HomeMy WebLinkAboutCity of Hastings 2022 ACFRw w w.Has t i n g s m n.g o v /A C FR
City of Hastings,MN
Annual Comprehensive
Financial Report
For the fiscal year ended December 31,2022
ANNUAL
COMPREHENSIVE FINANCIAL REPORT
OF
THE CITY OF HASTINGS
MINNESOTA
For the Fiscal Year Ended December 31, 2022
Prepared by the City's Finance Department
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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 94
Schedule of City's Proportionate Share of Net Pension Liability
– General Employees Retirement Fund Schedule 2 95
Schedule of City's Proportionate Share of Net Pension Liability
– Public Employees Police and Fire Retirement Fund Schedule 2 95
City of Hastings
Table of Contents
Reference Page
II. FINANCIAL SECTION (CONTINUED)
D. Required Supplementary Information (Continued)
Schedule of City Contributions – General Employees Retirement Fund Schedule 3 97
Schedule of City Contributions – Public Employees Police and Fire
Retirement Fund Schedule 3 97
Schedule of Changes in Net Pension Liability
and Related Ratios - Hastings Firefighters' Benefit Association Schedule 4 98
Schedule of City and Non-Employer Entity Contributions -
Hastings Firefighters' Benefit Association Schedule 5 100
Notes to Required Supplementary Information 102
E. Supplementary Information
Detailed Schedule of Revenues, Expenditures, and Changes
in Fund Balance – Budget and Actual - General Fund Statement 14 110
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual - Debt Service Fund Statement 15 111
Combining Balance Sheet – Nonmajor Governmental Funds Statement 16 112
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Nonmajor Governmental Funds Statement 17 113
Combining Balance Sheet – Nonmajor Special Revenue Funds Statement 18 116
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Nonmajor Special Revenue Funds Statement 19 118
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Park and Recreation Special Revenue Fund Statement 20 120
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Cable Television Special Revenue Fund Statement 21 121
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Heritage Preservation Special Revenue Fund Statement 22 122
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Ice Arena Special Revenue Fund Statement 23 123
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – DUI Enforcement/Equipment Special
Revenue Fund Statement 24 124
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Aquatic Center Special Revenue Fund Statement 25 125
Combining Balance Sheet – Nonmajor Capital Projects Funds Statement 26 128
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Nonmajor Capital Project Funds Statement 27 130
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Park Projects Capital Projects Fund Statement 28 132
Balance Sheet – Nonmajor Permanent Fund Statement 29 133
City of Hastings
Table of Contents
Reference Page
II. FINANCIAL SECTION (CONTINUED)
E. Supplementary Information (Continued)
Statement of Revenues, Expenditures, and Changes in
Fund Balances – Nonmajor Permanent Fund Statement 30 134
Combining Statement of Net Position – Internal Service Funds Statement 31 136
Combining Statement of Revenues, Expenses, and Changes in
Fund Net Position – Internal Service Funds Statement 32 137
Combining Statement of Cash Flows – Internal Service Funds Statement 33 138
Component Unit Hastings Economic Development
and Redevelopment Authority
Balance Sheet Statement 34 142
Reconciliation of the Balance Sheet to the Statement of Net Position Statement 35 143
Statement of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual Statement 36 144
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances to the Statement of Activities Statement 37 145
Subcombining Balance Sheet Debt Service Fund Schedule 6 146
Subcombining Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Debt Service Fund Schedule 7 150
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
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1
INTRODUCTORY SECTION
2
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3
June 26,2023
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 31,2022.
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 Bergan KDV,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 31,2022.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
31,2022,are fairly presented in conformity with GAAP.The Independent Auditors'Report is
presented as the first component of the financial section of this report.
4
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 atthejunction 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 23,192 in 2022.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 laterthan 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-
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 15th. 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.
While we experienced a decrease in the number of permits, the overall value of work done in the
past year greatly increased. Below is a chart that gives a brief building permit history.
Permits 2022 2021 2020 2019 2018 2017
New Residential 33 34 56 14 15 30
New Commercial 5 3 2 2 3 1
Residential remodel 100 77 71 77 65 40
Commercial remodel 68 55 81 48 54 40
All other permits 2,438 3,265 2,430 1,503 1,604 1,518
TOTAL 2,644 3,434 2,640 1,644 1,741 1,629
Dollar value of Permits
(in millions)87.0$ 47.9$ 45.4$ 41.7$ 39.8$ 26.5$
5
6
Major Initiatives
In 2022 the City approved 176 new residential buildingpermits and 161commercial and industrial
permits for a combined valuation increase of 170 million dollars.Development included the
approval of three apartment buildings,opening of a new Fleet Farm,and industrial expansion.In
early 2023 the City approved an annexation of 70 acres to accommodate another 450 housing
units.
The City received a second $1.25 million allocation through the federal government's ARPA grant
to respond to the COVID-19 public health emergency.This second installment is the final portion
of the $2.5 million total allocation the City will receive.These funds will be spent toward
upgrading the City's infrastructure and capital needs.Repairing and preserving the historic City
Hall Dome remains the largest project planned to date.A new finance system is now scheduled
for completion in 2024.This will upgrade the City's cybersecurity,as well as bolster its financial
management capabilities.
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 Economic Development and Vitality,
Community Image and Engagement,and Operational Effectiveness &Financial Stability.
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.
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.
7
The City of Hastings currently 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 2022 Year End
a.)Total annual debt service for G.O.debt obligations per
legal debt limit to not exceed 25%of total budgeted
expenditures.
10.76%
b.)Net bonded debt outstanding will not exceed 3.5%of
Assessor's market value of taxable property..61%
c.)Gross bonded debt will not exceed $1,800 per capita.$577
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
Comprehensive Annual Financial Report (CAFR)for the year ended December 31,2021.This was
the 24th 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
8
City of Hastings
Elected Officials and Administration
December 31, 2022
Elected Officials Position Term Expires
Mary Fasbender Mayor December 31, 2022
Tina Folch 1st Ward December 31, 2024
Jen Fox 2nd Ward December 31, 2024
Lisa Leifeld 3rd Ward December 31, 2024
Trevor Lund 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
Travis Dunn 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
9
City of Hastings
City and Department Organizational Chart
December 31, 2022
City of Hastings Organizational Chart
CityAdministrator
Advisory Commissions
Mayor&Councilmembers
Re
s
i
d
e
n
t
s
an
d
Ta
x
p
a
y
e
r
s
Parks &Recreation Director
Public WorksDirector
Family AquaticCenter
CivicArena
Operations&Maintenance
Engineering
Fire&EMSDirector
InformationTechnology
Manager
Community Development
Director
Building Inspections
Code Enforecement
Community Development
Ci
t
y
of
Ha
s
t
i
n
g
s
HistroicPreservation
FacilitiesMaintenance
Finance Manager
HEDRA
City Clerk
Communications
HumanResources
Chief ofPolice
Assistant City Administrator
City of Hastings
Certificate of Achievement for Excellence in Financial Reporting
10
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Hastings
Minnesota
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31,2021
Executive Director.CEO
11
FINANCIAL SECTION
12
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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, 2022,
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, 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, 2022, 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.
Emphasis of Matter – Implementation of GASB 87
The City has adopted new accounting guidance, Governmental Accounting Standards Board (GASB)
Statement No. 87, Leases. Our opinion is not modified with respect to this matter
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.
berganKDV
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Responsibilities of Management for the Financial Statements (Continued)
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 one year beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
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 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.
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Required Supplementary Information (Continued)
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.
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 May 31, 2023,
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.
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Other Reporting Required by Government Auditing Standards (Continued)
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.
St. Cloud, Minnesota
May 31, 2023
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City of Hastings
Management's Discussion and Analysis
December 31, 2022
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, 2022. 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, 2022) by
$93,047,837 (net position). Of this amount, $14,957,386 (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 $2,895,563. Of this total, $2.2 million was due to
revenue increases in charges for services, state aid, and property taxes.
As of the close of the 2022 fiscal year, the City of Hastings governmental funds ending fund
balances were $21,632,834. Approximately 36.95% 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 2.04% of the fund balance is non-
spendable. Approximately 17.77% 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 4.49% of the fund
balance, the remaining 38.75% 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
$10,200,207 or 63.9% 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.
18
City of Hastings
Management's Discussion and Analysis
December 31, 2022
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, 2022
Overview of the Financial Statements (Continued)
Governmental funds (Continued). The City maintains 20 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 51-92 of this report.
20
City of Hastings
Management's Discussion and Analysis
December 31, 2022
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 110-151 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 $93,047,837 at the close of the most recent fiscal year.
By far the largest portion of the City's net position (73.25%) reflects its investment in capital assets (e.g.,
land, buildings, machinery, and equipment); less any related debt used to acquire those assets that is still
outstanding. The City of Hastings uses these capital assets to provide services to citizens; consequently,
these assets are not available for future spending. Although the City of Hastings' investment in capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt must
be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
City of Hastings' Net Position
Governmental Governmental Business-type Business-type
Activities Activities Activities Activities Total Total
2021 2022 2021 2022 2021 2022
Current and
other assets 30,622,442$ 38,289,056$ 10,171,761$ 11,804,063$ 40,794,203$ 50,093,119$
Capital assets 59,743,113 61,020,836 30,220,574 31,855,530 89,963,687 92,876,366
Total assets 90,365,555 99,309,892 40,392,335 43,659,593 130,757,890 142,969,485
Total deferred outflows 8,389,218 15,124,253 508,937 430,381 8,898,155 15,554,634
Long-term liabilities
outstanding 24,908,673 43,923,502 6,687,682 8,296,597 31,596,355 52,220,099
Other liabilities 6,094,883 7,339,143 884,025 1,028,503 6,978,908 8,367,646
Total liabilities 31,003,556 51,262,645 7,571,707 9,325,100 38,575,263 60,587,745
Total deferred inflows 10,400,190 4,862,810 528,318 25,727 10,928,508 4,888,537
Net Position
44,179,337 43,579,389 24,268,293 24,584,961 68,447,630 68,164,350
Restricted
Police activities 113,606 82,112 - - 113,606 82,112
Tax Increment 24,766 21,990 24,766 21,990
Debt service 7,346,220 7,725,877 - - 7,346,220 7,725,877
Capital projects 1,149,928 1,015,753 - - 1,149,928 1,015,753
Escrow 16,234 4,497 16,234 4,497
Permanent endowment
LeDuc Historic Estate - -
Unrestricted 3,196,284 4,803,200 8,532,954 10,154,186 11,729,238 14,957,386
Total net position 57,351,027$ 58,308,690$ 32,801,247$ 34,739,147$ 90,152,274$ 93,047,837$
Net Investment in capital assets
1,075,8721,324,652 1,075,872 1,324,652
21
City of Hastings
Management's Discussion and Analysis
December 31, 2022
Government-wide Financial Analysis (Continued)
City of Hastings' Net Position (Continued)
At the end of 2022, 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
$957,663. The key elements of this increase were in revenues. Public Safety saw an increase of
$461,151, while Culture and Recreation saw an increase of $226,535 in charges for services. Property
taxes increased just over $1 million, while unrestricted state aid increased $244,594.
City of Hastings' Changes in Net Position
Governmental Governmental Business-type Business-type
Activities Activities Activities Activities Total Total
2021 2022 2021 2022 2021 2022
Revenues
Program revenues
Charges for services 5,926,787$ 6,873,080$ 7,003,670$ 7,828,381$ 12,930,457$ 14,701,461$
Operating grants & contributions 1,314,781 1,125,789 - - 1,314,781 1,125,789
Capital grants & contributions 4,831,331 2,185,950 788,199 800,611 5,619,530 2,986,561
General revenues:
Property taxes 15,464,584 16,487,748 - - 15,464,584 16,487,748
State aid 920,451 1,165,045 - - 920,451 1,165,045
Other income (loss) 107,113 (296,104) (8,409) (192,309) 98,704 (488,413)
Total Revenues 28,565,047 27,541,508 7,783,460 8,436,683 36,348,507 35,978,191
Expenses
General government 3,093,576 3,560,823 - - 3,093,576 3,560,823
Public safety 9,459,406 12,044,540 - - 9,459,406 12,044,540
Public works 6,667,995 6,017,835 - - 6,667,995 6,017,835
Culture & recreation 3,810,177 4,695,960 - - 3,810,177 4,695,960
Economic development 48,930 66,819 - - 48,930 66,819
Health & sanitation 59,362 50,726 - - 59,362 50,726
Interest on long-term debt 396,991 482,428 - - 396,991 482,428
Water - - 2,413,301 2,356,748 2,413,301 2,356,748
Sewer - - 2,567,037 2,716,736 2,567,037 2,716,736
Storm - - 401,155 491,006 401,155 491,006
Hydro - - 521,731 599,007 521,731 599,007
Total Expenses 23,536,437 26,919,131 5,903,224 6,163,497 29,439,661 33,082,628
Change in net position before transfers
and contributions 5,028,610 622,377 1,880,236 2,273,186 6,908,846 2,895,563
Transfers and contributions 50,087 335,286 (50,087) (335,286) - -
Change in net position 5,078,697 957,663 1,830,149 1,937,900 6,908,846 2,895,563
Net position-January 1 52,272,330 57,351,027 30,971,098 32,801,247 83,243,428 90,152,274
Net position-December 31 57,351,027$ 58,308,690$ 32,801,247$ 34,739,147$ 90,152,274$ 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, 2022
Government-wide Financial Analysis (Continued)
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
$
i
n
t
h
o
u
s
a
n
d
s
Programs
Expenses and Program Revenues-Governmental Activities
Expenses Program Revenues
Property taxes,
59%
State aid, 4%
Operating grants
5%
Charges for
Services 25%
Capital grants,
8%
Investment
earnings -2%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, 2022
Government-wide Financial Analysis (Continued)
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
92.79%
Capital grants9.49%
Investment earnings
-2.28%Grants & Contributions
0.00%
Revenue Sources - Business Type Activities
$
in
th
o
u
s
a
n
d
s
Operating Expenses and Operating Revenues -Business Type Activities
Operating Revenues Operating Expenses
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 $21,632,834. Approximately 38.76% of this total amount or $8,385,421
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 increase of
$719,582. The fund balance change is primarily due to the effect of the following factors:
The General fund balance increased by $1,170,209. This increase was primarily a result of
strong revenues related to increases in the levy and an increased number of building permits,
combined with expenditure savings in many departments, primarily in personnel and capital.
Fire and Ambulance fund's activity resulted in a decrease of $654,970. This is a result of a
significant decrease in charges for ambulance service revenue. The City is taking steps to
improve collections in 2023.
Debt Service funds had a fund balance increase of $196,116 due to transfers in moving principal
and interest payments from the Downtown Redevelopment Tax Increment Financing fund to the
debt service fund ($206,500).
Road Improvement Construction fund had a fund balance increase of $108,541 due to the timing
of capital projects and related debt issuances.
Other Governmental Funds such as the Aquatic, Cable TV, Heritage Preservation, LeDuc, and
Arena had a cumulative decrease of $100,314. The primary factor in this decrease was the large
negative market value adjustment due to worsening market conditions.
The General Fund is the chief operating fund of the City of Hastings. At the end of the current fiscal
year, unassigned fund balance of the general fund was $10,200,207.
The Fire and Ambulance special revenue fund has a total fund balance of $674,565. This fund accounts
for the activities of the Fire and Ambulance department for the City of Hastings.
The Debt Service fund has a total fund balance of $5,996,391, most of which is restricted for the
payment of debt service.
The Road Improvement Construction capital projects fund has a deficit fund balance of $523,471 due to
timing differences between bond proceeds, timing of grants and capital projects.
25
City of Hastings
Management's Discussion and Analysis
December 31, 2022
Financial Analysis of the Government's Funds (Continued)
Proprietary funds. The City of Hastings' proprietary funds provide the same type of information found
in the government-wide financial statements, but in more detail. Unrestricted net position in the
respective proprietary funds are:
Water 4,911,806$
Sewer 3,903,464
Storm 957,239
Hydro 286,891
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 2019-2020 utility rate study
that continues to be implemented. The Hydro Plant had a second consecutive year with its activities
resulting in an increase to net position.
General Fund Budgetary Highlights
Actual expenditures were lower than the amended expenditure budget. The most significant differences
from the final budget amounts are due to the following:
Delays to the City Hall Dome project resulted in $2.2 million less spending than budgeted.
The Finance system project was also delayed, resulting in $316,857 less spending than planned.
The Public Works department street division was $410,770 below budget. Most of this was in
capital equipment purchases that were delayed. The largest was a $260,000 dump truck.
Actual revenues were less than the amended revenue budget by $2.6 million. The difference from the
final budget amounts is primarily due to the following:
Intergovernmental revenues were $2 million less than budgeted, due to delays in the City Hall
Dome project. The $2 million is a reimbursable grant from the state of MN.
Because the pace of multiple projects funded by the ARPA grant were slowed, $1.256 million
less than planned could be recognized as revenue. These funds are still available to finish the
planned projects.
Building permit revenues were again over budget due to increased construction work in 2022.
Significant changes between original and final budgets were a result of:
Increased spending authority for consultants working of the County Road 46 study, and the
compensation study.
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, 2022, amounts to $92,876,366 (net of accumulated
depreciation/amortization) an increase of $2,912,679. This investment in capital assets includes land,
buildings, improvements, machinery and equipment, park facilities, and infrastructure.
26
City of Hastings
Management's Discussion and Analysis
December 31, 2022
City of Hastings Capital Assets
(Net of Depreciation/Amortization)
2021 2022
2021 2022 Business- Business-
Governmental Governmental Type Type 2021 2022
Activities Activities Activities Activities Total Total
Land 3,690,736$ 3,693,211$ 349,300$ 349,300$ 4,040,036$ 4,042,511$
Construction in Progress 775,829 287,252 - 2,420 775,829 289,672
Buildings 8,319,253 9,458,454 5,921,530 5,506,381 14,240,783 14,964,835
Improvement other
than buildings 3,105,480 2,983,902 1,776,354 2,516,074 4,881,834 5,499,976
Machinery and Equipment 2,781,165 3,633,851 2,653,875 2,835,556 5,435,040 6,469,407
Leased Equipment - 368,572 - 61,957 - 430,529
Infrastructure 41,070,650 40,595,594 19,519,515 20,583,842 60,590,165 61,179,436
Total assets 59,743,113$ 61,020,836$ 30,220,574$ 31,855,530$ 89,963,687$ 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
$6,740,000 comprises debt backed by the full faith and credit of the government and $12,835,000 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 66-71.
Economic Factors
In 2022, the City experienced higher levels of residential and commercial remodels than 2021, and new
residential construction was even from year-to-year. The overall increase in taxable market value of
residential and commercial new construction was $87.0 million which is $39.1 million higher than 2021.
The City experienced an increase of tax capacity of $804,758 between pay year 2021 and pay year 2022.
Next Year's Budget
The 2023 budget included a levy increase of $1,079,320, or 6.624%. Of this, $744,731 was due to tax
capacity growth and the remainder of $334,589 was derived from the property tax rate, decreased by
5.641%. The City anticipates receiving $904,501 of Local Government Aid from the State of
Minnesota, which is dedicated to funding one-time expenditures. Cost of Living increases and Capital
projects and Capital equipment purchases made up the increase from 2022 to 2023.
Requests for Information
This financial report is designed to provide a general overview of the City of Hastings' finances.
Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Finance Manager at 101 4th Street East, Hastings, MN 55033,
FinanceDept@hastingsmn.gov or 651-480-2350.
