HomeMy WebLinkAbout20101115 - VI-14
City Council Memorandum
To: Mayor Hicks & City Councilmembers
From: Charlene Stark
Date: 11/10/2010
rd
Item: 3 Quarter Financial Summary Report
Council Action Requested:
No Action. Informational only
Background Information:
3 rd quarter analysis on all budgeted funds as compared to the 2009 actual and the 2010 budet.
Financial Impact:
NA
Advisory Commission Discussion:
NA
Council Committee Discussion:
NA
Attachments:
Analysis and summary
CITY OF HASTINGS QUARTERLY REPORT OF BUDGETED FUNDS
This report is a preliminary summary of the governmental and enterprise
funds for the period ending September 30th 2010.
Summary of Governmental Funds-Revenues
Revenues for 2010 continue to decline. The category charges for service (CFS) is the
revenue category that is not on target with 2009. The fire and ambulance department are
behind in collecting outstanding receivables. There was a change in process and it is
st
taking time to put the process in place and then to catch up. The goal is by 1 quarter
2011 the collections will be up to date.
Summary of Governmental Funds-Expenditures:
Overall expenditures are on target with the 2010 budget. One note that is indicated on
the report is the principal payments are at 195% increase over 2009. This reflects the
refinancing of some bonds that were done earlier this year. This shows the payment of
the old bonds as well as the annual current payments for 2010.
1
Below is a summary of the Enterprise funds for 3rd quarter 2010.
Summary of Enterprise Revenues
rd
The revenues have continued to be down for the 3 quarter of 2010. Two factors are the
hydro plant and the rainy summer. Hydro plant electricity revenues are down and the city
is waiting on the insurance check. Water revenues are down. The rationale behind the
lower revenues is due to the rainy season that occurred this summer. The believe is the
citizens need to water less often.
Summary of Enterprise Expenses
Expenses are on target with regard to the 2010 budget. The 42% increase in charge for
service from 2009 is due to the dewatering of the hydro plant. This is done every 5-7
years.
General Fund
The general fund is projected to lose some ground on the fund balance policy. At the end
of 2009 the general fund’s fund balance increased to 31% from the low of 26% in 2008.
It is preliminary projected that the general fund’s fund balance may drop to 29% for
2010. On a positive note when going out for the annual bonds this fall it was noted by
Standard & Poor that the city has a strong general fund balance. The city’s policy may
need some added language to allow for some flexibility. A change from a 40%
requirement to a range of 25-40% may be more in target with today’s economic times.
The general fund will be continued to be monitored for the rest of the year and
information will come forth before the annual audit takes place in March.
2