50%
upon attainment of 90.00% funding ratio to 50.00% of the Social Security Cost of Living
Adjustment, not less than 1.00% and not more than 1.50%, beginning
January 1, 2019.
For retirements on or after January 1, 2024, the first benefit increase is delayed until the
retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability
benefit recipients, or survivors.
Actuarial equivalent factors were updated to reflect revised mortality and interest
assumptions.
2017 Changes
Changes in Actuarial Assumptions
The CSA loads were changed from 0.8% for active members and 60% for vested and non-vested
deferred members. The revised CSA loads are now 0.0% for active member liability, 15% for
vested deferred member liability and 3% for non-vested deferred member liability.
106
City of Hastings
Notes to Required Supplementary Information
General Employees Fund (Continued)
2017 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
The assumed annual increase rate was changed from 1.0% per year for all years to 1.0% per
year through 2044 and 2.5% per year thereafter.
Changes in Plan Provisions
The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000
in 2017 and 2018, and $6,000,000 thereafter.
The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund
changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The State's
contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031.
2016 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2035 and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, the inflation was decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2015 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2030 and 2.5% per year thereafter to 1.0% per year through 2035 and 2.5% per year
thereafter.
Changes in Plan Provisions
On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General
Employees Fund, which increased the total pension liability by $1.1 billion and increased the
fiduciary plan net position by $892 million. Upon consolidation, state and employer
contributions were revised; the State's contribution of $6.0 million, which meets the special
funding situation definition, was due September 2015.
107
City of Hastings
Notes to Required Supplementary Information
Police and Fire Fund
2023 Changes
Changes in Actuarial Assumptions
The investment return assumption was changed from 6.5% to 7.0%.
The single discount rate changed from 5.4% to 7.0%.
Changes in Plan Provisions
Additional one-time direct state aid contribution of 19.4 million will be contributed to the
Plan on October 1, 2023.
Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year
vesting schedule to a graded 10-year vesting schedule, with 50% vesting after five years,
increasing incrementally to 100% after 10 years.
A one-time, non-compounding benefit increase of 3.0% will be payable in a lump sum for
calendar year 2024 by March 31, 2024.
Psychological treatment is required effective July 1, 2023, prior to approval for a duty
disability benefit for a psychological condition relating to the member's occupation.
The total and permanent duty disability benefit was increased, effective July 1, 2023.
2022 Changes
Changes in Actuarial Assumptions
The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
The single discount rate was changed from 6.5% to 5.4%.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2021 Changes
Changes in Actuarial Assumptions
The investment return and single discount rates were changed from 7.5% to 6.5% for financial
reporting purposes.
The inflation assumption was changed from 2.5% to 2.25%.
The payroll growth assumption was changed from 3.25% to 3.0%.
The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 Public Safety mortality table. The mortality improvement scale was
changed from MP-2019 to MP-2020.
The base mortality table for disabled annuitants was changed from the RP-2014 healthy
annuitant mortality table (with future mortality improvement according to scale MP-2019) to
the Pub-2010 Public Safety disabled annuitant mortality table (with future mortality
improvement according to scale MP-2020).
Assumed rates of salary increase were modified as recommended in the July 14, 2020,
experience study. The overall impact is a decrease in gross salary increase rates.
Assumed rates of retirement were changed as recommended in the July 14, 2020, experience
study. The changes resulted in slightly more unreduced retirements and fewer assumed early
retirements.
Assumed rates of withdrawal were changed from select and ultimate rates to service-based
rates. The changes resulted in more assumed terminations.
Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49.
Overall, proposed rates resulted in more projected disabilities.
Assumed percent married for active female members was changed from 60% to 70%. Minor
changes to form of payment assumptions were applied.
108
City of Hastings
Notes to Required Supplementary Information
Police and Fire Fund (Continued)
2021 Changes (Continued)
Changes in Plan Provisions
There have been no changes since the prior valuation.
2020 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2018 to MP-2019.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2019 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2018 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2016 to MP-2017.
Changes in Plan Provisions
Annual increases were changed to 1.00% for all years, with no trigger.
An end date of July 1, 2048 was added to the existing $9.0 million state contribution.
New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million
thereafter until the plan reaches 100% funding, or July 1, 2048, if earlier.
Member contributions were changed from 10.80% to 11.30% of pay, effective January 1, 2019
and 11.80% of pay, effective January 1, 2020.
Employer contributions were changed from 16.20% to 16.95% of pay, effective January 1, 2019
and 17.70% of pay, effective January 1, 2020.
Interest credited on member contributions decreased from 4.00% to 3.00%,beginning July 1,
2018.
Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that
has already accrued for deferred members will still apply.
Actuarial equivalent factors were updated to reflect revised mortality and interest
assumptions.
2017 Changes
Changes in Actuarial Assumptions
Assumed salary increases were changed as recommended in the June 30, 2016, experience
study. The net effect is proposed rates that average 0.34% lower than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The CSA load was 30% for vested and non-vested deferred members. The CSA has been
changed to 33% for vested members and 2% for non-vested members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully
generational table to the RP-2014 fully generational table (with a base year of 2006), with
male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from
Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from
the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees.
109
City of Hastings
Notes to Required Supplementary Information
Police and Fire Fund (Continued)
2017 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
Assumed termination rates were decreased to 3% for the first three years of service. Rates
beyond the select period of three years were adjusted, resulting in more expected
terminations overall.
Assumed percentage of married female members was decreased from 65% to 60%.
Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four years
older) to the assumption that males are two years older than females.
The assumed percentage of female members electing Joint and Survivor annuities was
increased.
The assumed post-retirement benefit increase rate was changed from 1% for all years to 1%
per year through 2064 and 2.5% thereafter.
The single discount rate was changed from 5.6% per annum to 7.5% per annum.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2016 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2037 and 2.5% thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
The single discount rate changed from 7.90% to 5.60%.
The assumed future salary increases, payroll growth, and inflation was decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2015 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2030 and 2.5% per year thereafter to 1.0% per year through 2037 and 2.5% per year
thereafter.
Changes in Plan Provisions
The post-retirement benefit increase to be paid after attainment of the 90% funding threshold
was changed, from inflation up to 2.5%, to a fixed rate of 2.5%.
110
City of Hastings
Notes to Required Supplementary Information
Hastings Fire Relief Association
2022 Changes
Changes in Actuarial Assumptions
The discount rate changed from 5.75% to 7.75%.
Changes in Plan Provisions
A benefit level increase from $7,000 to $11,000 was reflected in the liability.
2020 Changes
Changes in Actuarial Assumptions
There have been no changes since the prior valuation.
Changes in Plan Provisions
A benefit level increase from $6,400 to $7,000 was reflected in the liability.
Post-Employment Health Care Plan
There are no assets accumulated in a trust related to other post-employment benefits
2023 Changes
The discount rate was changed from 2.00% to 4.00%.
The inflation rate was changed from 2.50% to 2.00%.
2022 Changes
The health care trend rates were changed to better anticipate short term and long term
medical increases.
The mortality tables were updated from the Pub-2010 Public Retirement Plans Headcount-
Weighted Mortality Tables (General, Safety) with MP-2019 Generational Improvement Scale to
the Pub-2010 Public Retirement Plans Headcount-Weighted Mortality Tables (General, Safety)
with MP-2021 Generational Improvement Scale.
The salary increase rates were updated to reflect the latest experience study.
The retirement and withdrawal rates were updated to reflect the latest experience study.
The inflation rate was changed from 2.50% to 2.00%.
2021 Changes
The discount rate was changed from 2.90% to 2.00%.
2020 Changes
The health care trend rates, mortality tables, and salary scale assumptions were updated.
The discount rate was changed from 3.80% to 2.90%.
2019 Changes
The discount rate was changed from 3.30% to 3.8%.
111
SUPPLEMENTARY INFORMATION
112
Statement 14
Original Final Actual Amounts
Revenues
General property taxes 10,231,988$ 10,231,988$ 10,520,825$ 288,837$
Lodging taxes 3,255 3,255 3,774 519
Special assessments 1,000 1,000 -(1,000)
Licenses and permits 707,683 707,683 809,581 101,898
Intergovernmental revenues
State - police aid 250,000 250,000 317,608 67,608
State-MSA-street construction and maintenance 600,000 600,000 434,039 (165,961)
State- local government aid 904,501 904,501 904,501 -
State - market value credit --1,131 1,131
Federal grants and aids 1,011,836 1,011,836 495,447 (516,389)
Other grants and aids 683,267 683,267 281,513 (401,754)
Total intergovernmental revenues 3,449,604 3,449,604 2,434,239 (1,015,365)
Charges for services
General government 30,084 30,084 411,949 381,865
Public safety 204,312 204,312 263,118 58,806
Public works 704,000 704,000 575,080 (128,920)
Health and sanitation 2,500 2,500 10,176 7,676
Total charges for services 940,896 940,896 1,260,323 319,427
Fines and forfeitures 100,500 100,500 86,689 (13,811)
Investment income 49,500 49,500 545,466 495,966
Contributions and donations --100 100
Other revenues 2,000 2,000 35,745 33,745
Total miscellaneous 51,500 51,500 581,311 529,811
Total revenues 15,486,426 15,486,426 15,696,742 210,316
Expenditures
General Government
Legal 267,500 267,500 218,277 (49,223)
Mayor, legislative, city administration 405,444 405,444 466,681 61,237
Finance and accounting 727,445 727,445 699,486 (27,959)
City clerk and elections 572,370 572,370 558,091 (14,279)
Planning and economic development 222,555 222,555 160,546 (62,009)
I.T.806,720 806,720 709,728 (96,992)
Building maintenance 379,282 379,282 419,462 40,180
Miscellaneous 149,794 149,794 390,009 240,215
Capital outlay 154,300 154,300 632,376 478,076
Public safety
Police 6,192,945 6,192,945 6,320,982 128,037
Building safety and code enforecement 1,066,717 1,066,717 845,288 (221,429)
Emergency management services 5,570 5,570 1,620 (3,950)
Animal control 4,500 4,500 1,802 (2,698)
Capital outlay 162,138 162,138 207,093 44,955
Public works
Engineering 595,307 595,307 539,499 (55,808)
Street maintenance 1,034,824 1,034,824 978,322 (56,502)
Street lights 224,300 224,300 229,838 5,538
Capital outlay 923,823 923,823 1,075,246 151,423
Health and sanitation
Reforestation 21,000 21,000 57,613 36,613
Recycling 26,589 26,589 11,868 (14,721)
Culture and recreation
Senior center 81,900 81,900 84,249 2,349
LeDuc historic estate 79,582 79,582 80,355 773
Total expenditures 14,104,605 14,104,605 14,688,431 583,826
Excess of revenues over (under) expenditures 1,381,821 1,381,821 1,008,311 (373,510)
Other Financing Sources (Uses)
Proceeds from sale of capital assets --27,821 27,821
Proceeds from leases --46,345 46,345
Transfers in 532,260 542,910 532,187 (10,723)
Transfers out (1,958,244)(1,958,244)(1,933,244)25,000
Total other financing sources (uses)(1,425,984)(1,415,334)(1,314,382)100,952
Net change in fund balances (44,163)(33,513)(306,071)(272,558)
Fund Balances
Beginning of year 10,548,729 10,548,729 10,548,729 -
End of year 10,504,566$ 10,515,216$ 10,242,658$ (272,558)$
Budgeted Amounts Variance with
Final Budget -
Over (Under)
City of Hastings
Detailed Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund
Year Ended December 31, 2023
2023
113
Statement 15
Original Final Actual Amounts
Revenues
General property taxes 2,381,918$ 2,381,918$ 2,190,331$ (191,587)$
Special assessments 246,167 246,167 618,412 372,245
Charges for services 856,954 856,954 -(856,954)
Investment income --233,879 233,879
Total revenues 3,485,039 3,485,039 3,042,622 (442,417)