27
BASIC FINANCIAL STATEMENTS
28
(THIS PAGE LEFT BLANK INTENTIONALLY)
See notes to basic financial statements. 29
Statement 1
Governmental
Activities
Business-type
Activities Total
Assets
Cash and investments
(including cash equivalents)23,881,674$ 9,994,420$ 33,876,094$ 1,088,654$
Cash with fiscal agent 730,953 - 730,953 -
Restricted cash 108,872 - 108,872 -
Receivables
Accounts receivable 988,663 1,490,892 2,479,555 2,458
Interest receivable 129,017 16,785 145,802 2,353
Taxes receivable 1,641,795 - 1,641,795 43,618
Special assessments receivable 1,992,439 162,693 2,155,132 -
Loan receivable - - - 227,295
Lease receivable 3,912,346 - 3,912,346 -
Net pension asset 2,860,203 - 2,860,203 -
Due from other governments 1,802,246 - 1,802,246 1,510,739
Inventories 32,062 - 32,062 -
Prepaid items 208,786 139,273 348,059 227
Assets held for resale - - - 3,069,490
Capital assets not being depreciated
Land 3,693,211 349,300 4,042,511 -
Construction in progress 287,252 2,420 289,672 -
Capital assets net of accumulated depreciation/amortization
Buildings and structures 9,458,454 5,506,381 14,964,835 87,999
Machinery and equipment 3,633,851 2,835,556 6,469,407 -
Leased equipment 368,572 61,957 430,529
Improvements other than buildings 2,983,902 2,516,074 5,499,976 -
Infrastructure 40,595,594 20,583,842 61,179,436 -
Total assets 99,309,892$ 43,659,593$ 142,969,485$ 6,032,833$
Deferred Outflows of Resources
Deferred outflows of resources related to fire relief pensions 225,038 - 225,038 -
Deferred outflows of resources related to City pensions 13,726,477 300,374 14,026,851 71,221
Deferred outflows of resources related to OPEB 1,172,738 130,007 1,302,745 23,879
Total deferred outflows of resources 15,124,253 430,381 15,554,634 95,100
Total assets and deferred outflows of resources 114,434,145$ 44,089,974$ 158,524,119$ 6,127,933$
Liabilities
Accounts and contracts payable 943,999$ 177,176$ 1,121,175$ 2,057$
Interest payable 271,423 105,870 377,293 -
Salaries and benefits payable 480,790 55,282 536,072 8,768
Due to other governments 88,413 16,049 104,462 1,260,739
Deposits payable 609,908 - 609,908 16,700
Unearned revenue 2,360,060 5,415 2,365,475 -
Bonds payable, net
Payable within one year 2,310,000 630,000 2,940,000 -
Payable after one year 16,076,363 6,583,666 22,660,029 -
Lease payable
Payable within one year 108,161 14,149 122,310 -
Payable after one year 230,455 42,754 273,209 -
Compensated absences payable
Payable within one year 166,389 24,562 190,951 -
Payable after one year 1,715,388 215,084 1,930,472 -
Payable after one year
Net pension liability 21,929,588 1,014,790 22,944,378 240,616
Total other post employment benefits (OPEB) liability 3,971,708 440,303 4,412,011 80,872
Total liabilities 51,262,645 9,325,100 60,587,745 1,609,752
Deferred Inflows of Resources
Deferred inflows of resources related to fire relief pensions 704,992 - 704,992 -
Deferred inflows of resources related to City pensions 320,179 21,752 341,931 5,298
Deferred inflows of resources related to leases 3,801,774 - 3,801,774 -
Deferred inflows of resources related to OPEB 35,865 3,975 39,840 730
Total deferred inflows of resources 4,862,810 25,727 4,888,537 6,028
Net Position
Net investment in capital assets 43,579,389 24,584,961 68,164,350 87,999
Restricted for
Debt service 7,725,877 - 7,725,877 -
Tax increment 21,990 - 21,990 -
Capital projects 1,015,753 - 1,015,753 -
Escrow 4,497 - 4,497 -
Police activities 82,112 - 82,112 -
LeDuc Historic Estate - unexpendable 200,000 - 200,000 -
LeDuc Historic Estate - expendable 875,872 - 875,872 -
Unrestricted 4,803,200 10,154,186 14,957,386 4,424,154
Total net position 58,308,690 34,739,147 93,047,837 4,512,153
Total liabilities, deferred inflows of resources, and net position 114,434,145$ 44,089,974$ 158,524,119$ 6,127,933$
Hastings
Economic
Development
and
Redevelopment
Authority
City of Hastings
Statement of Net Position
December 31, 2022
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 3,560,823$ 258,649$ 7,261$ -$
Public safety 12,044,540 4,043,048 691,621 -
Public works 6,017,835 954,701 305,348 1,767,950
Health and sanitation 50,726 35 30,923 -
Culture and recreation 4,695,960 1,534,431 71,052 418,000
Economic development 66,819 - 19,584 -
Interest and fiscal charges 482,428 82,216 - -
Total governmental activities 26,919,131 6,873,080 1,125,789 2,185,950
Business-type activities
Water 2,356,748 3,139,177 - 461,302
Sewer 2,716,736 3,025,373 - 339,309
Storm 491,006 806,607 - -
Hydro 599,007 857,224 - -
Total business-type activities 6,163,497 7,828,381 - 800,611
Total governmental and
business-type activities 33,082,628$ 14,701,461$ 1,125,789$ 2,986,561$
Component unit
Hastings Economic Development
Redevelopment Authority 654,835$ 27,162$ 47,748$ -$
General revenues
Property taxes
Lodging taxes
Unrestricted state aid
Unrestricted investment earnings
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, 2022
31
Statement 2
Governmental
Activities
Business-Type
Activities Total
Hastings
Economic and
Redevelopment
Authority
(3,294,913)$ -$ (3,294,913)$ -$
(7,309,871) - (7,309,871) -
(2,989,836) - (2,989,836) -
(19,768) - (19,768) -
(2,672,477) - (2,672,477) -
(47,235) - (47,235) -
(400,212) - (400,212) -
(16,734,312) - (16,734,312)
- 1,243,731 1,243,731 -
- 647,946 647,946 -
- 315,601 315,601 -
- 258,217 258,217 -
- 2,465,495 2,465,495
(16,734,312)$ 2,465,495$ (14,268,817)$ -$
-$ -$ -$ (579,925)$
16,484,080 - 16,484,080 414,268
3,668 - 3,668 -
1,165,045 - 1,165,045 -
(353,682) (151,823) (505,505) (14,153)
57,578 (40,486) 17,092 -
335,286 (335,286) - -
17,691,975 (527,595) 17,164,380 400,115
957,663 1,937,900 2,895,563 (179,810)
57,351,027 32,801,247 90,152,274 4,691,963
58,308,690$ 34,739,147$ 93,047,837$ 4,512,153$
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 10,801,170$ 181,621$ 5,389,183$
Cash with fiscal agent - - -
Restricted cash 108,872 - -
Interest receivable 104,463 320 10,630
Due from other governments 1,730,305 50 -
Accounts receivable 228,211 554,093 -
Due from other funds - - 339,258
Property taxes receivable 978,413 143,573 261,813
Lease receivable 3,912,346 - -
Special assessments receivable - - 1,992,439
Advances to other funds 1,260,739 - -
Inventory 25,611 - -
Prepaid items 171,170 31,212 3,977
Total assets 19,321,300$ 910,869$ 7,997,300$
Liabilities
Accounts payable 483,337$ 81,821$ -$
Due to other governments 77,614 8,432 -
Deposits payable - - -
Salaries and benefits payable 301,808 130,875 -
Due to other funds - - -
Advances from other funds - - -
Unearned revenues 2,354,607 - -
Total liabilities 3,217,366 221,128 -
Deferred Inflows of Resources
Unavailable revenue - taxes and assessments 104,483 15,176 2,000,909
Advanced appropriations - State Shared Taxes 1,616,112 - -
Unavailable revenue - leases 3,801,774 - -
Unavailable revenue - grants 32,836 - -
Total deferred inflows of resources 5,555,205 15,176 2,000,909
Fund Balances
Nonspendable
Prepaid items 171,170 31,212 3,977
Inventory 25,611 - -
Permanent Endowment-Leduc Historic Estate - - -
Restricted
Police activities 32,124 - -
Debt service - - 5,992,414
Capital projects - - -
Tax increment financing - - -
Leduc Historic Estate 119,617 - -
Escrow
Committed
Park Maintenance - - -
Aquatic operations - - -
Cable TV activities - - -
Heritage preservation activities - - -
Fire and ambulance activities - 643,353 -
Arena activities - - -
Assigned
Capital - - -
Unassigned 10,200,207 - -
Total fund balances 10,548,729 674,565 5,996,391
Total liabilities, deferred inflows of resources, and fund balances 19,321,300$ 910,869$ 7,997,300$
City of Hastings
Balance Sheet - Governmental Funds
December 31, 2022
Special
Revenue
33
Statement 3
Capital
Project
Road
Improvement
Construction
(470-483)
Other
Governmental
Funds
Total
Governmental
Funds
-$ 5,821,997$ 22,193,971$
- 730,953 730,953
- - 108,872
- 10,696 126,109
- 71,891 1,802,246
- 206,359 988,663
- 30,224 369,482
- 224,463 1,608,262
- - 3,912,346
- - 1,992,439
- - 1,260,739
- 6,451 32,062
352 2,075 208,786
352$ 7,105,109$ 35,334,930$
184,565$ 192,356$ 942,079$
- 2,367 88,413
- 609,908 609,908
- 48,107 480,790
339,258 30,224 369,482
- 1,260,739 1,260,739
- 1,955 2,356,562
523,823 2,145,656 6,107,973
- 22,833 2,143,401
- - 1,616,112
- - 3,801,774
- - 32,836
- 22,833 7,594,123
352 2,075 208,786
- 6,451 32,062
- 200,000 200,000
- 49,972 82,096
- - 5,992,414
- 1,015,753 1,015,753
- 21,990 21,990
- 756,255 875,872
4,497 4,497
- 2,014,442 2,014,442
- 407,090 407,090
- 145,741 145,741
- 120,476 120,476
- - 643,353
- 512,325 512,325
- 970,516 970,516
(523,823) (1,290,963) 8,385,421
(523,471) 4,936,620 21,632,834
352$ 7,105,109$ 35,334,930$
34
(THIS PAGE LEFT BLANK INTENTIONALLY)
See notes to basic financial statements. 35
Statement 4
Total fund balances - governmental funds 21,632,834$
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 156,605,923
Less accumulated depreciation/amortization (97,439,486)
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 (17,250,000)
Unamortized bond premium and discount (1,136,363)
Lease payable (338,616)
Net pension liability (21,919,588)
Revenues in the Statement of Activities that do not provide current financial resources are deferred
in the funds.
Taxes and special assessments 2,143,401
Grants, state shared tax, and other 1,648,948
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 (704,992)
Deferred inflows of resources related to city pensions (320,179)
Deferred outflows of resources related to fire relief pensions 225,038
Deferred outflows of resources related to city pensions 13,726,477
The Fire Relief Association net pension asset created through contributions to a defined benefit
pension plan which is not recognized in the governmental funds. 2,860,203
Governmental funds do not report a liability for accrued interest due and payable. (271,423)
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. (1,143,487)
Total net position - governmental activities 58,318,690$
December 31, 2022
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 9,968,113$ 1,441,229$ 2,423,510$
Tax increment collections - - -
Miscellaneous taxes 3,668 - -
Licenses and permits 966,071 - -
Intergovernmental 2,342,079 241,769 -
Special assessments - - 926,911
Charges for services 1,405,128 2,333,224 82,215
Fines and forfeitures 85,710 - -
Investment income (285) (15,680) (81,369)
Contributions and donations 10,867 4,120 -
Miscellaneous 29,669 - -
Total revenues 14,811,020 4,004,662 3,351,267
Expenditures
Current
General government 3,217,280 - -
Public safety 6,511,233 4,456,607 -
Public works 1,846,612 - -
Health and sanitation 50,726 - -
Culture and recreation 204,282 - -
Economic development - - -
Debt service
Principal 97,671 - 2,915,000
Interest and fiscal charges - - 458,968
Capital outlay
General government 440,314 - -
Public safety 251,035 152,215 -
Public works 545,958 - -
Culture and recreation 12,475 - -
Total expenditures 13,177,586 4,608,822 3,373,968
Excess of revenues over (under) expenditures 1,633,434 (604,160) (22,701)
Other Financing Sources (Uses)
Proceeds from sale of capital asset 65,538 34,584 -
Bonds issued - - -
Premium on bonds issued - - -
Proceeds from leases 191,375 - -
Transfers in 510,962 - 218,817
Transfers out (1,231,100) (85,394) -
Total other financing sources (uses) (463,225) (50,810) 218,817
Net change in fund balances 1,170,209 (654,970) 196,116
Fund Balances
Beginning of year 9,378,520 1,329,535 5,800,275
End of year 10,548,729$ 674,565$ 5,996,391$
Special
Revenue
City of Hastings
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds
Year Ended December 31, 2022
37
Statement 5
Capital
Project
Road
Improvement
Construction
(470-483)
Other
Governmental
Funds
Total
Governmental
Funds
-$ 2,268,374$ 16,101,226$
- 48,796 48,796
- - 3,668
- - 966,071
- - 2,583,848
- - 926,911
- 1,324,234 5,144,801
- 626 86,336
- (229,927) (327,261)
- 29,148 44,135
- 622,960 652,629
- 4,064,211 26,231,160
- - 3,217,280
- 2,420 10,970,260
60,316 - 1,906,928
- - 50,726
- 3,643,853 3,848,135
- 66,819 66,819
- - 3,012,671
79,946 14,497 553,411
- - 440,314
- - 403,250
3,121,427 1,625,233 5,292,618
- 263,430 275,905
3,261,689 5,616,252 30,038,317
(3,261,689) (1,552,041) (3,807,157)
- 12,582 112,704
3,135,000 975,000 4,110,000
235,230 73,244 308,474
- - 191,375
- 879,527 1,609,306
- (488,626) (1,805,120)
3,370,230 1,451,727 4,526,739
108,541 (100,314) 719,582
(632,012) 5,036,934 20,913,252
(523,471)$ 4,936,620$ 21,632,834$
See notes to basic financial statements. 38
Statement 6
719,582$
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 6,280,126
Depreciation/amortization expense (5,366,100)
Disposal of capital assets (55,126)
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 (314,869)
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 3,012,671
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. (165,195)
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. (72,296)
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. (4,301,375)
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 255,109
Grants, state shared tax, and other 331,167
Internal Service Funds are used by management to charge the costs of insurance and capital equipment
to individual funds. The net revenue of certain activities of Internal Service Funds is reported with
governmental activities in the government-wide financial statements. 633,969
957,663$ 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, 2022
See notes to basic financial statements. 39
Statement 7
Original Final
Actual
Amounts
Revenues
General property taxes 9,655,471$ 9,655,471$ 9,968,113$ 312,642$
Lodging taxes 3,255 3,255 3,668 413
Special assessments 1,000 1,000 - (1,000)
Licenses and permits 492,750 492,750 966,071 473,321
Intergovernmental revenues 5,208,853 6,099,953 2,342,079 (3,757,874)
Charges for services 903,079 903,079 1,405,128 502,049
Fines and forfeitures 100,500 100,500 85,710 (14,790)
Investment income 49,500 49,500 (285) (49,785)
Contributions and donations - 10,867 10,867 -
Other revenues 68,000 69,400 29,669 (39,731)
Total revenues 16,482,408 17,385,775 14,811,020 (2,574,755)
Expenditures
General Government 3,508,058 3,723,033 3,314,951 (408,082)
Public safety 6,389,484 6,499,719 6,511,233 11,514
Public works 1,776,985 1,962,985 1,846,612 (116,373)
Health and sanitation 45,050 45,050 50,726 5,676
Culture and recreation 158,072 158,072 204,282 46,210
Capital outlay 3,880,391 4,822,066 1,249,782 (3,572,284)
Total expenditures 15,758,040 17,210,925 13,177,586 (4,033,339)
Excess of revenues over expenditures 724,368 174,850 1,633,434 1,458,584
Other Financing Sources (Uses)
Proceeds from sale of capital assets - - 65,538 65,538
Proceeds from leases - - 191,375 191,375
Transfers in 532,260 544,735 524,068 (20,667)
Transfers out (1,231,731) (1,244,206) (1,244,206) -
Total other financing sources (uses) (699,471) (699,471) (463,225) 236,246
Net change in fund balances 24,897$ (524,621)$ 1,170,209 1,694,830$
Fund Balances
Beginning of year 9,378,520
End of year 10,548,729$
2022
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, 2022
See notes to basic financial statements. 40
Statement 8
Original Final
Actual
Amounts
Revenues
Property taxes 1,430,645$ 1,430,645$ 1,441,229$ 10,584$
Intergovernmental 178,000 178,000 241,769 63,769
Charges for services 2,964,530 2,964,530 2,333,224 (631,306)
Investment income 2,000 2,000 (15,680) (17,680)
Contributions and donations - 4,120 4,120 -
Total revenues 4,575,175 4,579,295 4,004,662 (574,633)
Expenditures
Current
Public safety 4,333,796 4,355,914 4,456,607 100,693
Capital outlay
Public safety 155,985 195,137 152,215 (42,922)
Total expenditures 4,489,781 4,551,051 4,608,822 57,771
Excess of revenues over (under) expenditures 85,394 28,244 (604,160) (632,404)
Other Financing Sources (Uses)
Proceeds from sale of capital asset - 28,782 34,584 5,802
Transfers out (85,394) (85,394) (85,394) -
Total other financing sources (uses) (85,394) (56,612) (50,810) 5,802
Net change in fund balance -$ (28,368)$ (654,970) (626,602)$
Fund Balance
Beginning of year 1,329,535
End of year 674,565$
2022
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, 2022
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 5,061,827$ 3,457,030$ 1,096,267$ 284,427$ 9,899,551$ 1,782,572$
Taxes receivable - - - - - 33,533
Interest receivable 9,141 4,690 2,255 565 16,651 3,042
Accounts receivable - net 497,683 705,922 217,772 69,515 1,490,892 -
Special assessments receivable
Deferred 149,166 13,527 - - 162,693 -
Prepaid items 889 138,324 53 7 139,273 -
Total current assets 5,718,706 4,319,493 1,316,347 354,514 11,709,060 1,819,147
Noncurrent assets
Capital assets, not being depreciated
Land 349,300 - - - 349,300 -
Construction in progress - 2,420 - - 2,420 -
Capital assets, being depreciated
Buildings 8,046,482 144,798 - 6,831,566 15,022,846 -
Infrastructure 23,596,352 20,403,336 357,927 - 44,357,615 -
Right to use 32,437 33,455 - - 65,892 -
Machinery and equipment 3,019,451 898,488 508,798 3,806,459 8,233,196 2,283,660
Improvements other than buildings 4,918,084 - 157,659 - 5,075,743 -
Total capital assets 39,962,106 21,482,497 1,024,384 10,638,025 73,107,012 2,283,660
Less: accumulated depreciation/amortization (20,882,724) (11,926,911) (123,897) (8,317,950) (41,251,482) (429,261)
Net capital assets 19,079,382 9,555,586 900,487 2,320,075 31,855,530 1,854,399
Total noncurrent assets 19,079,382 9,555,586 900,487 2,320,075 31,855,530 1,854,399
Total assets 24,798,088 13,875,079 2,216,834 2,674,589 43,564,590 3,673,546
Deferred Outflows of Resources
Deferred outflows of resources related to pensions 131,308 80,095 77,574 11,397 300,374 -
Deferred outflows of resources related to OPEB 53,064 37,145 34,492 5,306 130,007 1,172,738
Total deferred outflows of resources 184,372 117,240 112,066 16,703 430,381 1,172,738
Total assets and deferred outflows of resources 24,982,460$ 13,992,319$ 2,328,900$ 2,691,292$ 43,994,971$ 4,846,284$
Liabilities
Current liabilities
Accounts payable 135,990$ 23,013$ 6,394$ 11,562$ 176,959$ 2,137$
Due to other governments 16,045 - - 4 16,049 -
Interest payable 82,739 23,131 - - 105,870 -
Salaries payable 22,272 16,181 14,724 2,105 55,282 -
Compensated absences 9,677 6,288 7,715 882 24,562 166,389
Unearned revenue - - - 5,415 5,415 3,498
Lease payable - current portion 7,264 6,885 - - 14,149 -
Bonds payable - current portion 510,000 120,000 - - 630,000 -
Total current liabilities 783,987 195,498 28,833 19,968 1,028,286 172,024
Noncurrent liabilities
Compensated absences 99,765 67,611 64,492 7,778 239,646 1,881,777
Bonds payable, net 5,544,656 1,669,010 - - 7,213,666 -
Lease payable 29,214 27,689 - - 56,903 -
Total OPEB liability 179,715 125,802 116,814 17,972 440,303 3,971,708
Net pension liability 443,614 270,595 262,077 38,504 1,014,790 -
Less amount due within one year (526,941) (133,173) (7,715) (882) (668,711) (166,389)
Total noncurrent liabilities 5,770,023 2,027,534 435,668 63,372 8,296,597 5,687,096
Total liabilities 6,554,010 2,223,032 464,501 83,340 9,324,883 5,859,120
Deferred Inflows of Resources
Deferred inflows of resources related to pensions 9,509 5,800 5,618 825 21,752 -
Deferred inflows of resources related to OPEB 1,623 1,136 1,055 161 3,975 35,865
Total deferred inflows of resources 11,132 6,936 6,673 986 25,727 35,865
Net Position
Net investment in capital assets 13,505,512 7,858,887 900,487 2,320,075 24,584,961 1,854,399
Unrestricted 4,911,806 3,903,464 957,239 286,891 10,059,400 (2,903,100)
Total net position 18,417,318 11,762,351 1,857,726 2,606,966 34,644,361 (1,048,701)
Total liabilities, deferred inflows of resources, and net position 24,982,460$ 13,992,319$ 2,328,900$ 2,691,292$ 4,846,284$
