HomeMy WebLinkAboutCity of Hastings 2021 ACFRH ast i n gs m n.g o v /ACFR
City of Hastings,MN
Annual Comprehensive Financial Report
For the fiscal year ended December 31, 2021
ANNUAL
COMPREHENSIVE FINANCIAL REPORT
OF
THE CITY OF HASTINGS
MINNESOTA
For the Fiscal Year Ended December 31, 2021
Prepared by the City's Finance Department
City of Hastings
Table of Contents
Reference Page
I. INTRODUCTORY SECTION
Letter of Transmittal 3
List of Officials 8
Organizational Chart 9
Certificate of Achievement for Excellence in Financial Reporting 10
II. FINANCIAL SECTION
A.Independent Auditor's Report 13
B. Management's Discussion and Analysis 17
C. Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position Statement 1 29
Statement of Activities Statement 2 30
Fund Financial Statements
Balance Sheet – Governmental Funds Statement 3 32
Reconciliation of the Balance Sheet to the Statement of
Net Position – Governmental Funds Statement 4 35
Statement of Revenues, Expenditures, and Changes in
Fund Balances – Governmental Funds Statement 5 36
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances to the Statement of Activities
– Governmental Funds Statement 6 38
Statement of Revenues, Expenditures, and changed in Fund
Balance – Budget and Actual – General Fund Statement 7 39
Statement of Revenues, Expenditures, and Changes in Fund
Balance – Budget and Actual – Fire and Ambulance Special
Revenue Fund Statement 8 40
Statement of Net Position – Proprietary Funds Statement 9 41
Statement of Revenues, Expenses, and Changes in
Fund Net Position – Proprietary Funds Statement 10 42
Statement of Cash Flows – Proprietary Funds Statement 11 44
Statement of Fiduciary Net Position Statement 12 48
Statement of Changes in Fiduciary Net Position Statement 13 49
Notes to Basic Financial Statements 51
D. Required Supplementary Information
Schedule of Changes in Total OPEB Lability and Related Ratios Schedule 1 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 16 116
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Nonmajor Governmental Funds Statement 17 117
Combining Balance Sheet – Nonmajor Special Revenue Funds Statement 18 118
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Nonmajor Special Revenue Funds Statement 19 120
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Park and Recreation Special Revenue Fund Statement 20 122
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Cable Television Special Revenue Fund Statement 21 123
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Heritage Preservation Special Revenue Fund Statement 22 124
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Ice Arena Special Revenue Fund Statement 23 125
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – DUI Enforcement/Equipment Special
Revenue Fund Statement 24 126
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Aquatic Center Special Revenue Fund Statement 25 127
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 Statement 38 146
Subcombining Statement of Revenues, Expenditures, and Changes in
Fund Balance – Debt Service Fund Statement 39 152
III. STATISTICAL SECTION (UNAUDITED)
Net Position by Component Table 1 160
Changes in Net Position Table 2 162
Fund Balances, Governmental Funds Table 3 166
Changes in Fund Balances, Governmental Funds Table 4 168
Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 170
Direct and Overlapping Property Tax Rates Table 6 171
Principal Property Taxpayers Table 7 172
Property Tax Levies and Collections Table 8 173
Ratios of Outstanding Debt by Type Table 9 174
Ratio of Net General Obligation Bonded Debt to Assessed Value and
Net General Obligation Debt Per Capita Table 10 176
Direct and Overlapping Governmental Activities Debt Table 11 177
Legal Debt Margin Information Table 12 178
Pledged-Revenue Coverage Table 13 180
Demographic and Economic Statistics Table 14 182
Principle Employers Table 15 183
Full-Time Equivalent City Government Employees by
Function/Program Table 16 184
Operating Indicators by Function/Program Table 17 186
Capital Asset Statistics by Function/Program Table 18 188
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1
INTRODUCTORY SECTION
2
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3
June 20,2022
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 31,2021.
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 31,2021.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
31,2021,are fairly presented in conformity with GAAP.The Independent Auditors’Report is presented as the
first component of the financial section of this report.
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.
4
City Profile
The City of Hastings is a municipal corporation,incorporated in 1857,in the State of Minnesota,within the
corporate limits and boundaries established by the Home Rule Charter of the City.We are located approximately
20 miles south of St.Paul at the junction of the Mississippi and St.Croix Rivers in the east central part of the
state.A small portion of the City is located in Washington County.As a riverfront community,the City of
Hastings was the birthplace of many early commercial enterprises and is the county seat of Dakota 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 23,168 in 2021.The Metropolitan Council projects that
the city’s population will grow to 25,500 by the year 2030.The City encompasses an area of 11.40 square miles.
The City Charter declares the City operate under a “Mayor‐Council Plan”form of government.Policymaking and
legislative authority are vested in the City Council,which consists of a mayor and six other members,all elected
on a non‐partisan basis.The Mayor and Council members are elected to four‐year staggered terms with a two‐
year difference between at‐large and ward council seats.Four Councilmembers are elected from within their
respective wards and the Mayor and two Councilmembers are elected at‐large.The Council is responsible,
among other things,for passing ordinances,adopting the budget,appointing commissions and/or citizen
committees and hiring the City Administrator.The City Administrator is the chief administrative officer of the
City,and is responsible to the Council for the administration of the City’s affairs set forth in the City’s Charter.
This includes carrying out the policies and ordinances of the City,overseeing the day‐to‐day operations of the
city,and the heads of various departments and City employees.
The City of Hastings provides a full range of services,including police and fire protection,advanced and basic life
support ambulance services,the construction and maintenance of highways,streets,parks,infrastructure,
recreational and cultural facilities and general administrative services.In addition,the City provides enterprise
activities such as:water,sewer and storm water services,as well as hydroelectric power generation.The City
operates the Hastings Family Aquatic Center and Civic Arena,contributes to joint powers recreational
operations,and supports several other important community‐based events and projects.
The Council is required to adopt a final budget no later than the close of the fiscal year.The annual budget
represents the financial plan and priorities of the City of Hastings.It is intended to clearly communicate the
City’s goals and how resources are allocated to those priorities in an easy‐to‐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.
5
City Profile (Continued)
Department Heads are held responsible for their budget performance.Department Heads may request
transfers of appropriations within their departments.Transfers between departments require City Council
approval.Budget‐to‐actual comparisons are provided in this report for each individual governmental fund for
which an annual budget is adopted.For the General Fund,this comparison is presented as part of the basic
financial statements for the Governmental Funds.For the governmental funds with annual budgets,other than
the General Fund and the Fire and Ambulance Special Revenue Fund,this comparison is presented in the
Governmental Fund subsection of this report,as noted in the table of contents.
Local Economy
The City continues to see economic growth and local indicators point to continued stability in this area.The
region has a varied manufacturing/industrial base.Major industries with headquarters or divisions located
within the City’s boundaries or in close proximity include an office and stationery supplies manufacturer,flour
and other grain mill producer,plastics producer,and several financial and insurance institutions.The state,
county and school district also all have a major economic presence in the area,as we are home to the Dakota
County main governmental complex and Hastings’Independent School District 200 offices.
We again experienced an increase in both the number of permits as well as the overall value of work done in the
past year.Below is a chart that gives a brief building permit history.
Permits 2021 2020 2019 2018 2017 2016
New Residential 34 56 14 15 30 23
New Commercial 3 2 2 3 1 3
Residential remodel 77 71 77654064
Commercial remodel 55 81 48544044
All other permits 3265 2430 1503 1604 1518 1479
TOTAL 3,434 2,640 1,644 1,741 1,629 1,613
Dollar value of Permits
(in millions) 47.9$45.4$41.7$39.8$26.5$32.8$
Major Initiatives
The City saw an increase in the creation of new residential lots for future growth,including the annexation of a
40‐acre parcel for an additional 116 homes.Growth included the approval of two new senior housing facilities
where construction is expected in 2022.We have also seen increased demand for lot sales within the Hastings
Industrial Park for future industrial growth.
The City also received $1.25 million through the federal government’s ARPA grant to respond to the COVID‐19
public health emergency.This represents half of the total allocation the City will receive.The second half will
be received in 2022.These funds will be spent toward upgrading the City’s infrastructure and capital needs.
Repairing and preserving the historic City Hall Dome is the largest project planned to date.A new finance
system is also planned for 2022.This will upgrade the City’s cybersecurity,as well as bolster its financial
management capabilities.
6
Long‐Term Financial Planning (Continued)
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.
The Utility,Debt,and Capital plans were all reviewed internally to better position the community for long‐term
fiscal health.Council strategic planning goals and efforts center around Economic Development and Vitality,
Community Image,meeting the community’s transportation needs,and maintaining our existing infrastructure.
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 City adopted an
updated 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.
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 2021 Year End
a.)Total annual debt service for G.O.debt obligations per
legal debt limit to not exceed 25%of total budgeted
expenditures.
10.54%
b.)Net bonded debt outstanding will not exceed 3.5%of
Assessor’s market value of taxable property..53%
c.)Gross bonded debt will not exceed $1,800 per capita.$485
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 31,2020.This was the 23rd 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.
7
Awards and Acknowledgements (Continued)
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
8
City of Hastings
Elected Officials and Administration
December 31, 2021
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
Lori Braucks At-Large December 31, 2022
Mark Vaughan At-Large December 31, 2022
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
Bryan Schafer Police Chief
Ryan Stempski Interim Public Works Director
Chris Eitemiller Finance Manager
9
City of Hastings
City and Department Organizational Chart
December 31, 2021
City of Hastings Organizational Chart
City Administrator
AdvisoryCommissions
Mayor &Councilmembers
Re
s
i
d
e
n
t
s
an
d
Ta
x
p
a
y
e
r
s
Parks&RecreationDirector
PublicWorks Director
Family AquaticCenter
CivicArena
Operations&Maintenance
Engineering
Fire &EMSDirector
Information Technology
Manager
CommunityDevelopment
Director
Building Inspections
Code Enforecement
Community Development
Ci
t
y
of
Ha
s
t
i
n
g
s
HistroicPreservation
Facilities Maintenance
FinanceManager
HEDRA
City Clerk
Communications
HumanResources
Chiefof Police
AssistantCityAdministrator
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 31.2020
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, 2021,
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, 2021, and the respective changes in financial position and, where
applicable, cash flows thereof, and the budgetary comparison for the General Fund and the Fire and
Ambulance Special Revenue Fund for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the City of Hastings and to meet our other
ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Responsibilities of Management for the Financial Statements
The City of Hastings' management is responsible for the preparation and fair presentation of the
financial statements in accordance with accounting principles generally accepted in the United States of
America, and for the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about City of Hastings' ability to
continue as a going concern for one year beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
berganKDV
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Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of City of Hastings' internal control. Accordingly, no such opinion
is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about City of Hastings' ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control–related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis, which follows this report letter, and Required Supplementary information as
listed in the Table of Contents be presented to supplement the basic financial statements. Such
information is the responsibility of management and, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board (GASB), who considers it to
be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the Required
Supplementary Information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
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Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Hastings' basic financial statements. The combining and individual
fund financial statements and schedules are presented for purposes of additional analysis and are 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 combining and individual fund
financial statements and schedules are 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 12, 2022,
on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of internal control over financial reporting or on compliance.That report is an integral part
of an audit performed in accordance with Government Auditing Standards in considering the City's
internal control over financial reporting and compliance.
St. Cloud, Minnesota
May 12, 2022
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17
City of Hastings
Management's Discussion and Analysis
December 31, 2021
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, 2021. 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, 2021) by
$90,152,274 (net position). Of this amount, $11,729,238 (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 $6,908,846. The primary factor was revenues, with
operating and capital grants accounting for nearly $5 million of this increase.
As of the close of the 2021 fiscal year, the City of Hastings governmental funds ending fund
balances were $20,913,252. Approximately 39.33% 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 1.88% of the fund balance is non-
spendable. Approximately 19.22% is committed by City Council for the following activities:
special revenue funds-parks, aquatic, cable television, heritage preservation, fire & ambulance,
and the arena. Assigned fund balance for capital projects results in 4.62% of the fund balance,
the remaining 34.95% is unassigned and is available for spending at the City's discretion.
At the end of the current fiscal year, unassigned fund balance for the General Fund was
$9,033,202 or 53.4% of the total 2022 General Fund budgeted expenditures.
Overview of the Financial Statements
This discussion and analysis is 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, 2021
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, 2021
Overview of the Financial Statements (Continued)
Governmental funds (Continued). The City maintains 21 individual governmental funds. Information is
presented separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balances of the general fund, the fire and ambulance fund,
the debt service fund, and the downtown redevelopment tax increment financing fund, all of which are
considered to be major funds. Data from the other 17 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, 2021
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 110-157 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 $90,152,274 at the close of the most recent fiscal year.
By far the largest portion of the City's net position (75.9%) reflects its investment in capital assets (e.g.,
land, buildings, machinery, and equipment); less any related debt used to acquire those assets that is still
outstanding. The City of Hastings uses these capital assets to provide services to citizens; consequently,
these assets are not available for future spending. Although the City of Hastings' investment in capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt must
be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
City of Hastings' Net Position
Governmental Governmental Business-type Business-type
Activities Activities Activities Activities Total Total
2020 2021 2020 2021 2020 2021
Current and
other assets 26,565,216$ 30,622,442$ 8,771,555$ 10,171,761$ 35,336,771$ 40,794,203$
Capital assets 60,267,900 59,743,113 29,130,188 30,220,574 89,398,088 89,963,687
Total assets 86,833,116 90,365,555 37,901,743 40,392,335 124,734,859 130,757,890
Total deferred outflows 4,130,090 8,389,218 189,665 508,937 4,319,755 8,898,155
Long-term liabilities
outstanding 29,786,818 24,908,673 6,410,803 6,687,682 36,197,621 31,596,355
Other liabilities 4,457,415 6,094,883 654,710 884,025 5,112,125 6,978,908
Total liabilities 34,244,233 31,003,556 7,065,513 7,571,707 41,309,746 38,575,263
Total deferred inflows 4,446,643 10,400,190 54,797 528,318 4,501,440 10,928,508
Net Position
42,768,215 44,179,337 23,964,003 24,268,293 66,732,218 68,447,630
Restricted
Police activities 59,697 113,606 - - 59,697 113,606
Tax Increment 7,157 24,766 7,157 24,766
Debt service 7,182,012 7,346,220 - - 7,182,012 7,346,220
Capital projects 630,709 1,149,928 - - 630,709 1,149,928
Escrow 17,240 16,234 17,240 16,234
Permanent endowment
LeDuc Historic Estate - -
Unrestricted 324,570 3,196,284 7,007,095 8,532,954 7,331,665 11,729,238
Total net position 52,272,330 57,351,027 30,971,098 32,801,247 83,243,428 90,152,274
Net Investment in capital assets
1,324,6521,282,730 1,324,652 1,282,730
21
City of Hastings
Management's Discussion and Analysis
December 31, 2021
Government-wide Financial Analysis (Continued)
City of Hastings' Net Position (Continued)
At the end of 2021, 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
$5,078,697. The key elements of this increase were program revenues. Public Works saw an increase of
$3.8 million in capital grants, while the Culture and Recreation and Health and Sanitation functions saw
an increase of $409,164 in operating grants.
City of Hastings' Changes in Net Position
Governmental Governmental Business-type Business-type
Activities Activities Activities Activities Total Total
2020 2021 2020 2021 2020 2021
Revenues
Program revenues
Charges for services 5,585,985$ 5,926,787$ 6,368,753$ 7,003,670$ 11,954,738$ 12,930,457$
Operating grants & contributions 918,951 1,314,781 1,888 - 920,839 1,314,781
Capital grants & contributions 1,098,098 4,831,331 102,567 788,199 1,200,665 5,619,530
General revenues:
Property taxes 14,927,202 15,464,584 97 - 14,927,299 15,464,584
State aid 1,915,198 920,451 - - 1,915,198 920,451
Other income (loss) 488,455 107,113 99,249 (8,409) 587,704 98,704
Total Revenues 24,933,889 28,565,047 6,572,554 7,783,460 31,506,443 36,348,507
Expenses
General government 4,271,705 3,093,576 - - 4,271,705 3,093,576
Public safety 9,580,764 9,459,406 - - 9,580,764 9,459,406
Public works 5,355,622 6,667,995 - - 5,355,622 6,667,995
Culture & recreation 2,944,205 3,810,177 - - 2,944,205 3,810,177
Economic development 28,806 48,930 - - 28,806 48,930
Health & sanitation 28,794 59,362 - - 28,794 59,362
Interest on long-term debt 415,814 396,991 - - 415,814 396,991
Water - - 1,975,443 2,413,301 1,975,443 2,413,301
Sewer - - 2,314,153 2,567,037 2,314,153 2,567,037
Storm - - 404,163 401,155 404,163 401,155
Hydro - - 832,937 521,731 832,937 521,731
Total Expenses 22,625,710 23,536,437 5,526,696 5,903,224 28,152,406 29,439,661
Change in net position before transfers
and contributions 2,308,179 5,028,610 1,045,858 1,880,236 3,354,037 6,908,846
Transfers and contributions 99,378 50,087 (99,378) (50,087) - -
Change in net position 2,407,557 5,078,697 946,480 1,830,149 3,354,037 6,908,846
Net position-January 1 49,743,246 52,272,330 30,024,618 30,971,098 79,767,864 83,243,428
Prior Period Adjustment 121,527 - - - 121,527 -
Net position-December 31 52,272,330$ 57,351,027$ 30,971,098$ 32,801,247$ 83,243,428$ 90,152,274$
22
City of Hastings
Management's Discussion and Analysis
December 31, 2021
Government-wide Financial Analysis (Continued)
Below are specific graphs, which provide comparisons of the governmental activities revenues and
expenses:
Business-type activities. On the following page are graphs showing the business-type activities revenue
and expense comparisons.
$
in
th
o
u
s
a
n
d
s
Expenses Program Revenues
Revenue Sources-Governmental Activities
23
City of Hastings
Management's Discussion and Analysis
December 31, 2021
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.
$
in
th
o
u
s
a
n
d
s
Operating Expenses and Operating Revenues -BusinessType Activities
Operating Revenues Operating Expenses
Revenue Sources -Business Type Activities
Investment
24
City of Hastings
Management's Discussion and Analysis
December 31, 2021
Governmental funds. The focus of the City of Hastings' governmental funds is to provide information
on near-term inflows, outflows and balances of spendable resources. Such information is useful in
assessing the City of Hastings' financing requirements. In particular, unassigned fund balance may serve
as a useful measure of a government's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City of Hastings' governmental funds reported combined
ending fund balances of $20,913,252. Approximately 34.95% of this total amount or $7,309,687
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 from an external source 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
$295,101. The fund balance change is primarily due to the effect of the following factors:
The General fund balance increased by $1,074,268 primarily as a result of strong revenues,
combined with expenditure savings in many departments, primarily in personnel and capital.
Fire and Ambulance fund's activity resulted in a decrease of $155,407. This is a result of budget
amendments for capital purchases.
Other Governmental Funds such as the Aquatic, Cable TV, Heritage Preservation, LeDuc, and
Arena had a cumulative decrease of $189,679. The primary factor in this decrease was the
purchase of a Zamboni for the Arena. This was originally budgeted in 2020 and was not
purchased that year due to the pandemic. Fund balance was the financing source.
Debt Service funds had a fund balance decrease of $223,409 due to non-tax revenues not
meeting budget.
Downtown Redevelopment Tax Increment Financing had a fund balance decrease of $210,672
due to the current and prior year effects of an interfund loan approved in 2015 but not reflected
in the financial statements until 2020.
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 $9,033,202.
The Fire and Ambulance special revenue fund has a total fund balance of $1,329,535. 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 $5,800,275, most of which is restricted for the
payment of debt service.
The Downtown Revitalization Tax Increment Financing capital projects fund has a deficit fund balance
of $1,074,781.
25
City of Hastings
Management's Discussion and Analysis
December 31, 2021
Financial Analysis of the Government's Funds (Continued)
Proprietary funds. The City of Hastings' proprietary funds provide the same type of information found
in the government-wide financial statements, but in more detail. Unrestricted net position in the
respective proprietary funds are:
Water 3,766,514$
Sewer 3,656,642
Storm 922,063
Hydro 123,330
The Water, Sewer and Stormwater fund's activities resulted in an increase in net position primarily due
to an increase in utility rates. All utility funds had rate increases due to the 2019-2020 utility rate study
that continues to be implemented. After experiencing high maintenance expenses and lower revenues in
2020, the Hydro Plant had a more positive result in 2021, 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:
The Highway 316 Project was well under budget, by $1.3 million, due to changes in overall
costs, as well as the City's share of these costs.
The Public Works department was over $822,000 under budget due to personnel savings, plus a
reduced need for consulting services on the Highway 316 project after the changes.
Actual revenues were less than the amended revenue budget by nearly $1.2 million. The difference from
the final budget amounts is primarily due to the following:
Intergovernmental revenues were $1.1 million less than budgeted, due to the Highway 316
project changes.
Charges for services were under budget by nearly $300,000, again due to the Highway 316
changes.
Building permit revenues were over budget due to increased construction work in 2021.
Significant changes between original and final budgets were a result of:
Moving spending authority for capital computer equipment from the Vehicle and Equipment
fund to the General Fund's IT budget.