Expenditures
Debt service
Principal 2,940,000 2,940,000 2,310,000 (630,000)
Interest and fiscal agent 820,176 820,176 600,703 (219,473)
Total expenditures 3,760,176 3,760,176 2,910,703 (849,473)
Excess of revenues over (under) expenditures (275,137)(275,137)131,919 407,056
Other Financing Sources (Uses)
Transfers in --203,000 203,000
Transfers out --(738,555)(738,555)
Total other financing sources (uses)--(535,555)(535,555)
Net change in fund balance (275,137)$ (275,137)$ (403,636)(128,499)$
Fund Balance
Beginning of year 5,996,391
End of year 5,592,755$
2023
Budgeted Amounts Variance with
Final Budget -
Over (Under)
City of Hastings
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual -
Debt Service Fund
Year Ended December 31, 2023
114
Special
Revenue
Capital
Projects Permanent
Total Nonmajor
Governmental
Funds
Assets
Cash and investments 1,990,647$ 720,086$ 226,698$ 2,937,431$
Cash with fiscal agent - - 795,795 795,795
Interest receivable 7,739 1,164 726 9,629
Due from other governments 34,446 - - 34,446
Accounts receivable 132,765 - - 132,765
Property taxes receivable 187,738 - - 187,738
Inventory 2,942 - - 2,942
Prepaid items 1,881 - - 1,881
Total assets 2,358,158$ 721,250$ 1,023,219$ 4,102,627$
Liabilities
Accounts payable 514,401$ 66,186$ -$ 580,587$
Due to other governments 2,907 - - 2,907
Deposits payable - 212,221 - 212,221
Salaries and benefits payable 57,485 - - 57,485
Unearned revenue 2,144 - - 2,144
Due to other funds - 22,124 - 22,124
Total liabilities 576,937 300,531 - 877,468
Deferred Inflows of Resources
Unavailable revenue - taxes and assessments 22,519 - - 22,519
Fund Balances
Nonspendable
Prepaids 1,881 - - 1,881
Inventories 2,942 - - 2,942
Permanent endowment - - 200,000 200,000
Restricted
Police activities 55,305 - - 55,305
Tax increment financing - 53,131 - 53,131
Leduc historic estate - - 823,219 823,219
Escrow - 26,832 - 26,832
Committed
Park maintenance 864,613 - - 864,613
Aquatic operations 441,485 - - 441,485
Cable TV activities 148,631 - - 148,631
Heritage preservation activities 124,960 - - 124,960
Arena activities 118,885 - - 118,885
Assigned
Capital - 364,274 - 364,274
Unassigned - (23,518) - (23,518)
Total fund balances 1,758,702 420,719 1,023,219 3,202,640
Total liabilities and fund balances 2,358,158$ 721,250$ 1,023,219$ 4,102,627$
Nonmajor Governmental Funds
December 31, 2023
City of Hastings
Combining Balance Sheet -
Statement 16
115
Statement 17
Special
Revenue
Capital
Projects Permanent
Total
Nonmajor
Governmental
Funds
Revenues
General property taxes 2,206,955$ -$ -$ 2,206,955$
Tax increment collections -54,809 -54,809
Charges for services 1,300,370 --1,300,370
Investment income 135,351 35,175 120,993 291,519
Contributions and donations 28,165 --28,165
Miscellaneous 41,418 --41,418
Total revenues 3,712,259 89,984 120,993 3,923,236
Expenditures
Current
Public safety 7,288 --7,288
Culture and recreation 3,593,142 -12,748 3,605,890
Economic development -34,090 -34,090
Debt service
Interest and other charges -16,357 -16,357
Capital outlay
Culture and recreation 1,780,349 --1,780,349
Total expenditures 5,380,779 50,447 12,748 5,443,974
Excess of revenues over (under) expenditures (1,668,520)39,537 108,245 (1,520,738)
Other Financing Sources (Uses)
Proceeds from sale of capital assets 8,633 --8,633
Transfers in 515,309 127,324 -642,633
Transfers out (355,292)(734,208)(41,281)(1,130,781)
Total other financing sources (uses)168,650 (606,884)(41,281)(479,515)
Net change in fund balances (1,499,870)(567,347)66,964 (2,000,253)
Fund Balances
Beginning of year 3,258,572 988,066 956,255 5,202,893
End of year 1,758,702$ 420,719$ 1,023,219$ 3,202,640$
Year Ended December 31, 2023
Changes in Fund Balances - Nonmajor Governmental Funds
City of Hastings
Combining Statement of Revenues, Expenditures, and
116
117
City of Hastings
Non-Major Governmental Funds
Special Revenue Funds
Special revenue funds account for specific revenues that are legally restricted or committed to
expenditures for particular purposes.
Parks and Recreation Fund -This fund is used to account for the operations,maintenance and
minor improvements of the City's parks.
Cable Television Fund -This fund is used to account for the grant revenues,franchise fees,
and access fees used in the operation of the Local Access Cable Television Channel.
Heritage Preservation Fund -The Heritage Preservation fund accounts for activities of the
Heritage Preservation Commission.
Ice Arena Fund -This fund accounts for the various sales and charges which finance the
operating activity of the civic ice arena.
DUI Enforcement/Equipment Fund -This fund accounts for the seizure of DUI equipment.
Aquatic Center Fund -This fund accounts for the operations and the charges which finance
the operating activity of the City's outdoor aquatic facility.
118
Parks and Rec
(200)
Cable
Television
(205-206)
Heritage
Preservation
(210)
Ice Arena
(615)
Assets
Cash and investments 959,531$ 145,583$ 122,967$ 277,515$
Interest receivable 4,358 469 399 938
Due from other governments 11,949 - - 22,497
Accounts receivable 1,320 80,175 - 51,270
Property taxes receivable 146,807 - 3,333 13,716
Inventory 2,942 - - -
Prepaid items 969 3 67 842
Total assets 1,127,876$ 226,230$ 126,766$ 366,778$
Liabilities
Accounts payable 201,187$ 76,826$ 154$ 227,433$
Due to other governments 670 - 4 2,233
Salaries payable 39,482 770 1,193 16,040
Unearned revenue - - - -
Total liabilities 241,339 77,596 1,351 245,706
Deferred Inflows of Resources
Unavailable revenue - taxes and assessments 18,013 - 388 1,345
Fund Balances
Nonspendable
Prepaids 969 3 67 842
Inventories 2,942 - - -
Restricted
Police activities - - - -
Committed
Park maintenance 864,613 - - -
Aquatic operations - - - -
Cable TV activities - 148,631 - -
Heritage preservation activities - - 124,960 -
Arena activities - - - 118,885
Total fund balances 868,524 148,634 125,027 119,727
Total liabilities, deferred inflows of
resources, and fund balances 1,127,876$ 226,230$ 126,766$ 366,778$
December 31, 2023
City of Hastings
Combining Balance Sheet -
Nonmajor Special Revenue Funds
Special Revenue
119
Statement 18
DUI
Enforcement/
Equipment
(222)
Aquatic Center
(201)Total
56,389$ 428,662$ 1,990,647$
168 1,407 7,739
--34,446
--132,765
119 23,763 187,738
--2,942
--1,881
56,676$ 453,832$ 2,358,158$
1,357$ 7,444$ 514,401$
--2,907
--57,485
-2,144 2,144
1,357 9,588 576,937
14 2,759 22,519
--1,881
--2,942
55,305 -55,305
--864,613
-441,485 441,485
--148,631
--124,960
--118,885
55,305 441,485 1,758,702
56,676$ 453,832$ 2,358,158$
Special Revenue
120
Parks and Rec
(200)
Cable
Television
(205-206)
Heritage
Preservation
(210)
Ice Arena
(615)
Revenues
General property taxes 1,724,444$ -$ 36,623$ 163,879$
Charges for services 81,077 332,720 -541,052
Investment income 73,124 8,558 6,103 22,920
Contributions and donations 27,697 -468 -
Miscellaneous 37,900 -542 2,976
Total revenues 1,944,242 341,278 43,736 730,827
Expenditures
Current
Public safety ----
Culture and recreation 2,023,282 338,006 38,672 649,212
Capital outlay
Culture and recreation 1,176,355 --542,723
Total expenditures 3,199,637 338,006 38,672 1,191,935
Excess of revenues over
(under) expenditures (1,255,395)3,272 5,064 (461,108)
Other Financing Sources (Uses)
Proceeds from sale of capital assets 250 ---
Transfers in 437,209 --78,100
Transfers out (335,370)(381)(517)(10,722)
Total other financing sources (uses)102,089 (381)(517)67,378
Net change in fund balances (1,153,306)2,891 4,547 (393,730)
Fund Balances
Beginning of year 2,021,830 145,743 120,480 513,457
End of year 868,524$ 148,634$ 125,027$ 119,727$
City of Hastings
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Special Revenue Funds
Year Ended December 31, 2023
Special Revenue
121
Statement 19
DUI
Enforcement/
Equipment
(222)
Aquatic Center
(201)Total
1,407$ 280,602$ 2,206,955$
-345,521 1,300,370
2,831 21,815 135,351
--28,165
--41,418
4,238 647,938 3,712,259
7,288 -7,288
-543,970 3,593,142
-61,271 1,780,349
7,288 605,241 5,380,779
(3,050)42,697 (1,668,520)
8,383 -8,633
--515,309
-(8,302)(355,292)
8,383 (8,302)168,650
5,333 34,395 (1,499,870)
49,972 407,090 3,258,572
55,305$ 441,485$ 1,758,702$
Special Revenue
122
Statement 20
Original Final Actual Amounts
Revenues
Property taxes 1,725,709$ 1,725,709$ 1,724,444$ (1,265)$
Charges for services 97,500 97,500 81,077 (16,423)
Investment income 10,000 10,000 73,124 63,124
Contributions and donations 8,200 8,200 27,697 19,497
Miscellaneous --37,900 37,900
Total revenues 1,841,409 1,841,409 1,944,242 102,833
Expenditures
Current
Culture and recreation 1,812,840 1,812,840 2,023,282 210,442
Capital outlay
Culture and recreation 715,535 715,535 1,176,355 460,820
Total expenditures 2,528,375 2,528,375 3,199,637 671,262
Excess of revenues under expenditures (686,966)(686,966)(1,255,395)(568,429)
Other Financing Sources (Uses)
Sale of city property --250 250
Transfers in 715,535 715,535 437,209 (278,326)
Transfers out (28,569)(28,569)(335,370)(306,801)
Total other financing sources (uses)686,966 686,966 102,089 (585,127)
Net change in fund balance -$ -$ (1,153,306)(1,153,556)$
Fund Balance
Beginning of year 2,021,830
End of year 868,524$
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2023
City of Hastings
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual -
Parks and Recreation Special Revenue Fund
Year Ended December 31, 2023
=
123
Statement 21
Original Final Actual Amounts
Revenues
Charges for services 350,000$ 350,000$ 332,720$ (17,280)$
Investment income 2,338 2,338 8,558 6,220
Total revenues 352,338 352,338 341,278 (11,060)
Expenditures
Current
Culture and recreation 354,308 354,308 338,006 (16,302)
Excess of revenues over (under) expenditures (1,970)(1,970)3,272 5,242
Other Financing Uses
Transfers out (381)(381)(381)-
Net change in fund balance (2,351)$ (2,351)$ 2,891 5,242$
Fund Balance
Beginning of year 145,743
End of year 148,634$
2023
Budgeted Amounts Variance with
Final Budget -
Over (Under)
City of Hastings
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual -
Cable Television Special Revenue Fund
Year Ended December 31, 2023
124
Statement 22
Original Final Actual Amounts
Revenues
Property taxes 36,629$ 36,629$ 36,623$ (6)$
Investment income 1,200 1,200 6,103 4,903
Contributions and donations --468 468
Miscellaneous 400 400 542 142
Total revenues 38,229 38,229 43,736 5,507
Expenditures
Current
Culture and recreation 37,712 37,712 38,672 960
Excess of revenues over expenditures 517 517 5,064 4,547
Other Financing Uses
Transfer out (517)(517)(517)-
Net change in fund balance -$ -$ 4,547 4,547$
Fund Balance
Beginning of year 120,480
End of year 125,027$
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2023
City of Hastings
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual -
Heritage Preservation Special Revenue Fund
Year Ended December 31, 2023
125
Statement 23
Original Final Actual Amounts
Revenues
Property taxes 168,330$ 168,330$ 163,879$ (4,451)$
Charges for services 508,991 508,991 541,052 32,061
Investment income 5,000 5,000 22,920 17,920
Miscellaneous --2,976 2,976
Total revenues 682,321 682,321 730,827 48,506
Expenditures
Current
Culture and recreation 679,599 679,599 649,212 (30,387)
Capital Outlay
Cultural and recreation 42,500 42,500 542,723 500,223
Total expenditures 722,099 722,099 1,191,935 469,836
Excess of revenues under expenditures (39,778)(39,778)(461,108)(421,330)
Other Financing Uses
Transfers in 50,500 50,500 78,100 27,600
Transfers out (10,722)(10,722)(10,722)-
Total other financing sources (uses)39,778 39,778 67,378 -
Net Change in Fund Balances -$ -$ (393,730)(421,330)$
Fund Balance
Beginning of year 513,457
End of year 119,727$
City of Hastings
Fund Balance - Budget and Actual -
Ice Arena Special Revenue Fund
Year Ended December 31, 2023
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2023
Schedule of Revenues, Expenditures, and Changes in
126
Statement 24
Original Final Actual Amounts
Revenues
Property Taxes 1,400$ 1,400$ 1,407$ 7$
Investment income 200 200 2,831 2,631
Total revenues 1,600 1,600 4,238 2,638
Expenditures
Current
Public Safety 1,600 1,600 7,288 5,688
Excess of revenues over (under) expenditures --(3,050)(3,050)
Other Financing Sources
Proceeds from sale of capital assets --8,383 8,383
Net change in fund balances -$ -$ 5,333 5,333$
Fund Balance
Beginning of year 49,972
End of year 55,305$
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2023
City of Hastings
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual -
DUI Enforcement/Equipment Special Revenue Fund
Year Ended December 31, 2023
127
Statement 25
Original Final Actual Amounts
Revenues
Property taxes 282,498$ 282,498$ 280,602$ (1,896)$
Charges for services 256,300 256,300 345,521 89,221
Investment income 1,500 1,500 21,815 20,315
Total revenues 540,298 540,298 647,938 107,640
Expenditures
Current
Culture and recreation 531,996 531,996 543,970 11,974
Capital outlay
Culture and recreation 71,500 71,500 61,271 (10,229)
Total expenditures 603,496 603,496 605,241 1,745
Excess of revenues over (under) expenditures (63,198)(63,198)42,697 105,895
Other Financing Sources (Uses)
Transfers in 71,500 71,500 -(71,500)
Transfers out (8,302)(8,302)(8,302)-
Total other financing sources
(uses)63,198 63,198 (8,302)(71,500)
Net change in fund balance -$ -$ 34,395 34,395$
Fund Balance
Beginning of year 407,090
End of year 441,485$
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2023
City of Hastings
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual -
Aquatic Center Special Revenue Fund
Year Ended December 31, 2023
128
129
City of Hastings
Non-Major Governmental Funds
Capital Projects Funds
Budget Stabilization Fund –This fund is used to account for the departmental purchases of
major capital outlays and other significant expenditures.