Adjustment to reflect the consolidation of internal
service fund activities related to enterprise funds 94,786
Total business-type acitivites net position 34,739,147$
City of Hastings
Statement of Net Position - Proprietary Funds
December 31, 2022
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 3,130,205$ 2,850,263$ 802,509$ 726,439$
Other income 3,862 169,373 - 129,830
Total operating revenues 3,134,067 3,019,636 802,509 856,269
Operating expenses
Personnel services 633,889 383,932 362,258 46,641
Supplies 107,713 6,201 5,134 649
Professional services 516,488 182,409 84,596 372,829
Metro waste control charge - 1,595,532 - -
Depreciation 943,576 493,793 42,872 179,787
Repairs and maintenance - 1,600 - -
Total operating expenses 2,201,666 2,663,467 494,860 599,906
Operating income (loss) 932,401 356,169 307,649 256,363
Nonoperating revenues (expenses)
Investment income (70,710) (44,484) (31,805) (3,795)
Special assessments 59,148 - - -
Intergovernmental - - - -
Miscellanenous - (291) - -
Gain (loss) on disposal of capital assets 9,082 - (49,568) -
Property taxes - - - -
Interest expense (159,845) (58,955) - -
Total nonoperating revenues (expenses)(162,325) (103,730) (81,373) (3,795)
Income (loss) before transfers 770,076 252,439 226,276 252,568
Capital contributions from developers 402,154 339,292 - -
Transfers in - 18,333 - -
Transfers out (38,877) (37,293) (8,655) (268,794)
Change in net position 1,133,353 572,771 217,621 (16,226)
Net position
Beginning of year 17,283,965 11,189,580 1,640,105 2,623,192
End of year 18,417,318$ 11,762,351$ 1,857,726$ 2,606,966$
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
Year Ended December 31, 2022
Business-Type Activities Enterprise Funds
City of Hastings
Statement of Revenues, Expenses, and Changes
in Fund Net Position - Proprietary Funds
43
Statement 10
Business-Type Governmental
Activities Activities -
Enterprise Internal
Funds Service
Total Funds
7,509,416$ 1,206,127$
303,065 -
7,812,481 1,206,127
1,426,720 444,366
119,697 -
1,156,322 752,023
1,595,532 -
1,660,028 193,970
1,600 -
5,959,899 1,390,359
1,852,582 (184,232)
(150,794) (27,449)
59,148 -
- 7,261
(291) 337
(40,486) -
- 337,334
(218,800) -
(351,223) 317,483
1,501,359 133,251
741,446 -
18,333 531,100
(353,619) -
1,907,519 664,351
(1,713,052)
(1,048,701)$
30,424
1,937,943$
See notes to basic financial statements. 44
Water (600) Sewer (601) Storm (603) Hydro (620)
Cash Flows - Operating Activities
Receipts from customers 3,169,954$ 2,849,421$ 796,174$ 718,324$
Interfund services provided and used - - - -
Payments to suppliers for goods and services (540,781) (1,853,913) (84,212) (429,513)
Payments to employees for services (587,345) (397,576) (373,579) (53,309)
Other operating revenues 3,862 169,373 - 129,830
Net cash flows - operating activities 2,045,690 767,305 338,383 365,332
Cash Flows - Noncapital Financing Activities
Property taxes - - - -
Special assessments - 1,831 302 -
Misellaneous - (291) - -
Intergovernmental receipts - - - -
Transfer to other funds (38,877) (37,293) (8,655) (268,794)
Transfer from other funds - 18,333 - -
Net cash flows - noncapital financing activities (38,877) (17,420) (8,353) (268,794)
Cash Flows - Capital and Related Financing Activities
Principal paid on debt (410,786) (47,311) - -
Interest paid on debt (171,186) (65,905) - -
Special assessments 56,820 - - -
Bond proceeds 1,420,000 285,000 - -
Bond premium issued 107,170 21,108 - -
Acquisition of capital assets (1,602,776) (725,444) (319,884) -
Proceeds from disposal of capital assets 9,082 - 44,999 -
Net cash flows - capital and related financial activities (591,676) (532,552) (274,885) -
Cash Flows - Investing Activities
Investment income (74,967) (46,061) (32,576) (4,082)
Net change in cash and cash equivalents 1,340,170 171,272 22,569 92,456
Cash and Cash Equivalents
3,721,657 3,285,758 1,073,698 191,971
5,061,827$ 3,457,030$ 1,096,267$ 284,427$
Reconciliation of Operating Income (Loss) to
Net Cash Flows - Operating Activities
Operating income (loss) 932,401$ 356,169$ 307,649$ 256,363$
Adjustments to reconcile operating income
(loss) to net cash flows - operating activities
Depreciation 943,576 493,793 42,872 179,787
Pension expense 62,200 (6,371) (6,171) (907)
Accounts receivable 39,749 (842) (6,335) (8,315)
Prepaid items 11,582 (5,332) 98 8
Accounts payable 73,927 (62,839) 5,420 (61,141)
Salaries payable 3,589 2,864 2,435 253
Due to other governments (2,089) - - (317)
Unearned revenue - - - -
OPEB expense (9,335) (4,185) (7,243) (599)
Compensated absences payable (9,910) (5,952) (342) (5,415)
Total adjustments 1,113,289 411,136 30,734 108,969
Net cash flows - operating activities 2,045,690$ 767,305$ 338,383$ 365,332$
Noncash Capital and Related
Financing Activities
Capital contributions 402,154$ 339,292$ -$ -$
January 1
December 31
City of Hastings
Statement of Cash Flows - Proprietary Funds
Year Ended December 31, 2022
Business-Type Activities -
Enterprise Funds
45
Statement 11
Business-Type
Activities -
Enterprise Funds
Total
Governmental
Activities -
Internal Service
Funds
7,533,873$ -$
- 1,206,117
(2,908,419) (911,936)
(1,411,809) (289,481)
303,065 -
3,516,710 4,700
- 332,340
2,133 -
(291) 337
- 7,261
(353,619) -
18,333 531,100
(333,444) 871,038
(458,097) -
(237,091) -
56,820 -
1,705,000 -
128,278 -
(2,648,104) (367,880)
54,081 -
(1,399,113) (367,880)
(157,686) (29,166)
1,626,467 478,692
8,273,084 1,303,880
9,899,551$ 1,782,572$
1,852,582$ (184,232)$
1,660,028 193,970
48,751 -
24,257 10
6,356 10,000
(44,633) (47,828)
9,141 -
(2,406) -
- (20)
(21,362) (122,085)
(21,619) 154,885
1,664,128 188,932
3,516,710$ 4,700$
741,446$ -$
46
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47
TRUST FUNDS
See notes to basic financial statements. 48
Statement 12
Library
Private-Purpose
Trust Fund
Assets
Cash and investments 89,976$
Interest receivable 186
Total assets 90,162$
Net Position
Held in trust for library 90,162$
City of Hastings
Statement of Fiduciary Net Position
December 31, 2022
See notes to basic financial statements. 49
Statement 13
Library
Private-
Purpose
Trust Fund
Additions
Investment earnings (2,661)$
Deductions
Other services and charges 1,000
Change in net position (3,661)
Beginning net position 93,823
Ending net position 90,162$
Year Ended December 31, 2022
City of Hastings
Statement of Changes in Fiduciary Net Position
50
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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.
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)
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.
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.
Proprietary Funds:
Water Fund – This fund accounts for the activities related to the operation of a water distribution
system.
Sewer Fund – This fund accounts for resources and payments related to the operation of a
sanitary collection 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)
Proprietary Funds:(Continued)
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.
Permanent Fund – This fund accounts for the trusts of the Simmons family for the LeDuc
Historic Estate that was transferred over to the City in 2005. The income of these trust is used for
the operations at the LeDuc Historic Estate as a historical museum.
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, 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.
55
City of Hastings
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, and Net Position or Equity (Continued)
2. Receivables (Continued)
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.
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.
56
City of Hastings
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, and Net Position or Equity (Continued)
4. Deferred Outflows/Inflows of Resources (Continued)
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.
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, 2022, other than right to use assets resulting from the
implementation of GASB Statement Number 87 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, 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 Years
Buildings 15-50
Furniture and fixtures 5-20
Motor vehicles 5
Heavy equiptment 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
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. 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.
58
City of Hastings
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, and Net Position or Equity (Continued)
7. Long-Term Obligations(Continued)
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, 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, 2022, was $875,872. Both the initial
endowment of $200,000 and the net appreciation of $875,872 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 the Drug Awareness Special Revenue Fund,
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, 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 2022.
Several of the budgets changed in total as a result of the Council-approved appropriations.
B. Deficit Fund Equity
The Road Improvement Construction had deficit of $523,823. This fund's deficit is expected to be
covered from future grants. The NAPA TIF had a deficit of $7,048. The Schoolhouse Square Tax
Increment Financing had a deficit of $1,889 The Downtown Redevelopment TIF had a deficit of
$1,282,026. These fund's deficits are expected to be covered from future tax increment revenues.
NOTE 3 – DEPOSITS AND INVESTMENTS
A. Deposits
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized
by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes
require that all City deposits be protected by insurance, surety bond, or collateral. The market value of
collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Minnesota
Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a
financial institution other than that furnishing the collateral. As of December 31, 2022, the City was not
exposed to custodial credit risk because deposits were fully insured and collateralized. As of
December 31, 2022, the City has the following deposits:
Checking 3,384,573$
61
City of Hastings
Notes to Basic Financial Statements
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments
As of December 31, 2022, the City had the following investments and maturities:
GASB 72 Rating Fair Less than
level (Moody/S&P)Value One Year 1-5 Years 6-10 Years
Pooled Investments
Taxable Municipals 2 Aa2/AA 7,299,968$ 353,753$ 4,817,412$ 2,128,802$
Brokered Certificates of Deposit 1 NR 5,591,602 923,745 4,461,802 206,055
External Investment Pool - 4M Fund N/A NR 13,855,802 13,855,802 - -
Money Market N/A NR 5,030,126 5,030,126 - -
Total Pooled Investments 31,777,498 20,163,426 9,279,214 2,334,857
Non-Pooled Investments
Brokered Cash N/A N/A 5,928 5,928 - -
Equity 1N/A 406,602 406,602 - -
Fixed Income Securities 2 N/A 273,672 273,672 - -
Real Estate 2 N/A 44,751 44,751 - -
Total Non-Pooled Investments 730,953 730,953 - -
Total 32,508,451$ 20,894,379$ 9,279,214$ 2,334,857$
Investment Type
Investment Maturities
The City has the following recurring fair value measurements as of December 31, 2022:
$5,998,204 of $32,508,451 are valued using a quoted market prices (Level 1 inputs)
$7,618,391 of $32,508,451 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 – For investments in securities, custodial credit risk 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
$10,000,000 supplemental insurance protection.
62
City of Hastings
Notes to Basic Financial Statements
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
Summary of cash deposits and investments as of December 31, 2022, were as follows:
Deposits (Note 3.A.)3,384,573$
Investments (Note 3.B.)32,508,451
Petty cash 1,525
Total deposits and investments 35,894,549$
Deposits and investments are presented in the December 31, 2022, basic financial statements as follows:
Statement of Net Position
Cash and investments - City 33,876,094$
Cash and investments - HEDRA 1,088,654
Cash with fiscal agent 730,953
Restricted cash 108,872
Statement of Fiduciary Net Position
Cash and investments 89,976
Total deposits and investments 35,894,549$
63
City of Hastings
Notes to Basic Financial Statements
NOTE 4 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2022, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets not being depreciated/amortized
Land 3,690,736$ 2,475$ -$ 3,693,211$
Construction in progress 775,829 3,397,642 (3,886,219) 287,252
Total capital assets
not being depreciated 4,466,565 3,400,117 (3,886,219) 3,980,463
Capital assets being depreciated/amortized
Buildings 21,060,495 1,625,234 - 22,685,729
Machinery and equipment 12,042,184 1,600,652 (1,050,839) 12,591,997
Improvements other than buildings 5,073,218 111,836 - 5,185,054
Leased equipment 244,913 224,766 - 469,679
Infrastructure 111,909,120 3,571,620 (1,504,079) 113,976,661
Total capital assets
being depreciated 150,329,930 7,134,108 (2,554,918) 154,909,120
Less accumulated depreciation/amortization for
Buildings (12,741,242) (486,033) - (13,227,275)
Machinery and equipment (9,261,019) (744,903) 1,047,776 (8,958,146)
Improvements other than buildings (1,967,738) (233,414) - (2,201,152)
Leased equipment - (101,107) - (101,107)
Infrastructure (70,838,470) (3,994,613) 1,452,016 (73,381,067)
Total accumulated
depreciation/amortization (94,808,469) (5,560,070) 2,499,792 (97,868,747)
Total capital assets being
depreciated/amortized, net 55,521,461 1,574,038 (55,126) 57,040,373
Governmental activities capital
position, net 59,988,026$ 4,974,155$ (3,941,345)$ 61,020,836$
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 - 2,420
Total capital assets not
being depreciated/amortized 349,300 2,420 - 351,720
Capital assets being depreciated/amortized
Buildings 15,022,846 - - 15,022,846
Machinery and equipment 7,984,813 508,649 (260,266) 8,233,196
Leased equipment - 65,892 - 65,892
Improvements other than buildings 4,199,943 875,800 - 5,075,743
Infrastructure 42,467,504 1,936,789 (46,678) 44,357,615
Total capital assets
being depreciated/amortized 69,675,106 3,387,130 (306,944) 72,755,292
Less accumulated depreciation/amortized for
Buildings (9,101,316) (415,149) - (9,516,465)
Machinery and equipment (5,330,938) (232,402) 165,700 (5,397,640)
Leased equipment - (3,935) - (3,935)
Improvements other than buildings (2,423,589) (136,080) - (2,559,669)
Infrastructure (22,947,989) (872,462) 46,678 (23,773,773)
Total accumulated
depreciation/amortized (39,803,832) (1,660,028) 212,378 (41,251,482)
Total capital assets being
depreciated/amortized, net 29,871,274 1,727,102 (94,566) 31,503,810
Business-type activities
capital assets, net 30,220,574$ 1,729,522$ (94,566)$ 31,855,530$
Depreciation/amortization expense was charged to functions/programs of the City as follows:
Governmental activities
General government 177,847$
Public safety 516,923
Public works 4,082,592
Cultural and recreation 588,738
Internal service funds 193,970
Total depreciation/amortization expense - governmental activities 5,560,070$
Business-type activities
Water 943,576$
Sewer 493,793
Storm 42,872
Hydro 179,787
Total depreciation/amortization expense - business-type activities 1,660,028$
65
City of Hastings
Notes to Basic Financial Statements
NOTE 4 – CAPITAL ASSETS (CONTINUED)
Discretely Presented Component Unit
Activity for the HEDRA for the year ended December 31, 2022, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Capital Assets being depreciated
Buildings and Structures 744,195$ -$ (267,305)$ 476,890$
Less accumulated depreciated for
Buildings and Structures (650,696) (5,500) 267,305 (388,891)
Total capital assets being depreciated, net 93,499 (5,500) - 87,999
Component unit capital assets, net 93,499$ (5,500)$ -$ 87,999$
NOTE 5 – INTERFUND ASSETS/LIABILITIES
The composition of interfund balances as of December 31, 2022, is as follows:
Receivable Fund Payable Fund Amount
Debt Service Road Improvement Construction 339,258$
Other Governmental Funds Other Government Funds 30,224
Total 369,482$
Advances To/From Other Funds
Receivable Fund Payable Fund Amount
General Fund Other Government Funds 1,260,739$
The due from/due to other funds balances represent borrowing to resolves deficit cash balances.
The $1,260,739 from the General Fund was money to make the Bond principal and interest payments for
the Downtown Redevelopment TIF District due to delays in development and collection of tax
increment revenue. The advance will be paid back when the District starts producing sufficient tax
increment revenue.
66
City of Hastings
Notes to Basic Financial Statements
NOTE 6 – INTERFUND TRANSFERS
Non-major
Debt Governmental Internal
Transfers Out General Service Funds Service Sewer Total
General -$ -$ 700,000$ 531,100$ -$ 1,231,100$
Fire and ambulance 85,394 - - - -85,394
Non-major governmental funds 90,282 218,817 179,527 - -488,626
Water 38,877 - - - -38,877
Sewer 37,293 - - - -37,293
Storm 8,655 - - - -8,655
Hydro 250,461 - - - 18,333 268,794
Total 510,962$ 218,817 879,527$ 531,100$ 18,333$ 2,158,739$
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 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.
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 $18,935,000. The G.O.
Improvement Bonds currently outstanding are as follows:
Issue Interest Original Final Balance Due Within
Date Rates Issue Maturity End of Year One Year
G.O. Improvement Bonds, Series 2012A 10/17/12 2.00%-3.00% 1,700,000 02/01/23 180,000$ 180,000$
G.O. Improvement Bonds, Series 2013B 11/20/13 0.40%-2.45% 1,265,000 02/01/24 260,000 130,000
G.O. Improvement Bonds, Series 2014A 11/25/14 0.65%-2.50% 2,345,000 02/01/25 795,000 260,000
G.O. Improvement Bonds, Series 2015A 09/03/15 2.00%-2.20% 360,000 02/01/26 150,000 35,000
G.O. Improvement Bonds, Series 2016B 11/03/16 2.00% 995,000 02/01/27 525,000 100,000
G.O. Improvement Bonds, Series 2017A 11/02/17 2.75%-2.875% 1,015,000 02/01/28 630,000 100,000
G.O. Improvement Bonds, Series 2018A 07/18/18 3.00%- 4.00% 1,580,000 02/01/29 1,140,000 150,000
G.O. Improvement Bonds, Series 2019A 08/08/19 5.00% 2,595,000 02/01/30 2,225,000 235,000
G.O. Improvement Bonds, Series 2020A 10/01/20 2.00%-4.00% 2,045,000 02/01/31 1,895,000 180,000
G.O. Improvement Bonds, Series 2021A 08/02/21 1.00%-3.00% 925,000 02/01/32 925,000 75,000
G.O. Improvement Bonds, Series 2022A 06/01/22 3.00%-5.00% 4,110,000 02/01/33 4,110,000 -
Total 12,835,000$ 1,445,000$
67
City of Hastings
Notes to Basic Financial Statements
NOTE 7 – LONG-TERM DEBT (CONTINUED)
A.G.O. Improvement Bonds (Continued)
Annual debt service requirements to maturity for G.O. Improvement Bonds are as follows:
Year Ending
December 31, Principal Interest Total
2023 1,445,000$ 482,196$ 1,927,196$
2024 1,645,000 399,561 2,044,561
2025 1,560,000 340,494 1,900,494
2026 1,335,000 284,491 1,619,491
2027 1,345,000 229,964 1,574,964
2028-2032 5,015,000 431,665 5,446,665
2033 490,000 7,350 497,350
Total 12,835,000$ 2,175,721$ 15,010,721$
Governmental Activities
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 $1,410,000. The equipment certificates currently outstanding are as follows:
Issue Interest Original Final Balance Due Within
Date Rates Issue Maturity End of Year One Year
Certificate of Participation, Series 2013B 11/20/13 0.40%-2.45% 1,410,000$ 02/01/24 190,000$ 95,000$
Annual debt service requirements to maturity for these equipment certificates are as follows:
Year Ending
December 31, Principal Interest Total
2023 95,000$ 3,420$ 98,420$
2024 95,000 1,164 96,164
Total 190,000$ 4,584$ 194,584$
Governmental Activities
68
City of Hastings
Notes to Basic Financial Statements
NOTE 7 – LONG-TERM DEBT (CONTINUED)
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 $8,485,000.
