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Home My WebLink About20081103 - VI-08;~; MEMO i ~ . ,M~ F" f: .. Sw;' 1~ ~; ~. . .. ~. k { ,C`''' TG: Flonorable Mayor and City Council members FRAM: Charlene A. Stark, Finance Director RE: 3rd Quarterly Financial Report -20D8 DATE: Gctaber 2~, 2005 I have put together a brief report on the activity to date for the governmental and enterprise funds and compared them to the 2088 budget and the 20.01 activity as of September 30t~. Included is the folla~ving: • Summary of the City's governmental and enterprise funs activity. Graphs depicting revenues and expenditures for the governmental and enterprise funds. • Summary of the Investment portfolio as of September 30:2005. If there is any other information you uvould like to see or for more details on phis report, please feel free to call me at 651-480-2354. Gounci~ Action: No action is needed. ~~~~~ t~E~ t~~~~~. ~" ~' ..:..L?~f 4'!x`1 ~•fr ,~ S '~i,•s .E w ~' F"'L'.:''~ ?a p,. } ~ Sire :4 :'~ •~r•~ ` i `... S~ 5. of ~•. ~ ~ '« ... N ~ ~ ~. ~r t ~6~~ ~ , r'i ~,. ,~'~' .w i I ~ '~ ~~"e ~S„~~" ~~~.r !~A^»i c ~ f ~ ~ y,•. ; s N M~~ t,'~:r?. s .. ~. ~,;. >,' a" w~v .a .o.~ ~} it . ~;, ~'.d"'~ ~',~" ~.. .e. ~: ~.~ ~ . ~..~ .i "~ <<t r" i ..: ~. 'b i ,r~+i~'~1ys k ~ ~.'~ ±s ! I~I ~ I"I , This report is a summary of the governmental and enterprise funds for the city. This report is intended to give council an overall view of the funds at the 3rd quarter mark and to inform council if there are any anticipated problems with meeting the goals of the 2008 budget. Summary of _Governmental Funds-Revenues The fallowing charts compare the governmental funds revenues for September 30~~' 2007 and 2008 and in comparison to the 2005 budget. City of Hastings Two Year Comparison of R~v~n~~s ~ a,aaa,aao 9,aGa,oaa 8,aaa,aaa 7,[laa,aaa s,oaa,aoa S,GOa,oaa ~,oaa,aaa a,aaa,aaa z,aGO,ooa 1,ooa,ooo o raa~-~~t~~i 2aD8-fictual ®Laoe'~~~a4 The general, f re & ambulance, arena and the debt funds are all showing 2005 revenues to be below the 2007 revenues collected for the third quarter. All the rest are at the same or above for 2005. The general fund's revenue is contributed to law collections in building permits far new homes and new business growth. The continued economic downturn in housing is the driver far this and was anticipated to be lower this year. The debt funds are lower in 2008 because in 2007 same debt obligations were refunded to lower the interest rates and thus a doubling up affect is part of the 2007 revenues. All funds are an target for tl~e 2008 projected revenue budget. ~i4 ~t`~ ~~' ~{~~ p~` ~ qt`s ~4~' ,0~ ~Q 0~ ~~~ ~~~ ~~~~ Q ~ ~ ~ ~ ~~. Q~ ~`~ ~ ~~,o Summar of Governmental Funds~Ex end~tures: The following chart compares the expenditures and budget for the third quarter ending September 30~~'. pity of H~~tin~~ Two Year ~~mpari~an a~ Ex~~nditur~s HP fable Debt Economic Dev~ela~~ment i t t ' Parks ~:apital E - Pawl . t arena Fire &Ambalance Parks ~~eratians general The general, cable, debt, f re & ambulance funds all are showing that the 2x08 expenditures are less then the 2007 expenditures at the end of the 3~~ qtr. In the debt fund this is attributed to the doubling up affect of the refunded bonds that occurred in 2007. The parks, pool, funds are higher due to additional transfer of ERF funds in the 200$ budget as compared to the 2007 budget. The pool is saving money for a file project that will be done in 2009 and the park has many projects in which money is being set aside including the levee park plan and trails through out the city. The arena is higher in 200$ as the flooring project was funded and completed this year. ^ ~~~1~-Bu~~ 20Q~-Actin ADO ; -Acta~ Summary of Enterprise Funds-Revenues: The next couple of graphs depict the revenues and expenses of the enterprise fund which include the utility funds, TRAC and the hydro fund. Cit~r of Hastings Two Year Comparison of Revenues ~o,ooo,aaa ~2,~oo,aoo ~~,ooo,aao ~~,~oo,ooo $1,0aa,aaa $~aa,aaa $- t=nterprise Funds a Boa r-~tuai ®20aB-~ctuai ®2a08-Budget Revenues for 2008 are lower in the two utility funds and the hydro fund when compared to 2007. In the two utility funds the lower revenues are due to the lack of new construction in the city. This again was anticipated and thus the revenues are an target far the 2008 