Guardian Angels Tax Increment Financing (TIF) Fund –This fund accounts for the activities of the
Hastings Guardian Angels Tax Increment District.
NAPA Tax Increment Financing (TIF)Fund –This fund accounts for the activities of the NAPA
property Tax Increment District.
Schoolhouse Square Tax Increment Financing (TIF)Fund –This fund accounts for the activities of
the School House Square Tax Increment District.
Public Works Cold Storage Building Fund -This fund accounts for the activities of the Public Works
Cold Storage Building.
Escrow Fund –This fund accounts for the various escrows held by the City.
Hudson Sprayers Tax Increment Financing –This fund accounts for the activities of the Hudson
Sprayers Tax Increment District.
TIF 9 Block 28 Capital Projects Fund –This fund accounts for the activities the Block 28 Tax
Increment Financing District.
Permanent Fund
C.Simmons Trust –This fund accounts for the C.Simmons endowments fund.The principal
amount of $200,000 cannot be spent.Only the interest earned can be spent.This fund also
accounts for the C.Simmons funds that are held in a trust.These funds can be spent during
the year on capital and programming.Programming for the Leduc Historical Estate is
provided by the Dakota County Historical Society.
130
Budget
Stabilization
(403)
Guardian Angels
Tax Increment
Financing (405)
NAPA Tax
Increment
Financing (408)
Schoolhouse
Square Tax
Increment
Financing (412)
Assets
Cash and investments 364,063$ 28,540$ 7,815$ 2,192$
Interest receivable 12 91 25 7
Total assets 364,075$ 28,631$ 7,840$ 2,199$
Liabilities
Accounts payable -$ 680$ 649$ 680$
Due to other funds ----
Deposits payable ----
Total liabilities -680 649 680
Fund Balances
Restricted
Tax increment financing -27,951 7,191 1,519
Escrow ----
Assigned
Capital 364,075 ---
Unassigned ----
Total fund balances 364,075 27,951 7,191 1,519
Total liabilities and fund balances 364,075$ 28,631$ 7,840$ 2,199$
City of Hastings
Combining Balance Sheet -
Nonmajor Capital Projects Funds
December 31, 2023
Capital Projects
131
Statement 26
Public Works
Cold Storage
Building
(416)
Escrow
(807)
Hudson Sprayers
Tax Increment
Financing
(411)
TIF 9 Block 28
(413)Total
198$ 300,090$ 17,188$ -$ 720,086$
1 973 55 -1,164
199$ 301,063$ 17,243$ -$ 721,250$
-$ 62,010$ 773$ 1,394$ 66,186$
---22,124 22,124
-212,221 --212,221
-274,231 773 23,518 300,531
--16,470 -53,131
-26,832 --26,832
199 ---364,274
---(23,518)(23,518)
199 26,832 16,470 (23,518)420,719
199$ 301,063$ 17,243$ -$ 721,250$
Capital Projects
132
Budget
Stabilization
(403)
Guardian Angels
Tax Increment
Financing (405)
NAPA Tax
Increment
Financing (408)
Schoolhouse
Square Tax
Increment
Financing (412)
Revenues
Tax increment collections -$ 22,655$ 16,426$ 10,984$
Investment income 10,981 771 110 40
Total revenues 10,981 23,426 16,536 11,024
Expenditures
Current
Economic development - 2,629 1,000 5,943
Debt service
Interest and other charges - 1,358 1,297 1,673
Total expenditures - 3,987 2,297 7,616
10,981 19,439 14,239 3,408
Other Financing Sources (Uses)
Transfers in 127,324 - - -
Transfers out (734,208) - - -
Total other financing sources (uses) (606,884) - - -
Net change in fund balances (595,903) 19,439 14,239 3,408
Fund Balances
Beginning of year 959,978 8,512 (7,048) (1,889)
End of year 364,075$ 27,951$ 7,191$ 1,519$
Excess of revenues over
(under) expenditures
Capital Projects
City of Hastings
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Capital Projects Funds
Year Ended December 31, 2023
133
Statement 27
Public Works Cold
Storage Building
(416) Escrow (807)
Hudson Sprayers
Tax Increment
Financing (411)
TIF 9 Block 28
(413) Total
-$ -$ 4,744$ -$ 54,809$
149 22,335 789 - 35,175
149 22,335 5,533 - 89,984
- - 1,000 23,518 34,090
10,488 - 1,541 - 16,357
10,488 - 2,541 23,518 50,447
(10,339) 22,335 2,992 (23,518) 39,537
- - - - 127,324
- - - - (734,208)
- - - - (606,884)
(10,339) 22,335 2,992 (23,518) (567,347)
10,538 4,497 13,478 - 988,066
199$ 26,832$ 16,470$ (23,518)$ 420,719$
Capital Projects
134
Statement 28
Original Final Actual Amounts
Revenues
Intergovernmental -$ -$ 16,884$ 16,884$
Program revenuesMiscellaneous revenues --31,242 31,242
Investment income --49,948 49,948
Total revenues --98,074 66,832
Expenditures
Current
Culture and recreation --2,945 2,945
Capital outlay
Cultural and recreation 259,050 259,050 465,858 206,808
Total expenditures 259,050 259,050 468,803 209,753
Excess of revenues under expenditures (259,050)(259,050)(370,729)(142,921)
Other Financing Sources (Uses)
Transfers in 259,050 259,050 538,527 279,477
Net change in fund balance -$ -$ 167,798 136,556$
Fund Balance
Beginning of year 1,015,753
End of year 1,183,551$
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2023
City of Hastings
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual -
Park Projects Capital Projects Fund
Year Ended December 31, 2023
135
Statement 29
C. Simmons
Trust (850)
Assets
Cash and investments 226,698$
Cash with fiscal agent 795,795
Interest receivable 726
Total assets 1,023,219$
Fund Balances
Nonspendable
Endowment 200,000
Restricted
Leduc Historic Estate 823,219
Total fund balances 1,023,219$
City of Hastings
Nonmajor Permanent Fund
December 31, 2023
Combining Balance Sheet -
136
Statement 30
C. Simmons
Trust (850)
Revenues
Investment income 120,993$
Expenditures
Current
Cultural and recreation 12,748
Excess of revenues under expenditures 108,245
Other Financing Uses
Transfers out (41,281)
Net change in fund balances 66,964
Fund Balances
Beginning of year 956,255
End of year 1,023,219$
City of Hastings
Nonmajor Permanent Fund
Year Ended December 31, 2023
Combining Statement of Revenues,
Expenditures, and Changes in Fund Balances -
137
City of Hastings
Internal Service Funds
Internal Service Funds account for the financing of goods or services provided by one
department or division to other departments or divisions of the city and to other
governmental units, on a cost reimbursement basis.
Compensated Absences Fund –This fund accounts for the liability of all compensated
absences due upon separation from the City.
Retiree Health Insurance Fund –This fund accounts for the liability and annual expenses to
the City for health insurance premiums for current retirees and certain employees eligible
for this benefit.
Vehicle Revolving Fund -This fund accounts for the replacement of the City's vehicles.
Insurance Fund -This fund accounts for the liability and work comp insurance.