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, 2021, amounts to $89,963,687 (net of accumulated depreciation) an
increase of $565,599. This investment in capital assets includes land, buildings, improvements,
machinery and equipment, park facilities, and infrastructure.
26
City of Hastings
Management's Discussion and Analysis
December 31, 2021
City of Hastings Capital Assets
(Net of Depreciation)
2020 2021
2020 2021 Business- Business-
Governmental Governmental Type Type 2020 2021
Activities Activities Activities Activities Total Total
Land 3,690,160$ 3,690,736$ 349,300$ 349,300$ 4,039,460$ 4,040,036$
Construction in Progress 633,992 775,829 44,563 - 678,555 775,829
Buildings 8,502,466 8,319,253 6,336,681 5,921,530 14,839,147 14,240,783
Improvement other
than buildings 2,690,331 3,105,480 1,676,951 1,776,354 4,367,282 4,881,834
Machinery and Equipment 2,336,181 2,781,165 2,293,997 2,653,875 4,630,178 5,435,040
Infrastructure 42,414,770 41,070,650 18,428,696 19,519,515 60,843,466 60,590,165
Total assets 60,267,900$ 59,743,113$ 29,130,188$ 30,220,574$ 89,398,088$ 89,963,687$
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. debt of $5,505,000
comprises debt backed by the full faith and credit of the government and $10,550,000 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 2021, the City experienced higher levels of residential remodels than 2020. Meanwhile, new
residential construction were lower and commercial remodels decreased from 2020. The overall increase
in taxable market value of residential and commercial new construction was $47.9 million which is $2.5
million higher than 2020. The City experienced an increase of tax capacity of $990,973 between pay
year 2020 and pay year 2021.
Next Year's Budget
The 2022 budget included a levy increase of $981,785, or 6.412%. Of this, $507,200 was due to tax
capacity growth and the remainder of $474,585 was derived from the first rate increase since 2016 of
1.255%. The City anticipates receiving $903,259 of Local Government Aid from the State of Minnesota,
which is dedicated to funding one-time expenditures. Cost of Living increases and Capital projects and
Capital equipment purchases made up the increase from 2021 to 2022.
Requests for Information
This financial report is designed to provide a general overview of the City of Hastings' finances.
Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Finance Manager at 101 4th Street East, Hastings, MN 55033,
FinanceDept@hastingsmn.gov or 651-480-2350.
27
BASIC FINANCIAL STATEMENTS
28
(THIS PAGE LEFT BLANK INTENTIONALLY)
See notes to basic financial statements. 29
Statement 1
Governmental
Activities
Business-type
Activities Total
Assets
Cash and investments
(including cash equivalents)20,903,971$ 8,337,461$ 29,241,432$ 1,126,731$
Cash with fiscal agent 939,044 - 939,044 -
Restricted cash 80,077 - 80,077 -
Receivables
Accounts receivable 1,557,725 1,515,149 3,072,874 -
Interest receivable 27,899 9,807 37,706 1,610
Taxes receivable 1,458,327 - 1,458,327 37,628
Special assessments receivable 1,718,247 162,498 1,880,745 -
Loan receivable - - - 184,597
Due from other governments 1,344,043 200 1,344,243 1,304,239
Inventories 58,925 - 58,925 -
Prepaid items 143,055 146,646 289,701 133
Assets held for resale - - - 3,251,890
Capital assets not being depreciated
Land 3,690,736 349,300 4,040,036 -
Construction in progress 775,829 - 775,829 -
Capital assets net of accumulated depreciation
Buildings and structures 8,319,253 5,921,530 14,240,783 93,499
Machinery and equipment 2,781,165 2,653,875 5,435,040 -
Improvements other than buildings 3,105,480 1,776,354 4,881,834 -
Infrastructure 41,070,650 19,519,515 60,590,165 -
Net pension asset 2,391,129 - 2,391,129 -
Total assets 90,365,555$ 40,392,335$ 130,757,890$ 6,000,327$
Deferred Outflows of Resources
Deferred outflows of resources related to fire relief pensions 220,894 - 220,894 -
Deferred outflows of resources related to City pensions 7,135,027 391,652 7,526,679 89,577
Deferred outflows of resources related to OPEB 1,033,297 117,285 1,150,582 22,286
Total deferred outflows of resources 8,389,218 508,937 8,898,155 111,863
Total assets and deferred outflows of resources 98,754,773$ 40,901,272$ 139,656,045$ 6,112,190$
Liabilities
Accounts and contracts payable 642,664$ 222,628$ 865,292$ 9,125$
Interest payable 199,127 67,268 266,395 -
Salaries and benefits payable 416,820 46,141 462,961 7,305
Due to other governments 90,001 18,455 108,456 1,054,239
Deposits payable 420,117 - 420,117 16,700
Unearned revenue 1,316,521 - 1,316,521 -
Bonds payable, net
Payable within one year 2,915,000 515,000 3,430,000 -
Payable after one year 14,111,168 5,437,281 19,548,449 -
Compensated absences payable
Payable within one year 94,633 14,533 109,166 -
Payable after one year 1,632,259 246,732 1,878,991 -
Payable after one year
Net pension liability 5,219,709 555,822 5,775,531 127,126
Total other post employment benefits (OPEB) liability 3,945,537 447,847 4,393,384 85,092
Total liabilities 31,003,556 7,571,707 38,575,263 1,299,587
Deferred Inflows of Resources
Deferred inflows of resources related to fire relief pensions 689,575 - 689,575 -
Deferred inflows of resources related to City pensions 9,665,935 523,247 10,189,182 119,676
Deferred inflows of resources related to OPEB 44,680 5,071 49,751 964
Total deferred inflows of resources 10,400,190 528,318 10,928,508 120,640
Net Position
Net investment in capital assets 44,179,337 24,268,293 68,447,630 93,499
Restricted for
Debt service 7,346,220 - 7,346,220 -
Tax Increment 24,766 - 24,766 -
Capital projects 1,149,928 - 1,149,928 -
Escrow 16,234 16,234 -
Police activities 113,606 - 113,606 -
LeDuc Historic Estate - unexpendable 200,000 - 200,000 -
LeDuc Historic Estate - expendable 1,124,652 - 1,124,652 -
Unrestricted 3,196,284 8,532,954 11,729,238 4,598,464
Total net position 57,351,027 32,801,247 90,152,274 4,691,963
Total liabilities, deferred inflows of resources, and net position 98,754,773$ 40,901,272$ 139,656,045$ 6,112,190$
Hastings
Economic
Development
and
Redevelopment
Authority
City of Hastings
Statement of Net Position
December 31, 2021
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 3,093,577$ 459,130$ 11,745$ -$
Public safety 9,459,405 3,581,897 514,590 -
Public works 6,667,995 485,869 273,949 4,593,731
Health and sanitation 59,362 7,350 165,984 -
Culture and recreation 3,810,177 1,307,896 348,513 237,600
Economic development 48,930 - - -
Interest and fiscal charges 396,991 84,645 - -
Total governmental activities 23,536,437 5,926,787 1,314,781 4,831,331
Business-type activities
Water 2,413,301 2,744,525 - 433,629
Sewer 2,567,037 2,757,731 - 223,782
Storm 401,155 763,339 - 119,525
Hydro 521,731 738,075 - 11,263
Total business-type activities 5,903,224 7,003,670 - 788,199
Total governmental and
business-type activities 29,439,661$ 12,930,457$ 1,314,781$ 5,619,530$
Component unit
Hastings Economic Development
Redevelopment Authority 802,314$ 55,557$ 239,771$ 11,780$
General revenues
Property taxes
Lodging taxes
Unrestricted state aid
Unrestricted investment earnings
Gain on sale of asset
Transfers - capital assets
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, 2021
31
Statement 2
Governmental
Activities
Business-Type
Activities Total
Hastings
Economic and
Redevelopment
Authority
(2,622,702)$ -$ (2,622,702)$ -$
(5,362,918) - (5,362,918) -
(1,314,446) - (1,314,446) -
113,972 - 113,972 -
(1,916,168) - (1,916,168) -
(48,930) - (48,930) -
(312,346) - (312,346) -
(11,463,538) - (11,463,538)
- 764,853 764,853 -
- 414,476 414,476 -
- 481,709 481,709 -
- 227,607 227,607 -
- 1,888,645 1,888,645
(11,463,538)$ 1,888,645$ (9,574,893)$ -$
-$ -$ -$ (495,206)$
15,461,511 - 15,461,511 392,665
3,073 - 3,073 -
920,451 - 920,451 -
74,696 (8,409) 66,287 (4,806)
32,417 - 32,417 -
(260,554) 260,554 - -
310,641 (310,641) - -
16,542,235 (58,496) 16,483,739 387,859
5,078,697 1,830,149 6,908,846 (107,347)
52,272,330 30,971,098 83,243,428 4,799,310
57,351,027$ 32,801,247$ 90,152,274$ 4,691,963$
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 8,675,410$ 598,546$ 4,942,796$
Cash with fiscal agent - - -
Restricted cash 80,077 - -
Interest receivable 11,664 979 7,217
Due from other governments 1,320,491 - -
Accounts receivable 469,589 816,421 -
Due from other funds - - 641,786
Property taxes receivable 890,559 126,887 230,267
Special assessments receivable - - 1,718,247
Advances to other funds 1,054,239 - -
Inventory 54,113 - -
Prepaid items 75,454 46,515 5,034
Total assets 12,631,596$ 1,589,348$ 7,545,347$
Liabilities
Accounts payable 266,124$ 107,668$ -$
Due to other governments 71,386 13,989 -
Deposits payable - - -
Salaries and benefits payable 252,809 122,405 -
Due to other funds - - -
Advances from other funds - - -
Unearned revenues 1,311,468 - -
Total liabilities 1,901,787 244,062 -
Deferred Inflows of Resources
Unavailable revenue - taxes and assessments 102,722 15,751 1,745,072
Advanced appropriations - State Shared Taxes 1,107,209 - -
Unavailable revenue - grants 141,358 - -
Unavailable revenue - other - - -
Total deferred inflows of resources 1,351,289 15,751 1,745,072
Fund Balances
Nonspendable
Prepaid items 75,454 46,515 5,034
Inventory 54,113 - -
Permanent Endowment-Leduc Historic Estate - - -
Restricted
Police activities 61,676 - -
Debt service - - 5,795,241
Capital projects - - -
Tax increment financing - - -
Leduc Historic Estate 154,075 - -
Escrow
Committed
Park Maintenance - - -
Aquatic operations - - -
Cable TV activities - - -
Heritage preservation activities - - -
Fire and ambulance activities - 1,283,020 -
Arena activities - - -
Assigned
Capital - - -
Unassigned 9,033,202 - -
Total fund balances 9,378,520 1,329,535 5,800,275
Total liabilities, deferred inflows of resources, and fund balances 12,631,596$ 1,589,348$ 7,545,347$
City of Hastings
Balance Sheet - Governmental Funds
December 31, 2021
Special
Revenue
33
Statement 3
Capital Projects
Downtown
Redevelopment
Tax Increment
Financing (409)
Other
Governmental
Funds
Total
Governmental
Funds
-$ 5,447,716$ 19,664,468$
- 939,044 939,044
- - 80,077
- 6,761 26,621
- 23,552 1,344,043
- 271,705 1,557,715
- - 641,786
- 182,075 1,429,788
- - 1,718,247
- - 1,054,239
- 4,812 58,925
- 7,069 134,072
-$ 6,882,734$ 28,649,025$
-$ 222,610$ 596,402$
- 1,959 87,334
- 420,117 420,117
- 41,606 416,820
20,542 621,244 641,786
1,054,239 - 1,054,239
- 1,535 1,313,003
1,074,781 1,309,071 4,529,701
- 24,746 1,888,291
- - 1,107,209
- - 141,358
- 69,214 69,214
- 93,960 3,206,072
- 7,069 134,072
- 4,812 58,925
- 200,000 200,000
- 51,914 113,590
- - 5,795,241
- 1,149,928 1,149,928
- 24,766 24,766
- 970,577 1,124,652
16,234 16,234
- 1,573,272 1,573,272
- 402,511 402,511
- 153,208 153,208
- 115,531 115,531
- - 1,283,020
- 492,028 492,028
- 966,587 966,587
(1,074,781) (648,734) 7,309,687
(1,074,781) 5,479,703 20,913,252
-$ 6,882,734$ 28,649,025$
34
(THIS PAGE LEFT BLANK INTENTIONALLY)
See notes to basic financial statements. 35
Statement 4
Total fund balances - governmental funds 20,913,252$
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 152,635,802
Less accumulated depreciation (94,573,178)
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 (16,055,000)
Unamortized bond premium and discount (971,168)
Net pension liability (5,219,709)
Revenues in the Statement of Activities that do not provide current financial resources are deferred
in the funds.
Taxes and special assessments 1,888,291
Grants, state shared tax, and other 1,317,781
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 (689,575)
Deferred inflows of resources related to city pensions (9,665,935)
Deferred outflows of resources related to fire relief pensions 220,894
Deferred outflows of resources related to city pensions 7,135,027
The Fire Relief Association net pension asset created through contributions to a defined benefit
pension plan which is not recognized in the governmental funds. 2,391,129
Governmental funds do not report a liability for accrued interest due and payable. (199,127)
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. (1,777,457)
Total net position - governmental activities 57,351,027$
December 31, 2021
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 9,745,645$ 1,347,878$ 2,195,103$
Miscellaneous taxes 3,073 - -
Licenses and permits 635,721 - -
Intergovernmental 3,069,698 267,712 -
Special assessments - - 972,786
Charges for services 1,017,830 2,395,706 84,645
Fines and forfeitures 80,879 - -
Investment income (14,586) (1,378) (15,784)
Contributions and donations 800 1,981 -
Miscellaneous 30,576 - -
Total revenues 14,569,636 4,011,899 3,236,750
Expenditures
Current
General government 2,891,454 - -
Public safety 6,051,294 4,086,535 -
Public works 1,683,867 - -
Health and sanitation 59,362 - -
Culture and recreation 144,474 - -
Economic development - - -
Debt service
Principal - - 2,955,000
Interest and fiscal charges - - 517,934
Capital outlay
General government 265,280 - -
Public safety 64,728 168,611 -
Public works 1,608,607 - -
Culture and recreation - - -
Total expenditures 12,769,066 4,255,146 3,472,934
Excess of revenues over (under) expenditures 1,800,570 (243,247) (236,184)
Other Financing Sources (Uses)
Proceeds from sale of capital asset 23,714 - -
Bonds issued - - -
Premium on bonds issued - - -
Transfers in 729,217 164,402 773,375
Transfers out (1,479,233) (76,562) (760,600)
Total other financing sources (uses) (726,302) 87,840 12,775
Net change in fund balances 1,074,268 (155,407) (223,409)
Fund Balances
Beginning of year 8,304,252 1,484,942 6,023,684
End of year 9,378,520$ 1,329,535$ 5,800,275$
Special
Revenue
City of Hastings
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds
Year Ended December 31, 2021
37
Statement 5
Capital Projects
Downtown
Redevelopment
Tax Increment
Financing (409)
Other
Governmental
Funds
Total
Governmental
Funds
-$ 1,954,021$ 15,242,647$
- - 3,073
- - 635,721
- 754,500 4,091,910
- - 972,786
- 1,268,229 4,766,410
- 2,327 83,206
- 108,924 77,176
- 311,589 314,370
- 256,604 287,180
- 4,656,194 26,474,479
- - 2,891,454
- 2,994 10,140,823
- 19,842 1,703,709
- - 59,362
- 2,957,220 3,101,694
672 48,258 48,930
- - 2,955,000
- 43,836 561,770
- - 265,280
- - 233,339
- 2,073,873 3,682,480
- 613,774 613,774
672 5,759,797 26,257,615
(672) (1,103,603) 216,864
- 5,150 28,864
- 925,000 925,000
- 68,037 68,037
- 613,179 2,280,173
(210,000) (697,442) (3,223,837)
(210,000) 913,924 78,237
(210,672) (189,679) 295,101
(864,109) 5,669,382 20,618,151
(1,074,781)$ 5,479,703$ 20,913,252$
See notes to basic financial statements. 38
Statement 6
295,101$
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 3,762,277
Depreciation expense (5,149,849)
Assets contributed to Enterprise Funds (260,554)
Governmental funds recognize pension contributions as expenditures at the time of payment in
the funds whereas the Statement of Activities factors in items related to pensions on a full accrual
perspective.