The general obligation revenue bonds currently outstanding are as follows:
Issue Interest Original Final Balance Due Within
Date Rates Issue Maturity End of Year One Year
G.O. Refunding Bonds, Series 2013A 02/21/13 2.00% 2,565,000$ 02/01/27 1,340,000$ 265,000$
G.O. Improvement Bonds, Series 2018A 07/18/18 3.00%-4.00% 1,260,000 02/01/29 925,000 115,000
G.O. Improvement Bonds, Series 2019A 08/08/19 5.00% 675,000 02/01/30 575,000 60,000
G.O. Improvement Bonds, Series 2020A 10/01/20 2.00-4.00% 1,135,000 02/01/31 1,050,000 100,000
G.O. Improvement Bonds, Series 2021A 08/02/21 1.00-3.00% 1,145,000 02/01/32 1,145,000 90,000
G.O. Improvement Bonds, Series 2022A 06/01/22 3.00%-5.00% 1,705,000 02/01/33 1,705,000 -
Total 6,740,000$ 630,000$
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
1,264,619$ 25,276$ 5,980,468$
G.O. Improvement Bonds,
Series 2021A
Utility
Infrastructure
Utility
Charges 100% 2021-2032
Current Year
284,350$
150,050$
90,250$
122,300$
3,130,205$
5,980,468$
3,130,205$
5,980,468$
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
1,407,500$
1,036,475$
697,125$
1,204,000$
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$ -$ 5,980,468$
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
2023 630,000$ 226,954$ 856,954$
2024 805,000 190,963 995,963
2025 815,000 163,357 978,357
2026 850,000 134,968 984,968
2027 875,000 105,488 980,488
2028-2032 2,560,000 192,281 2,752,281
2033 205,000 3,074 208,074
Total 6,740,000$ 1,017,085$ 7,757,085$
Governmental Activities
69
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 $5,735,000. The general obligation charter bonds
currently outstanding are as follows:
Issue Interest Original Final Balance Due Within
Date Rates Issue Maturity End of Year One Year
G.O. Improvement Bond, Series 2014A - Charter 11/25/14 0.65%-2.50% 650,000$ 02/01/25 220,000$ 70,000$
G.O. Improvement Bond, Series 2015A - Charter 09/03/15 2.00%-2.20% 2,100,000 02/01/26 895,000 220,000
G.O. Improvement Bond, Series 2016B - Charter 11/03/16 2.00% 2,005,000 02/01/27 1,125,000 215,000
G.O. Improvement Bond, Series 2018A - Charter 07/18/18 3.00%-4.00% 980,000 02/01/29 725,000 90,000
Total 2,965,000$ 595,000$
Annual debt service requirements to maturity for general obligation charter bonds are as follows:
Year Ending
December 31, Principal Interest Total
2023 595,000$ 78,935$ 673,935$
2024 610,000 64,985 674,985
2025 625,000 50,723 675,723
2026 565,000 36,047 601,047
2027 345,000 21,680 366,680
2028-2029 225,000 17,575 242,575
Total 2,965,000$ 269,945$ 3,234,945$
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 1,260,000$ 175,000$
70
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:
December 31, Principal Interest Total
2023 175,000$ 28,000$ 203,000$
2024 175,000 24,500 199,500
2025 180,000 20,950 200,950
2026 185,000 16,838 201,838
2027 185,000 12,213 197,213
2028-2029 360,000 9,487 369,487
Total 1,260,000$ 111,988$ 1,371,988$
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
2023 108,161$ 15,818$ 123,979$ 14,149$ 2,524$ 16,673$
2024 110,030 10,405 120,435 14,873 1,800 16,673
2025 67,671 4,920 72,591 15,633 1,039 16,672
2026 44,648 1,506 46,154 12,248 257 12,505
2027 8,106 97 8,203 - - -
Total 338,616$ 32,746$ 371,362$ 56,903$ 5,620$ 62,523$
Business Type ActivitiesGovernmental Activities
71
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 Retirements Balance One Year
Governmental activities
Bonds payable
General obligation debt 180,000$ -$ (180,000)$ -$ -$
GO improvement debt 10,550,000 4,110,000 (1,825,000) 12,835,000 1,445,000
Equipment certificates 340,000 -(150,000) 190,000 95,000
City charter bonds 3,550,000 -(585,000) 2,965,000 595,000
Tax increment bonds 1,435,000 -(175,000) 1,260,000 175,000
Lease obligations 244,913 191,375 (97,672) 338,616 108,161
Plus (less) deferred amounts
for premium and discount 971,168 308,474 (143,279) 1,136,363 -
Total bonds payable 17,271,081 4,609,849 (3,155,951) 18,724,979 2,418,161
Compensated absences 1,726,892 956,261 (801,376) 1,881,777 166,389
Total governmental activities 18,997,973$ 5,566,110$ (3,957,327)$ 20,606,756$ 2,584,550$
Ending Ending Due Within
Balance Additions Retirements Balance One Year
Business-type activities
Bonds payable
G.O. revenue bonds 5,550,000$ 1,705,000$ (515,000)$ 6,740,000$ 630,000$
Lease obligations - 60,582 (3,679) 56,903 14,149
Plus (less) deferred amounts
for premium or discount 402,281 128,278 (56,893) 473,666 -
Total bonds payable 5,952,281 1,893,860 (575,572) 7,270,569 644,149
Compensated absences payable 261,265 58,064 (79,683) 239,646 24,562
Total business-type activities 6,213,546$ 1,951,924$ (655,255)$ 7,510,215$ 668,711$
The governmental activities, compensated absences, pensions, and other post-employment benefit
obligations are generally liquidated by the general, special revenue, and internal service funds.
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.
72
City of Hastings
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS
The City participates in various pension plans. Total pension expense for the year ended December 31,
2022, was $1,917,243, the discretely presented component unit's portion of this expense is $36,512. 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.
B.Benefits Provided
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.
73
City of Hastings
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
B. Benefits Provided (Continued)
General Employees Plan Benefits (Continued)
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. For members
retiring on January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if
hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring
under Rule of 90 are exempt from the delay to normal retirement.
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.
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
2022 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, 2022, were $411,531 of
this amount, the discretely presented component unit contributed $17,989. The City's contributions were
equal to the required contributions as set by state statute.
74
City of Hastings
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
C. Contributions (Continued)
Police and Fire Plan Contributions
Police and Fire Plan members were required to contribute 11.8% of their annual covered salary in fiscal
year 2022 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, 2022, were $906,616. 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, 2022, the City reported a liability of $5,504,423 for its proportionate share of the
General Employees Fund's net pension liability, of this amount, the discretely presented component unit
was allocated $240,616. 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
$161,514. The net pension liability was measured as of June 30, 2022, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of that date. The
City's proportionate share of the net pension liability was based on the City's contributions received by
PERA during the measurement period for employer payroll paid dates from July 1, 2021, through June
30, 2022, relative to the total employer contributions received from all of PERA's participating
employers. The City's proportionate share was 0.0695% at the end of the measurement period and
0.0698% for the beginning of the period.
City's proportionate share of the net pension liability 5,504,423$
State of Minnesota's proportionate share of the net pension
liability associated with the City 161,514
Total 5,665,937$
For the year ended December 31, 2022, the City recognized pension expense of $745,493 for its
proportionate share of General Employees Plan's pension expense of this amount, the discretely
presented component unit was allocated $36,512.Included in the amount, the City recognized $24,134
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 $1,055.
75
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)
At December 31, 2022, 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 $71,221 of deferred
outflows of resources and $5,298 of deferred inflows of resources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic
experience 45,977$ 59,145$
Changes in actuarial assumptions 1,250,966 22,871
Net collective difference between
projected and actual investment earnings 90,647 -
Change in proportion 35,937 39,175
Contributions paid to PERA subsequent to the measurement date 205,765 -
Total 1,629,292$ 121,191$
The $205,765 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, 2023, of this amount the discretely presented
component unit contributed $8,995 subsequent to year end. Other amounts reported as deferred outflows
and inflows of resources related to pensions will be recognized in pension expense as follows:
Year Ended Pension
December Expense
2023 496,786$
2024 482,995
2025 (175,237)
2026 497,792
Total 1,302,336$
76
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
At December 31, 2022, the City reported a liability of $17,680,571 for its proportionate share of the
Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2022,
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, 2021, through June 30, 2022, relative to the total employer contributions received from all
of PERA's participating employers. The City's proportionate share was 0.4063%, at the end of the
measurement period and 0.3830% for the beginning of the period.
The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended
June 30, 2022. The contribution consisted of $9 million in direct state aid that does meet 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, 2021. 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 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, 2022, the City recognized pension expense of $1,622,679 for its proportionate
share of the Police and Fire Plan's pension expense. Included in this amount, the City recognized
$149,841 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 $36,567 for the year ended December 31, 2022, as revenue and an offsetting reduction of the
net pension liability for its proportionate share of the State of Minnesota's on-behalf contributions to the
Police and Fire Fund.
77
City of Hastings
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs (Continued)
At December 31, 2022, the City reported its proportionate share of the Police and Fire Plan's deferred
outflows of resources and deferred inflows of resources related to pensions from the following sources.
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic
experience 1,053,732$ -$
Changes in actuarial assumptions 10,196,270 99,383
Net collective difference between
projected and actual investment earnings 485,470 -
Change in proportion 280,000 127,246
Contributions paid to PERA subsequent to the measurement
date 453,308 -
Total 12,468,780$ 226,629$
The $453,308 reported as deferred outflows of resources related to pensions resulting from City of
Hastings contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended December 31, 2023. Other amounts reported as deferred outflows and
inflows of resources related to pensions will be recognized in pension expense as follows:
Year Ended Pension Expense
December 31 Amount
2023 2,278,472$
2024 2,319,687
2025 2,062,896
2026 3,626,758
2027 1,501,030
Total 11,788,843$
78
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 Asset Class
F. Actuarial Assumptions
The total pension liability in the June 30, 2022, 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 6.5%. 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 6.5% 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. The Police
and Fire Plan benefit increase is fixed at 1% per year and that increase was used in the valuation.
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 2019. The assumption changes were adopted by the
Board and became effective with the July 1, 2020, actuarial valuation.
79
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 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.
The following changes in actuarial assumptions and plan provisions occurred in 2022:
General Employees Fund
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 previous valuation.
Police and Fire Fund
Changes in Actuarial Assumptions
The mortality improvement scale was changed from MP-2020 to MP-2021.
The single discount rates were changed from 6.5% to 5.4%.
Changes in Plan Provisions
There have been no changes since the previous valuation.
G. Discount Rate
The discount rate for the General Employees Plan used to measure the total pension liability in 2022 was
6.5%. 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 Fund 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.
In the Police and Fire Fund, the fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members through June 30, 2060. Beginning in the fiscal year
ended June 30, 2061, projected benefit payments exceed the fund's projected fiduciary net position.
Benefit payments projected after were discounted at the municipal bond rate of 3.69% (based on the
weekly rate closest to but not later than the measurement date of the Fidelity "20-Year Municipal GO
AA Index"). The resulting equivalent single discount rate of 5.4% for the Police and Fire Fund was
determined to give approximately the same present value of projected benefits when applied to all years
of projected benefits as the present value of projected benefits using 6.5% applied to all years of
projected benefits through the point of asset depletion and 3.69% thereafter.
80
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
City of Hastings proportionate share of (5.5%) (6.5%) (7.5%)
General Employees Retirement Fund net pension liability 8,311,965$ 5,263,807$ 2,772,525$
Discretely presented component unit 382,559 240,616 115,522
1% Decrease in Current 1% Increase in
Discount rate Discount Rate Discount Rate
City of Hastings proportionate share of (4.4%) (5.4%) (6.4%)
Police and Fire Fighters net pension liability 26,757,277$ 17,680,571$ 10,342,598$
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, 2022, 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 5,504,423$ 1,629,292$ 121,191$
Police and Fire 17,680,571 12,468,780 226,629
Total 23,184,994$ 14,098,072$ 347,820$
81
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, 2021, membership includes 34 active members
and 16 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.
82
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). During the year, the City recognized as revenue and as an expenditure an on
behalf payment of $219,587 made by the State of Minnesota for the Relief Association.
D. Pension Costs
At December 31, 2022, the City reported an asset of $2,860,203 for the Association's net pension asset.
The net pension asset was measured as of December 31, 2021, and the total pension liability used to
calculate the net pension asset was determined by an actuarial valuation as of January 1, 2021.
83
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, 2022, the City recognized pension expense of ($457,801). At
December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources
from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual liability -$ 153,113$
Changes in actuarial assumptions 5,451 74,566
Net difference between projected and actual earnings on
pension plan investments - 477,313
City contributions subsequent to the measurement date 219,587 -
Total 225,038$ 704,992$
$219,587 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2023.
Other amounts reported as deferred outflows and inflows of resources related to the Association's
pension will be recognized in pension expense as follows:
Year Ended Pension
December Expense
2023 (160,139)$
2024 (250,708)
2025 (146,891)
2026 (89,067)
2027 (42,387)
Thereafter (10,349)
Total (699,541)$
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)
E. Actuarial Assumptions
The actuarial total pension liability was determined as of December 31, 2022, 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 5.75 %
Investment rate of return 5.75
Salary increases 2.50
Valuation Date January 1, 2021
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.
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)
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, 2021, are summarized in the following table:
Asset Class
Cash 3.00 % 1.80 %
Other 1.00 6.00
Fixed income 29.00 3.00
Equities 67.00 7.10
100.00 %
Long-Term
Target Expected Real
Allocation Rate of Return
F. Discount Rate
The discount rate used to measure the total pension liability was 5.75%. 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 5.75%, 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 (4.75%) or one
percentage point higher (6.75%) than the current rate:
1% Decrease in Current 1% Increase in
Discount Rate Discount Rate Discount Rate
(4.75%) (5.75%) (6.75%)
Net pension liability (2,719,013)$ (2,860,203)$ (2,992,147)$
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)
H. Plan's Fiduciary Net Position
Information about the Plan's fiduciary net position is as follows:
2022
Total Pension Liability
Service cost 103,489$
Interest 132,832
Benefit payments, including member contribution refunds (348,567)
Net Change in Total Pension Liability (112,246)
Total Pension Liability - Beginning 2,380,921
Total Pension Liability - Ending (a) 2,268,675
Plan Fiduciary Net Position
State contributions 215,715
Net investment income 270,175
Gain or loss 233,367
Benefit payments (348,567)
Administrative expenses (13,862)
Net Change in Fiduciary Net Position 356,828
Fiduciary Net Position - Beginning 4,772,050
Fiduciary Net Position - Ending (b) 5,128,878
Association's Net Pension Liability (Asset) - Ending (a) - (b) (2,860,203)$
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.
87
City of Hastings
Notes to Basic Financial Statements
NOTE 10 - RETIREE HEALTH INSURANCE (CONTINUED)
B. Benefits Provided
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:
1)Retirees who are at least 55 years of age and are PERA Basic, PERA Coordinated, or PERA
Defined Contribution eligible; or
2)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
3)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.
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.
C. Contributions
Contribution requirements are established by the City. The required contributions are based on projected
pay-as-you-go financing requirements. For year 2022, the City contributed $481,242 to the plan, of this
amount the discretely presented component unit was allocated $8,807. As of December 31, 2022, there
were 27 retirees receiving health benefits from the City's health plan.
88
City of Hastings
Notes to Basic Financial Statements
NOTE 10 - RETIREE HEALTH INSURANCE (CONTINUED)
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, 2022. Using the following actuarial assumptions, applied to all periods
included in the measurement, unless otherwise specified:
Investment rate of return 2.00%, net of investment expense
Salary increases Service graded table
Inflation 2.00%
Healthcare cost trend increases 6.50% in 2022, decreasing over six 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 – January 1, 2022.
The discount rate used to measure the total OPEB liability was 2.00% based on 20 year municipal bond
index.
F. Total OPEB Liability
The City's total OPEB liability of $4,492,883 was measured as of January 1, 2022, and was determined
by an actuarial valuation as of January 1, 2022, of this amount the discretely presented component unit
was allocated $80,872.
89
City of Hastings
Notes to Basic Financial Statements
NOTE 10 - RETIREE HEALTH INSURANCE (CONTINUED)
F. Total OPEB Liability (Continued)
Changes in the total OPEB liability are as follows:
Total
OPEB
Liability
Balances at January 1, 2021 4,478,476$
Changes for the year
Service cost 101,368
Interest 87,994
Differences between expected and actual
economic experience 159,560
Assumption changes 27,580
Benefit payments (362,095)
Net changes 14,407
Balances at January 1, 2022 4,492,883$
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 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
(1.00%)
Current
Discount Rate
(2.00%)
1% Increase in
Discount Rate
(3.00%)
Primary government $ 4,806,177 4,412,011$ 4,077,931$
Discretely presented component unit 88,097 80,872 74,748
Total OPEB Liability (Asset)
90
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 4,054,335$ 4,412,011$ 4,836,081$
Discretely presented component unit 74,316 80,872 88,645
(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, 2022, the City recognized OPEB expense of $331,747, of this amount
$5,971 was allocated to the discretely presented component unit. At December 31, 2022, 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 $23,879 of
deferred outflows of resources and $730 of deferred inflows of resources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Assumption Changes 414,816$ 40,570$
Liability Losses 430,568 -
Subsequent contributions 481,240 -
Total 1,326,624$ 40,570$
91
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 $481,240 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, 2023, of this amount the discretely presented
component unit contributed $8,662 subsequent to year end. Other amounts reported as deferred outflows
of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as
follows:
Year Ended Pension
December Expense
2023 142,385$
2024 142,385
2025 142,385
2026 142,390
2027 152,526
Thereafter 82,743
Total 804,814$
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, 2022, the City generated $48,796 in tax increment revenue and made
$66,819 in payments to developers. No other commitments were made by the City as part of these
agreements.
92
City of Hastings
Notes to Basic Financial Statements
NOTE 13 – COMMITMENTS
A. Construction Commitments
Remaining
Commitment
Fund Project Amount
General Fund City Hall 41,865$
Nonmajor Capital Project - Park Projects Lake Isabel Redevelopment 491,663
Nonmajor Capital Project - Road Construction 2022 Neighborhood Improvements 151,440
Water Water Meter Replacement 166,000
Total 850,968$
NOTE 14 – LEASE RECEIVABLE
The City has implemented GASB 87 effective December 31, 2022, and has recognized a Lease
Receivable of $3,912,346 and Deferred Inflow of Resources of $3,801,774. Leases included in the
lease receivable is the leased space above the water towers to several communication companies.
NOTE 15 – NEW STANDARDS ISSUED BUT NOT YET IMPLEMENTED
GASB Statement No. 96, Subscription-Based Information Technology Arrangements establishes that a
Subscription-Based Information Technology Arrangement (SBITA) results in a right-to-use subscription
asset and a corresponding liability. Under this statement, a governmental entity generally should
recognize a right-to-use subscription asset – an intangible asset – and a corresponding subscription
liability. This statement will be effective for the year ending December 31, 2023.