138
Statement 31
Compensated
Absences
(702)
Retiree Health
Insurance
(701)
Vehicle
Revolving Fund
(703)
Insurance
Fund
(705)Total
Assets
Current assets
Cash and cash equivalents 214,185$ 269,454$ 992,305$ 1,077,493$ 2,553,437$
Taxes receivable --28,571 -28,571
Interest receivable 468 664 3,194 2,671 6,997
Total current assets 214,653 270,118 1,024,070 1,080,164 2,589,005
Noncurrent assets
Capital assets, not
being depreciated
Construction in progress --50,992 -50,992
Capital assets, being depreciated
Equipment --2,375,894 50,902 2,426,796
Less accumulated depreciation --(733,655)(10,605)(744,260)
Net capital assets --1,693,231 40,297 1,733,528
Total assets 214,653 270,118 2,717,301 1,120,461 4,322,533
Deferred Outflows of Resources
Deferred outflows related to OPEB -1,051,530 --1,051,530
Total assets and deferred
outflows of resources 214,653$ 1,321,648$ 2,717,301$ 1,120,461$ 5,374,063$
Liabilities
Current liabilities
Accounts payable -$ -$ 51,632$ -$ 51,632$
Unearned revenue --3,399 -3,399
Compensated absences 139,622 ---139,622
Total OPEB liability -413,025 --413,025
Total current liabilities 139,622 413,025 55,031 -607,678
Noncurrent liabilities
Compensated absences 1,869,603 ---1,869,603
Total OPEB liability -2,783,377 --2,783,377
Total noncurrent liabilities 1,869,603 2,783,377 --4,652,980
Total liabilities 2,009,225 3,196,402 55,031 -5,260,658
Deferred Inflows of Resources
Deferred inflows of resources
related to OPEB -469,494 --469,494
Net Position
Net investment in capital assets --1,693,231 40,297 1,733,528
Unrestricted (1,794,572)(2,344,248)969,039 1,080,164 (2,089,617)
Total net position (1,794,572)(2,344,248)2,662,270 1,120,461 (356,089)
Total liabilities, deferred
inflows of resources and
net position 214,653$ 1,321,648$ 2,717,301$ 1,120,461$ 5,374,063$
City of Hastings
December 31, 2023
Statement of Net Position - Internal Service Funds
139
Statement 32
Compensated
Absences
(702)
Retiree Health
Insurance
(701)
Vehicle
Revolving Fund
(703)
Insurance
Fund
(705)Total
Operating Revenues
Charges for services -$ -$ 142,054$ 1,019,772$ 1,161,826$
Operating Expenses
Personnel services 307,682 135,641 --443,323
Professional services ---871,612 871,612
Depreciation --312,453 2,546 314,999
Total operating expenses 307,682 135,641 312,453 874,158 1,629,934
Operating income (loss)(307,682)(135,641)(170,399)145,614 (468,108)
Nonoperating Revenues
Investment income 6,412 12,049 42,426 42,136 103,023
Property taxes --336,597 -336,597
Total nonoperating revenues 6,412 12,049 379,023 42,136 439,620
Income (loss) before transfers (301,270)(123,592)208,624 187,750 (28,488)
Transfers in 300,000 340,000 81,100 -721,100
Change in net position (1,270)216,408 289,724 187,750 692,612
Net Position
Beginning of year (1,793,302)(2,560,656)2,372,546 932,711 (1,048,701)
End of year (1,794,572)$ (2,344,248)$ 2,662,270$ 1,120,461$ (356,089)$
City of Hastings
in Fund Net Position - Internal Service Funds
Year Ended December 31, 2023
Statement of Revenues, Expenses, and Changes
140
Compensated
Absences
(702)
Retiree Health
Insurance
(701)
Vehicle
Revolving Fund
(703)
Cash Flows - Operating Activities
Interfund services provided and used -$ -$ 141,955$
Payments to suppliers for goods and services -(220,469)-
Payments to employees for services (180,234)(135,641)-
Net cash flows - operating activities (180,234)(356,110)141,955
Cash Flows - Noncapital Financing Activities
Property taxes --341,559
Transfer in 300,000 340,000 81,100
Net cash flows - noncapital financing activities 300,000 340,000 422,659
Cash Flows - Capital and Related Financing Activities
Acquisition of capital assets --(142,496)
Cash Flows - Investing Activities
Investment income 6,077 11,800 40,409
Net change in cash and cash equivalents 125,843 (4,310)462,527
Cash and Cash Equivalents
Beginning of year 88,342 273,764 529,778
End of year 214,185$ 269,454$ 992,305$
Reconciliation of Operating Income (Loss)
to Net Cash Flows - Operating Activities
Operating income (loss)(307,682)$ (135,641)$ (170,399)$
Adjustments to reconcile operating income (loss) to net
cash flows - operating activities
Depreciation --312,453
OPEB expense -(220,469)-
Accounts payable ---
Unearned revenue --(99)
Compensated absences payable 127,448 --
Total adjustments 127,448 (220,469)312,354
Net cash flows - operating activities (180,234)$ (356,110)$ 141,955$
Internal Service Funds
City of Hastings
Statement of Cash Flows - Internal Service Funds
Year Ended December 31, 2023
141
Statement 33
Insurance
Fund
(705)Total
1,019,772$ 1,161,727$
(873,749)(1,094,218)
-(315,875)
146,023 (248,366)
-341,559
-721,100
-1,062,659
-(142,496)
40,782 99,068
186,805 770,865
890,688 1,782,572
1,077,493$ 2,553,437$
145,614$ (468,108)$
2,546 314,999
-(220,469)
(2,137)(2,137)
-(99)
-127,448
409 219,742
146,023$ (248,366)$
Internal Service Funds
142
143
COMPONENT UNIT
144
Statement 34
Assets
Cash and investments 775,044$
Accounts receivable 3,520
Interest receivable 2,553
Due from other governments 1,478,739
Property taxes receivable 40,774
Loan receivable 187,973
Land held for resale 3,410,690
Prepaid items 33
Total assets 5,899,326$
Liabilities
Accounts payable 7,505$
Due to other governments 1,463,739
Salaries and benefits payable 8,840
Deposits payable 16,700
Total liabilities 1,496,784
Deferred Inflows of Resources
Unavailable revenue - taxes 19,778
Fund Balances
Nonspendable
Prepaid items 33
Loan receivables 187,973
Unassigned 4,194,758
Total fund balances 4,382,764
Total liabilities, deferred inflows of resources, and fund balances 5,899,326$
City of Hastings
Component Unit Hastings Economic Development and Redevelopment Authority
Balance Sheet
December 31, 2023
145
Statement 35
Total fund balances - governmental funds 4,382,764$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not current financial resources and, therefore, 82,499
are not reported as assets in governmental funds.
Long-term liabilities are not due and payable in the current period and, therefore, are not reported
as liabilities in the funds.
OPEB Liability (61,261)
Net pension liability (158,971)
Other long-term assets are not available to pay for current-period expenditures and therefore are
deferred in the funds.19,778
Deferred outflows of resources and deferred inflows of resources are created as a result of various
differences related to pensions that are not recognized in the governmental funds.
Deferred inflows of resources related to city pensions (51,961)
Deferred outflows of resources related to city pensions 44,548
Deferred inflows of resources related to OPEB (8,998)
Deferred outflows of resources related to OPEB 20,153
Total net position - governmental activities 4,268,551$
City of Hastings
Hastings Economic Development And Redevelopment Authority
Reconciliation of The Balance Sheet to The Statement of Net Position
December 31, 2023
146
Statement 36
Original Final Actual Amounts
Revenues
Property taxes 429,211$ 429,211$ 430,924$ 1,713$
Charges for services 54,300 54,300 32,630 (21,670)
Investment income 20,000 20,000 43,104 23,104
Miscellaneous --38,500 38,500
Total revenues 503,511 503,511 545,158 41,647
Expenditures
Current
Economic development
Personnel services 290,231 290,231 256,258 (33,973)
Services and charges 131,100 131,100 176,540 45,440
Miscellaneous 669,976 669,976 19,812 (650,164)
Payment to primary government 40,257 40,257 41,874 1,617
Capital outlay
Economic development 100,000 100,000 71,404 (28,596)
Total expenditures 1,231,564 1,231,564 565,888 (665,676)
Net change in fund balance (728,053)$ (728,053)$ (20,730)707,323$
Fund Balance
Beginning of year 4,403,494
End of year 4,382,764$
City of Hastings
2023
Budgeted Amounts Variance with
Final Budget -
Over (Under)
Hastings Economic and Redevelopment Authority
Statement of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
Year Ended December 31, 2023
147
Statement 37
(20,730)$
Governmental funds report capital outlays as expenditures. However, in the Statement of
Activities of the costs of those assets is allocated over their estimated useful lives and reported as
depreciation expense.
Depreciation expense (5,500)
Property taxes collected for prior years and grant revenue for future periods (233,298)
OPEB are not reported as expenditures in the governmental funds because they do not require the
use of current financial resources; instead, they are expense in the Statement of Activities.7,617
Governmental funds recognize pension contributions as expenditures at the time of payment in
the funds whereas the Statement of Activities factors in items related to pensions on a full accrual
perspective.
Pension expense 8,309
(243,602)$
Net change in fund balances
Amounts reported for governmental activities in the Statement of Activities are different because:
Change in net position - governmental activities
City of Hastings
Hastings Economic Development and Redevelopment Authority
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances
of Governmental Funds to the Statement of Activities
For the Year Ended December 31, 2023
148
G.O. Tax
Increment
Bonds 2016A
(516)
G.O.
Improvement
Bonds, 2014A
Charter
(574)
G.O.
Improvement
Bonds 2015A
Charter
(575)
G.O.
Improvement
Bonds 2016B
Charter
(576)
248,965$ 274,466$ 273,374$ 335,084$
802 879 875 1,064
17,432 28,229 23,205 26,582
-306 57 -
-21,627 3,613 19,577
-458 -417
267,199$ 325,965$ 301,124$ 382,724$
2,082 25,143 6,403 22,691
-458 -417
265,117 300,364 294,721 359,616
265,117 300,822 294,721 360,033
267,199$ 325,965$ 301,124$ 382,724$
City of Hastings
Subcombining Balance Sheet
Debt Service Fund
December 31, 2023
of resources and fund balance
Nonspendable
Restricted
Debt service
Total fund balances
Deferred Inflows of Resources
Unavailable revenue - taxes and assessments
Fund Balances
Delinquent
Deferred
Total liabilities, deferred inflows
Prepaid items
Total assets
Property taxes receivable
Special assessments receivable
Assets
Cash and investments
Interest receivable
149
Schedule 6
G.O.
Improvement
Bonds 2018A
Charter
(578)
G.O.
Improvement
Bonds 2012
(572)
G.O. Improvement
Bonds 2013B (573)
G.O. Improvement
Bonds 2017A (577)
Certificates of
Participation
2013B (398)
Debt Redemption
Fund
(500)
125,691$ 131,584$ 86,883$ 133,515$ 126,989$ 888,727$
411 421 278 428 406 2,846
24,276 12,306 10,337 8,394 8,389 1,942
1,545 894 - - - -
121,703 - - 58,644 - 44,963
275 - 688 417 - -
273,901$ 145,205$ 98,186$ 201,398$ 135,784$ 938,478$
125,932 2,337 1,107 59,578 989 46,950
275 - 688 417 - -
147,694 142,868 96,391 141,403 134,795 891,528
147,969 142,868 97,079 141,820 134,795 891,528
273,901$ 145,205$ 98,186$ 201,398$ 135,784$ 938,478$
150
Schedule 6
G.O.
Improvement
Bonds 2019A
(579)
G.O.
Improvement
Bonds 2020A
(580)
G.O.
Improvement
Bonds 2021A
(581)
G.O.
Improvement
Bonds 2022A
(582)
974,676$ 560,098$ 316,217$ 684,022$
3,116 1,793 1,012 2,202
14,445 13,210 2,196 15,096
6 6,044 303 -
373,676 310,758 214,380 467,877
321 290 292 208
1,366,240$ 892,193$ 534,400$ 1,169,405$
375,384 318,645 214,924 468,957
321 290 292 208
990,535 573,258 319,184 700,240
990,856 573,548 319,476 700,448
1,366,240$ 892,193$ 534,400$ 1,169,405$
Total liabilities, deferred inflows
of resources and fund balance
City of Hastings
Subcombining Balance Sheet
Debt Service Fund
December 31, 2023
Fund Balances
Nonspendable
Restricted
Debt service
Total fund balances
Total assets
Deferred Inflows of Resources
Unavailable revenue - taxes and assessments
Special assessments receivable
Delinquent
Deferred
Prepaid items
Assets
Cash and investments
Interest receivable
Property taxes receivable
151
Schedule 6
G.O.
Improvement
Bonds 2023A
(583)Total
231,675$ 5,391,966$
-16,533
-206,039
-9,155
215,943 1,852,761
-3,366
447,618$ 7,479,820$
215,943 1,887,065
-3,366
231,675 5,589,389
231,675 5,592,755
447,618$ 7,479,820$
152
G.O. Tax
Increment
Bonds 2016A
(516)
G.O.
Improvement
Bonds, 2014A
Charter (574)
G.O.
Improvement
Bonds 2015A-
Charter (575)
G.O.
Improvement
Bonds 2016B-
Charter (576)
Revenues
General property taxes -$ 329,858$ 273,808$ 313,403$
Special assessments -23,257 2,086 11,145
Investment income 8,769 6,926 8,153 10,346
Total revenues 8,769 360,041 284,047 334,894
Expenditures
Debt service
Principal 175,000 330,000 255,000 315,000
Interest and other charges 28,500 23,301 19,845 30,449
Total expenditures 203,500 353,301 274,845 345,449
Excess of revenues over (under) expenditures (194,731)6,740 9,202 (10,555)
Other Financing Sources (Uses)
Transfers in 203,000 ---
Transfers out ----
Total other financing sources (uses)203,000 ---
Net change in fund balances 8,269 6,740 9,202 (10,555)
Fund Balances
Beginning of year 256,848 294,082 285,519 370,588
End of year 265,117$ 300,822$ 294,721$ 360,033$
City of Hastings
Subcombining Schedule of Revenues, Expenditures and Changes in Fund Balance
Debt Service Fund
Year Ended December 31, 2023
153
Schedule 7
G.O.