Pension expense 1,575,090
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 payable 2,955,000
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. 84,770
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. 11,972
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. (925,000)
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 296,802
Grants, state shared tax, and other 1,315,336
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. 1,117,752
5,078,697$ 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, 2021
See notes to basic financial statements. 39
Statement 7
Original Final
Actual
Amounts
Revenues
General property taxes 9,568,845$ 9,568,877$ 9,745,645$ 176,768$
Lodging taxes 3,255 3,255 3,073 (182)
Special assessments 1,000 1,000 - (1,000)
Licenses and permits 492,750 492,750 635,721 142,971
Intergovernmental revenues 3,969,553 4,184,531 3,069,698 (1,114,833)
Charges for services 799,479 1,299,479 1,017,830 (281,649)
Fines and forfeitures 100,500 100,500 80,879 (19,621)
Investment income 49,500 49,500 (14,586) (64,086)
Contributions and donations - 800 800 -
Other revenues 57,000 57,000 30,576 (26,424)
Total revenues 15,041,882 15,757,692 14,569,636 (1,188,056)
Expenditures
General Government 2,938,387$ 3,080,857$ 2,891,454 (189,403)
Public safety 6,162,949 6,166,849 6,051,294 (115,555)
Public works 1,778,738 2,506,128 1,683,867 (822,261)
Health and sanitation 45,050 45,100 59,362 14,262
Culture and recreation 157,624 157,624 144,474 (13,150)
Capital outlay 2,912,000 3,555,763 1,938,615 (1,617,148)
Total expenditures 13,994,748 15,512,321 12,769,066 (2,743,255)
Excess of revenues over expenditures 1,047,134 245,371 1,800,570 1,555,199
Other Financing Sources (Uses)
Proceeds from sale of capital assets - - 23,714 23,714
Transfers in 457,578 703,968 729,848 25,880
Transfers out (1,521,567) (2,373,947) (1,479,864) 894,083
Total other financing sources (uses) (1,063,989) (1,669,979) (726,302) 943,677
Net change in fund balances (16,855)$ (1,424,608)$ 1,074,268 2,498,876$
Fund Balances
Beginning of year 8,304,252
End of year 9,378,520$
2021
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, 2021
See notes to basic financial statements. 40
Statement 8
Original Final
Actual
Amounts
Revenues
Property taxes 1,332,047$ 1,332,047$ 1,347,878$ 15,831$
Intergovernmental 175,000 175,000 267,712 92,712
Charges for services 2,810,150 2,810,150 2,395,706 (414,444)
Investment income 2,000 2,000 (1,378) (3,378)
Contributions and donations - 300 1,981 1,681
Total revenues 4,319,197 4,319,497 4,011,899 (307,598)
Expenditures
Current
Public safety 4,242,635 4,252,605 4,086,535 (166,070)
Capital outlay
Public safety - 271,417 168,611 (102,806)
Total expenditures 4,242,635 4,524,022 4,255,146 (268,876)
Excess of revenues over (under) expenditures 76,562 (204,525) (243,247) (38,722)
Other Financing Sources (Uses)
Transfers in - 164,402 164,402 -
Transfers out (76,562) (76,562) (76,562) -
Total other financing sources (uses) (76,562) 87,840 87,840 -
Net change in fund balance -$ (116,685)$ (155,407) (38,722)$
Fund Balance
Beginning of year 1,484,942
End of year 1,329,535$
2021
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, 2021
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 3,721,657$ 3,285,758$ 1,073,698$ 191,971$ 8,273,084$ 1,303,880$
Taxes receivable - - - - - 28,539
Interest receivable 4,884 3,114 1,484 278 9,760 1,325
Due from other governments - - - 200 200 -
Accounts receivable - net 537,432 705,080 211,437 61,200 1,515,149 10
Special assessments receivable
Deferred 146,838 15,358 302 - 162,498 -
Prepaid items 12,471 132,992 151 15 145,629 10,000
Total current assets 4,423,282 4,142,302 1,287,072 253,664 10,106,320 1,343,754
Noncurrent assets
Capital assets, not being depreciated
Land 349,300 - - - 349,300 -
Construction in progress - - - - - 730,551
Capital assets, being depreciated
Buildings 8,046,482 144,798 - 6,831,566 15,022,846 -
Infrastructure 22,684,488 19,425,089 357,927 - 42,467,504 -
Machinery and equipment 2,918,385 868,408 391,561 3,806,459 7,984,813 1,185,229
Improvements other than buildings 4,042,285 - 157,658 - 4,199,943 -
Total capital assets 38,040,940 20,438,295 907,146 10,638,025 70,024,406 1,915,780
Less: accumulated depreciation (20,022,912) (11,453,653) (189,104) (8,138,163) (39,803,832) (235,291)
Net capital assets 18,018,028 8,984,642 718,042 2,499,862 30,220,574 1,680,489
Total noncurrent assets 18,018,028 8,984,642 718,042 2,499,862 30,220,574 1,680,489
Total assets 22,441,310 13,126,944 2,005,114 2,753,526 40,326,894 3,024,243
Deferred Outflows of Resources
Deferred outflows of resources related to pensions 147,914 115,471 111,836 16,431 391,652 -
Deferred outflows of resources related to OPEB 48,087 32,840 31,667 4,691 117,285 1,033,297
Total deferred outflows of resources 196,001 148,311 143,503 21,122 508,937 1,033,297
Total assets and deferred outflows of resources 22,637,311$ 13,275,255$ 2,148,617$ 2,774,648$ 40,835,831$ 4,057,540$
Liabilities
Current liabilities
Accounts payable 62,063$ 85,852$ 974$ 72,703$ 221,592 47,298$
Due to other governments 18,134 - - 321 18,455 2,667
Interest payable 50,989 16,279 - - 67,268 -
Salaries payable 18,683 13,317 12,289 1,852 46,141 -
Compensated absences 5,693 3,834 4,236 770 14,533 94,633
Unearned revenue - - - - - 3,518
Bonds payable - current portion 440,000 75,000 - - 515,000 -
Total current liabilities 595,562 194,282 17,499 75,646 882,989 148,116
Noncurrent liabilities
Compensated absences 109,675 73,563 64,834 13,193 261,265 1,726,892
Bonds payable, net 4,500,577 1,451,704 - - 5,952,281 -
Total OPEB liability 183,617 125,398 120,918 17,914 447,847 3,945,537
Net pension liability 209,916 163,873 158,715 23,318 555,822 -
Less amount due within one year (445,693) (78,834) (4,236) (770) (529,533) (94,633)
Total noncurrent liabilities 4,558,092 1,735,704 340,231 53,655 6,687,682 5,577,796
Total liabilities 5,153,654 1,929,986 357,730 129,301 7,570,671 5,725,912
Deferred Inflows of Resources
Deferred inflows of resources related to pensions 197,613 154,269 149,413 21,952 523,247 -
Deferred inflows of resources related to OPEB 2,079 1,420 1,369 203 5,071 44,680
Total deferred inflows of resources 199,692 155,689 150,782 22,155 528,318 44,680
Net Position
Net investment in capital assets 13,517,451 7,532,938 718,042 2,499,862 24,268,293 1,680,489
Unrestricted 3,766,514 3,656,642 922,063 123,330 8,468,549 (3,393,541)
Total net position 17,283,965 11,189,580 1,640,105 2,623,192 32,736,842 (1,713,052)
Total liabilities, deferred inflows of resources,
and net position 22,637,311$ 13,275,255$ 2,148,617$ 2,774,648$ 4,057,540$
Adjustment to reflect the consolidation of internal
service fund activities related to enterprise funds 64,405
Total business-type acitivites net position 32,801,247$
City of Hastings
Statement of Net Position - Proprietary Funds
December 31, 2021
Business-Type Activities Enterprise Funds
See notes to basic financial statements. 42
Water (600) Sewer (601) Storm (603) Hydro (620)
Operating revenues
Charges for services 2,731,227$ 2,717,405$ 761,135$ 730,287$
Other income 1,345 37,299 - 7,276
Total operating revenues 2,732,572 2,754,704 761,135 737,563
Operating expenses
Personnel services 465,560 321,850 308,885 44,120
Supplies 392,349 5,358 3,856 467
Professional services 554,608 219,428 58,653 310,079
Metro waste control charge - 1,412,707 - -
Depreciation 897,045 476,605 32,093 167,607
Miscellaneous - - - -
Repairs and maintenance - 102,471 - -
Total operating expenses 2,309,562 2,538,419 403,487 522,273
Operating income (loss) 423,010 216,285 357,648 215,290
Nonoperating revenues (expenses)
Investment income (4,055) (2,774) (1,270) (257)
Special assessments 114,436 (233) - -
Intergovernmental - - 119,525 -
Gain (loss) on disposal of capital assets (3,762) - - -
Property taxes - - - -
Interest expense (102,647) (32,068) - -
Total nonoperating revenues (expenses)3,972 (35,075) 118,255 (257)
Income (loss) before transfers 426,982 181,210 475,903 215,033
Capital contributions from developers 328,395 223,782 - 11,263
Capital contributions from governmental funds - - 260,554 -
Transfers in - 18,333 - 355,000
Transfers out (33,806) (387,429) (7,526) (264,951)
Change in net position 721,571 35,896 728,931 316,345
Net position
Beginning of year 16,562,394 11,153,684 911,174 2,306,847
End of year 17,283,965$ 11,189,580$ 1,640,105$ 2,623,192$
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
Transfer in of Capital Assets from Governmental Activities
Governmental activities contribution revenue reported above
Change in net position- business-type activities
Year Ended December 31, 2021
Business-Type Activities Enterprise Funds
City of Hastings
Statement of Revenues, Expenses, and Changes
in Fund Net Position - Proprietary Funds
43
Statement 10
Total
6,940,054$ 1,053,688$
45,920 -
6,985,974 1,053,688
1,140,415 612,856
402,030 -
1,142,768 732,449
1,412,707 -
1,573,350 125,711
- 9,682
102,471 -
5,773,741 1,480,698
1,212,233 (427,010)
(8,356) (2,493)
114,203 -
119,525 3,587
(3,762) 3,553
- 303,478
(134,715) -
86,895 308,125
1,299,128 (118,885)
563,440 -
260,554 -
373,333 1,453,531
(693,712) (189,488)
1,802,743 1,145,158
(2,858,210)
(1,713,052)$
27,406
260,554
(260,554)
1,830,149$
Governmental
Activities -
Internal Service
Funds
Business-Type
Activities
Enterprise
Funds
See notes to basic financial statements. 44
Water (600) Sewer (601) Storm (603) Hydro (620)
Cash Flows - Operating Activities
Receipts from customers 2,704,472$ 2,677,905$ 745,796$ 727,962$
Interfund services provided and used - - - -
Payments to suppliers for goods and services (1,044,395) (1,675,360) (65,023) (250,604)
Payments to employees for services (544,882) (374,874) (359,399) (49,414)
Other operating revenues 1,345 37,299 - 7,276
Net cash flows - operating activities 1,116,540 664,970 321,374 435,220
Cash Flows - Noncapital Financing Activities
Property taxes - - - -
Special assessments - 2,474 - -
Intergovernmental receipts - - - -
Increase (decrease) in due to other funds - 300,000 - (300,000)
Transfer to other funds (33,806) (387,429) (7,526) (264,951)
Transfer from other funds - 18,333 - 355,000
Net cash flows - noncapital financing activities (33,806) (66,622) (7,526) (209,951)
Cash Flows - Capital and Related Financing Activities
Principal paid on debt (360,000) (40,000) - -
Interest paid on debt (131,102) (36,163) - -
Special assessments 31,076 - - -
Intergovernmental receipts - - 119,525 -
Bond proceeds 645,000 500,000 - -
Bond premium issued 47,873 36,886
Acquisition of capital assets (1,142,369) (444,211) (157,659) (99,267)
Proceeds from disposal of capital assets - - - -
Net cash flows - capital and related financial activities (909,522) 16,512 (38,134) (99,267)
Cash Flows - Investing Activities
Investment income (8,939) (5,887) (2,753) (535)
Net change in cash and cash equivalents 164,273 608,973 272,961 125,467
Cash and Cash Equivalents
3,557,384 2,676,785 800,737 66,504
3,721,657$ 3,285,758$ 1,073,698$ 191,971$
Reconciliation of Operating Income (Loss) to
Net Cash Flows - Operating Activities
Operating income (loss) 423,010$ 216,285$ 357,648$ 215,290$
Adjustments to reconcile operating income
(loss) to net cash flows - operating activities
Depreciation 897,045 476,605 32,093 167,607
Pension expense (72,164) (38,428) (37,216) (5,469)
Accounts receivable (26,755) (39,500) (15,339) (2,325)
Prepaid items (11,501) (15,095) 157 16
Accounts payable (90,536) 79,699 (2,671) 59,961
Salaries payable 584 196 197 (92)
Due to other governments 4,599 - - (35)
Unearned revenue - - - -
OPEB expense (543) (7,186) (6,896) (25)
Compensated absences payable (7,199) (7,606) (6,599) 292
Total adjustments 693,530 448,685 (36,274) 219,930
Net cash flows - operating activities 1,116,540$ 664,970$ 321,374$ 435,220$
Noncash Capital and Related
Financing Activities
Capital contributions 328,395$ 223,782$ 260,554$ 11,263$
January 1
December 31
City of Hastings
Statement of Cash Flows - Proprietary Funds
Year Ended December 31, 2021
Business-Type Activities -
Enterprise Funds
45
Statement 11
Business-Type
Activities -
Enterprise Funds
Total
Governmental
Activities -
Internal Service
Funds
6,856,135$ -$
- 1,057,196
(3,035,382) (705,315)
(1,328,569) (569,361)
45,920 -
2,538,104 (217,480)
- 310,076
2,474 -
- 18,443
- -
(693,712) (187,000)
373,333 1,451,043
(317,905) 1,592,562
(400,000) -
(167,265) -
31,076 -
119,525 -
1,145,000 -
84,759 -
(1,843,506) (1,249,050)
- 3,553
(1,030,411) (1,245,497)
(18,114) (2,163)
1,171,674 127,422
7,101,410 1,176,458
8,273,084$ 1,303,880$
1,212,233$ (427,010)$
1,573,350 125,711
(153,277) -
(83,919) (10)
(26,423) (500)
46,453 41,704
885 -
4,564 -
- 3,518
(14,650) (4,388)
(21,112) 43,495
1,325,871 209,530
2,538,104$ (217,480)$
823,994$ -$
46
(THIS PAGE LEFT BLANK INTENTIONALLY)
47
TRUST FUNDS
See notes to basic financial statements. 48
Statement 12
Library
Private-Purpose
Trust Fund
Assets
Cash and investments 93,693$
Accounts receivable 130
Total assets 93,823$
Net Position
Held in trust for library 93,823$
City of Hastings
Statement of Fiduciary Net Position
December 31, 2021
See notes to basic financial statements. 49
Statement 13
Library
Private-
Purpose
Trust Fund
Additions
Investment earnings (290)$
Deductions
Other services and charges 4,000
Change in net position (4,290)
Beginning net position 98,113
Ending net position 93,823$
Year Ended December 31, 2021
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 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.
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
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year
for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
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:
The City reports the following 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.
Downtown Redevelopment Tax Increment Financing - This fund accounts for the activities the
Downtown Redevelopment Tax Increment Financing District.
The City reports the following major proprietary funds:
Water Fund – This fund accounts for the activities related to the operation of a water distribution
system.
53
City of Hastings
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Description of Funds: (Continued)
The City reports the following major proprietary funds: (Continued)
Sewer Fund – This fund accounts for resources and payments related to the operation of a
sanitary collection system.
Storm Fund – This fund accounts for resources and payments related to the operation of the
storm water system.
Hydro Fund – This fund accounts for the funds generated by the hydroelectric plant. These funds
are used to finance the hydroelectric operating expenses.
Additionally, the City 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.
54
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)
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.
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.
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)
The City levies its property tax for the subsequent year during the month of December. December 28
is the last day the City can certify a tax levy to the County Auditor for collection the following year.
Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. The
property tax is recorded as revenue when it becomes measurable and available. Dakota County is the
collecting agency for the levy and remit the collections to the City three times a year. The tax levy
notice is mailed in March with the first half of the payment due on May 15 and the second half due
on October 15. Taxes not collected as of December 31 each year are shown as delinquent taxes
receivable.
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.
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)
In addition to liabilities, the statement of financial position and fund financial statements will
sometimes report a separate section for deferred inflows of resources. This separate financial
statement element represents an acquisitions of net assets that applies to a future period(s) and so
will note recognized as an inflow of resources (revenue) until that time. The city has two 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.
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, 2021.
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
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.
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)
In the fund financial statements, governmental fund types recognize bond premiums and discounts,
as well as bond issuance costs, during the current period. The face amount of debt issued is reported
as other financing sources. Premiums received on debt issuances are reported as other financing
sources while discounts on debt issuances are reported as other financing uses. Issuance costs,
whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures.
8. Pensions
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and
pension expense, information about the fiduciary net position of the Public Employees Retirement
Association (PERA) and the fire relief association and additions to/deductions from PERA's and the
fire relief association's fiduciary net position are determined on the same basis as they are reported
by PERA and the fire relief association except that PERA's fiscal year end is June 30th. For this
purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments
and refunds are recognized when due and payable in accordance with the benefit terms. Investments
are reported at fair value.
9. Fund Balance
In the fund financial statements, governmental funds report fund balances in classifications that
disclose constraints for which amounts in those funds can be spent. These classifications are as
follows:
Nonspendable – Portions of fund balance related to prepays, inventories, long-term
receivables, and corpus on any permanent fund which are not in spendable form.
Restricted – These funds are constrained by external parties (statute, grantors, bond
agreements, etc.).
Committed – These fund constraints are established and modified by a resolution approved
by the City Council prior to year-end.
Assigned – These funds consists of internally imposed constraints. These constraints are
established by City Council and/or management. The City Council also delegates the
authority to assign fund balance to the Finance Manager or his/her designee.
Unassigned – This is the residual classification for the General Fund and also reflects
negative residual amounts in other funds.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance
is available, it is the City's policy to use restricted first, then unrestricted fund balance.
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)
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.
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 LuDuc Historic Estate.
The net appreciation on the endowment as of December 31, 2021 was $1,124,652. Both the initial
endowment of $200,000 and the net appreciation of $1,124,652 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, City Hall Remodel, and the Road Improvement Capital Projects Funds, which
adopt project-length budgets, Guardian Angels TIF, NAPA TIF, Downtown Redevelopment TIF,
Hudson Sprayers TIF, 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 2021.
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 $632,012. This fund's deficit is expected to be
covered from future grants. The Guardian Angels TIF had a deficit of $11,313. The Downtown
Redevelopment TIF had a deficit of $1,074,781. These fund's deficits are expected to be covered from
future tax increment revenues. The Public Works Cold Storage Building Fund had a fund balance deficit
of $5,409. This fund's deficit is expected to be covered by future grant revenues.
NOTE 3 – DEPOSITS AND INVESTMENTS
A. Deposits
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized
by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes
require that all City deposits be protected by insurance, surety bond, or collateral. The market value of
collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Minnesota
Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a
financial institution other than that furnishing the collateral. As of December 31, 2021, the City was not
exposed to custodial credit risk because deposits were fully insured and collateralized. As of
December 31, 2021, the City has the following deposits:
Checking 1,764,086$
61
City of Hastings
Notes to Basic Financial Statements
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments
As of December 31, 2021, the City had the following investments and maturities:
Rating Fair Less than
(Moody/S&P) Value One Year 1-5 Years 6-10 Years
Pooled Investments
Taxable Municipals Aa2/AA 2,481,782$ -$ 1,094,987$ 1,386,795$
Brokered Certificates of Deposit NR 8,094,766 3,504,338 4,109,572 480,856
External Investment Pool - 4M Fund NR 16,078,384 16,078,384 - -
Money Market NR 2,121,640 2,121,640 - -
Total Pooled Investments 28,776,572 21,704,362 5,204,559 1,867,651
Non-Pooled Investments
Brokered Cash N/A 11,232 11,232 - -
Equity N/A 612,683 612,683 - -
Fixed Income Securities N/A 283,041 283,041 - -
Real Estate N/A 32,088 32,088 - -
Total Non-Pooled Investments 939,044 939,044 - -
Total 29,715,616$ 22,643,406$ 5,204,559$ 1,867,651$
Investment Type
Investment Maturities
The City has the following recurring fair value measurements as of December 31, 2021:
$8,707,450 of $29,715,616 are valued using a quoted market prices (Level 1 inputs)
$2,796,911 of $29,715,616 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 Russell Mid Cap, Ishares Core Msci Emerging Markets, Ishares Core Msci 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
$10,000,000 supplemental insurance protection.
62
City of Hastings
Notes to Basic Financial Statements
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED
B. Investments (Continued)
Summary of cash deposits and investments as of December 31, 2021, were as follows:
Deposits (Note 3.A.)1,764,086$
Investments (Note 3.B.)29,715,616
Petty cash 1,275
Total deposits and investments 31,480,977$
Deposits and investments are presented in the December 31, 2021, basic financial statements as follows:
Statement of Net Position
Cash and investments - City 29,241,432$
Cash and investments - HEDRA 1,126,731
Cash with fiscal agent 939,044
Restricted cash 80,077
Statement of Fiduciary Net Position
Cash and investments 93,693
Total deposits and investments 31,480,977$
63
City of Hastings
Notes to Basic Financial Statements
NOTE 4 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2021, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets not being depreciated
Land 3,690,160$ 576$ -$ 3,690,736$
Construction in progress 633,992 2,855,063 (2,713,226) 775,829
Total capital assets
not being depreciated 4,324,152 2,855,639 (2,713,226) 4,466,565
Capital assets being depreciated
Buildings 20,767,106 293,389 - 21,060,495
Machinery and equipment 11,823,109 1,108,207 (889,132) 12,042,184
Improvements other than buildings 4,470,644 602,574 - 5,073,218
Infrastructure 109,452,006 2,604,191 (147,077) 111,909,120
Total capital assets
being depreciated 146,512,865 4,608,361 (1,036,209) 150,085,017
Less accumulated depreciation for
Buildings (12,264,640) (476,602) - (12,741,242)
Machinery and equipment (9,486,928) (663,223) 889,132 (9,261,019)
Improvements other than buildings (1,780,313) (187,425) - (1,967,738)
Infrastructure (67,037,236) (3,948,311) 147,077 (70,838,470)
Total accumulated
depreciation (90,569,117) (5,275,561) 1,036,209 (94,808,469)
Total capital assets being
depreciated, net 55,943,748 (667,200) - 55,276,548
Governmental activities capital
position, net 60,267,900$ 2,188,439$ (2,713,226)$ 59,743,113$
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
Land 349,300$ -$ -$ 349,300$
Construction in progress 44,563 1,976 (46,539) -
Total capital assets not
being depreciated 393,863 1,976 (46,539) 349,300
Capital assets being depreciated
Buildings 15,022,846 - - 15,022,846
Machinery and equipment 7,411,665 573,148 - 7,984,813
Improvements other than buildings 3,988,479 211,464 - 4,199,943
Infrastructure 40,688,641 1,927,450 (148,587) 42,467,504
Total capital assets
being depreciated 67,111,631 2,712,062 (148,587) 69,675,106
Less accumulated depreciation for
Buildings (8,686,167) (415,149) - (9,101,316)
Machinery and equipment (5,114,092) (216,846) - (5,330,938)
Improvements other than buildings (2,315,109) (108,480) - (2,423,589)
Infrastructure (22,259,938) (832,875) 144,824 (22,947,989)
Total accumulated
depreciation (38,375,306) (1,573,350) 144,824 (39,803,832)
Total capital assets being
depreciated, net 28,736,325 1,138,712 (3,763) 29,871,274
Business-type activities
capital assets, net 29,130,188$ 1,140,688$ (50,302)$ 30,220,574$
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities
General government 153,083$
Public Safety 411,340
Public Works 4,054,009
Cultural and recreation 531,418
Internal service funds 125,711
Total depreciation expense - governmental activities 5,275,561$
Business-type activities
Water 897,045$
Sewer 476,605
Storm Water 32,093
Hydro 167,607
Total depreciation expense - business-type activities 1,573,350$
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, 2021, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Capital Assets being depreciated
Buildings and Structures 744,195$ -$ -$ 744,195$
Less accumulated depreciated for
Buildings and Structures (645,196) (5,500) - (650,696)
Total capital assets being depreciated, net 98,999 (5,500) - 93,499
Component unit capital assets, net 98,999$ (5,500)$ -$ 93,499$
NOTE 5 – INTERFUND ASSETS/LIABILITIES
The composition of interfund balances as of December 31, 2021, is as follows:
Receivable Fund Payable Fund Amount
Other Governmental Funds Other Government Funds 621,244$
Other Governmental Funds Downtown Redveleopment TIF 20,542
Total 641,786$
Advances To/From Other Funds
Receivable Fund Payable Fund Amount
General Fund Downtown Redevelopment TIF 1,054,239$
The due from/due to other funds balances represent borrowing to resolves deficit cash balances.
The $1,054,239 from the General Fund was money to make the Bond principal and interest payments for
the Downtown Redevelopment TIF District due to delays in development and collection of tax
increment revenue. The advance will be paid back when the District starts producing sufficient tax
increment revenue.
66
City of Hastings
Notes to Basic Financial Statements
NOTE 6 – INTERFUND TRANSFERS
Non-major
Fire and Debt Governmental Internal
Transfers Out General Ambulance Service Funds Service Sewer Hydro Total
General -$ 164,402$ -$ 561,300$ 753,531$ -$ -$ 1,479,233$
Debt service 57,390 - - 3,210 700,000 - -760,600
Fire and ambulance 76,562 - - - - - -76,562
Downtown Redevelopment TIF - - 210,000 - - - -210,000
Non-major governmental funds 87,886 - 563,375 46,181 - - -697,442
Internal Service 187,000 - 2,488 - - -189,488
Water 33,806 - - - - - -33,806
Sewer 32,429 - - - - - 355,000 387,429
Storm 7,526 - - - - - -7,526
Hydro 246,618 - - - - 18,333 -264,951
Total 729,217$ 164,402$ 773,375 613,179$ 1,453,531$ 18,333$ 355,000$ 4,107,037$
Transfers In
The purpose of the transfers are to fund operations, capital purchases, debt obligations, compensated
absences, and retiree health benefits.