93
REQUIRED SUPPLEMENTARY INFORMATION
OTHER THAN MD&A
See notes to required supplementary information. 94
Schedule 1
December 31, December 31, December 31, December 31, December 31,
2018 2019 2020 2021 2022
Total OPEB Liability
Service cost 79,277$ 74,791$ 89,043$ 106,253$ 101,368$
Interest 129,783 125,673 136,813 122,960 87,994
- - 465,526 - 159,560
Changes of assumptions - (81,147) 279,831 287,722 27,580
Benefit payments (329,263) (328,960) (354,697) (341,958) (362,095)
Net change in total OPEB liability (120,203) (209,643) 616,516 174,977 14,407
Beginning of year 4,016,829 3,896,626 3,686,983 4,303,499 4,478,476
Net OPEB liability 3,896,626$ 3,686,983$ 4,303,499$ 4,478,476$ 4,492,883$
7,919,006$ 8,156,576$ 8,548,373$ 8,804,824$ 8,799,920$
49.21% 45.20% 50.34% 50.86% 51.06%
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
City of Hastings
Schedule of Changes in Total OPEB Liability
and Related Ratios
Difference between expected and
actual experience
See notes to required supplementary information. 95
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%
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%
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
96
(THIS PAGE LEFT BLANK INTENTIONALLY)
See notes to required supplementary information. 97
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%
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%
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. 98
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 available.
City of Hastings
Schedule of Changes in Net Pension Liability
and Related Ratios - Hastings Firefighters' Benefit Association
Measurement Date
99
December 31, December 31, December 31, December 31,
2018 2019 2020 2021
111,448$ 100,316$ 107,881$ 103,489$
165,333 141,474 137,263 132,832
(154,138) - (82,834) -
(134,222) - - -
- 100,388 131,954 -
(323,775) (460,667) (385,293) (348,567)
(335,354) (118,489) (91,029) (112,246)
2,925,793 2,590,439 2,471,950 2,380,921
2,590,439$ 2,471,950$ 2,380,921$ 2,268,675$
187,040$ 192,649$ 205,703$ 215,715$
244,368 220,150 248,986 270,175
(452,848) 519,294 289,121 233,367
(323,775) (460,667) (385,293) (348,567)
(5,329) (15,351) (12,917) (13,862)
- - - -
(350,544) 456,075 345,600 356,828
4,320,919 3,970,375 4,426,450 4,772,050
3,970,375$ 4,426,450$ 4,772,050$ 5,128,878$
(1,379,936)$ (1,954,500)$ (2,391,129)$ (2,860,203)$
153.3% 179.1% 200.4% 226.1%
Measurement Date
See notes to required supplementary information. 100
December 31, December 31, December 31, December 31, December 31,
2014 2015 2016 2017 2018
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$ 185,040$
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
101
Schedule 5
December 31, December 31, December 31, December 31,
2019 2020 2021 2022
-$ -$ -$ -$
- - - -
-$ -$ -$ -$
190,649$ 202,703$ 212,715$ 219,587$
102
City of Hastings
Notes to Required Supplementary Information
General Employees Fund
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.
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.
103
City of Hastings
Notes to Required Supplementary Information
General Employees Fund (Continued)
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.
Postretirement benefit 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.
The assumed post-retirement benefit 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.
104
City of Hastings
Notes to Required Supplementary Information
General Employees Fund (Continued)
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.
105
City of Hastings
Notes to Required Supplementary Information
Police and Fire Fund
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.
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.
106
City of Hastings
Notes to Required Supplementary Information
Police and Fire Fund (Continued)
2019 Changes (Continued)
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
Postretirement benefit 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.
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%.
107
City of Hastings
Notes to Required Supplementary Information
Police and Fire Fund (Continued)
2017 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
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%.
108
City of Hastings
Notes to Required Supplementary Information
Hastings Fire Relief Association
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 $7,000 was reflected in the liability
Post-Employment Health Care Plan
There are no assets accumulated in a trust related to other post-employment benefits
2022 Changes
The health care trend rates were changed to better anticipate short term and long term medical
increases.
The mortality tables were updated from the Pub-2010 Public Retirement Plans Headcount-
Weighted Mortality Tables (General, Safety) with MP-2019 Generational Improvement Scale to
the Pub-2010 Public Retirement Plans Headcount-Weighted Mortality Tables (General, Safety)
with MP-2021 Generational Improvement Scale.
The salary increase rates were updated to reflect the latest experience study.
The retirement and withdrawal rates were updated to reflect the latest experience study.
The inflation rate was changed from 2.50% to 2.00%.
2021 Changes
The discount rate was changed from 2.90% to 2.00%.
2020 Changes
The health care trend rates, mortality tables, and salary scale assumptions were updated.
The discount rate was changed from 3.80% to 2.90%.
2019 Changes
The discount rate was changed from 3.30% to 3.8%.
109
SUPPLEMENTARY INFORMATION
110
Statement 14
Original Final
Actual
Amounts
Revenues
General property taxes 9,655,471$ 9,655,471$ 9,968,113$ 312,642$
Lodging taxes 3,255 3,255 3,668 413
Special assessments 1,000 1,000 - (1,000)
Licenses and permits 492,750 492,750 966,071 473,321
Intergovernmental revenues
State - police aid 250,000 250,000 297,989 47,989
State-MSA-street construction and maintenance 600,000 600,000 556,835 (43,165)
State- local government aid 903,259 903,259 903,259 -
State - market value credit - - 1,010 1,010
Federal grants and aids 687,994 1,564,994 309,046 (1,255,948)
Other grants and aids 2,767,600 2,781,700 273,940 (2,507,760)
Total intergovernmental revenues 5,208,853 6,099,953 2,342,079 (3,757,874)
Charges for services
General government 30,084 30,084 352,268 322,184
Public safety 166,495 166,495 494,481 327,986
Public works 704,000 704,000 517,420 (186,580)
Health and sanitation 2,500 2,500 40,959 38,459
Total charges for services 903,079 903,079 1,405,128 502,049
Fines and forfeitures 100,500 100,500 85,710 (14,790)
Investment income 49,500 49,500 (285) (49,785)
Contributions and donations - 10,867 10,867 -
Other revenues 68,000 69,400 29,669 (39,731)
Total miscellaneous 117,500 129,767 40,251 (89,516)
Total revenues 16,482,408 17,385,775 14,811,020 (2,574,755)
Expenditures
General Government
Legal 249,500 249,500 228,874 (20,626)
Mayor, legislative, city administration 366,754 445,653 417,674 (27,979)
Finance and accounting 620,765 636,765 673,001 36,236
City clerk and elections 593,097 638,097 555,200 (82,897)
Planning and economic development 164,460 144,460 149,325 4,865
I.T.726,593 733,793 655,584 (78,209)
Building maintenance 360,133 448,009 450,528 2,519
Miscellaneous 426,756 426,756 184,765 (241,991)
Capital outlay 2,728,365 3,657,565 440,314 (3,217,251)
Public safety
Police 5,738,621 5,751,263 5,745,612 (5,651)
Building safety and code enforecement 640,793 738,386 760,947 22,561
Emergency management services 5,570 5,570 3,254 (2,316)
Animal control 4,500 4,500 1,420 (3,080)
Capital outlay 289,726 289,726 251,035 (38,691)
Public works
Engineering 585,833 585,833 522,059 (63,774)
Street maintenance 974,352 1,160,352 1,065,926 (94,426)
Street lights 216,800 216,800 258,627 41,827
Capital outlay 862,300 862,300 545,958 (316,342)
Health and sanitation
Reforestation 21,000 21,000 34,415 13,415
Recycling 24,050 24,050 16,311 (7,739)
Culture and recreation
Senior center 81,900 81,900 132,706 50,806
LeDuc historic estate 76,172 76,172 71,576 (4,596)
Capital outlay - 12,475 12,475 -
Total expenditures 15,758,040 17,210,925 13,177,586 (4,033,339)
Excess of revenues over (under) expenditures 724,368 174,850 1,633,434 1,458,584
Other Financing Sources (Uses)
Proceeds from sale of capital assets - - 65,538 65,538
Proceeds from leases - - 191,375 191,375
Transfers in 532,260 544,735 524,068 (20,667)
Transfers out (1,231,731) (1,244,206) (1,244,206) -
Total other financing sources (uses) (699,471) (699,471) (463,225) 236,246
Net change in fund balances 24,897 (524,621) 1,170,209 1,694,830
Fund Balances
Beginning of year 9,378,520 9,378,520 9,378,520 -
End of year 9,403,417$ 8,853,899$ 10,548,729$ 1,694,830$
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, 2022
2022
111
Statement 15
Original Final
Actual
Amounts
Revenues
General property taxes 2,394,681$ 2,394,681$ 2,423,510$ 28,829$
Special assessments 424,723 424,723 926,911 502,188
Charges for services 1,223,606 1,223,606 82,215 (1,141,391)
Investment income - - (81,773) (81,773)
Total revenues 4,043,010 4,043,010 3,350,863 (692,147)
Expenditures
Debt service
Principal 3,430,000 3,430,000 2,915,000 (515,000)
Interest and fiscal agent 613,010 613,010 458,968 (154,042)
Total expenditures 4,043,010 4,043,010 3,373,968 (669,042)
Excess of revenues over (under) expenditures - - (23,105) (23,105)
Other Financing Sources
Transfers in - - 219,221 219,221
Net change in fund balance -$ -$ 196,116 196,116$
Fund Balance
Beginning of year 5,800,275
End of year 5,996,391$
2022
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, 2022
112
Special
Revenue Capital Projects Permanent
Total Nonmajor
Governmental
Funds
Assets
Cash and investments 2,986,680$ 2,621,021$ 214,296$ 5,821,997$
Cash with fiscal agent - - 730,953 730,953
Interest receivable 6,677 3,576 443 10,696
Due from other governments 71,891 - - 71,891
Accounts receivable 195,796 - 10,563 206,359
Property taxes receivable 224,463 - - 224,463
Inventory 6,451 - - 6,451
Prepaid items 2,075 352 - 2,427
Total assets 3,494,033$ 2,655,173$ 956,255$ 7,105,461$
Liabilities
Accounts payable 160,199$ 216,722$ -$ 376,921$
Due to other governments 2,367 - - 2,367
Deposits payable - 609,908 - 609,908
Salaries and benefits payable 48,107 - - 48,107
Unearned revenue 1,955 - - 1,955
Due to other funds - 369,482 - 369,482
Advances to other funds - 1,260,739 - 1,260,739
Total liabilities 212,628 2,456,851 - 2,669,479
Deferred Inflows of Resources
Unavailable revenue - taxes and assessments 22,833 - - 22,833
Fund Balances
Nonspendable
Prepaids 2,075 352 - 2,427
Inventories 6,451 - - 6,451
Permanent Endowment - - 200,000 200,000
Restricted
Police Activities 49,972 - - 49,972
Tax increment financing - 21,990 - 21,990
Capital Projects - 1,015,753 - 1,015,753
Leduc Historic Estate - - 756,255 756,255
Escrow 4,497 4,497
Committed
Park maintenance 2,014,442 - - 2,014,442
Aquatic operations 407,090 - - 407,090
Cable TV activities 145,741 - - 145,741
Heritage preservation activities 120,476 - - 120,476
Arena activities 512,325 - - 512,325
Assigned
Capital - 970,516 - 970,516
Unassigned - (1,814,786) - (1,814,786)
Total fund balances 3,258,572 198,322 956,255 4,413,149
Total liabilities and fund balances 3,494,033$ 2,655,173$ 956,255$ 7,105,461$
Nonmajor Governmental Funds
December 31, 2022
City of Hastings
Combining Balance Sheet -
Statement 16
113
Statement 17
Special
Revenue Capital Projects Permanent
Total
Nonmajor
Governmental
Funds
Revenues
General property taxes 2,267,614$ 760$ -$ 2,268,374$
Tax increment collections - 48,796 - 48,796
Charges for services 1,318,833 5,401 - 1,324,234
Fines and forfeitures 626 - - 626
Investment income (65,742) (12,327) (151,858) (229,927)
Contributions and donations 24,878 4,270 - 29,148
Miscellaneous 592,376 30,584 - 622,960
Total revenues 4,138,585 77,484 (151,858) 4,064,211
Expenditures
Current
Public safety 2,420 - - 2,420
Public works - - - -
Culture and recreation 3,585,888 37,751 20,214 3,643,853
Economic development - 66,819 - 66,819
Debt service
Interest and other charges - 14,497 - 14,497
Capital outlay
Public works - 1,625,233 - 1,625,233
Culture and recreation 126,833 136,597 - 263,430
Total expenditures 3,715,141 1,880,897 20,214 5,616,252
Excess of revenues over (under) expenditures 423,444 (1,803,413) (172,072) (1,552,041)
Other Financing Sources (Uses)
Proceeds from sale of capital assets 12,582 - - 12,582
Bonds issued - 975,000 - 975,000
Premium on debt issued - 73,244 - 73,244
Transfers in 82,550 796,977 - 879,527
Transfers out (60,349) (386,027) (42,250) (488,626)
Total other financing sources (uses) 34,783 1,459,194 (42,250) 1,451,727
Net change in fund balances 458,227 (344,219) (214,322) (100,314)
Fund Balances
Beginning of year 2,800,345 1,066,012 1,170,577 5,036,934
End of year 3,258,572$ 721,793$ 956,255$ 4,936,620$
Year Ended December 31, 2022
Changes in Fund Balances - Nonmajor Governmental Funds
City of Hastings
Combining Statement of Revenues, Expenditures, and
114
(THIS PAGE LEFT BLANK INTENTIONALLY)
115
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.
Drug Awareness Fund - This fund accounts for the operations and maintenance of the Drug
Awareness program.
Aquatic Center Fund - This fund accounts for the operations and the charges which finance
the operating activity of the City's outdoor aquatic facility.
116
Parks and Rec
(200)
Cable
Television
(205-206)
Heritage
Preservation
(210)
Ice Arena
(615)
Assets
Cash and investments 1,883,273$ 142,313$ 117,430$ 408,841$
Interest receivable 4,141 374 246 984
Due from other governments 33,437 - - 38,454
Accounts receivable 290 89,424 - 106,082
Property taxes receivable 184,651 - 4,248 9,134
Inventory 6,451 - - -
Prepaid items 937 2 4 1,132
Total assets 2,113,180$ 232,113$ 121,928$ 564,627$
Liabilities
Accounts payable 39,073$ 85,700$ 3$ 35,075$
Due to other governments - - - 2,367
Salaries payable 33,693 670 1,043 12,701
Unearned revenue - - - -
Total liabilities 72,766 86,370 1,046 50,143
Deferred Inflows of Resources
Unavailable revenue - taxes and assessments 18,584 - 402 1,027
Fund Balances
Nonspendable
Prepaids 937 2 4 1,132
Inventories 6,451 - - -
Restricted
Police activities - - - -
Committed
Park maintenance 2,014,442 - - -
Aquatic operations - - - -
Cable TV activities - 145,741 - -
Heritage preservation activities - - 120,476 -
Arena activities - - - 512,325
Total fund balances 2,021,830 145,743 120,480 513,457
Total liabilities, deferred inflows of
resources, and fund balances 2,113,180$ 232,113$ 121,928$ 564,627$
December 31, 2022
City of Hastings
Combining Balance Sheet -
Nonmajor Special Revenue Funds
Special Revenue
117
Statement 18
DUI
Enforcement/
Equipment
(222)
Aquatic Center
(201) Total
49,743$ 385,080$ 2,986,680$
103 829 6,677
- - 71,891
- - 195,796
142 26,288 224,463
- - 6,451
- - 2,075
49,988$ 412,197$ 3,494,033$
-$ 348$ 160,199$
- - 2,367
- - 48,107
- 1,955 1,955
- 2,303 212,628
16 2,804 22,833
- - 2,075
- - 6,451
49,972 - 49,972
- - 2,014,442
- 407,090 407,090
- - 145,741
- - 120,476
- - 512,325
49,972 407,090 3,258,572
49,988$ 412,197$ 3,494,033$
Special Revenue
118
Parks and Rec
(200)
Cable
Television
(205-206)
Heritage
Preservation
(210)
Ice Arena
(615)
Revenues
General property taxes 1,870,563$ -$ 40,924$ 91,005$
Charges for services 125,959 358,292 - 514,253
Fines and forfeitures - - - -
Investment income (32,076) (3,805) (2,057) (15,440)
Contributions and donations 24,615 - 263 -
Miscellaneous 418,000 - 877 173,365
Total revenues 2,407,061 354,487 40,007 763,183
Expenditures
Current
Public Safety - - - -
Culture and recreation 1,912,347 361,589 34,546 732,054
Capital outlay
Culture and recreation 111,331 - - -
Total expenditures 2,023,678 361,589 34,546 732,054
Excess of revenues over (under) expenditures 383,383 (7,102) 5,461 31,129
Other Financing Sources (Uses)
Proceeds from sale of capital assets 667 - - -
Transfers in 82,550 - - -
Transfers out (28,569) (381) (517) (10,263)
Total other financing sources (uses) 54,648 (381) (517) (10,263)
Net change in fund balances 438,031 (7,483) 4,944 20,866
Fund Balances
Beginning of year 1,583,799 153,226 115,536 492,591
End of year 2,021,830$ 145,743$ 120,480$ 513,457$
City of Hastings
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Special Revenue Funds
Year Ended December 31, 2022
Special Revenue
119
Statement 19
DUI
Enforcement/
Equipment
(222)
Drug
Awareness
(224)
Aquatic Center
(201) Total
1,410$ -$ 263,712$ 2,267,614$
- - 320,329 1,318,833
626 - - 626
(1,156) - (11,208) (65,742)
- - - 24,878
- - 134 592,376
880 - 572,967 4,138,585
2,420 - - 2,420
- - 545,352 3,585,888
- - 15,502 126,833
2,420 - 560,854 3,715,141
(1,540) - 12,113 423,444
11,915 - - 12,582
- - - 82,550
- (12,317) (8,302) (60,349)
11,915 (12,317) (8,302) 34,783
10,375 (12,317) 3,811 458,227
39,597 12,317 403,279 2,800,345
49,972$ -$ 407,090$ 3,258,572$
Special Revenue
120
Statement 20
Original Final
Actual
Amounts
Revenues
Property taxes 1,857,435$ 1,857,435$ 1,870,563$ 13,128$
Charges for services 97,500 97,500 125,959 28,459
Investment income 10,000 10,000 (32,076) (42,076)
Contributions and donations 8,200 32,815 24,615 (8,200)
Miscellaneous - - 418,000 418,000
Total revenues 1,973,135 1,997,750 2,407,061 409,311
Expenditures
Current
Culture and recreation 1,762,666 1,880,376 1,912,347 31,971
Capital outlay
Culture and recreation 181,900 255,037 111,331 (143,706)
Total expenditures 1,944,566 2,135,413 2,023,678 (111,735)
Excess of revenues over (under) expenditures 28,569 (137,663) 383,383 521,046
Other Financing Sources (Uses)
Sale of City Property - - 667 667
Transfers in - - 82,550 82,550
Transfers out (28,569) (28,569) (28,569) -
Total other financing sources (uses) (28,569) (28,569) 54,648 82,550
Net change in fund balance -$ (166,232)$ 438,031 603,596$
Fund Balance
Beginning of year 1,583,799
End of year 2,021,830$
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2022
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, 2022
121
Statement 21
Original Final
Actual
Amounts
Revenues
Charges for services 350,000$ 350,000$ 358,292$ 8,292$
Investment income 2,338 2,338 (3,805) (6,143)
Total revenues 352,338 352,338 354,487 2,149
Expenditures
Current
Culture and recreation 353,552 353,552 361,589 8,037
Excess of revenues under expenditures (1,214) (1,214) (7,102) (5,888)
Other Financing Uses
Transfers out (381) (381) (381) -
Net change in fund balance (1,595)$ (1,595)$ (7,483) (5,888)$
Fund Balance
Beginning of year 153,226
End of year 145,743$
2022
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, 2022
122
Statement 22
Original Final
Actual
Amounts
Revenues
Property Taxes 40,696$ 40,696$ 40,924$ 228$
Investment income 1,200 1,200 (2,057) (3,257)
Contributions and donations - - 263 263
Miscellaneous 400 400 877 477
Total revenues 42,296 42,296 40,007 (2,289)
Expenditures
Current
Culture and recreation 41,779 43,566 34,546 (9,020)
Excess of revenues over (under) expenditures 517 (1,270) 5,461 6,731
Other Financing Uses
Transfer out (517) (517) (517) -
Net change in fund balance -$ (1,787)$ 4,944 6,731$
Fund Balance
Beginning of year 115,536
End of year 120,480$
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2022
City of Hastings
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual -
Heritage Preservation Special Revenue Fund
Year Ended December 31, 2022
123
Statement 23
Original Final
Actual
Amounts
Revenues
Property Taxes 89,863$ 89,863$ 91,005$ 1,142$
Charges for services 497,991 497,991 514,253 16,262
Investment income 5,000 5,000 (15,440) (20,440)
Miscellaneous - - 173,365 173,365
Total revenues 592,854 592,854 763,183 170,329
Expenditures
Current
Culture and recreation 582,591 582,591 732,054 149,463
Excess of revenues over expenditures 10,263 10,263 31,129 20,866
Other Financing Uses
Transfers Out (10,263) (10,263) (10,263) -
Net Change in Fund Balances -$ -$ 20,866 20,866$
Fund Balance
Beginning of year 492,591
End of year 513,457$
City of Hastings
Fund Balance - Budget and Actual -
Ice Arena Special Revenue Fund
Year Ended December 31, 2022
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2022
Schedule of Revenues, Expenditures, and Changes in
124
Statement 24
Original Final
Actual
Amounts
Revenues
Property Taxes 1,400$ 1,400$ 1,410$ 10$
Fines and Forfeitures - - 626 626
Investment income 200 200 (1,156) (1,356)
Total revenues 1,600 1,600 880 (720)
Expenditures
Current
Public Safety 1,600 1,600 2,420 820
Excess of revenues over (under) expenditures - - (1,540) (1,540)
Other Financing Sources
Proceeds from sale of capital assets - - 11,915 11,915
Net change in fund balances -$ -$ 10,375 10,375$
Fund Balance
Beginning of year 39,597
End of year 49,972$
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2022
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, 2022
125
Statement 25
Original Final
Actual
Amounts
Revenues
Property taxes 261,469$ 261,469$ 263,712$ 2,243$
Charges for services 256,300 256,300 320,329 64,029
Investment income 1,500 1,500 (11,208) (12,708)
Miscellaneous - - 134 134
Total revenues 519,269 519,269 572,967 53,698
Expenditures
Current
Culture and recreation 490,967 608,211 545,352 (62,859)
Capital outlay
Culture and recreation 20,000 20,000 15,502 (4,498)
Total expenditures 510,967 628,211 560,854 (67,357)
Excess of revenues over (under) expenditures 8,302 (108,942) 12,113 121,055
Other Financing Uses
Transfers out (8,302) (8,302) (8,302) -
Net change in fund balance -$ (117,244)$ 3,811 121,055$
Fund Balance
Beginning of year 403,279
End of year 407,090$
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2022
City of Hastings
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual -
Aquatic Center Special Revenue Fund
Year Ended December 31, 2022
126
(THIS PAGE LEFT BLANK INTENTIONALLY)
127
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.