Improvement
Bonds 2018A -
Charter (578)
G.O. Public
Facility
Refunding
bonds, Series
2010A (370)
Certificate of
Participation
2016 (316)
G.O.
Improvement
Bonds 2010B
(570)
G.O.
Improvement
Bonds 2011A
(571)
G.O.
Improvement
Bonds 2012
(572)
G.O.
Improvement
Bonds 2013B
(573)
276,198$ -$ -$ -$ -$ 146,330$ 123,269$
34,843 ----697 12,895
1,608 3,737 1,296 2,151 2,599 3,672 2,105
312,649 3,737 1,296 2,151 2,599 150,699 138,269
240,000 ----180,000 130,000
67,912 ----2,216 10,952
307,912 ----182,216 140,952
4,737 3,737 1,296 2,151 2,599 (31,517)(2,683)
7,000 --22 ---
-(219,526)(77,361)(127,856)(158,785)--
7,000 (219,526)(77,361)(127,834)(158,785)--
11,737 (215,789)(76,065)(125,683)(156,186)(31,517)(2,683)
136,232 215,789 76,065 125,683 156,186 174,385 99,762
147,969$ -$ -$ -$ -$ 142,868$ 97,079$
154
Schedule 7
G.O.
Improvement
Bonds 2017A
(577)
Certificates of
Participation
2013B (398)
Debt
Redemption
Fund (500)
G.O.
Improvement
Bonds 2019A
(579)
Revenues
General property taxes 101,038$ 98,872$ 3,516$ 170,924$
Special assessments 17,128 -804 99,078
Investment income 4,395 4,444 51,931 46,644
Total revenues 122,561 103,316 56,251 316,646
Expenditures
Debt service
Principal 100,000 95,000 -235,000
Interest and other charges 16,720 3,420 -106,812
Total expenditures 116,720 98,420 -341,812
Excess of revenues over (under) expenditures 5,841 4,896 56,251 (25,166)
Other Financing Sources (Uses)
Transfers in --583,529 -
Transfers out --(745,578)-
Total other financing sources (uses)--(162,049)-
Net change in fund balances 5,841 4,896 (105,798)(25,166)
Fund Balances
Beginning of year 135,979 129,899 997,326 1,016,022
End of year 141,820$ 134,795$ 891,528$ 990,856$
Subcombining Schedule of Revenues, Expenditures and Changes in Fund Balance
Debt Service Fund
Year Ended December 31, 2023
City of Hastings
155
Schedule 7
G.O.
Improvement
Bonds 2020A
(580)
G.O.
Improvement
Bonds 2021A
(581)
G.O.
Improvement
Bonds 2022A
(582)
G.O.
Improvement
Bonds 2023A
(583)Total
151,962$ 17,711$ 183,442$ -$ 2,190,331$
49,003 32,649 103,152 231,675 618,412
25,792 15,978 33,333 -233,879
226,757 66,338 319,927 231,675 3,042,622
180,000 75,000 --2,310,000
61,735 21,540 207,301 -600,703
241,735 96,540 207,301 -2,910,703
(14,978)(30,202)112,626 231,675 131,919
----793,551
----(1,329,106)
----(535,555)
(14,978)(30,202)112,626 231,675 (403,636)
588,526 349,678 587,822 -5,996,391
573,548$ 319,476$ 700,448$ 231,675$ 5,592,755$ =
156
157
City of Hastings
Statistical Section (Unaudited)
This part of the City of Hastings'comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements,note
disclosures,and required supplementary information says about the City's overall financial health.
Financial Trends
These schedules contain trend information to help the reader understand how the government's
financial performance and well-being have changed over time.
Table 1 –Net Position by Component
Table 2 –Changes in Net Position
Table 3 –Fund Balances,Governmental Funds
Table 4 –Changes in Fund Balances,Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the government's most significant
local revenue source,property taxes.
Table 5 –Tax Capacity Value and Estimated Market Value of Taxable Property
Table 6 –Direct and Overlapping Property Tax Rates
Table 7 –Principal Property Taxpayers
Table 8 –Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the
government's current level of outstanding debt and the government's ability to issue additional
debt in the future.
Table 9 –Ratio of Outstanding Debt by Type
Table 10 –Ratio of Net General Obligation Bonded Debt to Assessed Value
and Net General Obligation Debt Per Capita
Table 11 –Direct and Overlapping Governmental Activities Debt
Table 12 –Legal Debt Margin Information
Table 13 –Pledge Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the government's financial activities take place.
Table 14 –Demographic and Economic Statistics
Table 15 –Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the
information in the government's financial report relates to the services the government provides
and activities it performs.
Table 16 –Full-time Equivalent City Government Employees by Function/Program
Table 17 –Operating Indicators by Function/Program
Table 18 –Capital Asset Statistics by Function/Program
Sources: Unless otherwise noted,the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
158
2014 2015 2016 2017
Governmental activities
Net investment in capital assets 43,801,240$ 43,540,896$ 42,444,675$ 43,485,383$
Restricted for
Police activities 29,908 29,796 34,462 42,568
Tax increment ---2,695
Debt service 8,228,781 6,790,580 6,814,431 6,721,124
Capital projects 617,851 605,667 547,257 488,132
Escrow ----
Net pension asset --1,225,251 -
LeDuc Historic Estate 1,107,821 1,369,956 1,374,830 1,489,982
Unrestricted 3,863,787 (1,019,362)(3,501,336)(3,910,559)
Total governmental activities net position 57,649,388$ 51,317,533$ 48,939,570$ 48,319,325$
Business-type activities
Net investment in capital assets 25,016,342$ 25,317,479$ 25,219,313$ 25,631,750$
Restricted for
Debt service 376,498 251,499 187,146 -
Unrestricted 4,917,605 4,348,513 3,868,707 3,301,265
Total business-type activities net position 30,310,445$ 29,917,491$ 29,275,166$ 28,933,015$
Primary government
Net investment in capital assets 68,817,582$ 68,858,375$ 68,858,375$ 69,117,133$
Restricted for
Police activities 29,908 29,796 34,462 42,568
Tax increment ---2,695
Debt service 8,605,279 7,042,079 7,001,577 6,721,124
Capital projects 617,851 605,667 547,257 488,132
Escrow ----
Net pension asset ----
LeDuc Historic Estate 1,107,821 1,369,956 1,374,830 1,489,982
Unrestricted 8,781,392 3,329,151 367,371 (609,294)
Total primary government net position 87,959,833$ 81,235,024$ 78,183,872$ 77,252,340$
City of Hastings
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Unaudited
Fiscal Year
159
Table 1
2018 2019 2020 2021 2022 2023
43,158,263$ 42,069,591$ 42,768,215$ 44,179,337$ 43,579,389$ 46,775,856$
54,842 40,432 59,697 113,606 82,112 226,081
4,924 5,681 7,157 24,766 21,990 53,131
6,897,969 8,169,524 7,182,012 7,346,220 7,725,877 7,192,363
494,432 509,082 630,709 1,149,928 1,015,753 1,395,686
-11,467 17,240 16,234 4,497 26,832
-----1,850,595
1,270,770 1,246,991 1,282,730 1,324,652 1,075,872 1,121,238
(4,077,486)(2,309,522)324,570 3,196,284 4,803,200 2,491,081
47,803,714$ 49,743,246$ 52,272,330$ 57,351,027$ 58,308,690$ 61,132,863$
24,353,284$ 24,164,942$ 23,964,003$ 24,268,293$ 24,584,961$ 24,367,726$
------
5,080,114 5,859,676 7,007,095 8,532,954 10,154,186 11,432,676
29,433,398$ 30,024,618$ 30,971,098$ 32,801,247$ 34,739,147$ 35,800,402$
67,511,547$ 66,234,533$ 66,732,218$ 68,447,630$ 68,164,350$ 71,143,582$
54,842 40,432 59,697 113,606 82,112 226,081
4,924 5,681 7,157 24,766 21,990 53,131
6,897,969 8,169,524 7,182,012 7,346,220 7,725,877 7,192,363
494,432 509,082 630,709 1,149,928 1,015,753 1,395,686
-11,467 17,240 16,234 4,497 26,832
-----1,850,595
1,270,770 1,246,991 1,282,730 1,324,652 1,075,872 1,121,238
1,002,628 3,550,154 7,331,665 11,729,238 14,957,386 13,923,757
77,237,112$ 79,767,864$ 83,243,428$ 90,152,274$ 93,047,837$ 96,933,265$
Fiscal Year
160
2014 2015 2016 2017
Expenses
Governmental activities
General government 2,912,989$ 2,742,065$ 2,935,743$ 3,129,500$
Public safety 8,265,264 8,354,120 11,060,875 9,386,823
Public works 4,825,511 5,213,874 6,345,402 5,638,414
Culture and recreation 2,948,893 3,087,460 3,396,349 3,398,198
Economic development 135,010 47,129 2,311,500 51,101
Health and sanitation 15,775 21,890 19,301 30,849
Interest on long-term debt 466,445 453,391 464,205 449,979
Total governmental activities expenses 19,569,887 19,919,929 26,533,375 22,084,864
Business-type activities
Water 2,065,409 1,963,670 2,120,683 1,866,451
Sewer 1,940,624 1,958,792 2,118,877 2,213,573
Storm 380,251 393,535 422,730 403,183
Hydro 738,402 633,196 593,610 838,181
Total business-type activities expenses 5,124,686 4,949,193 5,255,900 5,321,388
Total primary government expenses 24,694,573$ 24,869,122$ 31,789,275$ 27,406,252$
Program revenues
Governmental activities
Charges for services
General Government -$ -$ -$ -$
Public safety 2,726,275 2,849,915 3,362,113 3,745,444
Public works 51,342 119,702 271,785 276,721
Culture and recreation 1,147,412 1,202,465 1,237,031 1,191,970
Other activities 470,886 537,114 602,296 521,818
Operating grants and contributions 776,970 649,612 1,560,903 539,343
Capital grants and contributions 815,568 1,113,376 3,212,984 1,234,808
5,988,453 6,472,184 10,247,112 7,510,104
Business-type activities
Charges for services
Water 1,873,918 1,797,562 1,875,712 1,875,712
Sewer 1,938,692 1,882,901 1,867,425 1,867,425
Storm 429,957 425,643 435,310 435,310
Hydro 921,052 1,073,234 787,238 787,238
Operating grants and contributions ----
Capital grants and contributions ----
5,163,619 5,179,340 4,965,685 4,965,685
11,152,072$ 11,651,524$ 15,212,797$ 12,475,789$
Net (expense) revenue
Governmental activities (13,581,434)$ (13,447,745)$ (16,286,263)$ (14,574,760)$
Business-type activities 38,933 230,147 (290,215)(355,703)
(13,542,501)(13,217,598)(16,576,478)(14,930,463)
City of Hastings
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Unaudited
Total governmental activities
program revenues
Total business-type activities
program revenues
Fiscal Year
Total primary government
program revenues
Total primary government net
(expense) revenue
161
Table 2
Page 1 of 2
Continued
2018 2019 2020 2021 2022 2023
3,322,254$ 3,547,503$ 4,271,705$ 3,093,577$ 3,560,823$ 3,846,332$
10,167,543 9,382,761 9,580,764 9,459,405 12,044,540 13,790,683
5,438,158 5,885,948 5,355,622 6,667,995 6,017,835 5,841,383
3,588,701 3,506,415 2,944,205 3,810,177 4,695,960 4,700,209
40,656 41,369 28,806 48,930 66,819 34,090
34,158 37,731 28,794 59,362 50,726 69,481
428,156 486,826 415,814 396,991 482,428 536,545