NOTE 7 – LONG-TERM DEBT
A.General Obligation Bonds
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.
General obligation bonds are direct obligations and pledge the full faith and credit of the City. These
bonds for the public facilities generally are issued as 20-year serial bonds with equal debt service
payments each year. The original amount of general obligation bonds for the issue listed below is
$1,715,000. The bond issue is partially funded by the Hastings School District. The School District is
obligated 45% for the Parks Maintenance Garage facility. The city records the full debt on its books with
the commitments from the school district reflected as annual revenues.
The general obligation bonds currently outstanding are as follows:
Issue Interest Original Final Balance Due Within
Date Rates Issue Maturity End of Year One Year
G.O. Public Facility Refunding Bonds, Series 2010A 06/24/10 3.00% - 4.00% 1,715,000$ 02/01/22 180,000$ 180,000$
67
City of Hastings
Notes to Basic Financial Statements
NOTE 7 – LONG-TERM DEBT (CONTINUED)
A.General Obligation Bonds (Continued)
Annual debt service requirements to maturity for general obligation-facility bonds are as follows:
Year Ending
December 31, Principal Interest Total
2022 180,000$ 2,700$ 182,700$
Total 180,000$ 2,700$ 182,700$
Governmental Activities
B.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 $19,730,000. The G.O.
Improvement Bonds currently outstanding are as follows:
Issue Interest Original Final Balance Due Within
Date Rates Issue Maturity End of Year One Year
G.O. Improvement Bonds, Series 2010B 11/01/10 0.60%-2.80% 1,185,000$ 02/01/22 120,000$ 120,000$
G.O. Improvement Bonds, Series 2011A 09/14/11 0.50%-2.45% 3,720,000 02/01/22 385,000 385,000
G.O. Improvement Bonds, Series 2012A 10/17/12 2.00%-3.00% 1,700,000 02/01/23 360,000 180,000
G.O. Improvement Bonds, Series 2013B 11/20/13 0.40%-2.45% 1,265,000 02/01/24 385,000 125,000
G.O. Improvement Bonds, Series 2014A 11/25/14 0.65%-2.50% 2,345,000 02/01/25 1,055,000 260,000
G.O. Improvement Bonds, Series 2015A 09/03/15 2.00%-2.20% 360,000 02/01/26 185,000 35,000
G.O. Improvement Bonds, Series 2016B 11/03/16 2.00% 995,000 02/01/27 625,000 100,000
G.O. Improvement Bonds, Series 2017A 11/02/17 2.75%-2.875% 1,015,000 02/01/28 730,000 100,000
G.O. Improvement Bonds, Series 2018A 07/18/18 3.00%- 4.00% 1,580,000 02/01/29 1,290,000 150,000
G.O. Improvement Bonds, Series 2019A 08/08/19 5.00% 2,595,000 02/01/30 2,445,000 220,000
G.O. Improvement Bonds, Series 2020A 10/01/20 2.00%-4.00% 2,045,000 02/01/31 2,045,000 150,000
G.O. Improvement Bonds, Series 2021A 08/02/21 1.00%-3.00% 925,000 02/01/32 925,000 -
Total 10,550,000$ 1,825,000$
Annual debt service requirements to maturity for G.O. Improvement Bonds are as follows:
Year Ending
December 31, Principal Interest Total
2022 1,825,000$ 324,344$ 2,149,344$
2023 1,445,000 275,830 1,720,830
2024 1,315,000 230,911 1,545,911
2025 1,215,000 188,819 1,403,819
2026 975,000 150,441 1,125,441
2027-2031 3,670,000 261,850 3,931,850
2032 105,000 603 105,603
Total 10,550,000$ 1,432,798$ 11,982,798$
Governmental Activities
68
City of Hastings
Notes to Basic Financial Statements
NOTE 7 – LONG-TERM DEBT (CONTINUED)
C. 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 $1,705,000. The equipment certificates currently outstanding are as follows:
Issue Interest Original Final Balance Due Within
Date Rates Issue Maturity End of Year One Year
Certificate of Participation, Series 2013B 11/20/13 0.40%-2.45% 1,410,000$ 02/01/24 280,000$ 90,000$
Certificate of Participation, Series 2016B 11/03/16 2.00%295,000 02/01/22 60,000 60,000
Total 340,000$ 150,000$
Annual debt service requirements to maturity for these equipment certificates are as follows:
Year Ending
December 31, Principal Interest Total
2022 150,000$ 6,080$ 156,080$
2023 95,000 3,420 98,420
2024 95,000 1,164 96,164
Total 340,000$ 10,664$ 350,664$
Governmental Activities
D. 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 $6,780,000.
The general obligation revenue bonds currently outstanding are as follows:
Issue Interest Original Final Balance Due Within
Date Rates Issue Maturity End of Year One Year
G.O. Refunding Bonds, Series 2013A 02/21/13 2.00% 2,565,000$ 02/01/27 1,595,000$ 255,000$
G.O. Improvement Bonds, Series 2018A 07/18/18 3.00%-4.00% 1,260,000 02/01/29 1,040,000 115,000
G.O. Improvement Bonds, Series 2019A 08/08/19 5.00% 675,000 02/01/30 635,000 60,000
G.O. Improvement Bonds, Series 2020A 10/01/20 2.00-4.00% 1,135,000 02/01/31 1,135,000 85,000
G.O. Improvement Bonds, Series 2021A 08/02/21 1.00-3.00% 1,145,000 02/01/32 1,145,000 -
Total 5,550,000$ 515,000$
69
City of Hastings
Notes to Basic Financial Statements
NOTE 7 – LONG-TERM DEBT (CONTINUED)
D.G.O. Revenue Bonds (Continued)
Future revenue pledged for the payment of long-term debt is as follows:
Percent of Pledged
Use of Total Debt Term of Principal and Revenue
Proceeds Type Service Pledge Interest paid Received
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
Remaining
Principal and
Interest
1,691,850$
1,186,525$
787,375$
1,326,300$
2014-2027
2019-2029
2019-2030
2020-2031
Revenue Pledged
Utility
Charges
Utility
Charges
Utility
Charges
Utility
Charges
100%
100%
100%
100%
Current Year
284,400$
149,580$
72,750$
32,500$
2,731,227$
5,448,632$
2,731,227$
5,448,632$
1,289,895$ -$ 5,448,632$
G.O. Improvement Bonds,
Series 2021A
Utility
Infrastructure
Utility
Charges 100% 2021-2032
Annual debt service requirements to maturity for general obligation revenue bonds are as follows:
Year Ending
December 31, Principal Interest Total
2022 515,000$ 142,965$ 657,965$
2023 630,000 133,600 763,600
2024 665,000 121,013 786,013
2025 670,000 100,562 770,562
2026 700,000 79,488 779,488
2027-2031 2,245,000 131,675 2,376,675
2032 125,000 719 125,719
Total 5,550,000$ 710,022$ 6,260,022$
Governmental Activities
E. 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 $5,735,000. The general obligation charter bonds
currently outstanding are as follows:
Issue Interest Original Final Balance Due Within
Date Rates Issue Maturity End of Year One Year
G.O. Improvement Bond, Series 2014A - Charter 11/25/14 0.65%-2.50% 650,000$ 02/01/25 290,000$ 70,000$
G.O. Improvement Bond, Series 2015A - Charter 09/03/15 2.00%-2.20% 2,100,000 02/01/26 1,110,000 215,000
G.O. Improvement Bond, Series 2016B - Charter 11/03/16 2.00% 2,005,000 02/01/27 1,335,000 210,000
G.O. Improvement Bond, Series 2018A - Charter 07/18/18 3.00%-4.00% 980,000 02/01/29 815,000 90,000
Total 3,550,000$ 585,000$
70
City of Hastings
Notes to Basic Financial Statements
NOTE 7 – LONG-TERM DEBT (CONTINUED)
E. Charter Bonds (Continued)
Annual debt service requirements to maturity for general obligation charter bonds are as follows:
Year Ending
December 31, Principal Interest Total
2022 585,000$ 78,935$ 663,935$
2023 595,000 64,985 659,985
2024 610,000 50,723 660,723
2025 625,000 36,047 661,047
2026 565,000 21,680 586,680
2027-2029 570,000 17,575 587,575
Total 3,550,000$ 269,945$ 3,819,945$
Governmental Activities
F.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 1,435,000$ 175,000$
Annual debt service requirements to maturity for general obligation tax increment revenue bonds are as
follows:
Year Ending
December 31, Principal Interest Total
2022 175,000$ 31,500$ 206,500$
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
2027-2029 545,000 21,700 566,700
Total 1,435,000$ 143,488$ 1,578,488$
Governmental 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 360,000$ -$ (180,000)$ 180,000$ 180,000$
GO improvement debt 11,400,000 925,000 (1,775,000) 10,550,000 1,825,000
Equipment certificates 595,000 - (255,000) 340,000 150,000
City charter bonds 4,120,000 - (570,000) 3,550,000 585,000
Tax increment bonds 1,610,000 - (175,000) 1,435,000 175,000
Plus (less) deferred amounts
for premium and discount 1,055,938 68,037 (152,807) 971,168 -
Total bonds payable 19,140,938 993,037 (3,107,807) 17,026,168 2,915,000
Compensated absences 1,683,397 699,030 (655,535) 1,726,892 94,633
Total governmental activities 20,824,335$ 1,692,067$ (3,763,342)$ 18,753,060$ 3,009,633$
Ending Ending Due Within
Balance Additions Retirements Balance One Year
Business-type activities
Bonds payable
G.O. revenue bonds 4,805,000$ 1,145,000$ (400,000)$ 5,550,000$ 515,000$
Plus (less) deferred amounts
for premium or discount 361,185 84,759 (43,663) 402,281 -
Total bonds payable 5,166,185 1,229,759 (443,663) 5,952,281 515,000
Compensated absences payable 282,377 69,860 (90,972) 261,265 14,533
Total business-type activities 5,448,562$ 1,299,619$ (534,635)$ 6,213,546$ 529,533$
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,
2021, was ($409,529), the discretely presented component unit's portion of this expense is $50,350. 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 five 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. Beginning in 2019, 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 ten 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 ten years up to 100% after twenty 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
2021 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, 2021, were $381,065 of
this amount, the discretely presented component unit contributed $16,252. 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 2021 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, 2021, were $837,964. 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, 2021, the City reported a liability of $2,980,773 for its proportionate share of the
General Employees Fund's net pension liability, of this amount, the discretely presented component unit
was allocated $127,126. 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
$91,113. The net pension liability was measured as of June 30, 2021, and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's
proportionate share of the net pension liability was based on the City's contributions received by PERA
during the measurement period for employer payroll paid dates from July 1, 2020, through June 30,
2021, relative to the total employer contributions received from all of PERA's participating employers.
The City's proportionate share was 0.0698% at the end of the measurement period and 0.0710% for the
beginning of the period.
City's proportionate share of the net pension liability 2,980,773$
State of Minnesota's proportionate share of the net pension
liability associated with the City 91,113
Total 3,071,886$
For the year ended December 31, 2021, the City recognized pension expense of $311 for its
proportionate share of General Employees Plan's pension expense of this amount, the discretely
presented component unit was allocated $50,350.Included in the amount, the City recognized $7,351 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 $314.
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, 2021, 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 $89,577 of deferred
outflows of resources and $119,676 of deferred inflows of resources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic
experience 17,945$ 91,401$
Changes in actuarial assumptions 1,819,998 66,289
Net collective difference between
projected and actual investment earnings - 2,576,392
Change in proportion 71,874 71,988
Contributions paid to PERA subsequent to the measurement
date 190,532 -
Total 2,100,349$ 2,806,070$
The $190,532 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, 2022, of this amount the discretely presented
component unit contributed $8,126 subsequent to year end. Other amounts reported as deferred outflows
and inflows of resources related to pensions will be recognized in pension expense as follows:
Year Ended Pension Expense
December 31 Amount
2022 (127,010)$
2023 (25,675)
2024 (39,465)
2025 (704,103)
Total (896,253)$
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, 2021, the City reported a liability of $2,921,884 for its proportionate share of the
Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2021,
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, 2020, through June 30, 2021, relative to the total employer contributions received from all
of PERA's participating employers. The City's proportionate share was 0.3830%, at the end of the
measurement period and 0.3783% 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, 2021. 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, 2020. 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. Strong asset returns for the fiscal year ended 2021 will
accelerate the phasing out of these state contributions, although it is not anticipated that they will be
phased out during the fiscal year ended 2022
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, 2021, the City recognized pension expense of ($172,810) for its proportionate
share of the Police and Fire Plan's pension expense. Included in this amount, the City recognized
$24,204 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 $34,470 for the year ended December 31, 2021, as revenue and an offsetting reduction of the
net pension liability for its proportionate share of the State of Minnesota's on-behalf contributions to the
Police and Fire Fund.
At December 31, 2021, the City reported its proportionate share of the Police and Fire Plan's deferred
outflows of resources and deferred inflows of resources related to pensions from the following sources.
77
City of Hastings
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs (Continued)
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic
experience 566,996$ -$
Changes in actuarial assumptions 4,345,068 1,641,888
Net collective difference between
projected and actual investment earnings - 5,649,809
Change in proportion 184,861 211,091
Contributions paid to PERA subsequent to the measurement
date 418,982 -
Total 5,515,907$ 7,502,788$
The $418,982 reported as deferred outflows of resources related to pensions resulting from City of
Hastings contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended December 31, 2022. Other amounts reported as deferred outflows and
inflows of resources related to pensions will be recognized in pension expense as follows:
Year Ended Pension Expense
December 31 Amount
2022 (2,032,790)$
2023 (386,741)
2024 (345,551)
2025 (602,309)
2026 961,528
Total (2,405,863)$
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, 2021, 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.%. 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 29 years of service and 6.0% per year thereafter. 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.
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)
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. 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 2021:
General Employees Fund
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 previous valuation.
Police and Fire Fund
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.
80
City of Hastings
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
F. Actuarial Assumptions (Continued)
Police and Fire Fund (Continued)
Changes in Actuarial Assumptions (Continued)
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 previous valuation.
G. Discount Rate
The discount rate used to measure the total pension liability in 2021 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 and the Police and Fire 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.
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 5,819,982$ 2,853,647$ 419,587$
Discretely presented component unit 259,273 127,126 18,692
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%)
Police and Fire Fighters net pension liability 9,351,454$ 2,921,884$ (2,348,770)$
81
City of Hastings
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
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, 2021, 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
Public Employees' Retirement Association 2,980,773$ 2,100,349$ 2,806,070$
Police and Fire 2,921,884 5,515,907 7,502,788
Total 5,902,657$ 7,616,256$ 10,308,858$
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.
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)
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.
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.
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)
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 $212,715 made by the State of Minnesota for the Relief Association.
D. Pension Costs
At December 31, 2021, the City reported an asset of $2,391,129 for the Association's net pension asset.
The net pension asset was measured as of December 31, 2020, and the total pension liability used to
calculate the net pension asset was determined by an actuarial valuation as of January 1, 2021.
For the year ended December 31, 2021, the City recognized pension expense of ($237,030). At
December 31, 2021, the City reported deferred outflows of resources and deferred inflows of resources
from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual liability -$ 183,276$
Changes in actuarial assumptions 8,179 89,480
Net difference between projected and actual earnings on
pension plan investments - 416,819
City contributions subsequent to the measurement date 212,715 -
Total 220,894$ 689,575$
$212,715 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2021.
84
City of Hastings
Notes to Basic Financial Statements
NOTE 9 – PENSION PLANS (CONTINUED)
Single Employer Defined Benefit Pension Plan - Volunteer Fire Relief Association (Continued)
D. Pension Costs (Continued)
Other amounts reported as deferred outflows and inflows of resources related to the Association's
pension will be recognized in pension expense as follows:
Year Ended Pension
December Expense
2022 (168,548)$
2023 (113,465)
2024 (204,034)
2025 (100,217)
2026 (42,396)
Thereafter (52,736)
Total (681,396)$
E. Actuarial Assumptions
The actuarial total pension liability was determined as of December 31, 2020, 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.
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
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.
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, 2020 are summarized in the following table:
Cash 3.00 % 1.80 %
Other 1.00 6.00
Fixed income 29.00 3.00
Equities 67.00 7.10
Total portfolio 100.00 %
Rate of Return
Long-Term
Expected Real Allocation at December
31, 2020Asset Class
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
City of Hastings proportionate share of (4.75%) (5.75%) (6.75%)
Net pension liability (2,270,024)$ (2,391,129)$ (2,504,757)$
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:
2021
Total Pension Liability
Service cost 107,881$
Interest 137,263
Changes of benefit terms 131,954
Gain or loss (82,834)
Benefit payments, including member contribution refunds (385,293)
Net Change in Total Pension Liability (91,029)
Total Pension Liability - Beginning 2,471,950
Total Pension Liability - Ending (a)2,380,921
Plan Fiduciary Net Position
State contributions 205,703
Net investment income 248,986
Gain or loss 289,121
Benefit payments (385,293)
Administrative expenses (12,917)
Net Change in Fiduciary Net Position 345,600
Fiduciary Net Position - Beginning 4,426,450
Fiduciary Net Position - Ending (b)4,772,050
Association's Net Pension Liability (Asset) - Ending (a) - (b)(2,391,129)$
87
City of Hastings
Notes to Basic Financial Statements
NOTE 10 - RETIREE HEALTH INSURANCE
A.Plan Description
The City provides a single-employer defined benefit OPEB dependent health care plan to retirees after
(ten) years of service, that were hired prior to 1993. The benefit commences upon retirement or age 55
(whichever is later) and terminates after ten years or upon reaching Medicare age, whichever comes
first. The expenditures for this benefit are accounted for within the internal service fund. The Other Post
Employment Benefit (OPEB) plan is administered by the City. The authority to provide these benefits is
established in Minnesota Statutes § 471.61 Subd. 2a, and 299A.465. The benefits, benefit levels,
employee contributions and employer contributions are governed by the City and can be amended by the
City through its personnel manual and collective bargaining agreements with employee groups. The Plan
is not accounted for as a trust fund, and no funds are accumulated in a trust as a trust fund has not been
established to account for the plan. The Plan does not issue a separate report.
B.Benefits Provided
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.
88
City of Hastings
Notes to Basic Financial Statements
NOTE 10 - RETIREE HEALTH INSURANCE (CONTINUED)
C. Contributions
Contribution requirements are established by the City. The required contributions are based on projected
pay-as-you-go financing requirements. For year 2021, the City contributed $362,095 to the plan, of this
amount the discretely presented component unit was allocated $6,807. As of December 31, 2021, there
were 24 retirees receiving health benefits from the City's health plan.
D. Members
As of January 1, 2020, the following were covered by the benefit terms:
Retirees or beneficiaries currently receiving benefits 24
Active employees 105
Total 129
E. Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2020, with a
measurement date of January 1, 2021. 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 2.50%
Healthcare cost trend increases 6.25% in 2021, decreasing over five years
to rate of 5.00% and then 4.00% over 48 years
Mortality assumption Pub-2010 Public Retirement Plans Headcount-
Weighted Mortality Tables (General, Safety)
with MP-2019 Generational Improvement
Scale
Key Methods and Assumptions Used in Valuation of Total OPEB Liability
The actuarial assumptions used in the January 1, 2020, valuation were based on the results of an
actuarial experience study for the period January 1, 2019 – January 1, 2020.
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 $4,478,476 was measured as of January 1, 2021, and was determined
by an actuarial valuation as of January 1, 2020, of this amount the discretely presented component unit
was allocated $85,092.
89
City of Hastings
Notes to Basic Financial Statements
NOTE 10 - RETIREE HEALTH INSURANCE (CONTINUED)
F. Total OPEB Liability (Continued)
Changes in the total OPEB liability are as follows:
Total
OPEB
Liability
Balances at January 1, 2020 4,303,499$
Changes for the year
Service cost 106,253
Interest 122,960
Assumption changes 287,722
Benefit payments (341,958)
Net changes 174,977
Balances at January 1, 2021 4,478,476$
Changes of assumptions and other inputs reflect a change in the discount rate from 2.90% in 2020 to
2.00% in 2021.
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 $ 4,781,334 4,393,384$ 4,066,842$
Discretely presented component unit 91,611 85,092 77,922
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 4,001,744$ 4,393,384$ 4,859,147$
Discretely presented component unit 76,674 85,092 93,102
(5.25%
decreasing to
(6.25%
decreasing to
(7.25%
decreasing to
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, 2021, the City recognized OPEB expense of $348,205, of this amount
$6,546 was allocated to the discretely presented component unit. At December 31, 2021, 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 $22,286 of
deferred outflows of resources and $964 of deferred inflows of resources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Assumption Changes 461,629$ 50,715$
Liability Losses 349,144 -
Subsequent contributions 362,095 -
Total 1,172,868$ 50,715$
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 $362,095 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, 2022, of this amount the discretely presented
component unit contributed $6,807 subsequent to year end. Other amounts reported as deferred outflows
of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as
follows:
Year Ended Pension
December Expense
2022 118,992$
2023 118,992
2024 118,992
2025 118,992
2026 118,997
Thereafter 165,093
Total 760,058$
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.