Parks Projects Capital Projects Fund – This fund accounts for revenues and expenditures related to the
construction, development, and improvements to the City's parks.
Downtown Redevelopment Tax Increment Financing Capital Projects Fund – This fund accounts for the
activities the Downtown Redevelopment Tax Increment Financing District.
Permanent Fund
C. Simmons Trust – This fund accounts for the C. Simmons endowments fund. The principal
amount of $200,000 cannot be spent. Only the interest earned can be spent.This fund also
accounts for the C. Simmons funds that are held in a trust.These funds can be spent during the
year on capital and programming. Programming for the Leduc Historical Estate is provided by
the Dakota County Historical Society
128
Budget
Stabilization
(403)
Guardian
Angels Tax
Increment
Financing (405)
NAPA Tax
Increment
Financing (408)
Schoolhouse
Square Tax
Increment
Financing (412)
Assets
Cash and investments 959,260$ -$ -$ -$
Interest receivable 718 42 - -
Total assets 959,978$ 20,188$ -$ -$
Liabilities
Accounts payable -$ 11,676$ -$ -$
Due to other funds - - 7,048 1,889
Advances from other funds - - - -
Deposits payable - - - -
Total liabilities - 11,676 7,048 1,889
Fund Balances
Restricted
Tax increment financing - 8,512 - -
Escrow - - - -
Capital Projects - - -
Assigned
Capital 959,978 - - -
Unassigned - - (7,048) (1,889)
Total fund balances 959,978 8,512 (7,048) (1,889)
Total liabilities and fund balances 959,978$ 20,188$ -$ -$
City of Hastings
Combining Balance Sheet -
Nonmajor Capital Projects Funds
December 31, 2022
Capital Projects
129
Statement 26
Public Works
Cold Storage
Building
(416)
Escrow
(807)
Hudson Sprayers
Tax Increment
Financing
(411)
Park Projects
(401)
Downtown
Redevelopment
Tax Increment
Financing
(409) Total
17,570$ 622,358$ 3,400$ 1,018,433$ -$ 2,621,021$
- 1,295 - 1,521 - 3,576
17,570$ 623,653$ 13,478$ 1,019,954$ -$ 2,654,821$
7,032$ 9,248$ -$ 4,201$ -$ 32,157$
- - - - 21,287 30,224
- - - - 1,260,739 1,260,739
- 609,908 - - - 609,908
7,032 619,156 - 4,201 1,282,026 1,933,028
- - 13,478 - - 21,990
- 4,497 - - - 4,497
- - - 1,015,753 - 1,015,753
10,538 - - - - 970,516
- - - - (1,282,026) (1,290,963)
10,538 4,497 13,478 1,015,753 (1,282,026) 721,793
17,570$ 623,653$ 13,478$ 1,019,954$ -$ 2,654,821$
Capital Projects
130
Budget
Stabilization
(403)
Guardian
Angels Tax
Increment
Financing (405)
NAPA Tax
Increment
Financing (408)
Revenues
General property taxes -$ -$ -$
Tax increment collections - 26,268 17,873
Charges for services - - -
Investment income (9,632) (728) -
Contributions and donations - - -
Miscellaneous - 19,584 -
Total revenues (9,632) 45,124 17,873
Expenditures
Current
Public works - - -
Economic development - 24,641 39,178
Culture and recreation - - -
Debt service
Interest and other charges - 658 629
Capital outlay
Culture and recreation - - -
Public works - - -
Total expenditures - 25,299 39,807
Excess of revenues over (under) expenditures (9,632) 19,825 (21,934)
Other Financing Sources (Uses)
Issuance of debt - - -
Premium on debt issued - - -
Transfers in 100,000 - -
Transfers out (96,977) - -
Total other financing sources (uses) 3,023 - -
Net change in fund balances (6,609) 19,825 (21,934)
Fund Balances
Beginning of year 966,587 (11,313) 14,886
End of year 959,978$ 8,512$ (7,048)$
Capital Projects
City of Hastings
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Capital Projects Funds
Year Ended December 31, 2022
131
Schoolhouse
Square Tax
Increment
Financing (412)
Public Works
Cold Storage
Building (416) Escrow (807)
Hudson
Sprayers Tax
Increment
Financing (411)
Park Projects
(401)
Downtown
Redevelopment
Tax Increment
Financing (409) Total
-$ -$ -$ -$ 760$ -$ 760$
111 - - 4,544 - - 48,796
- 5,401 - - - - 5,401
- - (11,737) 54 9,716 - (12,327)
- - - - 4,270 - 4,270
- - - - 11,000 - 30,584
111 5,401 (11,737) 4,598 25,746 - 77,484
2,000 - - 1,000 - - 66,819
- - - - 37,751 - 37,751
- 12,465 - - - 745 14,497
- - - - 136,597 - 136,597
- 1,625,233 - - - - 1,625,233
2,000 1,637,698 - 1,000 174,348 745 1,880,897
(1,889) (1,632,297) (11,737) 3,598 (148,602) (745) (1,803,413)
- 975,000 - - - - 975,000
- 73,244 - - - - 73,244
- 600,000 - - 96,977 - 796,977
- - - - (82,550) (206,500) (386,027)
- 1,648,244 - - 14,427 (206,500) 1,459,194
(1,889) 15,947 (11,737) 3,598 (134,175) (207,245) (344,219)
- (5,409) 16,234 9,880 1,149,928 (1,074,781) 1,066,012
(1,889)$ 10,538$ 4,497$ 13,478$ 1,015,753$ (1,282,026)$ 721,793$
Statement 27
Capital Projects
132
Statement 28
Original Final
Actual
Amounts
Revenues
General property taxes -$ -$ 760$ 760$
Intergovernmental - 240,000 - (240,000)
Miscellaneous revenues - - 11,000 11,000
Investment income - - 9,716 9,716
Contributions and donations - 40,638 4,270 (36,368)
Total revenues - 280,638 25,746 (265,892)
Expenditures
Current
Culture and recreation - 285,207 37,751 (247,456)
Capital outlay
Cultural and recreation - 778,159 136,597 (641,562)
Total expenditures - 1,063,366 174,348 (889,018)
Excess of revenues over (under) expenditures - (782,728) (148,602) 623,126
Other Financing Sources (Uses)
Transfers in - 96,977 96,977 -
Transfers out - - (82,550) (82,550)
Total other financing sources
(uses) - 96,977 14,427 -
Net change in fund balance -$ (685,751)$ (134,175) 623,126$
Fund Balance
Beginning of year 1,149,928
End of year 1,015,753$
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2022
City of Hastings
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual -
Park Projects Capital Projects Fund
Year Ended December 31, 2022
133
Statement 29
C. Simmons
Trust (850)
Assets
Cash and investments 214,296$
Cash with fiscal agent 730,953
Accounts receivable 10,563
Interest receivable 443
Total assets 956,255$
Fund Balances
Nonspendable
Endowment 200,000
Restricted
Leduc Historic Estate 756,255
Total fund balances 956,255$
City of Hastings
Nonmajor Permanent Fund
December 31, 2022
Combining Balance Sheet -
134
Statement 30
C. Simmons
Trust (850)
Revenues
Investment income (151,858)$
Expenditures
Current
Cultural and recreation 20,214
Excess of revenues under expenditures (172,072)
Other Financing Uses
Transfers out (42,250)
Net change in fund balances (214,322)
Fund Balances
Beginning of year 1,170,577
End of year 956,255$
City of Hastings
Nonmajor Permanent Fund
Year Ended December 31, 2022
Combining Statement of Revenues,
Expenditures, and Changes in Fund Balances -
135
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.
136
Statement 31
Compensated
Absences
(702)
Retiree Health
Insurance
(701)
Vehicle
Revolving
Fund
(703)
Insurance
Fund
(705) Total
Assets
Current assets
Cash and cash equivalents 88,342$ 273,764$ 529,778$ 890,688$ 1,782,572$
Taxes receivable - - 33,533 - 33,533
Interest receivable 133 415 1,177 1,317 3,042
Total current assets 88,475 274,179 564,488 892,005 1,819,147
Noncurrent assets
Capital assets, being depreciated
Equipment - - 2,232,758 50,902 2,283,660
Less accumulated depreciation - - (421,202) (8,059) (429,261)
Net capital assets - - 1,811,556 42,843 1,854,399
Total assets 88,475 274,179 2,376,044 934,848 3,673,546
Deferred Outflows of Resources
Deferred outflows related to OPEB - 1,172,738 - - 1,172,738
Total assets and deferred
outflows of resources 88,475$ 1,446,917$ 2,376,044$ 934,848$ 4,846,284$
Liabilities
Current liabilities
Accounts payable -$ -$ -$ 2,137$ 2,137$
Unearned revenue - - 3,498 - 3,498
Compensated absences 166,389 - - - 166,389
Total current liabilities 166,389 - 3,498 2,137 172,024
Noncurrent liabilities
Compensated absences 1,881,777 - - - 1,881,777
Total OPEB liability - 3,971,708 - - 3,971,708
Total noncurrent liabilities 1,715,388 3,971,708 - - 5,687,096
Total liabilities 1,881,777 3,971,708 3,498 2,137 5,859,120
Deferred Inflows of Resources
Deferred inflows of resources
related to OPEB - 35,865 - - 35,865
Net Position
Net investment in capital assets - - 1,811,556 42,843 1,854,399
Unrestricted (1,793,302) (2,560,656) 560,990 889,868 (2,903,100)
Total net position (1,793,302) (2,560,656) 2,372,546 932,711 (1,048,701)
Total liabilities, deferred inflows
of resources and net position 88,475$ 1,446,917$ 2,376,044$ 934,848$ 4,846,284$
City of Hastings
December 31, 2022
Statement of Net Position - Internal Service Funds
137
Statement 32
Compensated
Absences
(702)
Retiree Health
Insurance
(701)
Vehicle
Revolving
Fund
(703)
Insurance
Fund
(705) Total
Operating revenues
Charges for services -$ -$ 142,054$ 1,064,073$ 1,206,127$
Operating expenses
Personnel services 233,726 210,640 - - 444,366
Professional services - - - 752,023 752,023
Depreciation - - 191,425 2,545 193,970
Total operating expenses 233,726 210,640 191,425 754,568 1,390,359
Operating income (loss) (233,726) (210,640) (49,371) 309,505 (184,232)
Nonoperating revenues
Investment income (2,123) (4,635) (10,562) (10,129) (27,449)
Intergovernmental - 7,261 - - 7,261
Miscellaneous - - 337 - 337
Property Taxes - - 337,334 - 337,334
Total nonoperating revenues (2,123) 2,626 327,109 (10,129) 317,483
Income (loss) before transfers (235,849) (208,014) 277,738 299,376 133,251
Transfers in 100,000 350,000 81,100 - 531,100
Change in net position (135,849) 141,986 358,838 299,376 664,351
Net position
Beginning of year (1,657,453) (2,702,642) 2,013,708 633,335 (1,713,052)
End of year (1,793,302)$ (2,560,656)$ 2,372,546$ 932,711$ (1,048,701)$
City of Hastings
in Fund Net Position - Internal Service Funds
Year Ended December 31, 2022
Statement of Revenues, Expenses, and Changes
138
Compensated
Absences
(702)
Retiree Health
Insurance
(701)
Vehicle
Revolving
Fund
(703)
Cash Flows - Operating Activities
Interfund services provided and used -$ -$ 142,044$
Payments to suppliers for goods and services - (122,085) (39,774)
Payments to employees for services (78,841) (210,640) -
Net cash flows - operating activities (78,841) (332,725) 102,270
Cash Flows - Noncapital Financing Activities
Miscellaenous non operating receipts - - 337
Intergovernmental receipts - 7,261 -
Property taxes - - 332,340
Transfer in 100,000 350,000 81,100
Net cash flows - noncapital financing activities 100,000 357,261 413,777
Cash Flows - Capital and Related Financing Activities
Acquisition of capital assets - - (367,880)
Cash Flows - Investing Activities
Investment income (2,109) (4,792) (11,278)
Net cash flows - investing activities (2,109) (4,792) (11,278)
Net change in cash and cash equivalents 19,050 19,744 136,889
Cash and Cash Equivalents
Beginning of year 69,292 254,020 392,889
End of year 88,342$ 273,764$ 529,778$
Reconciliation of Operating Income (Loss)
to Net Cash Flows - Operating Activities
Operating income (loss) (233,726)$ (210,640)$ (49,371)$
Adjustments to reconcile operating income (loss) to net
cash flows - operating activities
Depreciation - - 191,425
Accounts receivable - - 10
Prepaid items - - -
OPEB expense - (122,085) -
Accounts payable - - (39,774)
Unearned revenue - - (20)
Compensated absences payable 154,885 - -
Total adjustments 154,885 (122,085) 151,641
Net cash flows - operating activities (78,841)$ (332,725)$ 102,270$
Internal Service Funds
City of Hastings
Statement of Cash Flows - Internal Service Funds
Year Ended December 31, 2022
139
Statement 33
Insurance
Fund
(705) Total
1,064,073$ 1,206,117$
(750,077) (911,936)
- (289,481)
313,996 4,700
- 337
- 7,261
- 332,340
- 531,100
- 871,038
- (367,880)
(10,987) (29,166)
(10,987) (29,166)
303,009 478,692
587,679 1,303,880
890,688$ 1,782,572$
309,505$ (184,232)$
2,545 193,970
- 10
10,000 10,000
- (122,085)
(8,054) (47,828)
- (20)
- 154,885
4,491 188,932
313,996$ 4,700$
Internal Service Funds
140
(THIS PAGE LEFT BLANK INTENTIONALLY)
141
COMPONENT UNIT
142
Statement 34
Assets
Cash and investments 1,088,654$
Accounts receivable 2,458
Interest receivable 2,353
Due from other governments 1,510,739
Property taxes receivable 43,618
Loan receivable 227,295
Land Held for Resale 3,069,490
Prepaid items 227
Total assets 5,944,834$
Liabilities
Accounts payable 2,057$
Due to other governments 1,260,739
Salaries and benefits payable 8,768
Deposits payable 16,700
Total liabilities 1,288,264
Deferred Inflows of Resources
Unavailable revenue - taxes 3,076
Unavailable revenue - grants 250,000
Total deferred inflows of resources 253,076
Fund Balances
Nonspendable
Prepaid items 227
Loan receivables 227,295
Unassigned 4,175,972
Total fund balances 4,403,494
Total liabilities, deferred inflows of resources, and fund balances 5,944,834$
City of Hastings
Component Unit Hastings Economic Development and Redevelopment Authority
Balance Sheet
December 31, 2022
143
Statement 35
Total fund balances - governmental funds 4,403,494$
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,87,999
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 (80,872)
Net pension liability (240,616)
Other long-term assets are not available to pay for current-period expenditures and therefore are
deferred in the funds.253,076
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 (5,298)
Deferred outflows of resources related to city pensions 71,221
Deferred inflows of resources related to OPEB (730)
Deferred outflows of resources related to OPEB 23,879
Total net position - governmental activities 4,173,537$
City of Hastings
Hastings Economic Development And Redevelopment Authority
Reconciliation of The Balance Sheet to The Statement of Net Position
December 31, 2022
144
Statement 36
Original Final
Actual
Amounts
Revenues
Property taxes 413,820$ 413,820$ 417,036$ 3,216$
Charges for services 54,300 54,300 27,162 (27,138)
Investment income 20,000 20,000 (14,153) (34,153)
Miscellaneous - - 44,120 44,120
Total revenues 488,120 488,120 474,165 (13,955)
Expenditures
Current
Economic development
Personnel services 255,496 255,496 263,092 7,596
Services and charges 126,100 126,100 94,283 (31,817)
Miscellaneous 294,976 294,976 63,022 (231,954)
Payment to primary government 39,220 39,220 43,317 4,097
Capital outlay
Economic development 100,000 190,000 174,200 (15,800)
Total expenditures 815,792 905,792 637,914 (267,878)
Net change in fund balance (327,672)$ (417,672)$ (163,749) 253,923$
Fund Balance
Beginning of year 4,567,243
End of year 4,403,494$
City of Hastings
2022
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, 2022
145
Statement 37
(163,749)$
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 860
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. 6,047
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 (17,468)
(179,810)$
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, 2022
146
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)
237,643$ 263,692$ 260,784$ 342,488$
496 544 538 707
- - - -
21,076 30,259 26,729 30,257
- 2,805 90 -
- 43,256 5,471 29,856
- 458 366 416
259,215$ 341,014$ 293,978$ 403,724$
2,367 46,932 8,459 33,136
- 458 366 416
256,848 293,624 285,153 370,172
256,848 294,082 285,519 370,588
259,215$ 341,014$ 293,978$ 403,724$
Due from other funds
Property taxes receivable
Special assessments receivable
Assets
Cash and investments
Interest receivable
Deferred
Total liabilities, deferred inflows
Prepaid items
Total assets
of resources and fund balance
Nonspendable
Restricted
Debt service
Total fund balances
Deferred Inflows of Resources
Unavailable revenue - taxes and assessments
Fund Balances
Delinquent
City of Hastings
Subcombining Balance Sheet
Debt Service Fund
December 31, 2022
147
Schedule 6
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)
113,516$ 215,345$ 70,406$ 116,432$ 129,337$ 160,976$
234 444 145 240 267 332
- - - - - -
25,215 - 6,178 9,011 29,156 14,023
2,155 - - 21 559 1,727
149,434 - - - - -
- - - - - 416
290,554$ 215,789$ 76,729$ 125,704$ 159,319$ 177,474$
154,322 - 664 21 3,133 3,089
- - - - - 416
136,232 215,789 76,065 125,683 156,186 173,969
136,232 215,789 76,065 125,683 156,186 174,385
290,554$ 215,789$ 76,729$ 125,704$ 159,319$ 177,474$
148
G.O. Improvement
Bonds 2013B
(573)
G.O. Improvement
Bonds 2017A
(577)
Certificates of
Participation
2013B (398)
Debt
Redemption
Fund
(500)
90,832$ 128,092$ 120,990$ 655,824$
187 258 250 2,053
- - -339,258
9,077 8,069 9,720 718
- 17 -117
12,466 73,306 -44,166
649 416 --
113,211$ 210,158$ 130,960$ 1,042,136$
13,449 74,179 1,061 44,810
649 416 --
99,113 135,563 129,899 997,326
99,762 135,979 129,899 997,326
113,211$ 210,158$ 130,960$ 1,042,136$
Assets
Cash and investments
Interest receivable
Due from other funds
Property taxes receivable
Special assessments receivable
Delinquent
Deferred
Prepaid items
Total assets
Deferred Inflows of Resources
Unavailable revenue - taxes and assessments
Total liabilities, deferred inflows
of resources and fund balance
City of Hastings
Subcombining Balance Sheet
Debt Service Fund
December 31, 2022
Fund Balances
Nonspendable
Restricted
Debt service
Total fund balances
149
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) Total
998,620$ 565,928$ 345,006$ 573,272$ 5,389,183$
2,059 1,166 710 - 10,630
- - - - 339,258
16,503 22,828 2,994 - 261,813
- 4,333 876 14,550 27,250
457,467 353,425 241,178 555,164 1,965,189
592 374 290 - 3,977
1,475,241$ 948,054$ 591,054$ 1,142,986$ 7,997,300$
459,219 359,528 241,376 555,164 2,000,909
592 374 290 - 3,977
1,015,430 588,152 349,388 587,822 5,992,414
1,016,022 588,526 349,678 587,822 5,996,391
1,475,241$ 948,054$ 591,054$ 1,142,986$ 7,997,300$
150
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 -$ 301,083$ 267,723$ 302,133$
Special assessments - 28,466 2,098 11,156
Charges for services - - - -
Investment income (1,934) 1,115 (789) (2,280)
Total revenues (1,934) 330,664 269,032 311,009
Expenditures
Debt service
Principal 175,000 330,000 250,000 310,000
Interest and other charges 31,950 30,289 24,499 36,659
Total expenditures 206,950 360,289 274,499 346,659
Excess of revenues over (under) expenditures (208,884) (29,625) (5,467) (35,650)
Other Financing Sources (Uses)
Transfers in 206,500 - - -
Transfers out - - - -
Total other financing sources (uses) 206,500 - - -
Net change in fund balances (2,384) (29,625) (5,467) (35,650)
Fund Balances
Beginning of year 259,232 323,707 290,986 406,238
End of year 256,848$ 294,082$ 285,519$ 370,588$
City of Hastings
Subcombining Schedule of Revenues, Expenditures and Changes in Fund Balance
Debt Service Fund
Year Ended December 31, 2022
151
Schedule 7
(Continued)
G.O.