23,019,626 22,888,553 22,625,710 23,536,437 26,919,131 28,818,723
2,053,704 2,197,954 1,975,443 2,413,301 2,356,748 2,504,603
2,160,226 2,305,382 2,314,153 2,567,037 2,716,736 2,815,475
424,791 529,092 404,163 401,155 491,006 609,981
620,320 578,351 832,937 521,731 599,007 603,379
5,259,041 5,610,779 5,526,696 5,903,224 6,163,497 6,533,438
28,278,667$ 28,499,332$ 28,152,406$ 29,439,661$ 33,082,628$ 35,352,161$
-$ 513,591$ 522,460$ 459,130$ 258,649$ 373,304$
3,507,476 3,848,715 3,420,090 3,581,897 4,043,048 3,411,939
312,004 438,990 778,863 485,869 954,701 811,485
1,358,186 1,162,764 779,387 1,307,896 1,534,431 1,314,532
496,151 93,705 85,185 91,995 82,251 6,300
1,521,330 1,117,166 918,951 1,314,781 1,125,789 878,421
622,219 1,553,631 1,098,098 4,831,331 2,185,950 3,649,123
7,817,366 8,728,562 7,603,034 12,072,899 10,184,819 10,445,104
2,284,680 2,259,917 2,445,497 2,744,525 3,139,177 2,951,876
2,490,514 2,642,559 2,615,539 2,757,731 3,025,373 2,829,255
633,583 718,097 729,711 763,339 806,607 864,150
701,729 672,763 578,006 738,075 857,224 754,660
--1,888 --30,461
150,542 49,281 102,567 788,199 800,611 69,086
6,261,048 6,342,617 6,473,208 7,791,869 8,628,992 7,499,488
14,078,414$ 15,071,179$ 14,076,242$ 19,864,768$ 18,813,811$ 17,944,592$
(15,202,260)$ (14,159,991)$ (15,022,676)$ (11,463,538)$ (16,734,312)$ (18,373,619)$
1,002,007 731,838 946,512 1,888,645 2,465,495 966,050
(14,200,253)(13,428,153)(14,076,164)(9,574,893)(14,268,817)(17,407,569)
Fiscal Year
162
2014 2015 2016 2017
Governmental activities
Taxes
Property taxes, levied for general purposes 8,719,458$ 9,231,748$ 9,837,164$ 10,271,077$
Property taxes, levied for debt service 2,643,067 2,650,000 2,650,000 2,650,000
Unrestricted grants and contributions 593,875 591,572 617,477 639,043
Gain (Loss) on disposal of capital assets -29,098 111,069 23,272
Investment earnings (loss)315,388 77,472 211,760 215,284
Insurance recoveries ---24,299
Transfers 2,127,141 (193,998)480,830 (132,690)
Total governmental activities 14,398,929 12,385,892 13,908,300 13,690,285
Business-type activities
Property taxes, levied for general purposes ----
Gain (Loss) on disposal of capital assets ----
Investment earnings 192,785 67,811 128,720 4,188
Transfers (2,127,141)193,998 (480,830)132,690
Total business-type activities (1,934,356)261,809 (352,110)136,878
Total primary government 12,464,573$ 12,647,701$ 13,556,190$ 13,827,163$
Change in net position
Governmental activities 817,495$ (1,061,853)$ (2,377,963)$ (884,475)$
Business-type activities (1,895,423)491,956 (642,325)(218,825)
Total primary government (1,077,928)$ (569,897)$ (3,020,288)$ (1,103,300)$
General revenues and other changes
in net position
City of Hastings
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Unaudited
Fiscal Year
163
Table 2
Page 2 of 2
2018 2019 2020 2021 2022 2023
10,170,181$ 11,120,775$ 11,455,276$ 13,269,481$ 14,064,238$ 15,315,230$
3,424,475 3,126,903 2,310,976 2,195,103 2,423,510 2,190,331
1,106,153 933,079 1,915,198 920,451 1,165,045 1,421,154
170,917 7,951 33,702 32,417 57,578 661,955
146,410 590,271 454,753 74,696 (353,682)1,250,967
-----17,153
439,358 320,378 99,378 50,087 335,286 341,002
15,457,494 16,099,357 16,269,283 16,542,235 17,691,975 21,197,792
-11,376 97 ---
----(40,486)-
49,772 168,384 99,249 (8,409)(151,823)436,207
(439,358)(320,378)(99,378)(50,087)(335,286)(341,002)
(389,586)(140,618)(32)(58,496)(527,595)95,205
15,067,908$ 15,958,739$ 16,269,251$ 16,483,739$ 17,164,380$ 21,292,997$
255,234$ 1,939,366$ 2,407,557$ 5,078,697$ 957,663$ 2,824,173$
612,421 591,220 946,480 1,830,149 1,937,900 1,061,255
867,655$ 2,530,586$ 3,354,037$ 6,908,846$ 2,895,563$ 3,885,428$
Fiscal Year
164
2014 2015 2016 2017
General Fund
Nonspendable
Prepaid items 58,131$ 72,786$ 119,342$ 135,921$
Inventories 26,008 50,734 35,471 24,517
Restricted
Leduc Historical Estate -349,321 346,557 397,985
Restricted
Police Activities ----
Unassigned 3,446,128 3,621,455 4,403,883 4,576,829
Total general fund 3,530,267$ 4,094,296$ 4,905,253$ 5,135,252$
All other governmental funds
Nonspendable
Prepaid 81,494$ 83,691$ 105,237$ 114,968$
Inventories 3,322 4,365 4,368 3,223
Permanent endowment
- Leduc Historical Estate 200,000 200,000 200,000 200,000
Restricted
Police activities 29,626 29,773 34,444 42,547
Debt service 5,427,274 4,500,299 4,820,295 4,888,739
Tax Increment Financing ---2,695
Capital projects 1,009,983 605,667 546,622 487,678
Permanent endowment
- Leduc Historical Estate 907,821 820,635 828,273 891,997
Escrow ----
Committed
Park maintenance 700,601 816,485 870,352 1,020,571
Aquatic operations 120,179 143,507 184,955 188,258
Cable TV activities 232,035 238,133 245,822 243,756
Heritage preservation activities 93,499 95,860 96,148 97,564
Fire and ambulance activities 1,596,429 1,362,693 1,111,458 1,251,486
Arena activities 490,657 500,676 388,065 463,992
Assigned
Capital 869,337 1,013,965 1,131,904 1,172,982
Unassigned
Capital (252,583)(899,034)(416,152)(300,491)
Total all other governmental funds 11,509,674$ 9,516,715$ 10,151,791$ 10,769,965$
Fiscal Year
City of Hastings
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Unaudited
165
Table 3
2018 2019 2020 2021 2022 2023
92,918$ 86,310$ 108,555$ 75,454$ 171,170$ 164,700$
15,183 34,446 64,084 54,113 25,611 65,404
301,201 193,592 178,173 154,075 119,617 98,019
--13,384 61,676 32,124 170,762
5,047,671 5,596,357 7,940,056 9,033,202 10,200,207 9,743,773
5,456,973$ 5,910,705$ 8,304,252$ 9,378,520$ 10,548,729$ 10,242,658$
81,016$ 77,361$ 24,265$ 58,618$ 37,616$ 32,018$
2,318 2,964 3,754 4,812 6,451 2,942
200,000 200,000 200,000 200,000 200,000 200,000
54,825 40,406 46,285 51,914 49,972 55,305
5,200,767 5,909,532 6,020,783 5,795,241 5,992,414 5,589,389
4,924 5,681 7,157 24,766 21,990 53,131
494,432 509,082 629,046 1,149,928 1,015,753 1,395,686
769,569 853,399 904,557 970,577 756,255 823,219
-11,467 17,240 16,234 4,497 26,832
1,084,583 1,144,271 1,357,981 1,573,272 2,014,442 864,613
185,144 232,573 406,776 402,511 407,090 441,485
238,553 238,892 156,073 153,208 145,741 148,631
100,481 104,264 108,400 115,531 120,476 124,960
992,209 1,280,178 1,465,860 1,283,020 643,353 1,113,943
462,313 497,359 550,064 492,028 512,325 118,885
1,249,299 1,325,392 1,326,089 966,587 970,516 364,274
(217,088)(190,670)(910,431)(1,723,515)(1,814,786)(1,508,544)
10,903,345$ 12,242,151$ 12,313,899$ 11,534,732$ 11,084,105$ 9,846,769$
Fiscal Year
166
2014 2015 2016 2017
Revenues
Taxes 11,410,130$ 11,877,613$ 12,431,059$ 12,981,670$
Special assessments 1,011,262 695,211 599,399 501,495
Licenses and permits 412,782 449,444 423,861 496,101
Fines and forfeitures 126,565 121,259 95,313 128,266
Intergovernmental 1,628,541 1,950,871 4,132,072 2,417,114
Charges for services 3,561,470 3,765,494 4,650,190 4,690,844
Investment earnings 290,628 70,516 199,685 207,058
Miscellaneous 28,537 273,537 1,499,899 37,386
Total revenues 18,469,915 19,203,945 24,031,478 21,459,934
Expenditures
Current
General government 2,411,990 2,290,140 2,498,078 2,540,993
Public safety 7,814,296 8,011,113 8,668,178 8,709,899
Public works 1,873,216 1,588,976 1,956,027 1,711,758
Health and sanitation 15,775 21,890 19,301 30,849
Cultural and recreation 2,429,476 2,537,383 2,714,594 2,755,083
Economic development 135,010 44,157 2,303,885 38,752 Miscellaneous
Capital outlay 6,589,320 5,032,472 6,642,508 2,241,646
Debt service
Principal retirement 4,094,500 3,874,500 3,234,500 3,369,500
Interest 607,807 525,037 549,640 531,468
Total expenditures 25,971,390 23,925,668 28,586,711 21,929,948
Revenues over (under) expenditures (7,501,475)(4,721,723)(4,555,233)(470,014)
Other financing sources (uses)
Bonds issued 3,200,000$ 2,755,000$ 5,560,000$ 1,015,000$
Bond premiums 88,207 47,405 172,612 57,387
Lease proceeds ----
Payment to refunded bond paying agent (1,470,000)---
Transfers in 4,062,792 1,616,841 1,447,564 775,477
Transfers out (1,723,002)(1,176,571)(1,316,732)(522,308)
Insurance recoveries 20,852 21,020 27,814 24,299
Proceeds on sale of capital assets -29,098 111,069 23,272
Total other financing sources (uses)4,178,849 3,292,793 6,002,327 1,373,127
Net change in fund balance (3,322,626)$ (1,428,930)$ 1,447,094$ 903,113$
24.3%23.3%17.2%19.8%
Debt service as a percentage of
noncapital expenditures
City of Hastings
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
Unaudited
Fiscal Year
167
Table 4
2018 2019 2020 2021 2022 2023
13,607,851$ 13,892,707$ 14,589,044$ 15,245,720$ 16,153,690$ 17,170,691$
649,146 1,206,298 1,025,473 972,786 926,911 618,412
585,364 574,169 468,688 635,721 966,071 809,581
107,512 111,358 72,396 83,206 86,336 86,689
2,831,355 2,113,639 4,139,988 4,091,910 2,583,848 3,369,737
4,522,330 4,999,575 4,704,978 4,766,410 5,144,801 4,845,553
133,040 552,103 429,840 77,176 (327,261)1,152,228
129,348 155,164 75,282 601,550 696,764 138,694
22,565,946 23,605,013 25,505,689 26,474,479 26,231,160 28,191,585
2,800,943 2,663,257 2,971,879 2,891,454 3,217,280 3,511,124
9,091,243 9,366,019 9,521,712 10,140,823 10,970,260 11,712,196
1,784,833 1,633,317 1,520,193 1,703,709 1,906,928 1,747,659
34,158 37,731 28,794 59,362 50,726 69,481
2,956,232 3,122,497 2,716,887 3,101,694 3,848,135 3,773,439
40,656 41,369 28,806 48,930 66,819 34,090
4,612,845 4,210,424 4,668,577 4,794,873 6,412,087 9,654,529
3,295,000 3,300,000 3,100,000 2,955,000 3,012,671 2,421,156
501,518 549,030 562,345 561,770 553,411 694,300
25,117,428 24,923,644 25,119,193 26,257,615 30,038,317 33,617,974
(2,551,482)(1,318,631)386,496 216,864 (3,807,157)(5,426,389)
2,560,000$ 2,595,000$ 2,045,000$ 925,000$ 4,110,000$ 3,125,000$
138,815 506,618 302,018 68,037 308,474 279,904
----191,375 46,345
------
970,501 786,899 625,485 2,280,173 1,609,306 3,713,633
(866,143)(796,521)(926,107)(3,223,837)(1,805,120)(4,093,731)
8,150 7,715 1,843 --17,153
195,260 11,292 30,560 28,864 112,704 794,678