On March 13, 2020, a national emergency was declared for the COVID-19 outbreak in the United States
of America. This event affects the economy and financial markets. The extent of the impact on the City
may be both direct and indirect and will vary based on the duration of the outbreak and various other
factors. An estimate of the financial effect on the City's financial statements at December 31, 2021,
cannot be determined at this time.
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, 2021, the City generated $50,287 in tax increment revenue and made
$48,930 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. Lease Commitments
The City of Hastings entered into an agreement beginning September 1, 2011 through
September 1, 2019, to lease space to the Independent School District No. 200 (ISD. 200). The lease
requires payments of $34,000 per year for a total of $272,000. The City will make payments of $30,000
each year for a total of $240,000 for its share of costs associated with renovating the facility for Senior
Center purposes. In 2019, the City of Hastings extended the agreement with the Independent School
District No. 200 (ISD 200) with the same contract terms running from October 1, 2019 through
September 1, 2026.
The prorated carrying value of the building being leased is as follows:
Building 180,000$
Less accumulated depreciation (104,252)
Net 75,748$
B. Construction Commitments
Remaining
Commitment
Fund Project Amount
General Fund 2021 Mill & Overlay/Seal Coating 42,341$
General Fund City Hall 113,695
Total General Fund 156,036
Nonmajor Capital Project - Park Projects Trail Improvements 27,044
Water Water Meter Replacement 37,913
Sewer Sanitary Sewer Lining 292,591
Total 513,584$
NOTE 14 – NEW STANDARDS ISSUED BUT NOT YET IMPLEMENTED
GASB Statement No. 87, Leases establishes a single model for lease accounting based on the
foundational principle that leases are financings of the right to use an underlying asset. Under this
statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and
a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing
the relevance and consistency of information about governments' leasing activities. This statement will
be effective for the year ending December 31, 2022.
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,
2018 2019 2020 2021
Total OPEB Liability
Service cost 79,277$ 74,791$ 89,043$ 106,253$
Interest 129,783 125,673 136,813 122,960
Difference between expected and actual experience - - 465,526 -
Changes of assumptions - (81,147) 279,831 287,722
Benefit payments (329,263) (328,960) (354,697) (341,958)
Net change in total OPEB liability (120,203) (209,643) 616,516 174,977
Beginning of year 4,016,829 3,896,626 3,686,983 4,303,499
Net OPEB liability 3,896,626$ 3,686,983$ 4,303,499$ 4,478,476$
7,919,006$ 8,156,576$ 8,548,373$ 8,804,824$
49.21% 45.20% 50.34% 50.86%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
Covered-employee payroll
Net OPEB liability as a percentage of
covered-employee payroll
City of Hastings
Schedule of Changes in Total OPEB Liability
and Related Ratios
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%
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%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
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
City of Hastings
Schedule of City's Proportionate Share
of Net Pension Liability
General Employees Retirement Fund
Last Ten Years
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%
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%
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.
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 -
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
Schedule 4
December 31, December 31, December 31,
2018 2019 2020
111,448$ 100,316$ 107,881$
165,333 141,474 137,263
(154,138) - (82,834)
(134,222) - -
- 100,388 131,954
(323,775) (460,667) (385,293)
(335,354) (118,489) (91,029)
2,925,793 2,590,439 2,471,950
2,590,439$ 2,471,950$ 2,380,921$
187,040$ 192,649$ 205,703$
244,368 220,150 248,986
(452,848) 519,294 289,121
(323,775) (460,667) (385,293)
(5,329) (15,351) (12,917)
- - -
(350,544) 456,075 345,600
4,320,919 3,970,375 4,426,450
3,970,375$ 4,426,450$ 4,772,050$
(1,379,936)$ (1,954,500)$ (2,391,129)$
153.3% 179.1% 200.4%
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,
2019 2020 2021
-$ -$ -$
- - -
-$ -$ -$
190,649$ 202,703$ 212,715$
102
City of Hastings
Notes to Required Supplementary Information
General Employees Fund
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.
2019 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-2018.
103
City of Hastings
Notes to Required Supplementary Information
General Employees Fund (Continued)
2019 Changes (Continued)
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 were 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
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.
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.
106
City of Hastings
Notes to Required Supplementary Information
Police and Fire Fund (Continued)
2018 Changes (Continued)
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%.
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.
107
City of Hastings
Notes to Required Supplementary Information
Police and Fire Fund (Continued)
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 were 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 $7,000 was reflected in the liability
Post Employment Health Care Plan
There are no assets accumulated in a trust related to other post-employment benefits
2021 Changes
The discount rate was changed from 2.90% to 2.00%.
2020 Changes
The health care trend rates, mortality tables, and salary scale assumptions were updated.
The discount rate was changed from 3.80% to 2.90%.
2019 Changes
The discount rate was changed from 3.30% to 3.8%.
109
SUPPLEMENTARY INFORMATION
110
Statement 14
Original Final
Actual
Amounts
Revenues
General property taxes 9,568,845$ 9,568,877$ 9,745,645$ 176,768$
Lodging taxes 3,255 3,255 3,073 (182)
Special assessments 1,000 1,000 - (1,000)
Licenses and permits 492,750 492,750 635,721 142,971
Intergovernmental revenues
State - police aid 250,000 250,000 299,530 49,530
State-MSA-street construction and maintenance 1,112,000 1,262,000 1,448,142 186,142
State- local government aid 891,583 891,583 891,583 -
State - market value credit - - 964 964
Federal grants and aids 48,370 48,370 48,370 -
Other grants and aids 1,667,600 1,732,578 381,109 (1,351,469)
Total intergovernmental revenues 3,969,553 4,184,531 3,069,698 (1,114,833)
Charges for services
General government 30,084 30,084 57,764 27,680
Public safety 166,495 166,495 251,106 84,611
Public works 600,400 1,100,400 671,011 (429,389)
Health and sanitation 2,500 2,500 37,949 35,449
Total charges for services 799,479 1,299,479 1,017,830 (281,649)
Fines and forfeitures 100,500 100,500 80,879 (19,621)
Investment income 49,500 49,500 (14,586) (64,086)
Contributions and donations - 800 800 -
Other revenues 57,000 57,000 30,576 (26,424)
Total miscellaneous 106,500 107,300 16,790 (90,510)
Total revenues 15,041,882 15,757,692 14,569,636 (1,188,056)
Expenditures
General Government
Legal 179,500 179,500 256,762 77,262
Mayor, legislative, city administration 366,556 428,556 353,244 (75,312)
Finance and accounting 612,740 642,740 607,791 (34,949)
City clerk and elections 523,023 523,023 424,725 (98,298)
Planning and economic development 140,552 140,552 135,971 (4,581)
I.T.573,162 623,632 585,777 (37,855)
Building maintenance 356,098 356,098 344,670 (11,428)
Miscellaneous 186,756 186,756 182,514 (4,242)
Capital outlay - 392,035 265,280 (126,755)
Public safety
Police 5,555,809 5,564,687 5,435,411 (129,276)
Building safety and code enforecement 597,070 592,092 606,768 14,676
Emergency management services 5,570 5,570 5,899 329
Animal control 4,500 4,500 3,216 (1,284)
Capital outlay - 159,228 64,728 (94,500)
Public works
Engineering 575,136 595,136 514,920 (80,216)
Street maintenance 986,802 1,694,192 950,537 (743,655)
Street lights 216,800 216,800 218,410 1,610
Capital outlay 2,912,000 3,004,500 1,608,607 (1,395,893)
Health and sanitation
Reforestation 21,000 21,050 42,487 21,437
Recycling 24,050 24,050 16,875 (7,175)
Culture and recreation
Senior center 81,900 81,900 80,730 (1,170)
LeDuc historic estate 75,724 75,724 63,744 (11,980)
Total expenditures 13,994,748 15,512,321 12,769,066 (2,743,255)
Excess of revenues over (under) expenditures 1,047,134 245,371 1,800,570 1,555,199
Other Financing Sources (Uses)
Proceeds from sale of capital assets - - 23,714 23,714
Transfers in 457,578 703,968 729,848 25,880
Transfers out (1,521,567) (2,373,947) (1,479,864) 894,083
Total other financing sources (uses) (1,063,989) (1,669,979) (726,302) 943,677
Net change in fund balances (16,855) (1,424,608) 1,074,268 2,498,876
Fund Balances
Beginning of year 8,304,252 8,304,252 8,304,252 -
End of year 8,287,397$ 6,879,644$ 9,378,520$ 2,498,876$
Budgeted Amounts Variance with
Final Budget -
Over (Under)
City of Hastings
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund
Year Ended December 31, 2021
2021
111
Statement 15
Original Final
Actual
Amounts
Revenues
General property taxes 2,394,681$ 2,394,681$ 2,195,103$ (199,578)$
Special assessments 509,368 509,368 972,786 463,418
Charges for services 1,091,789 1,091,789 84,645 (1,007,144)
Investment income - - (15,784) (15,784)
Total revenues 3,995,838 3,995,838 3,236,750 (759,088)
Expenditures
Debt service
Principal 3,355,000 3,355,000 2,955,000 (400,000)
Interest and fiscal agent 640,838 640,838 517,934 (122,904)
Total expenditures 3,995,838 3,995,838 3,472,934 (522,904)
Excess of revenues over expenditures - - (236,184) (236,184)
Other Financing Sources
Transfers in - - 12,775 12,775
Total other financing sources (uses) - - 12,775 12,775
Net change in fund balance -$ -$ (223,409) (223,409)$
Fund Balance
Beginning of year 6,023,684
End of year 5,800,275$
2021
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, 2021
112
(THIS PAGE LEFT BLANK INTENTIONALLY)
113
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.
114
(THIS PAGE LEFT BLANK INTENTIONALLY)
115
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.
Public Works Cold Storage Building Fund - This fund accounts for the activities of the Public Works
Cold Storage Building.
City Hall Remodel Fund – This fund accounts for the activities of the City Hall Remodel.
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.
Road Improvement Construction Fund – This fund accounts for the activities related to street
construction and improvements.
Permanent Fund
C. Simmons Trust – This fund accounts for the C. Simmons endowments fund. The principal
amount of $200,000 cannot be spent. Only the interest earned can be spent.This fund also
accounts for the C. Simmons funds that are held in a trust.These funds can be spent during the
year on capital and programming. Programming for the Leduc Historical Estate is provided by
the Dakota County Historical Society
116
Special
Revenue Capital Projects Permanent
Total Nonmajor
Governmental
Funds
Assets
Cash and investments 2,599,593$ 2,627,101$ 221,022$ 5,447,716$
Cash with fiscal agent - - 939,044 939,044
Interest receivable 3,705 2,749 307 6,761
Due from other governments 23,552 - - 23,552
Accounts receivable 261,501 - 10,204 271,705
Property taxes receivable 180,910 1,165 - 182,075
Inventory 4,812 - - 4,812
Prepaid items 7,069 - - 7,069
Total assets 3,081,142$ 2,631,015$ 1,170,577$ 6,882,734$
Liabilities
Accounts payable 142,632$ 79,978$ -$ 222,610$
Due to other governments 1,959 - - 1,959
Deposits payable - 420,117 - 420,117
Salaries and benefits payable 41,606 - - 41,606
Unearned revenue 1,535 - - 1,535
Due to other funds - 621,244 - 621,244
Total liabilities 187,732 1,121,339 - 1,309,071
Deferred Inflows of Resources
Unavailable revenue - taxes and assessments 23,851 895 - 24,746
Unavailable revenue - other 69,214 - - 69,214
Total deferred inflows of resources 93,065 895 - 93,960
Fund Balances
Nonspendable
Prepaids 7,069 - - 7,069
Inventories 4,812 - - 4,812
Permanent Endowment - - 200,000 200,000
Restricted
Police Activities 51,914 - - 51,914
Tax increment financing - 24,766 - 24,766
Capital Projects - 1,149,928 - 1,149,928
Leduc Historic Estate - - 970,577 970,577
Escrow 16,234 16,234
Committed
Park maintenance 1,573,272 - - 1,573,272
Aquatic operations 402,511 - - 402,511
Cable TV activities 153,208 - - 153,208
Heritage preservation activities 115,531 - - 115,531
Arena activities 492,028 - - 492,028
Assigned
Capital - 966,587 - 966,587
Unassigned - (648,734) - (648,734)
Total fund balances 2,800,345 1,508,781 1,170,577 5,479,703
Total liabilities and fund balances 3,081,142$ 2,631,015$ 1,170,577$ 6,882,734$
Nonmajor Governmental Funds
December 31, 2021
City of Hastings
Combining Balance Sheet -
Statement 16
117
Statement 17
Special
Revenue Capital Projects Permanent
Total
Nonmajor
Governmental
Funds
Revenues
General property taxes 1,901,092$ 52,929$ -$ 1,954,021$
Intergovernmental 4,500 750,000 - 754,500
Charges for services 1,175,025 93,204 - 1,268,229
Fines and forfeitures 2,327 - - 2,327
Investment income (8,376) 2,035 115,265 108,924
Contributions and donations 40,651 270,938 - 311,589
Miscellaneous 248,446 - 8,158 256,604
Total revenues 3,363,665 1,169,106 123,423 4,656,194
Expenditures
Current
Public safety 2,994 - - 2,994
Public works - 19,842 - 19,842
Culture and recreation 2,938,920 1,792 16,508 2,957,220
Economic development - 48,258 - 48,258
Debt service
Interest and other charges - 43,836 - 43,836
Capital outlay
Public works - 2,073,873 - 2,073,873
Culture and recreation 415,527 198,247 - 613,774
Total expenditures 3,357,441 2,385,848 16,508 5,759,797
Excess of revenues over expenditures 6,224 (1,216,742) 106,915 (1,103,603)
Other Financing Sources (Uses)
Proceeds from sale of capital assets 5,150 - - 5,150
Bonds issued - 925,000 - 925,000
Premium on debt issued - 68,037 - 68,037
Transfers in 204,488 408,691 - 613,179
Transfers out (46,991) (609,556) (40,895) (697,442)
Total other financing sources (uses) 162,647 792,172 (40,895) 913,924
Net change in fund balances 168,871 (424,570) 66,020 (189,679)
Fund Balances
Beginning of year 2,631,474 1,933,351 1,104,557 5,669,382
End of year 2,800,345$ 1,508,781$ 1,170,577$ 5,479,703$
Year Ended December 31, 2021
Changes in Fund Balances - Nonmajor Governmental Funds
City of Hastings
Combining Statement of Revenues, Expenditures, and
118
Parks and Rec
(200)
Cable
Television (205-
206)
Heritage
Preservation
(210) Ice Arena (615)
Assets
Cash and investments 1,493,928$ 149,871$ 113,722$ 406,712$
Interest receivable 2,183 210 159 566
Due from other governments 9,434 - - 14,118
Accounts receivable 293 91,654 - 169,554
Property taxes receivable 143,768 - 3,226 9,751
Inventory 4,812 - - -
Prepaid items 5,715 18 5 563
Total assets 1,660,133$ 241,753$ 117,112$ 601,264$
Liabilities
Accounts payable 28,237$ 87,925$ 293$ 25,173$
Due to other governments - - 1 1,958
Salaries payable 29,169 602 914 10,921
Unearned revenue - - - -
Total liabilities 57,406 88,527 1,208 38,052
Deferred Inflows of Resources
Unavailable revenue - taxes and assessments 18,928 - 368 1,407
Unavailable revenue - other - - - 69,214
Total deferred inflows of resources 18,928 - 368 70,621
Fund Balances
Nonspendable
Prepaids 5,715 18 5 563
Inventories 4,812 - - -
Restricted
Police activities - - - -
Committed
Park maintenance 1,573,272 - - -
Aquatic operations - - - -
Cable TV activities - 153,208 - -
Heritage preservation activities - - 115,531 -
Arena activities - - - 492,028
Total fund balances 1,583,799 153,226 115,536 492,591
Total liabilities, deferred inflows of
resources, and fund balances 1,660,133$ 241,753$ 117,112$ 601,264$
December 31, 2021
City of Hastings
Combining Balance Sheet -
Nonmajor Special Revenue Funds
Special Revenue
119
Statement 18
DUI
Enforcement/
Equipment
(222)
Drug
Awareness
(224)
Aquatic Center
(201) Total
40,168$ 12,317$ 382,875$ 2,599,593$
56 - 531 3,705
- - - 23,552
- - - 261,501
133 - 24,032 180,910
- - - 4,812
- - 768 7,069
40,357$ 12,317$ 408,206$ 3,081,142$
744$ -$ 260$ 142,632$
- - - 1,959
- - - 41,606
- - 1,535 1,535
744 - 1,795 187,732
16 - 3,132 23,851
- - - 69,214
16 - 3,132 93,065
- - 768 7,069
- - - 4,812
39,597 12,317 - 51,914
- - - 1,573,272
- - 402,511 402,511
- - - 153,208
- - - 115,531
- - - 492,028
39,597 12,317 403,279 2,800,345
40,357$ 12,317$ 408,206$ 3,081,142$
Special Revenue
120
Parks and Rec
(200)
Cable
Television (205-
206)
Heritage
Preservation
(210) Ice Arena (615)
Revenues
General property taxes 1,513,177$ -$ 32,110$ 101,031$
Intergovernmental - - 4,500 -
Charges for services 67,985 371,819 - 424,566
Fines and forfeitures - - - -
Investment income (4,264) (757) (157) (1,567)
Contributions and donations 39,075 - 1,576 -
Miscellaneous 237,600 - 134 10,686
Total revenues 1,853,573 371,062 38,163 534,716
Expenditures
Current
Public Safety - - - -
Culture and recreation 1,608,699 373,550 30,532 517,422
Capital outlay
Culture and recreation 130,122 - - 136,157
Total expenditures 1,738,821 373,550 30,532 653,579
Excess of revenues over (under) expenditures 114,752 (2,488) 7,631 (118,863)
Other Financing Sources (Uses)
Proceeds from sale of capital assets - - - -
Transfers in 134,488 - - 70,000
Transfers out (28,569) (381) (517) (9,222)
Total other financing sources (uses) 105,919 (381) (517) 60,778
Net change in fund balances 220,671 (2,869) 7,114 (58,085)
Fund Balances
Beginning of year 1,363,128 156,095 108,422 550,676
End of year 1,583,799$ 153,226$ 115,536$ 492,591$
City of Hastings
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Special Revenue Funds
Year Ended December 31, 2021
Special Revenue
121
Statement 19
DUI
Enforcement/
Equipment
(222)
Drug
Awareness
(224)
Aquatic Center
(201) Total
1,417$ -$ 253,357$ 1,901,092$
- - - 4,500
- - 310,655 1,175,025
2,327 - - 2,327
(251) (20) (1,360) (8,376)
- - - 40,651
- - 26 248,446
3,493 (20) 562,678 3,363,665
2,994 - - 2,994
- - 408,717 2,938,920
- - 149,248 415,527
2,994 - 557,965 3,357,441
499 (20) 4,713 6,224
5,150 - - 5,150
- - - 204,488
- - (8,302) (46,991)
5,150 - (8,302) 162,647
5,649 (20) (3,589) 168,871
33,948 12,337 406,868 2,631,474
39,597$ 12,317$ 403,279$ 2,800,345$
Special Revenue
122
Statement 20
Original Final
Actual
Amounts
Revenues
Property taxes 1,491,678$ 1,491,646$ 1,513,177$ 21,531$
Charges for services 97,500 97,500 67,985 (29,515)
Investment income 10,000 10,000 (4,264) (14,264)
Contributions and donations 5,000 44,075 39,075 (5,000)
Miscellaneous - - 237,600 237,600
Total revenues 1,604,178 1,643,221 1,853,573 210,352
Expenditures
Current
Culture and recreation 1,575,609 1,683,948 1,608,699 (75,249)
Capital outlay
Culture and recreation - 130,000 130,122 122
Total expenditures 1,575,609 1,813,948 1,738,821 (75,127)
Excess of revenues over (under) expenditures 28,569 (170,727) 114,752 285,479
Other Financing Sources (Uses)
Transfers in - 132,000 134,488 2,488
Transfers out (28,569) (28,569) (28,569) -
Total other financing sources (uses) (28,569) 103,431 105,919 2,488
Net change in fund balance -$ (67,296)$ 220,671 287,967$
Fund Balance
Beginning of year 1,363,128
End of year 1,583,799$
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2021
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, 2021
123
Statement 21
Original Final
Actual
Amounts
Revenues
Charges for services 350,000$ 350,000$ 371,819$ 21,819$
Investment income 2,400 2,338 (757) (3,095)
Total revenues 352,400 352,338 371,062 18,724
Expenditures
Current
Culture and recreation 350,957 350,957 373,550 22,593
