HomeMy WebLinkAbout20080721 - VI-11MEMO yr-1 i
TO: Honorable Mayor and City Council members
FROM: Charlene A. Stark, Finance Director
RE: 2nd Quarterly Financial Report -2008
DATE: July 16, 2008
I have put together a brief report on the activity to date for the governmental and
enterprise funds and compared them to the 2008 budget and the 2007 activity as of
June 30tH
Included is the fo8owing:
• Summary of the City's governmental and enterprise funds activity.
• Graphs depicting revenues and expendi#ures for the governmental and
enterprise funds.
• Summary of the Investment portfolio as of June 30, 2008.
If there is any other information you would like to see or for more details on this report,
please feel free to call me at 651-480-2354.
Council Action:
No action is needed.
2008 Revenues:
• Revenues for the first half of 2008 including the first half tax settlement actually
received on July 7th are at 60% of the actual budget for the governmental funds.
• Revenues for the enterprise funds for 2008 are at 30%. The fact the enterprise
revenues are at 30% vs. 50% is somewhat surprising. Upon analysis the
revenues received for the water and sewer funds are down when compared to
2007 at this time. The 2007 spring and early part of the summer was
considerable warmer when compared to 2008, thus affecting the water usage by
the residents of Hastings for watering of lawns and such. The hydro plant is at
about 45% of the current budget and most likely due to the late spring thaw.
2008 Expenditures:
In every fund the expenditures for the government funds as well as the enterprise
funds are at 50% or lower with the exception of the debt payments. Debt service
payments are due Feb 1St and Aug. 1St with the Feb. 1St payment paying down the
principal portion for the year. 1n 2007 the debt service expenditure is greater then
2008 due to the fact council approved refinancing of some debt that had been
issued during a higher interest rates period. The city capitalized on the tower
interest environment in early 2007 and refinanced the higher debt in order to
lower the interest expense on these bonds.
Capi#al expenditures in the enterprise funds are near the 100% as the public
works expansion and water #reatment plant are nearly complete.
Investments:
Included is a summary of the investment portfolio as of June 30, 2008. Per the
investment policy idle cash is invested to add value to the portfolio without adding undue
risk. The portfolio is laddered to meet payrolls, accounts payable and debt service
payments. The first graph depicts the diversity of the portfolio as it related to when the
investments mature. 60% of the portfolio is invested in longer term investment in order
to achieve some investment yield during this environment of very low interest rates.
40% of the portfolio is laddered to meet current needs. The second graph shows the
diversity of the portfolio as it relates to the brokerage firms used by the city. It is the
desire to not have more then 40% of the portfolio with any firm. The third graph show
the type of investments that are held in the portfolio and the goal is not to have more
then 25% of the portfolio invested in one type of security. At this time there is no money
invested in commercial paper as the corporations are still being scrutinized and the
rating of these companies may fall out of compliance with the city's investment policy at
any given time.
The current value of the portfolio is $23,651,657. The investment revenues for 2008 are
down when compared to 2007 for the same time period. In 2007 the interest revenues
earned to date was $622,406 and in 2008 it is currently at 475,686. The lower interest
revenue is explained by the downturn of the markets beginning in late 2007 and
currently existing in the first half of 2008.
City of Hastings
Comparison of 2nd Qtr Financial Report for Years 2007 and 2008
Governmental Funds (Admin, Parks 8~ Recreation, Public Safety, Public Works)
Total Revenues
Salaries and Benefits
Charges for Services
Supplies
Capital
Debt Service
Principal
Interest and Fees
Total Expenditures
Actuals Actuals Amended Percentage
Year to Date Year to Date Budget of 2008
as of 6/30/2007 as of 6/30/2008 2008 Budget
$ 14,197,010 $ 11,973,373 $19,914,347 60.124%
3,708,109 3,904,307 9,007,337 43.346%
1,605,598 1,480,678 3,628,040 40.812%
303,276 335,409 725,639 46.223%
1,625,839 1,154,566 2,282,725 50.578%
5,590,000 3,710,000 3,715,000 99.865%
622,587 569,058 1,014,694 56.082%
$ 13,455,409 $ 11,154,017 $20,373,435 54.748%
* In January of 2007 the City refinanced some bonds so revenues include 2.2 of bond issuance that didn't occur in 2008.
Enterprise Funds (Hydro, Trac, Water, Sewer)
Actuals
Year to Date
as of 6/30/2007
Total Revenues
Salaries and Benefits
Charges for Services
Supplies
Capital
Debt Service
Principal
In#erest and Fees
Transfer Out
Total Expenditures
Actuals Amended Percentage
Year to Date Budget of 2008
as of 6/30/2008 2008 Budget
$ 1,904,167 $ 1,762,508 $ 5,842,996 30.164%
504,987 597,747 1,237,670 48.296%
887,755 927,013 2,042,172 45.393%
33,232 86,732 211,925 40.926%
2,061,414 1,055,853 1,063,500 99.281%
40,000 45,000 480,000 9.375%
132,671 205,340 409,024 50.202%
3,456 3,456 3,456 100.000%
$ 3,663,515 $ 2,921,141 $ 5,447,747 53.621%
City of Hastings Two Year Comparison of Revenues
10,000,000
9,000,000
8,000,000
7,D00,000
6,000,000
5,000,D00
4,000,000
3,000,000
2,000,000
1,000,000
City of Hastings Two Year Comparison of Revenues
03.000,000
62,500,D00
02,OOO,D00
01,500,000
01,0oo,ooD
$~DD,ooo
® 2007-Actual
^ 2D08-Actual
^ 2008-Budge
® 2007-Actual
^ 2006-Actual
^ 2D08-Budget
General Parks Fire & Arena Pool Parks Capi[al Economic Debt
Operations Ambulance Development
Governmental Funds
Water Sewer 7RAC I-tydro
Enterprise Funds
Debt
Economic Development
Parks Capital
N
a
c
~ Pool
c
m
E
° Arena
m
0
C1
Fire &Ambulance
Parks Operations
General
CITY OF HASTINGS TWO YEAR COMPARISON OF EXPENDITURES
Hydro
TRAC
N
a
r
3
a
d
a
d
c
w
Sewer
Water
$3,000,000
^ 2008-Budge
^ 2008-Actual
^ 2007-Actual
^ 2008-Budge
^ 2008-Actual
^ 2007-Actual
City of Hastings Two Year Comparison of Expenditures
$- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000
CITY OF HASTINGS INVESTMENTS as of 06/30/2008
14,000,000.00
12,000,000.00
10,000,000.00
^MM
^ 1 Yr and Under
~ 8,000,000.00 O 1yr-3 yr
> 6,000,000.00 O 3-5 yr
4,000,000.00 ^ 5-10 yr
^ 10-15 yr
2,000,000.00
0.00
Length of Maturity
CITY OF HASTINGS INVESTMENTS BY BROKER
5%
25% 1 g% ^ Wells Fargo
^ UBS Financial
1 % ^ US Bank/Piper
®Wachovia
^ Smith Barney
9% ®Minnesota 4M
26% a Dain Bosworth
18%
CITY OF HASTINGS INVESTMENTS BY SECURITY TYPE
1 ~/
D
®CO's
^ Money Market
^Commercial Paper
®Fartn Credits ~~
®Federal Nome Loan Sank
^Fannie Mae
OFederal Nome loan Note
®Freddic Mac
^Taxable Municipals