3,006,583 3,006,583 3,111,003 78,237 4,526,739 3,882,982
455,101$ 1,687,952$ 3,497,499$ 295,101$ 719,582$ (1,543,407)$
18.5%18.6%17.9%15.6%15.0%13.0%
Fiscal Year
168
Table 5
Fiscal Adjustment
Year Commercial/Total For Adjusted Total Taxable Tax Capacity
Ended Residential Industrial All Tax Fiscal Tax Capacity Direct Tax Market as a Percent
December 31,Property Property Other Capacity Disparities Value Rate Value of EMV
2014 13,726,993$ 4,192,840$ 309,906$ 18,229,738$ 2,075,825$ 20,305,563$ 66.246%1,317,650,624$ 1.38%
2015 12,814,189 3,826,869 349,834 16,990,892 2,069,204 19,060,096 62.581%1,475,321,176 1.15%
2016 13,501,866 3,852,417 363,149 17,717,432 2,017,091 19,734,523 63.577%1,544,471,503 1.15%
2017 12,882,237 3,969,456 1,533,473 18,385,166 2,280,954 20,666,120 62.519%1,604,693,527 1.15%
2018 13,968,781 3,827,760 1,522,837 19,319,378 2,362,509 22,078,920 60.864%1,733,193,014 1.11%
2019 15,289,744 3,963,729 1,999,997 21,253,470 2,534,898 23,788,368 59.612%1,883,303,111 1.13%
2020 16,703,875 4,006,572 2,006,179 22,716,626 2,730,219 25,446,845 57.391%2,025,844,477 1.12%
2021 17,293,128 4,224,392 2,268,066 23,785,586 2,652,233 26,437,819 57.351%2,115,943,511 1.12%
2022 18,123,278 4,241,358 2,225,707 24,590,343 2,911,140 27,501,483 58.807%2,201,073,873 1.12%
2023 22,390,006 4,456,274 2,484,701 29,330,982 2,703,108 32,034,090 53.267%2,652,688,668 1.11%
City of Hastings
Tax Capacity Value and Estimated Market Value of Taxable Property
Last Ten Fiscal Years
Unaudited
169
Table 6
City City Total
Fiscal Direct Debt City School Other
Year Rate Rate Rate District Districts County Total
2014 50.841 15.405 66.246 23.052 5.774 31.827 126.899
2015 48.831 13.750 62.581 20.965 5.120 26.902 115.568
2016 48.154 15.423 63.577 20.938 5.353 28.570 118.438
2017 46.360 16.159 62.519 20.305 5.192 28.004 116.020
2018 45.429 15.435 60.864 20.545 4.657 26.580 112.646
2019 46.462 13.150 59.612 19.079 4.436 25.386 108.513
2020 47.594 9.797 57.391 17.924 3.936 24.133 103.384
2021 48.389 8.962 57.351 16.757 3.866 22.716 100.690
2022 50.744 8.063 58.807 16.214 3.903 21.630 100.554
2023 45.964 7.303 53.267 14.209 3.662 18.816 89.954
*Overlapping rates are those of local and county governments that apply to property owners within the City. Not all
overlapping rates apply to all City property owners; for example, although the county property tax rates apply to all
City property owners, Other Districts' rates apply only to the approximately one-third of City property owners whose
property is located within that District's geographic boundaries.
Note: The City's basic property tax rate may be increased only by a majority vote of the City's residents. Rates for
debt service are set based on each year's requirements.
*Overlapping rates are those of local and county governments that apply to property owners within the City. Not all
overlapping rates apply to all City property owners; for example, although the county property tax rates apply to all
City property owners, Other Districts rates apply only to the approximately one-third of City property owners whose
property is located within that District's geographic boundaries.
Source: Dakota County Treasurer - Auditor's Office and City Documents
Overlapping Rates*
City of Hastings
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Unaudited
170
Table 7
Percentage Percentage
Taxable of Total City Taxable of Total City
Capacity Capacity Capacity Capacity
Taxpayer Value Rank Value Value Rank Value
VMA 1000LLC 243,102$ 1 0.83% 100,000$ 8 0.57%
Hastings MarketPlace Sation LLC 232,570 2 0.79%
Wal-Mart 224,826 3 0.77% 256,856 1 1.46%
Voyageur Estates LLC 192,526 4 0.66%
Regina Medical Complex 165,746 5 0.57% 141,898 4
Casey Capital V LLC 164,340 6 0.56% 0.00%
Hastings Medical Office Bldg LLC 163,176 7 0.56%
Gasparre Hidden Valley LLC 154,655 8 0.53%
Siewart Brothers Investment LLC 154,135 9 0.53%
Quality One Woodwork LLC 151,916 10 0.52%
Camegaran LLC 100,715 7 0.57%
Xcel Energy (NSP Company) 210,354 2 1.19%
Hastings MarketPlace Station LLC 185,504 3 1.05%
Crossroads Mall Inc 91,850 10 0.52%
Three Rivers Partnership 140,862 5 0.80%
KCP Hastings LLC 95,684 9 0.54%
Target Corporation 117,250 6 0.67%
Total 1,603,890$ 5.47% 1,340,973$ 6.81%
Total all property 22,667,641$ 18,194,684$
2023
City of Hastings
Principal Propety Taxpayers
Current Year and Nine Years Ago
Unaudited
2014
171
Table 8
Fiscal Taxes Collections
Year Levied in
Ended For The Percentage Subsequent Percentage
December 31,Fiscal Year*Amount of Levy Years Amount of Levy
2014 11,610,920$ 11,525,607$ 99.27%84,292$ 11,609,899$ 99.99%
2015 12,060,920 11,955,607 99.13%87,959 12,043,566 99.86%
2016 12,499,621 12,350,917 98.81%106,463 12,457,381 99.66%
2017 12,960,919 12,810,057 98.84%94,650 12,904,707 99.57%
2018 13,503,307 13,446,160 99.58%18,687 13,464,847 99.72%
2019 14,233,201 14,029,829 98.57%182,038 14,211,867 99.85%
2020 14,788,179 14,675,806 99.24%112,373 14,788,179 100.00%
2021 15,312,300 15,255,416 99.63%56,884 15,312,300 100.00%
2022 16,294,085 16,264,750 99.82%29,335 16,294,085 100.00%
2023 16,294,085 16,264,750 99.82%N/A 16,264,750 99.82%
* The net levy excludes state aid for property tax relief, if applicable.
Source: Dakota County and City Records
Numbers presented are the most recent available
Fiscal Year of the Levy
Collected Within The
Total Collections to Date
City of Hastings
Property Tax Levies and Collections
Last Ten Fiscal Years
Unaudited
172
General Certificates Total Percentage
Fiscal Obligation Improvement of Lease Governmental of Tax
Year Bonds Bonds Indebtedness Obligations Activities Capacity
2014 2,607,830$ 17,225,271$ 2,256,550$ -$ 22,089,651$ 121.17%
2015 4,489,041 14,348,154 2,108,107 - 20,945,302 123.27%
2016 8,574,136 12,730,607 2,047,183 - 23,351,926 131.80%
2017 7,913,453 12,870,925 1,642,184 - 22,426,562 121.98%
2018 8,115,812 10,992,085 1,215,257 - 20,323,154 105.20%
2019 7,163,738 12,012,237 846,240 - 20,022,215 94.21%
2020 6,231,661 12,312,054 597,223 - 19,140,938 84.26%
2021 5,274,586 11,413,376 338,206 - 17,026,168 71.58%
2022 3,227,402 13,875,430 - 338,616 17,441,448 70.93%
2023 3,624,600 15,682,878 - 273,805 19,581,283 66.76%
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Governmental Activities
City of Hastings
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Unaudited
173
Table 9
Sewer/ Water/Total Total Percentage
Hydro Lease Business-Type Per Primary Per of
Bonds Obligations Activities Customer Government Capita Income
6,013,905$ -$ 6,013,905$ 800$ 28,103,556$ 1,258$ 444.92%
5,718,774 -5,718,774 761 26,664,076 1,185 411.32%
5,408,639 -5,408,639 718 28,760,565 1,274 441.38%
2,828,650 -2,828,650 375 25,255,212 1,113 389.14%
3,700,024 -3,700,024 490 24,023,178 1,072 349.95%
4,243,999 -4,243,999 560 24,266,214 1,064 288.49%
5,166,185 -5,166,185 682 24,307,123 1,066 270.81%
5,952,281 -5,952,281 825 22,978,449 1,011 233.78%
7,213,667 56,903 7,270,570 958 24,712,018 1,067 218.54%
7,570,896 42,753 7,613,649 999 27,194,932 1,173 238.56%
Business-Type Activities
174
Table 10
Gross Less Debt Net
Fiscal Governmental Service Governmental Estimated Per
Year Debt Fund Balance Debt Market Value Capita
2014 22,089,651$ 5,430,602$ 16,659,049$ 1.3%741$
2015 20,945,302 4,503,176 16,442,126 1.1%728
2016 23,351,926 4,821,409 18,530,517 1.2%817
2017 22,426,562 4,888,739 17,537,823 1.1%783
2018 20,323,154 5,200,767 15,122,387 0.9%663
2019 20,022,215 5,909,532 14,112,683 0.7%619
2020 19,140,938 6,023,684 13,117,254 0.6%577
2021 17,026,168 5,800,275 11,225,893 0.5%485
2022 17,441,448 4,999,066 12,442,382 0.6%536
2023 19,581,283 5,592,755 13,988,528 0.5%618
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Governmental Activities
City of Hastings
Ratio of Net General Obligation Bonded Debt to Assessed Value
and Net General Obligation Debt Per Capita
Last Ten Fiscal Years
Unaudited
175
Table 11
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable* Debt
Debt repaid with property taxes
School Districts
Hastings School District #200 62,284,420$ 64.09% 39,918,085$
Counties
Dakota County - 0.00% -
Washington County 86,780,000 0.01% 8,678
Other
Met Council 4,535,000 0.55% 24,943
Metropolitan Transit District 213,985,000 0.62% 1,326,707
Subtotal - overlapping debt 41,278,413
City direct debt 100.00% 19,581,283
Total direct and overlapping debt 60,859,696$
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents
and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term
debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not
imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
*For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's
taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value.
Sources: Assessed value data used to estimate applicable percentages provided by the County Board of Equalization and
Assessment. Northland Securities
City of Hastings
Direct and Overlapping Governmental Activities Debt
Unaudited
December 31, 2023
176
Estimated Market value 2,748,031,800$
Debt limit (3% of market value)82,440,954
Debt applicable to limit
General obligation bonds 3,529,601
Less: Amount set aside for repayment
of general obligation debt -
Total net debt applicable to limit 3,529,601
Legal debt margin 78,911,353$
2014 2015 2016 2017
Debt limit 43,998,825$ 48,291,162$ 46,420,722$ 48,229,996$
Total net debt applicable to limit 4,773,500 6,474,000 8,285,000 7,290,000
Legal debt margin 39,225,325$ 41,817,162$ 38,135,722$ 40,939,996$
Amount of Debt Applicable to Debt Limit
Total net debt applicable to the limit as a percentage
of debt limit 10.85%13.41%17.85%15.12%
Note: Under state finance law, the City's outstanding general obligation debt should not exceed 15 percent of total
assessed property value. However, the City has established a more conservative internal limit of no more than 5 percent.