Excess of revenues over (under) expenditures 1,443 1,381 (2,488) (3,869)
Other Financing Uses
Transfers out (381) (381) (381) -
Net change in fund balance 1,062$ 1,000$ (2,869) (3,869)$
Fund Balance
Beginning of year 156,095
End of year 153,226$
2021
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, 2021
124
Statement 22
Original Final
Actual
Amounts
Revenues
Property Taxes 31,933$ 31,753$ 32,110$ 357$
Intergovernmental revenues - - 4,500 4,500
Investment income 1,200 1,200 (157) (1,357)
Contributions and donations - 1,525 1,576 51
Miscellaneous 400 400 134 (266)
Total revenues 33,533 34,878 38,163 3,285
Expenditures
Current
Culture and recreation 32,836 34,719 30,532 (4,187)
Excess of revenues over expenditures 697 159 7,631 7,472
Other Financing Uses
Transfer out (517) (517) (517) -
Net change in fund balance 180$ (358)$ 7,114 7,472$
Fund Balance
Beginning of year 108,422
End of year 115,536$
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2021
City of Hastings
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual -
Heritage Preservation Special Revenue Fund
Year Ended December 31, 2021
125
Statement 23
Original Final
Actual
Amounts
Revenues
Property Taxes 99,160$ 99,160$ 101,031$ 1,871$
Charges for services 471,150 471,150 424,566 (46,584)
Investment income 5,000 5,000 (1,567) (6,567)
Miscellaneous - - 10,686 10,686
Total revenues 575,310 575,310 534,716 (40,594)
Expenditures
Current
Culture and recreation 566,088 568,538 517,422 (51,116)
Capital Outlay
Cultural and recreation - 136,157 136,157 -
Total expenditures 566,088 704,695 653,579 (51,116)
Excess of revenues over (under) expenditures 9,222 (129,385) (118,863) 10,522
Other Financing Sources (Uses)
Transfers In - 70,000 70,000 -
Transfers Out (9,222) (9,222) (9,222) -
Total Other Financing Sources (Uses) (9,222) 60,778 60,778 -
Net Change in Fund Balances -$ (68,607)$ (58,085) 10,522$
Fund Balance
Beginning of year 550,676
End of year 492,591$
City of Hastings
Fund Balance - Budget and Actual -
Ice Arena Special Revenue Fund
Year Ended December 31, 2021
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2021
Schedule of Revenues, Expenditures, and Changes in
126
Statement 24
Original Final
Actual
Amounts
Revenues
Property Taxes 1,400$ 1,400$ 1,417$ 17$
Fines and Forfeitures - - 2,327 2,327
Investment income 200 200 (251) (451)
Total revenues 1,600 1,600 3,493 1,893
Expenditures
Current
Public Safety 1,600 1,600 2,994 1,394
Excess of revenues over expenditures - - 499 499
Other Financing Sources
Proceeds from sale of capital assets - - 5,150 5,150
Net change in fund balances -$ -$ 5,649 5,649$
Fund Balance
Beginning of year 33,948
End of year 39,597$
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2021
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, 2021
127
Statement 25
Original Final
Actual
Amounts
Revenues
Property taxes 249,863$ 249,863$ 253,357$ 3,494$
Charges for services 222,300 222,300 310,655 88,355
Investment income 1,500 1,500 (1,360) (2,860)
Miscellaneous - - 26 26
Total revenues 473,663 473,663 562,678 89,015
Expenditures
Current
Culture and recreation 465,361 465,361 408,717 (56,644)
Capital outlay
Culture and recreation - 150,000 149,248 (752)
Total expenditures 465,361 615,361 557,965 (57,396)
Excess of revenues over (under) expenditures 8,302 (141,698) 4,713 146,411
Other Financing Uses
Transfers out (8,302) (8,302) (8,302) -
Net change in fund balance -$ (150,000)$ (3,589) 146,411$
Fund Balance
Beginning of year 406,868
End of year 403,279$
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2021
City of Hastings
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual -
Aquatic Center Special Revenue Fund
Year Ended December 31, 2021
128
Budget
Stabilization
(403)
Guardian
Angels Tax
Increment
Financing (405)
NAPA Tax
Increment
Financing (408)
Assets
Cash and investments 966,109$ 33,900$ 14,886$
Interest receivable 478 46 -
Property taxes receivable - - -
Total assets 966,587$ 33,946$ 14,886$
Liabilities, Deferred Inflows of
Resources, and Fund Balances
Liabilities
Accounts payable -$ 45,259$ -$
Due to other funds - - -
Deposits payable - - -
Total liabilities - 45,259 -
Deferred Inflows of Resources
Unavailable revenue - taxes and special assessments - - -
Fund Balances
Restricted
Tax increment financing - - 14,886
Escrow - - -
Capital Projects - - -
Assigned
Capital 966,587 - -
Unassigned - (11,313) -
Total fund balances 966,587 (11,313) 14,886
Total liabilities and fund balances 966,587$ 33,946$ 14,886$
Capital Projects
City of Hastings
Combining Balance Sheet -
Nonmajor Capital Projects Funds
December 31, 2021
129
Statement 26
Public Works
Cold Storage
Building (416) Escrow (807)
Hudson Sprayers
Tax Increment
Financing (411) Park Projects (401)
Road Improvement
Construction (470-
482) Total
-$ 452,991$ 9,880$ 1,149,335$ -$ 2,627,101$
- 702 - 1,523 - 2,749
- - - 1,165 - 1,165
-$ 453,693$ 9,880$ 1,152,023$ -$ 2,631,015$
5,409$ 17,342$ -$ 1,200$ 10,768$ 79,978$
- - - - 621,244 621,244
- 420,117 - - - 420,117
5,409 437,459 - 1,200 632,012 1,121,339
- - - 895 - 895
- - 9,880 - - 24,766
- 16,234 - - - 16,234
- - - 1,149,928 - 1,149,928
- - - - - 966,587
(5,409) - - - (632,012) (648,734)
(5,409) 16,234 9,880 1,149,928 (632,012) 1,508,781
-$ 453,693$ 9,880$ 1,152,023$ -$ 2,631,015$
Capital Projects
130
Budget
Stabilization
(403)
Guardian
Angels Tax
Increment
Financing (405)
NAPA Tax
Increment
Financing (408)
Revenues
General property taxes -$ 28,527$ 10,880$
Intergovernmental - - -
Charges for services - - -
Investment income (1,123) (148) -
Contributions and donations - - -
Total revenues (1,123) 28,379 10,880
Expenditures
Current
Public works - - -
Economic development - 46,259 999
Culture and recreation - - -
Debt service
Interest and other charges - 590 563
Capital outlay
Culture and recreation - - -
Public works - - -
Total expenditures - 46,849 1,562
Excess of revenues over (under) expenditures (1,123) (18,470) 9,318
Other Financing Sources (Uses)
Issuance of debt - - -
Premium on debt issued - - -
Transfers in - - -
Transfers out - - -
Total other financing sources (uses) - - -
Net change in fund balances (1,123) (18,470) 9,318
Fund Balances
Beginning of year 967,710 7,157 5,568
End of year 966,587$ (11,313)$ 14,886$
Capital Projects
City of Hastings
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Capital Projects Funds
Year Ended December 31, 2021
131
Statement 27
Public Works
Cold Storage
Building (416)
City Hall
Remodel (415) Escrow (807)
Hudson
Sprayers Tax
Increment
Financing (411)
Park Projects
(401)
Road
Improvement
Construction
(470-482) Total
-$ -$ -$ 10,880$ 2,642$ -$ 52,929$
- - - - - 750,000 750,000
- - - - 82,500 10,704 93,204
- - (1,006) - 5,541 (1,229) 2,035
- - - - 270,938 - 270,938
- - (1,006) 10,880 361,621 759,475 1,169,106
- - - - - 19,842 19,842
- - - 1,000 - - 48,258
- - - - 1,792 - 1,792
- - - - - 42,683 43,836
- - - - 198,247 - 198,247
5,409 - - - - 2,068,464 2,073,873
5,409 - - 1,000 200,039 2,130,989 2,385,848
(5,409) - (1,006) 9,880 161,582 (1,371,514) (1,216,742)
- - - - - 925,000 925,000
- - - - - 68,037 68,037
- 46,181 - - 359,300 3,210 408,691
- - - - - (609,556) (609,556)
- 46,181 - - 359,300 386,691 792,172
(5,409) 46,181 (1,006) 9,880 520,882 (984,823) (424,570)
- (46,181) 17,240 - 629,046 352,811 1,933,351
(5,409)$ -$ 16,234$ 9,880$ 1,149,928$ (632,012)$ 1,508,781$
Capital Projects
132
Statement 28
Original Final
Actual
Amounts
Revenues
General property taxes -$ -$ 2,642$ 2,642$
Charges for services - - 82,500 82,500
Investment income - - 5,541 5,541
Contributions and donations - 270,938 270,938 -
Total revenues - 270,938 361,621 90,683
Expenditures
Current
Culture and recreation - 272,525 1,792 (270,733)
Capital outlay
Cultural and recreation - 459,300 198,247 (261,053)
Total expenditures - 731,825 200,039 (531,786)
Excess of revenues over (under) expenditures - (460,887) 161,582 622,469
Other Financing Sources
Transfers in - 359,300 359,300 -
Net change in fund balance -$ (101,587)$ 520,882 622,469$
Fund Balance
Beginning of year 629,046
End of year 1,149,928$
Variance with
Final Budget -
Over (Under)
Budgeted Amounts
2021
City of Hastings
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual -
Park Projects Capital Projects Fund
Year Ended December 31, 2021
133
Statement 29
C. Simmons
Trust (850)
Assets
Cash and investments 221,022$
Cash with fiscal agent 939,044
Accounts receivable 10,204
Interest receivable 307
Total assets 1,170,577$
Fund Balances
Nonspendable
Endowment 200,000
Restricted
Leduc Historic Estate 970,577
Total fund balances 1,170,577$
City of Hastings
Nonmajor Permanent Fund
December 31, 2021
Combining Balance Sheet -
134
Statement 30
C. Simmons
Trust (850)
Revenues
Investment income 115,265$
Other 8,158
Total revenues 123,423
Expenditures
Current
Cultural and recreation 16,508
Excess of revenues over expenditures 106,915
Other Financing Uses
Transfers out (40,895)
Net change in fund balances 66,020
Fund Balances
Beginning of year 1,104,557
End of year 1,170,577$
City of Hastings
Nonmajor Permanent Fund
Year Ended December 31, 2021
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 69,292$ 254,020$ 392,889$ 587,679$ 1,303,880$
Taxes receivable - - 28,539 - 28,539
Accounts receivable - - 10 - 10
Interest receivable 147 258 461 459 1,325
Prepaid items - - - 10,000 10,000
Total current assets 69,439 254,278 421,899 598,138 1,343,754
Noncurrent assets
Capital assets, not being depreciated
Construction in progress - - 730,551 - 730,551
Capital assets, being depreciated
Equipment - - 1,134,327 50,902 1,185,229
Less accumulated depreciation - - (229,777) (5,514) (235,291)
Net capital assets - - 1,635,101 45,388 1,680,489
Total assets 69,439 254,278 2,057,000 643,526 3,024,243
Deferred outflows related to OPEB - 1,033,297 - - 1,033,297
Total assets and deferred
outflows of resources 69,439$ 1,287,575$ 2,057,000$ 643,526$ 4,057,540$
Liabilities
Current liabilities
Accounts payable -$ -$ 37,298$ 10,000$ 47,298$
Due to other governments - - 2,476 191 2,667
Unearned revenue - - 3,518 - 3,518
Compensated absences 94,633 - - - 94,633
Total current liabilities 94,633 - 43,292 10,191 148,116
Noncurrent liabilities
Compensated absences 1,726,892 - - - 1,726,892
Total OPEB liability - 3,945,537 - - 3,945,537
Less amount due within one year (94,633) - - - (94,633)
Total noncurrent liabilities 1,632,259 3,945,537 - - 5,577,796
Total liabilities 1,726,892 3,945,537 43,292 10,191 5,725,912
Deferred Inflows of Resources
Deferred inflows of resources
related to OPEB - 44,680 - - 44,680
Net Position
Net investment in capital assets - - 1,635,101 45,388 1,680,489
Unrestricted (1,657,453) (2,702,642) 378,607 587,947 (3,393,541)
Total net position (1,657,453) (2,702,642) 2,013,708 633,335 (1,713,052)
Total liabilities, deferred inflows
of resources and net position 69,439$ 1,287,575$ 2,057,000$ 643,526$ 4,057,540$
City of Hastings
December 31, 2021
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$ 911,634$ 1,053,688$
Operating expenses
Personnel services 285,479 327,377 - - 612,856
Professional services - - - 732,449 732,449
Depreciation - - 123,166 2,545 125,711
Miscellaneous - - 9,682 - 9,682
Total operating expenses 285,479 327,377 132,848 734,994 1,480,698
Operating income (loss) (285,479) (327,377) 9,206 176,640 (427,010)
Nonoperating revenues
Investment income (556) (653) (745) (539) (2,493)
Intergovernmental - 3,587 - - 3,587
Gain on disposal of capital assets - - 3,553 - 3,553
Property Taxes - - 303,478 - 303,478
Total nonoperating revenues (556) 2,934 306,286 (539) 308,125
Income (loss) before transfers (286,035) (324,443) 315,492 176,101 (118,885)
Transfers in 100,000 350,000 905,278 98,253 1,453,531
Transfers out - - (187,000) (2,488) (189,488)
Change in net position (186,035) 25,557 1,033,770 271,866 1,145,158
Net position
Beginning of year (1,471,418) (2,728,199) 979,938 361,469 (2,858,210)
End of year (1,657,453)$ (2,702,642)$ 2,013,708$ 633,335$ (1,713,052)$
City of Hastings
in Fund Net Position - Internal Service Funds
Year Ended December 31, 2021
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 -$ -$ 145,562$
Payments to suppliers for goods and services - (4,388) (11,449)
Payments to employees for services (241,984) (327,377) -
Net cash flows - operating activities (241,984) (331,765) 134,113
Cash Flows - Noncapital Financing Activities
Intergovernmental receipts - 18,443 -
Property taxes - - 308,636
Transfer out - - (187,000)
Transfer in 100,000 350,000 905,278
Net cash flows - noncapital financing activities 100,000 368,443 1,026,914
Cash Flows - Capital and Related Financing Activities
Acquisition of capital assets - - (1,209,276)
Proceeds from sale of capital assets - - 3,553
Net cash flows - capital and related
financing activities - - (1,205,723)
Cash Flows - Investing Activities
Investment income (357) (587) (461)
Net cash flows - investing activities (357) (587) (461)
Net change in cash and cash equivalents (142,341) 36,091 (45,157)
Cash and Cash Equivalents
Beginning of year 211,633 217,929 438,046
End of year 69,292$ 254,020$ 392,889$
Reconciliation of Operating Income (Loss)
to Net Cash Flows - Operating Activities
Operating income (loss) (285,479)$ (327,377)$ 9,206$
Adjustments to reconcile operating income (loss) to net
cash flows - operating activities
Depreciation - - 123,166
Accounts receivable - - (10)
Prepaid items - - -
OPEB expense - (4,388) -
Accounts payable - - (1,767)
Unearned revenue - - 3,518
Compensated absences payable 43,495 - -
Total adjustments 43,495 (4,388) 124,907
Net cash flows - operating activities (241,984)$ (331,765)$ 134,113$
Internal Service Funds
City of Hastings
Statement of Cash Flows - Internal Service Funds
Year Ended December 31, 2021
139
Statement 33
Insurance
Fund(705) Total
911,634$ 1,057,196$
(729,252) (745,089)
- (569,361)
182,382 (257,254)
- 18,443
1,440 310,076
- (187,000)
95,765 1,451,043
97,205 1,592,562
- (1,209,276)
- 3,553
- (1,205,723)
(758) (2,163)
(758) (2,163)
278,829 127,422
308,850 1,176,458
587,679$ 1,303,880$
176,640$ (427,010)$
2,545 125,711
- (10)
(500) (500)
- (4,388)
3,697 1,930
- 3,518
- 43,495
5,742 169,756
182,382$ (257,254)$
Internal Service Funds
140
(THIS PAGE LEFT BLANK INTENTIONALLY)
141
COMPONENT UNIT
142
Statement 34
Assets
Cash and investments 1,126,731$
Interest receivable 1,610
Due from other governments 1,304,239
Property taxes receivable 37,628
Loan receivable 184,597
Land Held for Resale 3,251,890
Prepaid items 133
Total assets 5,906,828$
Liabilities
Accounts payable 9,125$
Due to other governments 1,054,239
Salaries and benefits payable 7,305
Deposits payable 16,700
Total liabilities 1,087,369
Deferred Inflows of Resources
Unavailable revenue - taxes 5,844
Unavailable revenue - grants 246,372
Total deferred inflows of resources 252,216
Fund Balances
Nonspendable
Prepaid items 133
Loan receivables 184,597
Unassigned 4,382,513
Total fund balances 4,567,243
Total liabilities, deferred inflows of resources, and fund balances 5,906,828$
City of Hastings
Hastings Economic Development and Redevelopment Authority
Balance Sheet
December 31, 2021
143
Statement 35
Total fund balances - governmental funds 4,567,243$
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, 93,499
are not reported as assets in governmental funds.
Long-term liabilities are not due and payable in the current period and, therefore, are not reported
as liabilities in the funds.
OPEB Liability (85,092)
Net pension liability (127,126)
Other long-term assets are not available to pay for current-period expenditures and therefore are
deferred in the funds.252,216
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 (119,676)
Deferred outflows of resources related to city pensions 89,577
Deferred inflows of resources related to OPEB (964)
Deferred outflows of resources related to OPEB 22,286
Total net position - governmental activities 4,691,963$
City of Hastings
Hastings Economic Development And Redevelopment Authority
Reconciliation of The Balance Sheet to The Statement of Net Position
December 31, 2021
144
Statement 36
Original Final
Actual
Amounts
Revenues
Property taxes 391,974$ 391,974$ 396,437$ 4,463$
Intergovernmental revenues - - 12,780 12,780
Charges for services 54,300 54,300 20,398 (33,902)
Investment income 20,000 20,000 (4,806) (24,806)
Miscellaneous - - 33,769 33,769
Payment from primary government - 2,500 2,500 -
Total revenues 466,274 468,774 461,078 (7,696)
Expenditures
Current
Economic development
Personnel services 239,753 239,753 246,336 6,583
Services and charges 120,400 120,400 431,064 310,664
Miscellaneous 179,976 222,476 34,866 (187,610)
Payment to primary government 36,518 36,518 36,355 (163)
Capital outlay
Economic development 100,000 100,000 775 (99,225)
Total expenditures 676,647 719,147 749,396 30,249
Net change in fund balance (210,373)$ (250,373)$ (288,318) (37,945)$
Fund Balance
Beginning of year 4,855,561
End of year 4,567,243$
City of Hastings
2021
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, 2021
145
Statement 37
(288,318)$
Governmental funds report capital outlays as expenditures. However, in the Statement of
Activities of the costs of those assets is allocated over their estimated useful lives and reported as
depreciation expense.
Depreciation expense (5,500)
Property taxes collected for prior years and grant revenue for future periods 233,889
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. (13,634)
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 (33,784)
(107,347)$
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, 2021
146
G.O. Tax
Increment
Bonds 2016A
(516)
G.O.
Improvement
Bonds, 2014A
Charter (574)
G.O.
Improvement
Bonds 2015A-
Charter (575)
Assets
Cash and investments 239,804$ 296,748$ 268,136$
Interest receivable 355 - 363
Due from other funds - - -
Property taxes receivable 21,755 28,881 25,209
Special assessments receivable
Delinquent - 2,135 51
Deferred - 68,908 7,417
Prepaid items - 416 333
Total assets 261,914$ 397,088$ 301,509$
Deferred Inflows of Resources
Unavailable revenue - taxes and assessments 2,682 73,381 10,523
Fund Balances
Nonspendable - 416 333
Restricted
Debt service 259,232 323,291 290,653
Total fund balances 259,232 323,707 290,986
Total liabilities, deferred inflows of
resources and fund balance 261,914$ 397,088$ 301,509$
City of Hastings
Subcombining Balance Sheet
Debt Service Fund
December 31, 2021
147
Statement 38
(Continued)
G.O.
Improvement
Bonds 2016B-
Charter (576)
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)
379,705$ 140,862$ 322,299$ 16,396$ 16,432$
517 184 448 - -
- - - - -
28,933 22,070 159 - -
226 1,232 - - -
39,848 178,294 - - -
375 248 - - -
449,604$ 342,890$ 322,906$ 16,396$ 16,432$
43,366 180,406 - - -
375 248 - - -
405,863 162,236 322,906 16,396 16,432
406,238 162,484 322,906 16,396 16,432
449,604$ 342,890$ 322,906$ 16,396$ 16,432$
148
Certificate of
Participation
2015 (315)
Certificate of
Participation
2016 (316)
G.O.
Improvement
Bonds 2006A
(526)
Assets
Cash and investments 6,864$ 70,151$ -$
Interest receivable 10 95 -
Due from other funds - - -
Property taxes receivable 95 5,756 -
Special assessments receivable
Delinquent - - -
Deferred - - -
Prepaid items - - -
Total assets 6,969$ 76,002$ -$
Deferred Inflows of Resources
Unavailable revenue - taxes and assessments - 741 -
Fund Balances
Nonspendable - - -
Restricted
Debt service 6,969 75,261 -
Total fund balances 6,969 75,261 -
Total liabilities, deferred inflows of
resources and fund balance 6,969$ 76,002$ -$
City of Hastings
Subcombining Balance Sheet
Debt Service Fund
December 31, 2021
149
Statement 38
(Continued)
G.O.