Improvement
Bonds 2018A -
Charter (578)
G.O. Public
Facility
Refunding
bonds, Series
2010A (370)
City Revenue
Refunding
Bonds 2013A
(350)
Certificate of
Participation
2014 (399)
Certificate of
Participation
2015 (315)
Certificate of
Participation
2016 (316)
G.O.
Improvement
Bonds 2009A
(529)
250,759$ -$ -$ -$ -$ 61,826$ -$
34,659 - - - - - -
- 82,215 - - - - -
311 (6,632) - - (137) (422) (275)
285,729 75,583 - - (137) 61,404 (275)
240,000 180,000 - - - 60,000 -
71,981 2,700 - - - 600 -
311,981 182,700 - - - 60,600 -
(26,252) (107,117) - - (137) 804 (275)
- - - - - - -
- - (16,396) (16,432) (6,832) - (13,747)
- - (16,396) (16,432) (6,832) - (13,747)
(26,252) (107,117) (16,396) (16,432) (6,969) 804 (14,022)
162,484 322,906 16,396 16,432 6,969 75,261 14,022
136,232$ 215,789$ -$ -$ -$ 76,065$ -$
152
G.O.
Improvement
Bonds 2010B
(570)
G.O.
Improvement
Bonds 2011A
(571)
G.O.
Improvement
Bonds 2012
(572)
G.O.
Improvement
Bonds 2013B
(573)
Revenues
General property taxes 104,479$ 301,263$ 138,624$ 91,149$
Special assessments 7 1,159 15,939 13,302
Charges for services - - - -
Investment income (738) (151) (770) (135)
Total revenues 103,748 302,271 153,793 104,316
Expenditures
Debt service
Principal 120,000 385,000 180,000 125,000
Interest and other charges 2,503 5,092 6,121 8,389
Total expenditures 122,503 390,092 186,121 133,389
Excess of revenues over (under) expenditures (18,755) (87,821) (32,328) (29,073)
Other Financing Sources (Uses)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances (18,755) (87,821) (32,328) (29,073)
Fund Balances
Beginning of year 144,438 244,007 206,713 128,835
End of year 125,683$ 156,186$ 174,385$ 99,762$
City of Hastings
Subcombining Schedule of Revenues, Expenditures and Changes in Fund Balance
Debt Service Fund
Year Ended December 31, 2022
153
Schedule 7
(Continued)
G.O.
Improvement
Bonds 2017A
(577)
Certificates of
Participation
2013B (398)
Debt
Redemption
Fund (500)
G.O.
Improvement
Bonds 2019A
(579)
82,229$ 96,303$ 4,239$ 165,516$
25,855 - 197 98,406
- - - -
(1,337) (1,045) (27,210) (23,573)
106,747 95,258 (22,774) 240,349
100,000 90,000 - 220,000
25,484 5,480 - 117,608
125,484 95,480 - 337,608
(18,737) (222) (22,774) (97,259)
- - 65,724 -
- - - -
- - 65,724 -
(18,737) (222) 42,950 (97,259)
154,716 130,121 954,376 1,113,281
135,979$ 129,899$ 997,326$ 1,016,022$
154
(THIS PAGE LEFT BLANK INTENTIONALLY)
155
Schedule 7
(Continued)
G.O.
Improvement
Bonds 2020A
(580)
G.O.
Improvement
Bonds 2021A
(581)
G.O.
Improvement
Bonds 2022A
(582) Total
Revenues
General property taxes 224,223$ 31,961$ -$ 2,423,510$
Special assessments 54,664 55,296 585,707 926,911
Charges for services - - - 82,215
Investment income (9,589) (7,893) 2,115 (81,369)
Total revenues 269,298 79,364 587,822 3,351,267
Expenditures
Debt service
Principal 150,000 - - 2,915,000
Interest and other charges 68,253 21,360 - 458,968
Total expenditures 218,253 21,360 - 3,373,968
Excess of revenues over (under) expenditures 51,045 58,004 587,822 (22,701)
Other Financing Sources (Uses)
Transfers in - - - 272,224
Transfers out - - - (53,407)
Total other financing sources (uses) - - - 218,817
Net change in fund balances 51,045 58,004 587,822 196,116
Fund Balances
Beginning of year 537,481 291,674 - 5,800,275
End of year 588,526$ 349,678$ 587,822$ 5,996,391$
City of Hastings
Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance
Debt Service Fund
Year Ended December 31, 2022
156
(THIS PAGE LEFT BLANK INTENTIONALLY)
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
2013 2014 2015 2016
Governmental activities:
Net investment in capital assets 42,404,518$ 43,801,240$ 43,540,896$ 42,444,675$
Restricted for:
Police activities 13,898 29,908 29,796 34,462
Tax increment - - - -
Debt service 9,292,124 8,228,781 6,790,580 6,814,431
Capital projects 677,082 617,851 605,667 547,257
Escrow - - - -
Net pension asset - - - 1,225,251
LeDuc Historic Estate 1,138,006 1,107,821 1,369,956 1,374,830
Unrestricted 3,306,265 3,863,787 (1,019,362) (3,501,336)
Total governmental activities net position 56,831,893$ 57,649,388$ 51,317,533$ 48,939,570$
Business-type activities:
Net investment in capital assets 25,478,576$ 25,016,342$ 25,317,479$ 25,219,313$
Restricted for:
Debt service 551,253 376,498 251,499 187,146
Unrestricted 6,176,039 4,917,605 4,348,513 3,868,707
Total business-type activities net position 32,205,868$ 30,310,445$ 29,917,491$ 29,275,166$
Primary government:
Net investment in capital assets 67,883,094$ 68,817,582$ 68,858,375$ 68,858,375$
Restricted for:
Police activities 13,898 29,908 29,796 34,462
Tax increment - - - -
Debt service 9,843,377 8,605,279 7,042,079 7,001,577
Capital projects 677,082 617,851 605,667 547,257
Escrow - - - -
LeDuc Historic Estate 1,138,006 1,107,821 1,369,956 1,374,830
Unrestricted 9,482,304 8,781,392 3,329,151 367,371
Total primary government net position 89,037,761$ 87,959,833$ 81,235,024$ 78,183,872$
Unaudited
Fiscal Year
City of Hastings
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
159
Table 1
2017 2018 2019 2020 2021 2022
43,485,383$ 43,158,263$ 42,069,591$ 42,768,215$ 44,179,337$ 43,579,389$
42,568 54,842 40,432 59,697 113,606 82,112
2,695 4,924 5,681 7,157 24,766 21,990
6,721,124 6,897,969 8,169,524 7,182,012 7,346,220 7,725,877
488,132 494,432 509,082 630,709 1,149,928 1,015,753
- - 11,467 17,240 16,234 4,497
- - - - - -
1,489,982 1,270,770 1,246,991 1,282,730 1,324,652 1,075,872
(3,910,559) (4,077,486) (2,309,522) 324,570 3,196,284 4,803,200
48,319,325$ 47,803,714$ 49,743,246$ 52,272,330$ 57,351,027$ 58,308,690$
25,631,750$ 24,353,284$ 24,164,942$ 23,964,003$ 24,268,293$ 24,584,961$
- - - - - -
3,301,265 5,080,114 5,859,676 7,007,095 8,532,954 10,154,186
28,933,015$ 29,433,398$ 30,024,618$ 30,971,098$ 32,801,247$ 34,739,147$
69,117,133$ 67,511,547$ 66,234,533$ 66,732,218$ 68,447,630$ 68,164,350$
42,568 54,842 40,432 59,697 113,606 82,112
2,695 4,924 5,681 7,157 24,766 21,990
6,721,124 6,897,969 8,169,524 7,182,012 7,346,220 7,725,877
488,132 494,432 509,082 630,709 1,149,928 1,015,753
- - 11,467 17,240 16,234 4,497
1,489,982 1,270,770 1,246,991 1,282,730 1,324,652 1,075,872
(609,294) 1,002,628 3,550,154 7,331,665 11,729,238 14,957,386
77,252,340$ 77,237,112$ 79,767,864$ 83,243,428$ 90,152,274$ 93,047,837$
Fiscal Year
160
2013 2014 2015 2016
Expenses
Governmental activities
General government 2,368,033$ 2,912,989$ 2,742,065$ 2,935,743$
Public safety 8,022,727 8,265,264 8,354,120 11,060,875
Public works 5,059,797 4,825,511 5,213,874 6,345,402
Culture and recreation 2,844,498 2,948,893 3,087,460 3,396,349
Economic development 34,119 135,010 47,129 2,311,500
Health and sanitation 19,447 15,775 21,890 19,301
Interest on long-term debt 647,902 466,445 453,391 464,205
Total governmental activities expenses 18,996,523 19,569,887 19,919,929 26,533,375
Business-type activities
Water 2,181,086 2,065,409 1,963,670 2,120,683
Sewer 1,867,680 1,940,624 1,958,792 2,118,877
Storm 346,846 380,251 393,535 422,730
Hydro 941,730 738,402 633,196 593,610
Total business-type activities expenses 5,337,342 5,124,686 4,949,193 5,255,900
Total primary government expenses 24,333,865$ 24,694,573$ 24,869,122$ 31,789,275$
Program revenues
Governmental activities
Charges for services
General Government -$ -$ -$ -$
Public safety 2,925,521 2,726,275 2,849,915 3,362,113
Public works 35,134 51,342 119,702 271,785
Culture and recreation 1,156,963 1,147,412 1,202,465 1,237,031
Other activities 537,106 470,886 537,114 602,296
Operating grants and contributions 820,431 776,970 649,612 1,560,903
Capital grants and contributions 4,648,382 815,568 1,113,376 3,212,984
Total governmental activities program revenues 10,123,537 5,988,453 6,472,184 10,247,112
Business-type activities
Charges for services
Water 2,071,576 1,873,918 1,797,562 1,875,712
Sewer 1,915,861 1,938,692 1,882,901 1,867,425
Storm 430,074 429,957 425,643 435,310
Hydro 963,174 921,052 1,073,234 787,238
Operating grants and contributions - - - -
Capital grants and contributions - - - -
Total business-type activities program revenues 5,380,685 5,163,619 5,179,340 4,965,685
Total primary government program revenues 15,504,222$ 11,152,072$ 11,651,524$ 15,212,797$
Net (expense) revenue
Governmental activities (8,872,986)$ (13,581,434)$ (13,447,745)$ (16,286,263)$
Business-type activities 43,343 38,933 230,147 (290,215)
Total primary government net (expense) revenue (8,829,643) (13,542,501) (13,217,598) (16,576,478)
Fiscal Year
Unaudited
City of Hastings
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
161
Table 2
Page 1 of 2
Continued
2017 2018 2019 2020 2021 2022
3,129,500$ 3,322,254$ 3,547,503$ 4,271,705$ 3,093,577$ 3,560,823$
9,386,823 10,167,543 9,382,761 9,580,764 9,459,405 12,044,540
5,638,414 5,438,158 5,885,948 5,355,622 6,667,995 6,017,835
3,398,198 3,588,701 3,506,415 2,944,205 3,810,177 4,695,960
51,101 40,656 41,369 28,806 48,930 66,819
30,849 34,158 37,731 28,794 59,362 50,726
449,979 428,156 486,826 415,814 396,991 482,428
22,084,864 23,019,626 22,888,553 22,625,710 23,536,437 26,919,131
1,866,451 2,053,704 2,197,954 1,975,443 2,413,301 2,356,748
2,213,573 2,160,226 2,305,382 2,314,153 2,567,037 2,716,736
403,183 424,791 529,092 404,163 401,155 491,006
838,181 620,320 578,351 832,937 521,731 599,007
5,321,388 5,259,041 5,610,779 5,526,696 5,903,224 6,163,497
27,406,252$ 28,278,667$ 28,499,332$ 28,152,406$ 29,439,661$ 33,082,628$
-$ -$ 513,591$ 522,460$ 459,130$ 258,649$
3,745,444 3,507,476 3,848,715 3,420,090 3,581,897 4,043,048
276,721 312,004 438,990 778,863 485,869 954,701
1,191,970 1,358,186 1,162,764 779,387 1,307,896 1,534,431
521,818 496,151 93,705 85,185 91,995 82,251
539,343 1,521,330 1,117,166 918,951 1,314,781 1,125,789
1,234,808 622,219 1,553,631 1,098,098 4,831,331 2,185,950
7,510,104 7,817,366 8,728,562 7,603,034 12,072,899 10,184,819
1,897,865 2,284,680 2,259,917 2,445,497 2,744,525 3,139,177
1,972,116 2,490,514 2,642,559 2,615,539 2,757,731 3,025,373
507,721 633,583 718,097 729,711 763,339 806,607
784,887 701,729 672,763 578,006 738,075 857,224
- - - 1,888 - -
- 150,542 49,281 102,567 788,199 800,611
5,162,589 6,261,048 6,342,617 6,473,208 7,791,869 8,628,992
12,672,693$ 14,078,414$ 15,071,179$ 14,076,242$ 19,864,768$ 18,813,811$
(14,574,760)$ (15,202,260)$ (14,159,991)$ (15,022,676)$ (11,463,538)$ (16,734,312)$
(158,799) 1,002,007 731,838 946,512 1,888,645 2,465,495
(14,733,559) (14,200,253) (13,428,153) (14,076,164) (9,574,893) (14,268,817)
Fiscal Year
162
2013 2014 2015 2016
General revenues and other changes in net position
Governmental activities
Taxes:
Property taxes, levied for general purposes 8,545,583$ 8,719,458$ 9,231,748$ 9,837,164$
Property taxes, levied for debt service 3,191,407 2,643,067 2,650,000 2,650,000
Unrestricted grants and contributions 15,067 593,875 591,572 617,477
Gain (Loss) on disposal of capital assets 20,072 - 29,098 111,069
Investment earnings (loss) (25,107) 315,388 77,472 211,760
Contribution of capital assets - - - -
Insurance recoveries - - - -
Transfers 677,600 2,127,141 (193,998) 480,830
Total governmental activities 12,424,622 14,398,929 12,385,892 13,908,300
Business-type activities
Property taxes, levied for general purposes - - - -
Gain (Loss) on disposal of capital assets - - - -
Investment earnings (57,568) 192,785 67,811 128,720
Transfers (677,600) (2,127,141) 193,998 (480,830)
Total business-type activities (735,168) (1,934,356) 261,809 (352,110)
Total primary government 11,689,454$ 12,464,573$ 12,647,701$ 13,556,190$
Change in net position
Governmental activities 3,551,636$ 817,495$ (1,061,853)$ (2,377,963)$
Business-type activities (691,825) (1,895,423) 491,956 (642,325)
Total primary government 2,859,811$ (1,077,928)$ (569,897)$ (3,020,288)$
(Accrual Basis of Accounting)
Unaudited
Fiscal Year
City of Hastings
Changes in Net Position
Last Ten Fiscal Years
163
Table 2
Page 2 of 2
2017 2018 2019 2020 2021 2022
10,271,077$ 10,170,181$ 11,120,775$ 11,455,276$ 13,269,481$ 14,064,238$
2,650,000 3,424,475 3,126,903 2,310,976 2,195,103 2,423,510
639,043 1,106,153 933,079 1,915,198 920,451 1,165,045
23,272 170,917 7,951 33,702 32,417 57,578
215,284 146,410 590,271 454,753 74,696 (353,682)
- - - - - -
24,299 - - - - -
(132,690) 439,358 320,378 99,378 50,087 335,286
13,690,285 15,457,494 16,099,357 16,269,283 16,542,235 17,691,975
- - 11,376 97 - -
- - - - - (40,486)
4,188 49,772 168,384 99,249 (8,409) (151,823)
132,690 (439,358) (320,378) (99,378) (50,087) (335,286)
136,878 (389,586) (140,618) (32) (58,496) (527,595)
13,827,163$ 15,067,908$ 15,958,739$ 16,269,251$ 16,483,739$ 17,164,380$
(884,475)$ 255,234$ 1,939,366$ 2,407,557$ 5,078,697$ 957,663$
(21,921) 612,421 591,220 946,480 1,830,149 1,937,900
(906,396)$ 867,655$ 2,530,586$ 3,354,037$ 6,908,846$ 2,895,563$
Fiscal Year
164
2013 2014 2015 2016
General Fund
Nonspendable
Prepaid items 41,660$ 58,131$ 72,786$ 119,342$
Inventories 58,634 26,008 50,734 35,471
Restricted:
Leduc Historical Estate - - 349,321 346,557
Restricted
Police Activities - - - -
Unassigned 3,486,430 3,446,128 3,621,455 4,403,883
Total general fund 3,586,724$ 3,530,267$ 4,094,296$ 4,905,253$
All other governmental funds
Unreserved, reported in 5,408,639$ -$ -$ -$
Nonspendable
Prepaid 70,585 81,494 83,691 105,237
Inventories 6,268 3,322 4,365 4,368
Permanent endowment-Leduc Historical Estate 200,000 200,000 200,000 200,000
Restricted
Police activities 13,898 29,626 29,773 34,444
Debt service 7,692,475 5,427,274 4,500,299 4,820,295
Tax Increment Financing - - - -
Capital projects 676,672 1,009,983 605,667 546,622
Permanent endowment-Leduc Historical Estate 938,006 907,821 820,635 828,273
Escrow - - - -
Committed
Park maintenance 705,537 700,601 816,485 870,352
Aquatic operations 118,588 120,179 143,507 184,955
Cable TV activities 222,044 232,035 238,133 245,822
Heritage preservation activities 86,697 93,499 95,860 96,148
Fire & ambulance activities 2,372,686 1,596,429 1,362,693 1,111,458
Arena activities 590,646 490,657 500,676 388,065
Assigned
Capital 1,394,711 869,337 1,013,965 1,131,904
Unassigned
Capital (312,971) (252,583) (899,034) (416,152)
Total all other governmental funds 20,184,481$ 11,509,674$ 9,516,715$ 10,151,791$
Fiscal Year
City of Hastings
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Unaudited
165
Table 3
2017 2018 2019 2020 2021 2022
135,921$ 92,918$ 86,310$ 108,555$ 75,454$ 171,170$
24,517 15,183 34,446 64,084 54,113 25,611
397,985 301,201 193,592 178,173 154,075 119,617
- - - 13,384 61,676 32,124
4,576,829 5,047,671 5,596,357 7,940,056 9,033,202 10,200,207
5,135,252$ 5,456,973$ 5,910,705$ 8,304,252$ 9,378,520$ 10,548,729$
-$ -$ -$ -$ -$ -$
114,968 81,016 77,361 24,265 58,618 37,616
3,223 2,318 2,964 3,754 4,812 6,451
200,000 200,000 200,000 200,000 200,000 200,000