By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general
obligation bonds.
Unaudited
Legal Debt Margin Calculation for Fiscal Year 2022
City of Hastings
Legal Debt Margin Information
Last Ten Fiscal Years
177
Table 12
2018 2019 2020 2021 2022 2023
56,499,093$ 60,356,121$ 64,373,922$ 67,016,532$ 69,601,770$ 82,440,954$
7,140,000 6,245,000 6,231,661 5,274,587 4,130,000 3,529,601
49,359,093$ 54,111,121$ 58,142,261$ 61,741,945$ 65,471,770$ 78,911,353$
12.64%10.35%9.68%7.87%5.93%4.28%
178
Sewer
Revenue
Bonds
Utility Less Net Utility
Fiscal Service Operating Available Service
Year Charges Expenses Revenue Principal Interest Coverage Charges
2014 1,867,409$ 1,897,229$ (29,820)$ 445,000$ 209,922$ (0.05)-$
2015 1,780,393 1,804,015 (23,622)285,500 173,274 (0.05)-
2016 1,875,074 1,969,781 (94,707)300,500 164,159 (0.20)-
2017 1,897,865 1,866,451 31,414 265,000 53,995 0.10 -
2018 2,265,956 1,990,126 275,830 235,000 48,950 0.97 2,490,076
2019 2,235,565 2,200,016 35,549 245,000 74,871 0.11 2,638,103
2020 2,468,528 2,010,727 457,801 310,000 100,644 1.11 2,612,847
2021 2,732,572 2,309,562 423,010 360,000 77,242 0.97 2,754,704
2022 3,134,067 2,201,666 932,401 440,000 149,905 1.58 3,019,636
2023 2,962,301 2,509,205 453,096 245,000 152,425 1.14 2,810,177
Note 1: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
City of Hastings
Pledged-Revenue Coverage
Last Ten Fiscal Years
Unaudited
Water Revenue Bonds
Debt Service
179
Table 13
Less Net Special
Operating Available Assessment
Expenses Revenue Principal Interest Coverage Collections Principal Interest Coverage
-$ -$ -$ -$ -1,011,262$ 3,895,000$ 454,013$ 0.23
-----693,963 3,180,000 380,019 0.19
-----599,228 2,285,000 331,602 0.23
-----501,495 2,285,000 288,171 0.19
2,149,571 340,505 ---648,355 2,115,000 130,738 0.29
2,297,779 340,324 40,000 17,095 5.96 1,206,298 2,025,000 266,100 0.53
2,292,753 320,094 40,000 15,700 5.75 373,979 1,955,000 334,725 0.16
2,570,487 184,217 40,000 27,558 2.73 1,087,455 1,775,000 343,680 0.51
2,663,467 356,169 75,000 45,718 2.95 986,370 1,825,000 324,344 0.46
2,817,456 (7,279)120,000 50,379 (0.04)687,121 1,445,000 482,097 0.36
Debt ServiceDebt Service
Sewer Revenue Bonds
180
Table 14
Per
Capita
Fiscal Personal Personal Unemployment
Year Population Income Income Rate
2014 22,492 1,116,705,308$ 49,649$ *3.30%
2015 22,492 1,145,337,624 50,922 *3.20%
2016 22,572 1,194,216,804 52,907 3.40%
2017 22,400 1,290,934,400 57,631 2.70%
2018 22,800 1,324,098,600 58,075 2.70%
2019 22,800 1,582,411,200 69,404 2.90%
2020 22,722 1,606,013,682 70,681 4.30%
2021 23,168 1,687,325,440 72,830 4.30%
2022 23,192 1,850,953,520 79,810 2.70%
2023 22,634 1,857,843,988 82,082 2.20%
* Information for these years obtained from Springsted
Sources: Population, Personal Income and Per Capita Income provided by the Minnesota State
Demographic Center. Unemployment rate provided by the Minnesota Department of
Employment and Economic Assistance.
City of Hastings
Demographic and Economic Statistics
Last Ten Fiscal Years
Unaudited
181
Table 15
Percentage Percentage
of Total of Total
City City
Employer Employees Rank Employment Employees Rank Employment
Dakota County 700 1 8.54%1,775 1 21.25%
Independent School District # 200 558 2 6.81%636 3 7.61%
Regina Medical Center/Allina Clinic 370 3 4.51%875 2 10.47%
Wal-Mart 300 4 3.66%300 4 3.59%
Intek Plastics, Inc 221 5 2.70%150 8 1.80%
Quality Once Woodwork 157 6 1.92%150 9 1.80%
City of Hastings 140 7 1.71%
Fleet Farm 135 8 1.65%
Fleet Farm 135 8 1.65%
Augustana Health Care center 130 9 1.59%175 7 2.09%
Ardent Mills/Con-Agra 126 10 1.54%120 10 1.44%
Allina Medical Clinic 267 6 3.20%
Smead Manufacturing Co.280 5 3.35%
Total 2,972 36.26%4,728 56.60%
Source: Hastings Community Development Department, Northland Securies & Springsted Inc.
20142023
City of Hastings
Principal Employers
Current Year and Nine Years Ago
Unaudited
182
Full-Time Equivalent Employees as of December 31st
Function/Program 2014 2015 2016 2017 2018 2019
General government
Administration 1.00 1.00 1.00 1.00 1.00 1.00
City Clerk 2.35 2.45 2.50 2.60 3.40 3.70
Finance 5.60 5.60 5.60 6.40 6.40 6.40
Building Maintenance 2.00 2.00 2.00 2.00 2.00 2.00
Planning 1.25 1.25 1.25 1.25 1.25 1.25
Information Technology 3.00 3.00 3.00 3.00 3.00 3.00
Public Safety
Police 33.00 35.15 35.35 35.35 35.35 35.35
Building Inspections 3.70 3.70 3.80 3.90 3.90 4.00
Code Enforcement 1.00 1.00 1.00 1.00 1.00 1.00
Public Works
Engineering 7.80 7.80 7.80 6.80 6.90 6.90
Streets 5.54 5.54 5.54 5.54 5.54 5.54
Culture and Recreation:
Parks 8.63 8.60 12.20 13.80 13.80 13.80
Aquatic Center 7.40 7.40 10.00 8.70 8.70 8.70
Cable Television 0.20 0.20 0.20 0.20 0.20 0.30
Heritage Preservation 0.25 0.25 0.25 0.25 0.25 0.25
Fire and Ambulance 15.60 19.60 19..6 18.80 18.80 18.80
Civic Arena 4.80 4.80 5.10 4.80 4.80 4.70
Economic Development 0.38 0.63 0.63 0.63 1.75 1.75
Housing and Redevelopment 0.37 0.37 0.37 0.37 0.25 0.25
Water 5.10 5.10 5.10 5.20 5.20 5.20
Wastewater 3.70 3.70 3.70 3.80 3.90 3.90
Stormwater 3.40 3.40 3.40 3.40 3.50 3.50
Hydro Electric 5.60 5.60 7.00 6.20 6.30 6.30
Total 121.67 128.14 116.79 134.99 137.19 137.59
Source: City Budget
City of Hastings
Full-Time Equivalent City Government Employees by Function/Program
Last Ten Fiscal Years
Unaudited
183
Table 16
2020 2021 2022 2023
1.00 1.00 1.00 1.00
3.85 3.85 4.00 4.00
6.40 6.40 6.10 6.10
2.00 2.00 2.00 2.00
1.25 1.25 1.25 1.25
3.00 3.00 3.00 3.00
36.35 35.00 35.00 36.50
4.00 4.00 4.00 6.50
1.00 1.00 1.00 1.00
6.90 5.90 5.90 5.90
5.54 5.54 5.54 5.54
13.80 12.50 13.50 13.50
8.70 8.70 8.70 8.70
0.15 0.15 0.15 0.15
0.25 0.25 0.25 0.25
18.80 18.80 19.80 23.80
4.70 4.70 4.70 4.70
1.75 1.75 1.75 1.75
0.25 0.25 0.25 0.25
5.20 5.20 5.20 5.20
3.90 3.90 3.90 3.90
3.50 3.50 3.50 3.50
6.30 6.30 6.30 6.30
138.59 134.94 136.79 144.79
Full-Time Equivalent Employees as of December 31st
184
Function/Program 2014 2015 2016 2017 2018
Police
Physical arrests 427 360 407 470 389
Parking violations 466 293 442 225 473
Traffic violations 1,754 1,309 1,153 1,455 1,269
Felony offenses 157 175 177 170 134
Gross misdemeanor offenses 110 139 176 203 164
Minor miscellaneous offenses 718 405 596 656 562
Calls for service 24,553 20,216 24,497 26,147 24,097
Part 1 Crimes 664 631 693 732 469
Part 2 Crimes 720 707 641 750 875
Fire
Emergency responses 3,184 3,495 3,249 3,735 3,681
Fires extinguished 49 74 53 38 85
Inspections 468 480 580 750 426
Building inspection
Permits issued
Residential 1,773 1,340 1,507 1,527 1,638
Commercial 49 165 106 106 103
Culture and recreation
Students participating in swim lessons 606 640 622 732 763
Ice rental hours 2,422 2,400 2,375 2,470 2,388
Turf rental hours 335 216 325 366 397
Recreational skaters 1,189 2,400 1,950 1,890 2,278
Water
New connections - - - - -
Water mains breaks - - - - -
Average daily consumption (thousands of gallons) 2,465 2,325 2,345 2,296 2,195
Peak daily consumption (thousands of gallons)5,520 4,945 5,100 - 4,725
Note: Indicators are not available for the general government function.
* Police department has changed reporting system and no longer have this data availalble.
Sources: Various City departments.
Unaudited
Fiscal Year
City of Hastings
Operating Indicators by Function/Program
Last Ten Fiscal Years
185
Table 17
2019 2020 2021 2022 2023
554 402 467 403 343
582 347 242 191 137
1,220 1,095 723 620 561
151 159 156 162 165
236 155 255 239 188
486 351 288 460 419
23,268 22,888 23,924 23,038 22,685
504 434 960 859 714
857 742 493 426 386
2,991 3,352 4,149 3,766 4,236
55 97 68 85 58
569 426 314 423 519
1,538 2,486 3,221 2,571 2,397
106 154 119 75 151
840 -924 889 1,033
2,377 1,755 1,864 2,316 2,356
352 17 157 310 307
2,570 1,708 3,126 3,012 2,850
--27 33 39
--3 5 5
2,026 2,280 2,449 2,355 2,345
3,965 4,130 6,465 5,175 5,135
Fiscal Year
186
Fiscal Year
Function/Program 2014 2015 2016 2017 2018 2019
Police
Stations 1 1 1 1 1 1
Fire stations 1 1 1 1 1 1
Refuse collection
Collection trucks
Other public works
Streets (miles)105.0 105.0 105.0 105.3 105.5 105.5
Culture and recreation
Acreage 640 640 640 640 640 640
Playgrounds 21 22 22 22 22 22
Baseball/softball diamonds 21 21 21 21 21 21
Soccer/football fields 10 10 21 21 21 21
Water
Water mains (miles)105 105 105 105.2 105.2 110.0
Fire hydrants 1,334 1,094 1,095 1,099 1,099 1,101
Storage capacity (thousands of gallons)2,750 2,750 2,750 2,750 2,750 2,750
Wastewater
Sanitary sewers (miles)89 89 89 89.1 89.3 89.5
Storm sewers (miles)74 74 74 74.1 74.2 74.5
Note: No capital asset indicators are available for the general government function.
Sources: Various City departments.
City of Hastings
Last Ten Fiscal Years
Unaudited
Capital Asset Statistics by Function/Program
187
Table 18
2020 2021 2022 2023
1 1 1 1
1 1 1 1
105.5 105.5 105.5 105.5
640 640 700 700
22 22 22 22
21 21 21 21
21 21 21 21
107.0 107.6 107.6 107.6
1,102 1,102 1,102 1,102
2,750 2,750 2,750 2,750
90.0 90.6 90.6 90.6
76.0 76.6 76.6 76.6
Fiscal Year