Improvement
Bonds 2007B
(527)
G.O.
Improvement
Bonds 2008A
(528)
G.O.
Improvement
Bonds 2009A
(529)
G.O.
Improvement
Bonds 2010B
(570)
G.O.
Improvement
Bonds 2011A
(571)
-$ -$ 13,746$ 143,269$ 230,808$
- - 19 198 313
- - - - -
- - 257 298 14,269
- - - 27 1,581
- - - - -
- - - 673 376
-$ -$ 14,022$ 144,465$ 247,347$
- - - 27 3,340
- - - 673 376
- - 14,022 143,765 243,631
- - 14,022 144,438 244,007
-$ -$ 14,022$ 144,465$ 247,347$
150
G.O.
Improvement
Bonds 2012
(572)
G.O.
Improvement
Bonds 2013B
(573)
G.O.
Improvement
Bonds 2017A
(577)
Assets
Cash and investments 192,004$ 120,454$ 147,434$
Interest receivable 261 164 202
Due from other funds - - -
Property taxes receivable 15,152 8,766 7,610
Special assessments receivable
Delinquent 2,007 - 811
Deferred 15,487 24,933 95,052
Prepaid items 416 664 375
Total assets 225,327$ 154,981$ 251,484$
Deferred Inflows of Resources
Unavailable revenue - taxes and assessments 18,614 26,146 96,768
Fund Balances
Nonspendable 416 664 375
Restricted
Debt service 206,297 128,171 154,341
Total fund balances 206,713 128,835 154,716
Total liabilities, deferred inflows of
resources and fund balance 225,327$ 154,981$ 251,484$
City of Hastings
Subcombining Balance Sheet
Debt Service Fund
December 31, 2021
151
Statement 38
(Continued)
Certificates of
Participation
2013B (398)
Debt
Redemption
Fund (500)
G.O.
Improvement
Bonds 2019A
(579)
G.O.
Improvement
Bonds 2020A
(580)
G.O.
Improvement
Bonds 2021A
(581) Total
121,762$ 311,113$ 1,098,548$ 515,469$ 290,792$ 4,942,796$
166 1,325 1,516 693 388 7,217
- 641,786 - - - 641,786
9,380 4,334 14,744 22,599 - 230,267
- - - - - 8,070
- 43,415 537,833 409,805 289,185 1,710,177
- - 290 374 494 5,034
131,308$ 1,001,973$ 1,652,931$ 948,940$ 580,859$ 7,545,347$
1,187 47,597 539,650 411,459 289,185 1,745,072
- - 290 374 494 5,034
130,121 954,376 1,112,991 537,107 291,180 5,795,241
130,121 954,376 1,113,281 537,481 291,674 5,800,275
131,308$ 1,001,973$ 1,652,931$ 948,940$ 580,859$ 7,545,347$
152
G.O. Tax
Increment
Bonds 2016A
(516)
G.O.
Improvement
Bonds, 2014A
Charter (574)
G.O.
Improvement
Bonds 2015A-
Charter (575)
Revenues
General property taxes -$ 304,255$ 268,073$
Special assessments - 28,508 2,157
Charges for services - - -
Investment income (467) - (570)
Total revenues (467) 332,763 269,660
Expenditures
Debt service
Principal 175,000 325,000 245,000
Interest and other charges 43,875 37,658 29,433
Total expenditures 218,875 362,658 274,433
Excess of revenues over (under) expenditures (219,342) (29,895) (4,773)
Other Financing Sources (Uses)
Transfers in 210,000 - -
Transfers out - - -
Total other financing sources (uses) 210,000 - -
Net change in fund balances (9,342) (29,895) (4,773)
Fund Balances
Beginning of year 268,574 353,602 295,759
End of year 259,232$ 323,707$ 290,986$
City of Hastings
Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance
Debt Service Fund
Year Ended December 31, 2021
153
Statement 39
G.O.
Improvement
Bonds 2016B-
Charter (576)
G.O.
Improvement
Bonds 2018A -
Charter (578)
G.O. Public
Facility
Refunding
bonds, Series
2010A (370)
City Revenue
Refunding
Bonds 2013A
(350)
303,874$ 249,015$ 1,554$ -$
13,951 48,859 - -
- - 84,645 -
(890) (111) (1,213) (156)
316,935 297,763 84,986 (156)
300,000 230,000 180,000 -
50,158 81,104 8,280 -
350,158 311,104 188,280 -
(33,223) (13,341) (103,294) (156)
- - - -
- - - -
- - - -
(33,223) (13,341) (103,294) (156)
439,461 175,825 426,200 16,552
406,238$ 162,484$ 322,906$ 16,396$
154
Certificate of
Participation
2014 (399)
Certificate of
Participation
2015 (315)
Certificate of
Participation
2016 (316)
Revenues
General property taxes -$ 932$ 60,805$
Special assessments - - -
Charges for services - - -
Investment income (366) (196) (235)
Total revenues (366) 736 60,570
Expenditures
Debt service
Principal 45,000 60,000 60,000
Interest and other charges 450 600 1,800
Total expenditures 45,450 60,600 61,800
Excess of revenues over (under) expenditures (45,816) (59,864) (1,230)
Other Financing Sources (Uses)
Transfers in - - -
Transfers out - - -
Total other financing sources (uses) - - -
Net change in fund balances (45,816) (59,864) (1,230)
Fund Balances
Beginning of year 62,248 66,833 76,491
End of year 16,432$ 6,969$ 75,261$
City of Hastings
Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance
Debt Service Fund
Year Ended December 31, 2021
155
Statement 39
(Continued)
G.O.
Improvement
Bonds 2006A
(526)
G.O.
Improvement
Bonds 2007B
(527)
G.O.
Improvement
Bonds 2008A
(528)
G.O.
Improvement
Bonds 2009A
(529)
G.O.
Improvement
Bonds 2010B
(570)
G.O.
Improvement
Bonds 2011A
(571)
-$ -$ -$ 282$ 3,030$ 151,738$
- - - 654 15,489 55,657
- - - - - -
(1) (176) (163) (482) (733) (776)
(1) (176) (163) 454 17,786 206,619
- - - 190,000 120,000 380,000
- - 334 3,731 6,190 14,997
- - 334 193,731 126,190 394,997
(1) (176) (497) (193,277) (108,404) (188,378)
- - - - - -
(3,131) (42,616) (40,492) - - -
(3,131) (42,616) (40,492) - - -
(3,132) (42,792) (40,989) (193,277) (108,404) (188,378)
3,132 42,792 40,989 207,299 252,842 432,385
-$ -$ -$ 14,022$ 144,438$ 244,007$
156
G.O.
Improvement
Bonds 2012
(572)
G.O.
Improvement
Bonds 2013B
(573)
G.O.
Improvement
Bonds 2017A
(577)
Revenues
General property taxes 161,700$ 91,507$ 80,927$
Special assessments 17,161 13,720 18,847
Charges for services - - -
Investment income (464) (372) (342)
Total revenues 178,397 104,855 99,432
Expenditures
Debt service
Principal 180,000 125,000 100,000
Interest and other charges 9,803 10,966 22,172
Total expenditures 189,803 135,966 122,172
Excess of revenues over (under) expenditures (11,406) (31,111) (22,740)
Other Financing Sources (Uses)
Transfers in - - -
Transfers out - - -
Total other financing sources (uses) - - -
Net change in fund balances (11,406) (31,111) (22,740)
Fund Balances
Beginning of year 218,119 159,946 177,456
End of year 206,713$ 128,835$ 154,716$
City of Hastings
Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance
Debt Service Fund
Year Ended December 31, 2021
157
Statement 39
(Continued)
Certificates of
Participation
2013B (398)
Debt
Redemption
Fund (500)
G.O.
Improvement
Bonds 2019A
(579)
G.O.
Improvement
Bonds 2020A
(580)
G.O.
Improvement
Bonds 2021A
(581) Total
99,344$ 6,280$ 156,796$ 254,991$ -$ 2,195,103$
- 46 124,920 341,568 291,249 972,786
- - - - - 84,645
(337) (3,561) (3,918) (186) (69) (15,784)
99,007 2,765 277,798 596,373 291,180 3,236,750
90,000 - 150,000 - - 2,955,000
8,098 2,260 127,130 59,389 (494) 517,934
98,098 2,260 277,130 59,389 (494) 3,472,934
909 505 668 536,984 291,674 (236,184)
- 649,614 - - - 859,614
- (760,600) - - - (846,839)
- (110,986) - - - 12,775
909 (110,481) 668 536,984 291,674 (223,409)
129,212 1,064,857 1,112,613 497 - 6,023,684
130,121$ 954,376$ 1,113,281$ 537,481$ 291,674$ 5,800,275$
158
(THIS PAGE LEFT BLANK INTENTIONALLY)
159
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.
160
2012 2013 2014 2015
Governmental activities:
Net investment in capital assets 39,532,965$ 42,404,518$ 43,801,240$ 43,540,896$
Restricted for:
Police activities 14,524 13,898 29,908 29,796
Tax increment - - - -
Debt service 10,278,599 9,292,124 8,228,781 6,790,580
Capital projects 567,457 677,082 617,851 605,667
Escrow - - - -
Net pension asset - - - -
LeDuc Historic Estate 1,118,669 1,138,006 1,107,821 1,369,956
Unrestricted 2,088,661 3,306,265 3,863,787 (1,019,362)
Total governmental activities net position 53,600,875$ 56,831,893$ 57,649,388$ 51,317,533$
Business-type activities:
Net investment in capital assets 26,349,437$ 25,478,576$ 25,016,342$ 25,317,479$
Restricted for:
Debt service 291,130 551,253 376,498 251,499
Unrestricted 6,322,246 6,176,039 4,917,605 4,348,513
Total business-type activities net position 32,962,813$ 32,205,868$ 30,310,445$ 29,917,491$
Primary government:
Net investment in capital assets 65,882,402$ 67,883,094$ 68,817,582$ 68,858,375$
Restricted for:
Police activities 14,524 13,898 29,908 29,796
Tax increment - - - -
Debt service 10,569,729 9,843,377 8,605,279 7,042,079
Capital projects 567,457 677,082 617,851 605,667
Escrow - - - -
LeDuc Historic Estate 1,118,669 1,138,006 1,107,821 1,369,956
Unrestricted 8,410,907 9,482,304 8,781,392 3,329,151
Total primary government net position 86,563,688$ 89,037,761$ 5,408,639$ 81,235,024$
Unaudited
Fiscal Year
City of Hastings
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
161
Table 1
2016 2017 2018 2019 2020 2021
42,444,675$ 43,485,383$ 43,158,263$ 42,069,591$ 42,768,215$ 44,179,337$
34,462 42,568 54,842 40,432 59,697 113,606
- 2,695 4,924 5,681 7,157 24,766
6,814,431 6,721,124 6,897,969 8,169,524 7,182,012 7,346,220
547,257 488,132 494,432 509,082 630,709 1,149,928
- - - 11,467 17,240 16,234
1,225,251 - - - - -
1,374,830 1,489,982 1,270,770 1,246,991 1,282,730 1,324,652
(3,501,336) (3,910,559) (4,077,486) (2,309,522) 324,570 3,196,284
48,939,570$ 48,319,325$ 47,803,714$ 49,743,246$ 52,272,330$ 57,351,027$
25,219,313$ 25,631,750$ 24,353,284$ 24,164,942$ 23,964,003$ 24,268,293$
187,146 - - - - -
3,868,707 3,301,265 5,080,114 5,859,676 7,007,095 8,532,954
29,275,166$ 28,933,015$ 29,433,398$ 30,024,618$ 30,971,098$ 32,801,247$
68,858,375$ 69,117,133$ 67,511,547$ 66,234,533$ 66,732,218$ 68,447,630$
34,462 42,568 54,842 40,432 59,697 113,606
- 2,695 4,924 5,681 7,157 24,766
7,001,577 6,721,124 6,897,969 8,169,524 7,182,012 7,346,220
547,257 488,132 494,432 509,082 630,709 1,149,928
- - - 11,467 17,240 16,234
1,374,830 1,489,982 1,270,770 1,246,991 1,282,730 1,324,652
367,371 (609,294) 1,002,628 3,550,154 7,331,665 11,729,238
78,183,872$ 77,252,340$ 77,237,112$ 79,767,864$ 83,243,428$ 90,152,274$
Fiscal Year
162
2012 2013 2014 2015
Expenses
Governmental activities
General government 2,708,887$ 2,368,033$ 2,912,989$ 2,742,065$
Public safety 7,646,393 8,022,727 8,265,264 8,354,120
Public works 4,939,914 5,059,797 4,825,511 5,213,874
Culture and recreation 2,979,509 2,844,498 2,948,893 3,087,460
Economic development 24,455 34,119 135,010 47,129
Health and sanitation 24,057 19,447 15,775 21,890
Interest on long-term debt 905,223 647,902 466,445 453,391
Total governmental activities expenses 19,228,438 18,996,523 19,569,887 19,919,929
Business-type activities
Water 2,003,623 2,181,086 2,065,409 1,963,670
Sewer 1,807,697 1,867,680 1,940,624 1,958,792
Storm 417,236 346,846 380,251 393,535
Hydro 907,562 941,730 738,402 633,196
Total business-type activities expenses 5,136,118 5,337,342 5,124,686 4,949,193
Total primary government expenses 24,364,556$ 24,333,865$ 24,694,573$ 24,869,122$
Program revenues
Governmental activities
Charges for services
General Government -$ -$ -$ -$
Public safety 2,617,151 2,925,521 2,726,275 2,849,915
Public works 5,408,639 35,134 51,342 119,702
Culture and recreation 1,183,146 1,156,963 1,147,412 1,202,465
Other activities 421,246 537,106 470,886 537,114
Operating grants and contributions 933,834 820,431 776,970 649,612
Capital grants and contributions 949,617 4,648,382 815,568 1,113,376
Total governmental activities program revenues 11,513,633 10,123,537 5,988,453 6,472,184
Business-type activities
Charges for services
Water 2,220,064 2,071,576 1,873,918 1,797,562
Sewer 1,859,169 1,915,861 1,938,692 1,882,901
Storm 435,361 430,074 429,957 425,643
Hydro 981,819 963,174 921,052 1,073,234
Operating grants and contributions 32,417 - - -
Capital grants and contributions 35,585 - - -
Total business-type activities program revenues 5,564,415 5,380,685 5,163,619 5,179,340
Total primary government program revenues 17,078,048$ 15,504,222$ 11,152,072$ 11,651,524$
Net (expense) revenue
Governmental activities (7,714,805)$ (8,872,986)$ (13,581,434)$ (13,447,745)$
Business-type activities 428,297 43,343 38,933 230,147
Total primary government net (expense) revenue (7,286,508) (8,829,643) (13,542,501) (13,217,598)
Fiscal Year
Unaudited
City of Hastings
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
163
Table 2
Page 1 of 2
Continued
2016 2017 2018 2019 2020 2021
2,935,743$ 3,129,500$ 3,322,254$ 3,547,503$ 4,271,705$ 3,093,577$
11,060,875 9,386,823 10,167,543 9,382,761 9,580,764 9,459,405
6,345,402 5,638,414 5,438,158 5,885,948 5,355,622 6,667,995
3,396,349 3,398,198 3,588,701 3,506,415 2,944,205 3,810,177
2,311,500 51,101 40,656 41,369 28,806 48,930
19,301 30,849 34,158 37,731 28,794 59,362
464,205 449,979 428,156 486,826 415,814 396,991
26,533,375 22,084,864 23,019,626 22,888,553 22,625,710 23,536,437
2,120,683 1,866,451 2,053,704 2,197,954 1,975,443 2,413,301
2,118,877 2,213,573 2,160,226 2,305,382 2,314,153 2,567,037
422,730 403,183 424,791 529,092 404,163 401,155
593,610 838,181 620,320 578,351 832,937 521,731
5,255,900 5,321,388 5,259,041 5,610,779 5,526,696 5,903,224
31,789,275$ 27,406,252$ 28,278,667$ 28,499,332$ 28,152,406$ 29,439,661$
-$ -$ -$ 513,591$ 522,460$ 459,130$
3,362,113 3,745,444 3,507,476 3,848,715 3,420,090 3,581,897
271,785 276,721 312,004 438,990 778,863 485,869
1,237,031 1,191,970 1,358,186 1,162,764 779,387 1,307,896
602,296 521,818 496,151 93,705 85,185 91,995
1,560,903 539,343 1,521,330 1,117,166 918,951 1,314,781
3,212,984 1,234,808 622,219 1,553,631 1,098,098 4,831,331
10,247,112 7,510,104 7,817,366 8,728,562 7,603,034 12,072,899
1,875,712 1,897,865 2,284,680 2,259,917 2,445,497 2,744,525
1,867,425 1,972,116 2,490,514 2,642,559 2,615,539 2,757,731
435,310 507,721 633,583 718,097 729,711 763,339
787,238 784,887 701,729 672,763 578,006 738,075
- - - - 1,888 -
- - 150,542 49,281 102,567 788,199
4,965,685 5,162,589 6,261,048 6,342,617 6,473,208 7,791,869
15,212,797$ 12,672,693$ 14,078,414$ 15,071,179$ 14,076,242$ 19,864,768$
(16,286,263)$ (14,574,760)$ (15,202,260)$ (14,159,991)$ (15,022,676)$ (11,463,538)$
(290,215) (158,799) 1,002,007 731,838 946,512 1,888,645
(16,576,478) (14,733,559)(14,200,253) (13,428,153)(14,076,164) (9,574,893)
Fiscal Year
164
2012 2013 2014 2015
General revenues and other changes in net position
Governmental activities
Taxes:
Property taxes, levied for general purposes 8,227,080$ 8,545,583$ 8,719,458$ 9,231,748$
Property taxes, levied for debt service 3,458,479 3,191,407 2,643,067 2,650,000
Unrestricted grants and contributions 195,713 15,067 593,875 591,572
Gain (Loss) on disposal of capital assets 7,019 20,072 - 29,098
Investment earnings (loss) 293,721 (25,107) 315,388 77,472
Contribution of capital assets 250,766 - - -
Insurance recoveries - - - -
Transfers 1,333,377 677,600 2,127,141 (193,998)
Total governmental activities 13,766,155 12,424,622 14,398,929 12,385,892
Business-type activities
Property taxes, levied for general purposes - - - -
Investment earnings 77,063 (57,568) 192,785 67,811
Transfers (1,333,377) (677,600) (2,127,141) 193,998
Total business-type activities (1,256,314) (735,168) (1,934,356) 261,809
Total primary government 12,509,841$ 11,689,454$ 12,464,573$ 12,647,701$
Change in net position
Governmental activities 6,051,350$ 3,551,636$ 817,495$ (1,061,853)$
Business-type activities (828,017) (691,825) (1,895,423) 491,956
Total primary government 5,223,333$ 2,859,811$ (1,077,928)$ (569,897)$
(Accrual Basis of Accounting)
Unaudited
Fiscal Year
City of Hastings
Changes in Net Position
Last Ten Fiscal Years
165
Table 2
Page 2 of 2
2016 2017 2018 2019 2020 2021
9,837,164$ 10,271,077$ 10,170,181$ 11,120,775$ 11,455,276$ 13,269,481$
2,650,000 2,650,000 3,424,475 3,126,903 2,310,976 2,195,103
617,477 639,043 1,106,153 933,079 1,915,198 920,451
111,069 23,272 170,917 7,951 33,702 32,417
211,760 215,284 146,410 590,271 454,753 74,696
- - - - - -
- 24,299 - - - -
480,830 (132,690) 439,358 320,378 99,378 50,087
13,908,300 13,690,285 15,457,494 16,099,357 16,269,283 16,542,235
- - - 11,376 97 -
128,720 4,188 49,772 168,384 99,249 (8,409)
(480,830) 132,690 (439,358) (320,378) (99,378) (50,087)
(352,110) 136,878 (389,586) (140,618) (32) (58,496)
13,556,190$ 13,827,163$ 15,067,908$ 15,958,739$ 16,269,251$ 16,483,739$
(2,377,963)$ (884,475)$ 255,234$ 1,939,366$ 2,407,557$ 5,078,697$
(642,325) (21,921) 612,421 591,220 946,480 1,830,149
(3,020,288)$ (906,396)$ 867,655$ 2,530,586$ 3,354,037$ 6,908,846$
Fiscal Year
166
2012 2013 2014 2015
General Fund
Nonspendable
Prepaid items 23,196$ 41,660$ 58,131$ 72,786$
Inventories 49,983 58,634 26,008 50,734
Restricted:
Leduc Historical Estate - - - 349,321
Restricted
Police Activities - - - -
Unassigned 3,411,086 3,486,430 3,446,128 3,621,455
Total general fund 3,484,265$ 3,586,724$ 3,530,267$ 4,094,296$
All other governmental funds
Unreserved, reported in -$ 5,408,639$ -$ -$
Nonspendable
Prepaid 44,830 70,585 81,494 83,691
Inventories 10,179 6,268 3,322 4,365
Permanent endowment-Leduc Historical Estate 200,000 200,000 200,000 200,000
Restricted
Police activities 14,524 13,898 29,626 29,773
Debt service 6,750,592 7,692,475 5,427,274 4,500,299
Tax Increment Financing - - - -
Capital projects 684,302 676,672 1,009,983 605,667
Permanent endowment-Leduc Historical Estate 918,669 938,006 907,821 820,635
Escrow - - - -
Committed
Park maintenance 541,760 705,537 700,601 816,485
Aquatic operations 62,481 118,588 120,179 143,507
Cable TV activities 210,998 222,044 232,035 238,133
Heritage preservation activities 84,857 86,697 93,499 95,860