42,547 54,825 40,406 46,285 51,914 49,972
4,888,739 5,200,767 5,909,532 6,020,783 5,795,241 5,992,414
2,695 4,924 5,681 7,157 24,766 21,990
487,678 494,432 509,082 629,046 1,149,928 1,015,753
891,997 769,569 853,399 904,557 970,577 756,255
- - 11,467 17,240 16,234 4,497
1,020,571 1,084,583 1,144,271 1,357,981 1,573,272 2,014,442
188,258 185,144 232,573 406,776 402,511 407,090
243,756 238,553 238,892 156,073 153,208 145,741
97,564 100,481 104,264 108,400 115,531 120,476
1,251,486 992,209 1,280,178 1,465,860 1,283,020 643,353
463,992 462,313 497,359 550,064 492,028 512,325
1,172,982 1,249,299 1,325,392 1,326,089 966,587 970,516
(300,491) (217,088) (190,670) (910,431) (1,723,515) (1,814,786)
10,769,965$ 10,903,345$ 12,242,151$ 12,313,899$ 11,534,732$ 11,084,105$
Fiscal Year
166
2013 2014 2015 2016
Revenues
Taxes 11,793,014$ 11,410,130$ 11,877,613$ 12,431,059$
Special assessments 1,112,853 1,011,262 695,211 599,399
Licenses and permits 394,821 412,782 449,444 423,861
Fines and forfeitures 95,103 126,565 121,259 95,313
Intergovernmental 4,631,888 1,628,541 1,950,871 4,132,072
Charges for services 3,873,062 3,561,470 3,765,494 4,650,190
Investment earnings (15,617) 290,628 70,516 199,685
Miscellaneous 70,404 28,537 273,537 1,499,899
Total revenues 21,955,528 18,469,915 19,203,945 24,031,478
Expenditures
Current
General government 2,070,522 2,411,990 2,290,140 2,498,078
Public safety 7,609,462 7,814,296 8,011,113 8,668,178
Public works 1,670,868 1,873,216 1,588,976 1,956,027
Health and sanitation 19,447 15,775 21,890 19,301
Cultural and recreation 2,316,009 2,429,476 2,537,383 2,714,594
Economic development 34,119 135,010 44,157 2,303,885
Capital outlay 5,788,889 6,589,320 5,032,472 6,642,508
Debt service
Principal retirement 4,501,750 4,094,500 3,874,500 3,234,500
Interest 731,640 607,807 525,037 549,640
Total expenditures 24,742,706 25,971,390 23,925,668 28,586,711
Revenues over (under) expenditures (2,787,178) (7,501,475) (4,721,723) (4,555,233)
Other financing sources (uses)
Bonds issued 5,710,000$ 3,200,000$ 2,755,000$ 5,560,000$
Bond premiums 110,125 88,207 47,405 172,612
Lease proceeds - - - -
Payment to refunded bond paying agent (1,595,000) (1,470,000) - -
Transfers in 1,769,270 4,062,792 1,616,841 1,447,564
Transfers out (1,123,580) (1,723,002) (1,176,571) (1,316,732)
Insurance recoveries 20,082 20,852 21,020 27,814
Proceeds on sale of capital assets 21,652 - 29,098 111,069
Total other financing sources (uses) 4,912,549 4,178,849 3,292,793 6,002,327
Net change in fund balance 2,125,371$ (3,322,626)$ (1,428,930)$ 1,447,094$
27.6% 24.3% 23.3% 17.2%
Fiscal Year
Debt service as a percentage of
noncapital expenditures
City of Hastings
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
Unaudited
167
Table 4
2017 2018 2019 2020 2021 2022
12,981,670$ 13,607,851$ 13,892,707$ 14,589,044$ 15,245,720$ 16,153,690$
501,495 649,146 1,206,298 1,025,473 972,786 926,911
496,101 585,364 574,169 468,688 635,721 966,071
128,266 107,512 111,358 72,396 83,206 86,336
2,417,114 2,831,355 2,113,639 4,139,988 4,091,910 2,583,848
4,690,844 4,522,330 4,999,575 4,704,978 4,766,410 5,144,801
207,058 133,040 552,103 429,840 77,176 (327,261)
37,386 129,348 155,164 75,282 601,550 696,764
21,459,934 22,565,946 23,605,013 25,505,689 26,474,479 26,231,160
2,540,993 2,800,943 2,663,257 2,971,879 2,891,454 3,217,280
8,709,899 9,091,243 9,366,019 9,521,712 10,140,823 10,970,260
1,711,758 1,784,833 1,633,317 1,520,193 1,703,709 1,906,928
30,849 34,158 37,731 28,794 59,362 50,726
2,755,083 2,956,232 3,122,497 2,716,887 3,101,694 3,848,135
38,752 40,656 41,369 28,806 48,930 66,819
2,241,646 4,612,845 4,210,424 4,668,577 4,794,873 6,412,087
3,369,500 3,295,000 3,300,000 3,100,000 2,955,000 3,012,671
531,468 501,518 549,030 562,345 561,770 553,411
21,929,948 25,117,428 24,923,644 25,119,193 26,257,615 30,038,317
(470,014) (2,551,482) (1,318,631) 386,496 216,864 (3,807,157)
1,015,000$ 2,560,000$ 2,595,000$ 2,045,000$ 925,000$ 4,110,000$
57,387 138,815 506,618 302,018 68,037 308,474
- - - - - 191,375
- - - - - -
775,477 970,501 786,899 625,485 2,280,173 1,609,306
(522,308) (866,143) (796,521) (926,107) (3,223,837) (1,805,120)
24,299 8,150 7,715 1,843 - -
23,272 195,260 11,292 30,560 28,864 112,704
1,373,127 3,006,583 3,006,583 3,111,003 78,237 4,526,739
903,113$ 455,101$ 1,687,952$ 3,497,499$ 295,101$ 719,582$
19.8% 18.5% 18.6% 17.9% 15.6% 15.0%
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
2013 13,726,993$ 4,192,840$ 309,906$ 18,229,738$ 2,093,112$ 20,322,850$ 68.547% 1,328,846,744$ 1.37%
2014 11,684,807 3,569,065 263,800 15,517,672 2,075,825 17,593,497 66.246% 1,317,650,624 1.18%
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%
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
2013 50.496 18.051 68.547 23.932 5.854 33.421 131.754
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
*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 235,516$ 1 0.96% 100,000$ 8 0.57%
Hastings MarketPlace Sation LLC 216,812 2 0.88%
Wal-Mart 216,214 3 0.88% 256,856 2 1.46%
Voyageur Estates LLC 184,866 4 0.75%
Casey Capital V LLC 158,043 5 0.64%
Regina Medical Complex 153,368 6 0.62% 546,995 1 3.12%
Gasparre Hidden Valley LLC 149,892 7 0.61%
Siewart Brothers Investment LLC 144,175 8 0.59%
Hastings Medical Office Bldg LLC 144,116 9 0.59%
Centerpoint - Minegasco 132,540 10 0.54%
Xcel Energy (NSP Company) 211,638 3 1.20%
Inch III Hastings LLC 185,504 4 1.05%
Camegaran LLC 100,929 7 0.57%
Three Rivers Partnership 140,862 5 0.80%
KCP Hastings LLC 95,684 9 0.54%
Smead Manufacturing 93,562 10 0.53%
Target Corporation 117,250 6 0.67%
Total 1,500,026$ 6.10% 1,749,280$ 9.94%
Total all property 22,667,641$ 18,194,684$
Source: Dakota County Taxation Department
City of Hastings
Principal Propety Taxpayers
Current Year and Nine Years Ago
Unaudited
20132022
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
2013 11,980,920$ 11,855,934$ 98.96% 88,191$ 11,944,125$ 99.69%
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 12,457,380 99.66%
2017 12,960,919 12,810,057 98.84% 92,862 12,902,919 99.55%
2018 13,503,307 13,446,160 99.58% 20,098 13,466,258 99.73%
2019 14,233,201 14,029,829 98.57% 189,678 14,219,507 99.90%
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% 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
2013 3,313,451$ 18,735,004$ 2,377,616$ -$ 24,426,071$ 1$
2014 2,607,830 17,225,271 2,256,550 - 22,089,651 142.35%
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%
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 Business-Type Per Primary Per of
Bonds Activities Customer Government Capita Income
6,507,957$ 6,507,957$ 866$ 30,934,028$ 1,385$ 504.95%
6,013,905 6,013,905 800 28,103,556 1,249 444.92%
5,718,774 5,718,774 759 26,664,076 1,181 411.32%
5,408,639 5,408,639 716 28,760,565 1,268 441.38%
2,828,650 2,828,650 375 25,255,212 1,127 389.14%
3,700,024 3,700,024 489 24,023,178 1,054 349.95%
4,243,999 4,243,999 560 24,266,214 1,064 288.49%
5,166,185 5,166,185 716 24,307,123 1,070 270.81%
5,952,281 5,952,281 785 22,978,449 992 233.78%
7,213,667 7,213,667 947 24,655,115 1,063 218.54%
Business-Type Activities
174
Table 10
Gross Less Debt Net
Fiscal Governmental Service Governmental Estimated Per
Year Debt Fund Balance Debt Market Value Capita
2013 24,426,071$ 7,692,475$ 16,733,596$ 1.3% 749$
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 18,379,765 4,999,066 13,380,699 0.6% 577
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 65,377,571$ 64.09% 41,900,485$
Counties
Dakota County - 0.00% -
Washington County 98,060,000 0.01% 9,806
Other
Met Council 4,535,000 0.63% 28,571
Metropolitan Transit District 213,985,000 0.72% 1,540,692
Subtotal - overlapping debt 43,479,554
City direct debt 100.00% 18,379,765
Total direct and overlapping debt 61,859,319$
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, 2022
176
Estimated Market value 2,320,059,000$
Debt limit (3% of market value) 69,601,770
Debt applicable to limit:
General obligation bonds 4,130,000
Less: Amount set aside for repayment
of general obligation debt -
Total net debt applicable to limit 4,130,000
Legal debt margin 65,471,770$
2013 2014 2015 2016
Debt limit 39,865,402$ 43,998,825$ 48,291,162$ 46,420,722$
Total net debt applicable to limit 3,230,000 4,773,500 6,474,000 8,285,000
Legal debt margin 36,635,402$ 39,225,325$ 41,817,162$ 38,135,722$
Amount of Debt Applicable to Debt Limit:
Total net debt applicable to the limit as a percentage
of debt limit 8.10% 10.85% 13.41% 17.85%
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
201720182019202020212022
48,229,996$ 56,499,093$ 60,356,121$ 64,373,922$ 67,016,532$ 69,601,770$
7,290,000 7,140,000 6,245,000 6,231,661 5,274,587 4,130,000
40,939,996$ 49,359,093$ 54,111,121$ 58,142,261$ 61,741,945$ 65,471,770$
15.12% 12.64% 10.35% 9.68% 7.87% 5.93%
178
Sewer
Revenue
Bonds
Utility Less Net Utility
Fiscal Service Operating Available Service
Year Charges Expenses Revenue Principal Interest Coverage Charges
2013 2,033,128$ 1,951,525$ 81,603$ 268,250$ 186,899$ 0.18 -
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
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
- - - - - 1,112,853$ 3,425,000$ 665,837$ 0.27
- - - - - 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
Debt ServiceDebt Service
Sewer Revenue Bonds
180
Table 14
Per
Capita
Fiscal Personal Personal Unemployment
Year Population Income Income Rate
2013 22,339 1,080,604,447$ 48,373$ * 4.00%
2014 22,492 1,116,705,308 49,649 * 3.30%
2015 22,572 1,149,411,384 50,922 * 3.20%
2016 22,687 1,200,301,109 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%
* 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 9.11% 1,800 1 21.95%
Independent School District # 200 558 2 7.26% 719 2 8.77%
Regina Medical Center/Allina Clinic 370 3 4.81% 650 3 7.92%
Wal-Mart 300 4 3.90% 300 5 3.66%
Intek Plastics, Inc 221 5 2.88% 160 7 1.95%
Quality Once Woodwork 157 6 2.04%
City of Hastings 136 7 1.77% 108 10 1.32%
Fleet Farm 135 8 1.76%
Augustana Health Care center 130 9 1.69% 160 7 1.95%
Ardent Mills/Con-Agra 126 10 1.64% 117 9 1.43%
Smead Manufacturing Co. 300 4 3.66%
Allina Medical Clinic 250 6 3.05%
Total 2,833 36.86% 4,564 55.66%
Source: Hastings Community Development Department, Northland Securies & Springsted Inc.
City of Hastings
Principal Employers
Current Year and Nine Years Ago
Unaudited
20132022
182
Full-Time Equivalent Employees as of December 31st
Function/Program 2013 2014 2015 2016 2017 2018
General government
Administration 1.00 1.00 1.00 1.00 1.00 1.00
City Clerk 3.15 2.35 2.45 2.50 2.60 3.40
Finance 5.00 5.60 5.60 5.60 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 33.50 33.00 35.15 35.35 35.35 35.35
Building Inspections 3.60 3.70 3.70 3.80 3.90 3.90
Code Enforcement 0.80 1.00 1.00 1.00 1.00 1.00
Public Works
Engineering 7.80 7.80 7.80 7.80 6.80 6.90
Streets 4.80 5.54 5.54 5.54 5.54 5.54
Culture and Recreation:
Parks 8.63 8.63 8.60 12.20 13.80 13.80
Aquatic Center 7.50 7.40 7.40 10.00 8.70 8.70
Cable Television 0.15 0.20 0.20 0.20 0.20 0.20
Heritage Preservation 0.25 0.25 0.25 0.25 0.25 0.25
Fire and Ambulance 15.60 15.60 19.60 19..6 18.80 18.80
Civic Arena 2.00 4.80 4.80 5.10 4.80 4.80
Economic Development 0.38 0.38 0.63 0.63 0.63 1.75
Housing and Redevelopment 0.37 0.37 0.37 0.37 0.37 0.25
Water 5.80 5.10 5.10 5.10 5.20 5.20
Wastewater 3.55 3.70 3.70 3.70 3.80 3.90
Stormwater 3.50 3.40 3.40 3.40 3.40 3.50
Hydro Electric 5.60 5.60 5.60 7.00 6.20 6.30
Total 119.23 121.67 128.14 116.79 134.99 137.19
Source: City Budget
City of Hastings
Full-Time Equivalent City Government Employees by Function/Program
Last Ten Fiscal Years
Unaudited
183
Table 16
2019 2020 2021 2022
1.00 1.00 1.00 1.00
3.70 3.85 3.85 4.00
6.40 6.40 6.40 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
35.35 36.35 35.00 35.00
4.00 4.00 4.00 4.00
1.00 1.00 1.00 1.00
6.90 6.90 5.90 5.90
5.54 5.54 5.54 5.54
13.80 13.80 12.50 13.50
8.70 8.70 8.70 8.70
0.30 0.15 0.15 0.15
0.25 0.25 0.25 0.25
18.80 18.80 18.80 19.80
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
137.59 138.59 134.94 136.79
184
Function/Program 2013 2014 2015 2016 2017
Police
Physical arrests 337 427 360 407 470
Parking violations 368 466 293 442 225
Traffic violations 1,561 1,754 1,309 1,153 1,455
Felony offenses * 157 175 177 170
Gross misdemeanor offenses * 110 139 176 203
Minor miscellaneous offenses * 718 405 596 656
Calls for service 20,665 24,553 20,216 24,497 26,147
Part 1 Crimes 557 664 631 693 732
Part 2 Crimes 668 720 707 641 750
Fire
Emergency responses 3,201 3,184 3,495 3,249 3,735
Fires extinguished 42 49 74 53 38
Inspections 334 468 480 580 750
Building inspection
Permits issued
Residential 1,549 1,773 1,340 1,507 1,527
Commercial 81 49 165 106 106
Culture and recreation
Students participating in swim lessons 569 606 640 622 732
Ice rental hours 2,185 2,422 2,400 2,375 2,470
Turf rental hours 303 335 216 325 366
Recreational skaters 4,089 1,189 2,400 1,950 1,890
Water
New connections - - - - -
Water mains breaks - - - - -
Average daily consumption (thousands of gallons) 2,554 2,465 2,325 2,345 2,296
Peak daily consumption (thousands of gallons) 6,310 5,520 4,945 5,100
Note: Indicators are not available for the general government function.
The City began tracking indicators for culture and recreation in 2013
* 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
2018 2019 2020 2021 2022
389 554 402 467 403
473 582 347 242 191
1,269 1,220 1,095 723 620
134 151 159 156 162
164 236 155 255 239
562 486 351 288 460
24,097 23,268 22,888 23,924 23,038
469 504 434 960 859
875 857 742 493 426
3,681 2,991 3,352 4,149 3,766
85 55 97 68 85
426 569 426 314 423
1,638 1,538 2,486 3,221 2,571
103 106 154 119 75
763 840 - 924 889
2,388 2,377 1,755 1,864 2,316
397 352 17 157 310
2,278 2,570 1,708 3,126 3,012
- - - 27 33
- - - 3 5
2,195 2,026 2,280 2,449 2,355
4,725 3,965 4,130 6,465 5,175
Fiscal Year
186
Fiscal Year
Function/Program 2013 2014 2015 2016 2017 2018
Police
Stations 1 1 1 1 1 1
Fire stations 111111
Refuse collection
Collection trucks
Other public works
Streets (miles) 102.1 105.0 105.0 105.0 105.3 105.5
Culture and recreation
Acreage 640 640 640 640 640 640
Playgrounds 21 21 22 22 22 22
Baseball/softball diamonds 21 21 21 21 21 21
Soccer/football fields 10 10 10 21 21 21
Water
Water mains (miles) 105 105 105 105 105.2 105.2
Fire hydrants 1,334 1,334 1,094 1,095 1,099 1,099
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 89.1 89.3
Storm sewers (miles) 73 74 74 74 74.1 74.2
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
2019 2020 2021 2022
1111
1111
105.5 105.5 105.5 105.5
640 640 640 700
22 22 22 22
21 21 21 21
21 21 21 21
110.0 107.0 107.6 107.6
1,101 1,102 1,102 1,102
2,750 2,750 2,750 2,750
89.5 90.0 90.6 90.6
74.5 76.0 76.6 76.6
Fiscal Year