projected revenue budgets. The hydro fund is lower because in 2007 there were same final franchise fees paid to the city. The franchise fees ended Dec. 31, 200. The hydro plant is also on target for the 2008 projected revenues. Summar of Enter rise Funds-Ex enses: The expenditures for the hydro fund and the TRAC fund are on target and should come in as expected. with an increase in net assets far the hydro fund and the TRAC fund should remain constant. The water fund in 2007 is higher then the 2008 expense due to the building of the water treatment plant in 2007. Expenses are on target for 2008 and the fund should see an increase in net assets even with tl~e lass of revenue from new construction wAC fees for the year. The sewer fund is considerably higher then the 2007 expenses and is due to the building of the public works expansion. There were some unexpected costs with this project that ~~Jater SeU~er T~~:C Hydro has caused the actual expenses to go over the budget. There is enough in net assets to cover this overage without causing the fund to become underfunded. CITY GF HASTINGS T~i4 YEAR C0~IPARIS4N ~F EXPENSES Hytlro TRAC N a~ w ~e~Er ~.+1~tater ~- $~aa,aaa ~~,oaa,ooa ~~,~oa,aaa ~~,aaa,aaa ~~,~oo,aoo ~o,oaa,aaa ~3,~oa,aaa o~aa8-Budget ~ 20a8-Aci~al ozaa7-,~etual The next following three graphs show the City's Investment portfolio diversification in length of maturity, types of investment vehicles, and brokers. The portfolio value is at $20,107,43 . The second half taxes are to come in December as well the settlement for the bonds being issued on November b`~' this year. Currently the portfolio has very little short-term money invested. This was expected as investments have matured they have been used to cover the contracts on the public works building and street projects. In December the short-term portfolio will be funded and increased signif cantly to cover the next six months of payables and payroll. The investment in the 5.1 Q year period reflects the part of the investment portfolio that is invested in longer term investment to gain investment yield. This portion of the portfolio is not needed for short-term funding of payables and payroll. E lT~' ~F H~TII~ ~~ETiE~T ~ ~~ ~~~~~ t~,~~~~~~~.~~ ~ ~ ~,~~~1t~0~.~~ ~,~~~~~~~.DG ~~.~~ t~~~ ~ ~~~rt ~,r o~ Yr~r~~ ~lrtd~r ^ ~ ~r-~ ~r ' ^~-~~r e~-~~~r ~~0-~~~r ~~E~~~~ ~~ ~t~t~rri IT'S F HaTIH II~'ETf~1El~T~ ~~-~ E~ ~uf-~~rt ~r ~~ ~~~~ 1~ i kl ~!! r )~ ~~ ^~t~il~ Far~~ ®! 1~~ Finar~~iai ^~.E~ ~ani•;~Pi~~r o~~~~~~~{i~ ~~r~ith ~~rr~~~ ^~,1i~~n~~~t~ ~~rf ~~ir~ ~~~~~~r~~ ~t is the practice of this city to diversify the portfolio by not keeping more then 40% with any one broker. As you can see by the above graph the portfolio is kept with 7 different brokerage firms and no brokerage firm has more then 2b% of the total portfolio. In the chart below the investments are diversified by the types of investment vehicles. As the council has been reading in the newspapers or hearing an television the Freddie Mac's and Fannie Mae institutional paper has the backing of the federal government. fur investment in these two types of investment paper is now considered to be the same as a treasury note. Treasury notes are rated at the highest quality paper with a rating of AAA. At this time the city has no money invested in commercial paper. The city is still waiting until the fall out from restating accounting numbers on balance sheets and income statements from corporate America becomes less of a problem then it is currently. This will give time for the rating companies to restate the ratings of the corporate paper being issued. r want to be sure we are investing in quality commercial paper before we enter into the market. ~IT'~' ~F H#~~TIF~~~ IF~~E~Tf~1EF~T~ ~'~' ~E~URIT'~' TAPE s~ -J In summary the third quarter is pretty much where we should expect it to be. Expenditures and revenues are on par with the budget. All anticipated targets should be met. There were some budgeted spend downs of fund balance in some funds and that should occur as expected. ether funds will increase in value while others will remain constant. The 2008 projections should be met and cause no alarms for the 2009 budget year. ~ T~~c~kale ~~1u~i~i~~(~ o ~~'~ h~1~ne~ ~I~r~~t F~r~ni~ t~~e ~ Firm ~r~~~~ 0 F~~~r~l H~m~ L~~n ~~n~ D F~r~ni~ t~~~~ o Fr~~~i~ f4~1~~