Fire & ambulance activities 1,168,697 2,372,686 1,596,429 1,362,693
Arena activities 636,751 590,646 490,657 500,676
Assigned
Capital 1,523,421 1,394,711 869,337 1,013,965
Unassigned
Capital (99,131) (312,971) (252,583) (899,034)
Total all other governmental funds 12,752,930$ 20,184,481$ 11,509,674$ 9,516,715$
Fiscal Year
City of Hastings
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Unaudited
167
Table 3
2016 2017 2018 2019 2020 2021
119,342$ 135,921$ 92,918$ 86,310$ 108,555$ 75,454$
35,471 24,517 15,183 34,446 64,084 54,113
346,557 397,985 301,201 193,592 178,173 154,075
- - - - 13,384 61,676
4,403,883 4,576,829 5,047,671 5,596,357 7,940,056 9,033,202
4,905,253$ 5,135,252$ 5,456,973$ 5,910,705$ 8,304,252$ 9,378,520$
-$ -$ -$ -$ -$ -$
105,237 114,968 81,016 77,361 24,265 58,618
4,368 3,223 2,318 2,964 3,754 4,812
200,000 200,000 200,000 200,000 200,000 200,000
34,444 42,547 54,825 40,406 46,285 51,914
4,820,295 4,888,739 5,200,767 5,909,532 6,020,783 5,795,241
- 2,695 4,924 5,681 7,157 24,766
546,622 487,678 494,432 509,082 629,046 1,149,928
828,273 891,997 769,569 853,399 904,557 970,577
- - - 11,467 17,240 16,234
870,352 1,020,571 1,084,583 1,144,271 1,357,981 1,573,272
184,955 188,258 185,144 232,573 406,776 402,511
245,822 243,756 238,553 238,892 156,073 153,208
96,148 97,564 100,481 104,264 108,400 115,531
1,111,458 1,251,486 992,209 1,280,178 1,465,860 1,283,020
388,065 463,992 462,313 497,359 550,064 492,028
1,131,904 1,172,982 1,249,299 1,325,392 1,326,089 966,587
(416,152) (300,491) (217,088) (190,670) (910,431) (1,723,515)
10,151,791$ 10,769,965$ 10,903,345$ 12,242,151$ 12,313,899$ 11,534,732$
Fiscal Year
168
2012 2013 2014 2015
Revenues
Taxes 11,726,752$ 11,793,014$ 11,410,130$ 11,877,613$
Special assessments 1,762,762 1,112,853 1,011,262 695,211
Licenses and permits 403,386 394,821 412,782 449,444
Fines and forfeitures 99,551 95,103 126,565 121,259
Intergovernmental 1,247,726 4,631,888 1,628,541 1,950,871
Charges for services 3,585,565 3,873,062 3,561,470 3,765,494
Investment earnings 277,752 (15,617) 290,628 70,516
Miscellaneous 69,182 70,404 28,537 273,537
Total revenues 19,172,676 21,955,528 18,469,915 19,203,945
Expenditures
Current
General government 2,188,513 2,070,522 2,411,990 2,290,140
Public safety 7,254,247 7,609,462 7,814,296 8,011,113
Public works 2,147,556 1,670,868 1,873,216 1,588,976
Health and sanitation 24,057 19,447 15,775 21,890
Cultural and recreation 2,456,430 2,316,009 2,429,476 2,537,383
Economic development 24,455 34,119 135,010 44,157
Capital outlay 3,051,655 5,788,889 6,589,320 5,032,472
Debt service
Principal retirement 4,340,000 4,501,750 4,094,500 3,874,500
Interest 911,963 731,640 607,807 525,037
Total expenditures 22,398,876 24,742,706 25,971,390 23,925,668
Revenues over (under) expenditures (3,226,200) (2,787,178) (7,501,475) (4,721,723)
Other financing sources (uses)
Bonds issued 2,030,000$ 5,710,000$ 3,200,000$ 2,755,000$
Bond premiums 112,181 110,125 88,207 47,405
Payment to refunded bond paying agent - (1,595,000) (1,470,000) -
Transfers in 3,597,850 1,769,270 4,062,792 1,616,841
Transfers out (1,791,172) (1,123,580) (1,723,002) (1,176,571)
Insurance recoveries - 20,082 20,852 21,020
Proceeds on sale of capital assets 7,019 21,652 - 29,098
Total other financing sources (uses) 3,955,878 4,912,549 4,178,849 3,292,793
Net change in fund balance 729,678$ 2,125,371$ (3,322,626)$ (1,428,930)$
27.1% 27.6% 24.3% 23.3%
Fiscal Year
Debt service as a percentage of
noncapital expenditures
City of Hastings
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
Unaudited
169
Table 4
2016 2017 2018 2019 2020 2021
12,431,059$ 12,981,670$ 13,607,851$ 13,892,707$ 14,589,044$ 15,245,720$
599,399 501,495 649,146 1,206,298 1,025,473 972,786
423,861 496,101 585,364 574,169 468,688 635,721
95,313 128,266 107,512 111,358 72,396 83,206
4,132,072 2,417,114 2,831,355 2,113,639 4,139,988 4,091,910
4,650,190 4,690,844 4,522,330 4,999,575 4,704,978 4,766,410
199,685 207,058 133,040 552,103 429,840 77,176
1,499,899 37,386 129,348 155,164 75,282 601,550
24,031,478 21,459,934 22,565,946 23,605,013 25,505,689 26,474,479
2,498,078 2,540,993 2,800,943 2,663,257 2,971,879 2,891,454
8,668,178 8,709,899 9,091,243 9,366,019 9,521,712 10,140,823
1,956,027 1,711,758 1,784,833 1,633,317 1,520,193 1,703,709
19,301 30,849 34,158 37,731 28,794 59,362
2,714,594 2,755,083 2,956,232 3,122,497 2,716,887 3,101,694
2,303,885 38,752 40,656 41,369 28,806 48,930
6,642,508 2,241,646 4,612,845 4,210,424 4,668,577 4,794,873
3,234,500 3,369,500 3,295,000 3,300,000 3,100,000 2,955,000
549,640 531,468 501,518 549,030 562,345 561,770
28,586,711 21,929,948 25,117,428 24,923,644 25,119,193 26,257,615
(4,555,233) (470,014) (2,551,482) (1,318,631) 386,496 216,864
5,560,000$ 1,015,000$ 2,560,000$ 2,595,000$ 2,045,000$ 925,000$
172,612 57,387 138,815 506,618 302,018 68,037
- - - - - -
1,447,564 775,477 970,501 786,899 625,485 2,280,173
(1,316,732) (522,308) (866,143) (796,521) (926,107) (3,223,837)
27,814 24,299 8,150 7,715 1,843 -
111,069 23,272 195,260 11,292 30,560 28,864
6,002,327 1,373,127 3,006,583 3,006,583 3,111,003 78,237
1,447,094$ 903,113$ 455,101$ 1,687,952$ 3,497,499$ 295,101$
17.2% 19.8% 18.5% 18.6% 17.9% 15.6%
Fiscal Year
170
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
2012 13,726,993$ 4,192,840$ 309,906$ 18,229,738$ 2,083,131$ 20,312,869$ 66.083% 1,398,694,164$ 1.30%
2013 11,684,807 3,569,065 263,800 15,517,672 2,093,112 17,610,784 68.547% 1,328,846,744 1.17%
2014 11,566,078 3,532,800 261,120 15,359,998 2,075,825 17,435,823 66.246% 1,317,650,624 1.17%
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%
City of Hastings
Tax Capacity Value and Estimated Market Value of Taxable Property
Last Ten Fiscal Years
Unaudited
171
Table 6
City City Total
Fiscal Direct Debt City School Other
Year Rate Rate Rate District Districts County Total
2012 47.053 19.030 66.083 25.435 5.827 31.426 128.771
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
Source: Dakota County Treasurer - Auditor's Office and City Documents
*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.
Overlapping Rates*
City of Hastings
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Unaudited
172
Table 7
Percentage Percentage
Taxable of Total City Taxable of Total City
Capacity Capacity Capacity Capacity
Taxpayer Value Rank Value Value Rank Value
Wal-Mart 215,970$ 1 0.91% 256,856$ 2 1.31%
Hastings MarketPlace Sation LLC 212,198 2 0.89% 0.00%
VMA 1000LLC 196,638 3 0.83% 100,000 8 0.51%
Voyageur Estates LLC 156,549 4 0.66%
Regina Medical Complex 146,926 5 0.62% 546,477 1 2.78%
Hastings Medical Office Bldg LLC 138,304 6 0.58% 0.00%
Casey Capital V LLC 134,268 7 0.57% 0.00%
Gasparre Hidden Valley LLC 131,282 8 0.55% 0.00%
Siewart Brothers Investment LLC 127,324 9 0.54% 0.00%
Camegaran LLC 119,086 10 0.50% 98,985 9 0.50%
Xcel Energy (NSP Company) 183,260 4 0.93%
Inch III Hastings LLC 185,504 3 0.94%
Hastings Country Club 175,900 5 0.89%
Three Rivers Partnership 140,862 6 0.72%
KCP Hastings LLC 95,684 10 0.49%
Target Corporation 117,250 7 0.60%
Total 1,578,545$ 6.65% 1,900,778$ 9.66%
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
20122021
173
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
2012 11,746,000$ 11,565,238$ 98.46% 130,730$ 11,695,968$ 99.57%
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% 87,958 12,043,565 99.86%
2016 12,499,621 12,350,917 98.81% 102,915 12,453,832 99.63%
2017 12,960,919 12,810,057 98.84% 92,002 12,902,059 99.55%
2018 13,503,307 13,446,160 99.58% 18,444 13,464,604 99.71%
2019 14,233,201 14,029,829 98.57% 187,018 14,216,847 99.89%
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% N/A 15,255,416 99.63%
* 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
174
General Certificates Total Percentage
Fiscal Obligation Improvement of Governmental of Tax
Year Bonds Bonds Indebtedness Activities Capacity
2012 3,405,000$ 19,790,000$ 1,284,750$ 24,479,750$ 134.28%
2013 3,313,451 18,735,004 2,377,616 24,426,071 157.41%
2014 2,607,830 17,225,271 2,256,550 22,089,651 143.81%
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%
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
175
Table 9
Sewer/ Water Total Total Percentage
Hydro Business-Type Per Primary Per of
Bonds Activities Customer Government Capita Income
3,900,250$ 3,900,250$ 543$ 28,380,000$ 1,270$ 572.35%
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%
Business-Type Activities
176
Table 10
Gross Less Debt Net
Fiscal Governmental Service Governmental Estimated Per
Year Debt Fund Balance Debt Market Value Capita
2012 24,479,750$ 6,753,604$ 17,726,146$ 1.3% 793
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
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
177
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 51,107,524$ 57.76% 29,519,706$
Counties
Dakota County 0 0.00% 0
Washington County 101,015,000 0.01% 10,102
Other
Met Council 6,120,000 0.61% 37,332
Metropolitan Transit District 187,200,000 0.76% 1,422,720
Subtotal - overlapping debt 30,989,860
City direct debt 100.00% 17,026,168
Total direct and overlapping debt 48,016,028$
Sources: Assessed value data used to estimate applicable percentages provided by the County Board of Equalization and
Assessment. Northland Securities
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 is
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.
City of Hastings
Direct and Overlapping Governmental Activities Debt
Unaudited
December 31, 2021
178
Estimated Market value 2,233,884,400$
Debt limit (3% of market value) 67,016,532
Debt applicable to limit:
General obligation bonds 5,274,587
Less: Amount set aside for repayment
of general obligation debt -
Total net debt applicable to limit 5,274,587
Legal debt margin 61,741,945$
2012 2013 2014 2015
Debt limit 41,960,825$ 39,865,402$ 43,998,825$ 48,291,162$
Total net debt applicable to limit 3,405,000 3,230,000 4,773,500 6,474,000
Legal debt margin 38,555,825$ 36,635,402$ 39,225,325$ 41,817,162$
Amount of Debt Applicable to Debt Limit:
Total net debt applicable to the limit as a percentage
of debt limit 8.11% 8.10% 10.85% 13.41%
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 2021
City of Hastings
Legal Debt Margin Information
Last Ten Fiscal Years
179
Table 12
201620172018201920202021
46,420,722$ 48,229,996$ 56,499,093$ 60,356,121$ 64,373,922$ 67,016,532$
8,285,000 7,290,000 7,140,000 6,245,000 6,231,661 5,274,587
38,135,722$ 40,939,996$ 49,359,093$ 54,111,121$ 58,142,261$ 61,741,945$
17.85% 15.12% 12.64% 10.35% 9.68% 7.87%
180
Sewer
Revenue
Bonds
Utility Less Net Utility
Fiscal Service Operating Available Service
Year Charges Expenses Revenue Principal Interest Coverage Charges
2012 2,220,064$ 1,854,061$ 366,003$ 220,000$ 156,401$ 0.97 -
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
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
181
Table 13
Less Net Special
Operating Available Assessment
Expenses Revenue Principal Interest Coverage Collections Principal Interest Coverage
- -$ -$ -$ -$ 1,651,781$ 3,140,000$ 589,809$ 0.44
- - - - - 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
Debt ServiceDebt Service
Sewer Revenue Bonds
182
Table 14
Per
Capita
Fiscal Personal Personal Unemployment
Year Population Income Income Rate
2012 22,355 956,141,681$ 42,771$ 4.70%
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%
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.
* Information for these years obtained from Springsted
City of Hastings
Demographic and Economic Statistics
Last Ten Fiscal Years
Unaudited
183
Table 15
Percentage Percentage
of Total of Total
City City
Employer Employees Rank Employment Employees Rank Employment
Dakota County 1,870 1 24.24% 1,700 1 20.73%
Independent School District # 200 625 2 8.10% 614 3 7.49%
Regina Medical Center/Allina Clinic 520 3 6.74% 700 2 8.53%
Smead Manufacturing Co. 424 4 5.50% 400 4 4.88%
Wal-Mart 350 5 4.54% 300 5 3.66%
Intek Plastics, Inc 230 6 2.98% 163 6 1.99%
Augustana Health Care center 130 7 1.69% 150 7 1.83%
Quality Once Woodwork 130 7 1.69%
Ardent Mills/Con-Agra 126 9 1.63% 115 9 1.40%
HD Hudson Manufacturing 125 10 1.62%
City of Hastings 108 10 1.32%
Allina Medical Clinic 145 8 1.77%
Total 4,530 58.73% 4,395 53.58%
Source: Hastings Community Development Department, Northland Securies & Springsted Inc.
City of Hastings
Principal Employers
Current Year and Nine Years Ago
Unaudited
20122021
184
Full-Time Equivalent Employees as of December 31st
Function/Program 2012 2013 2014 2015 2016 2017
General government
Administration 1.00 1.00 1.00 1.00 1.00 1.00
City Clerk 4.25 3.15 2.35 2.45 2.50 2.60
Finance 3.75 5.00 5.60 5.60 5.60 6.40
Building Maintenance 2.00 2.00 2.00 2.00 2.00 2.00
Planning 1.00 1.25 1.25 1.25 1.25 1.25
Information Technology 3.00 3.00 3.00 3.00 3.00 3.00
Public Safety:
Police 33.00 33.50 33.00 35.15 35.35 35.35
Building Inspections 3.60 3.60 3.70 3.70 3.80 3.90
Code Enforcement 0.80 0.80 1.00 1.00 1.00 1.00
Public Works:
Engineering 4.75 7.80 7.80 7.80 7.80 6.80
Streets 5.30 4.80 5.54 5.54 5.54 5.54
Culture and Recreation:
Parks 8.63 8.63 8.63 8.60 12.20 13.80
Aquatic Center 1.00 7.50 7.40 7.40 10.00 8.70
Cable Television - 0.15 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 15.60 19.60 19..6 18.80
Civic Arena 2.00 2.00 4.80 4.80 5.10 4.80
Economic Development 1.05 0.38 0.38 0.63 0.63 0.63
Housing and Redevelopment - 0.37 0.37 0.37 0.37 0.37
Water 6.45 5.80 5.10 5.10 5.10 5.20
Wastewater 4.20 3.55 3.70 3.70 3.70 3.80
Stormwater 3.70 3.50 3.40 3.40 3.40 3.40
Hydro Electric 5.60 5.60 5.60 5.60 7.00 6.20
Total 110.93 119.23 121.67 128.14 116.79 134.99
Source: City Budget
City of Hastings
Full-Time Equivalent City Government Employees by Function/Program
Last Ten Fiscal Years
Unaudited
185
Table 16
2018 2019 2020 2021
1.00 1.00 1.00 1.00
3.40 3.70 3.85 3.85
6.40 6.40 6.40 6.40
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 35.35 36.35 35.00
3.90 4.00 4.00 4.00
1.00 1.00 1.00 1.00
6.90 6.90 6.90 5.90
5.54 5.54 5.54 5.54
13.80 13.80 13.80 12.50
8.70 8.70 8.70 8.70
0.20 0.30 0.15 0.15
0.25 0.25 0.25 0.25
18.80 18.80 18.80 18.80
4.80 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
137.19 137.59 138.59 134.94
186
Function/Program 2012 2013 2014 2015 2016
Police
Physical arrests 369 337 427 360 407
Parking violations * 368 466 293 442
Traffic violations * 1,561 1,754 1,309 1,153
Felony offenses * * 157 175 177
Gross misdemeanor offenses * * 110 139 176
Minor miscellaneous offenses * * 718 405 596
Calls for service 21,330 20,665 24,553 20,216 24,497
Part 1 Crimes * 557 664 631 693
Part 2 Crimes * 668 720 707 641
Fire
Emergency responses 2,974 3,201 3,184 3,495 3,249
Fires extinguished 8642497453
Inspections 288 334 468 480 580
Building inspection
Permits issued
Residential 1,802 1,549 1,773 1,340 1,507
Commercial 63 81 49 165 106
Culture and recreation
Students participating in swim lessons - 569 606 640 622
Ice rental hours - 2,185 2,422 2,400 2,375
Turf rental hours - 303 335 216 325
Recreational skaters - 4,089 1,189 2,400 1,950
Water
New connections - - - - -
Water mains breaks - - - - -
Average daily consumption (thousands of gallons) 1,900 2,554 2,465 2,325 2,345
Peak daily consumption (thousands of gallons) 5,180 6,310 5,520 4,945 5,100
Sources: Various City departments.
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.
Unaudited
Fiscal Year
City of Hastings
Operating Indicators by Function/Program
Last Ten Fiscal Years
187
Table 17
2017 2018 2019 2020 2021
470 389 554 402 467
225 473 582 347 242
1,455 1,269 1,220 1,095 723
170 134 151 159 156
203 164 236 155 255
656 562 486 351 288
26,147 24,097 23,268 22,888 23,924
732 469 504 434 960
750 875 857 742 493
3,735 3,681 2,991 3,352 4,149
38 85 55 97 68
750 426 569 426 314
1,527 1,638 1,538 2,486 3,221
106 103 106 154 119
732 763 840 - 924
2,470 2,388 2,377 1,755 1,864
366 397 352 17 157
1,890 2,278 2,570 1,708 3,126
- - - - 27
- - - - 3
2,296 2,195 2,026 2,280 2,449
4,725 3,965 4,130 6,465
Fiscal Year
188
Fiscal Year
Function/Program 2012 2013 2014 2015 2016 2017
Police
Stations 111111
Fire stations 111111
Refuse collection
Collection trucks
Other public works
Streets (miles) 102.1 102.1 105.0 105.0 105.0 105.3
Culture and recreation
Acreage 640 640 640 640 640 640
Playgrounds 21 21 21 22 22 22
Baseball/softball diamonds 21 21 21 21 21 21
Soccer/football fields 10 10 10 10 21 21
Water
Water mains (miles) 87 105 105 105 105 105.2
Fire hydrants 1,223 1,334 1,334 1,094 1,095 1,099
Storage capacity (thousands of gallons) 2,275 2,750 2,750 2,750 2,750 2,750
Wastewater
Sanitary sewers (miles) 908989898989.1
Storm sewers (miles) 557374747474.1
Sources: Various City departments.
Note: No capital asset indicators are available for the general government function.
City of Hastings
Last Ten Fiscal Years
Unaudited
Capital Asset Statistics by Function/Program
189
Table 18
2018 2019 2020 2021
1111
1111
105.5 105.5 105.5 105.5
640 640 640 640
22 22 22 22
21 21 21 21
21 21 21 21
105.2 110.0 107.0 107.6
1,099 1,101 1,102 1,102
2,750 2,750 2,750 2,750
89.3 89.5 90.0 90.6
74.2 74.5 76.0 76.6
Fiscal Year