HomeMy WebLinkAbout20080421 - VI-17MEMO ~-17
TO: Honorable Mayor and City Council members
FROM: Charlene A. Stark, Finance Director
RE: 1St Quarterly Financial Report -2008
DATE: April 16, 2008
Expenditure for the governmental funds and the enterprise funds are below the expected
25% for the first quarter with the exception of debt service. As explained in the past the
city's general obligation debt is due on Feb 1St so that line item shows 100% principal
paid and 50% of the interest plus other fees. The 2"d half of interest is due August 1St.
Otherwise expenditures are on target for the first quarter of 2008.
Revenues are down for 2008 in comparison to 2007. Two areas that are causing this is
the permits and interest revenue are down for the 1 St quarter. Interest rates have been
dropping all quarter due to the turmoil of subprime mortgages in the banking industry.
Another item to note in revenues is in January of 2007 we issued bonds to refinance
some of the outstanding bonds, thus when comparing to 2008 our revenues for 2007 are
inflated by about 2.2 million.
!n this report there are a few graphs of the City's Investment portfolio. The total portfolio
for March 31, 2008 is valued at $ 24,079,834. Interest earned for the first quarter is
$280,018 which is down from $ 319,846 that was earned in the 1St quarter 2007, a
decrease of $ 39,828. In order to maximize yield on the portfolio one may be tempted to
invest more of the portfolio out longer in order to achieve higher yields. However, the
City's portfolio has been structured to have enough in short term investments to cover
six months of payrolls and other operating expenses and then structured to earn some
yield on the longer maturities and yet be ready for an upturn in interest rates with
layering the portfolio with maturities in the 2-5 year range. See the first graph on the
s#ructure of the maturities. The second graph depicts the amounts that are held with
each broker. The goal is to not have more then 35% with one brokerage firm. The third
and final graph depicts the type of investments the portfolio is holding. The City's
portfolio is government by State Statue which does not allow for stocks or investments
that have speculation features.
Included in this report is an update on the debt limit tests the City is guided by when it
comes to issuing debt. I have updated the numbers to reflect the Feb. 1 payment and
projected out for the upcoming 2008 bonding for the equipment certificates and road
construction projects.
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.
City of Hastings
Comparison of 1st Qtr Financial Report for Years 2007 and 2008
Governmental Funds (Admin, Parks & Recreation, Public Safety, Public Works)
Total Revenues
Salaries and Benefits
Charges for Services
Supplies
Capital
Debt Service
Principal
Interest and Fees
Total Expenditures
Actuals Actuats Amended Percentage
Year to Date Year to Date Budget of 2008
as of 3!3112007 as of 3/3112008 2008 Budget
$2,621,919* $ 722,640 $19,914,347 3.629%
1, 518,109 1,678,681 9,007, 337 18.637%
689,429 646,727 3,628,040 17.826%
130,396 159,134 725,639 21.930%
2$7,288 290,079 2,282,725 12.708°10
5,590,000 3,715,000 3,715,000 100.000%
561,767 546,209 1,014,694 53.830%
$ 8,776,989 $ 7,035,829 $ 20,373,435 34.534%
` In January of 2007 the City refinanced some bonds so revenues indude 2.2 of bond issuance that didn't occur in 2008.
Enterprise Funds (Hydro, Trac, Water, Sewer)
Adtuals
Year to Date
as of 3131/2007
Total Revenues
Salaries and Benefits
Charges for Services
Supplies
Capital
Debt Service
Principal
Interest and Fees
Transfer Out
Total Expenditures
ACtuals Amended Perce~age
Year to Date Budget of 2008
as of 3/31/2008 2008 Budget
$ 555,331 $ 306,288 $ 5,842,996 5.242%
222,470 259,910 1,237,670 21.000%
507,921 443,594 2,042,172 21.722%
11,208 17,257 211,925 8.143%
439,759 75,109 1,063,500 7.062%
40,000 45,000 480,000 9.375°k
13,200 93,969 409,024 22.974%
3,456 - 3,456 0.000%
$ 1,238,014 $ 934,838 $ 5,447,747 17.160%