HomeMy WebLinkAboutVIII-11 Q3 2021 Financial Statements
City Council Memorandum
To: Mayor Fasbender & City Council Members
From: Chris Eitemiller, Finance Manager and Ashley Bertrand, Senior Accountant
Date: November 15, 2021
Item: 2021 3rd Quarter Financial Report
Council Action Requested: Review and approve the attached third quarter financial
report.
Background Information: The third quarter financial report is a quarterly update of 2021
activity through September 30, 2021. Consistent with past practice, some numbers in
the report are adjusted to take into consideration the effects of year-end accruals and
year-to-year allocation differences.
Detail of the City’s investments holdings is provided in Appendix A.
Detail of the City’s capital infrastructure projects is provided in Appendix B.
Financial Impact: N/A
Advisory Commission Discussion: N/A
Council Committee Discussion: N/A
Attachments:
2021 3rd Quarter Financials
Appendix A – 2021 Investment Holdings as of September 30, 2021
Appendix B – 2021 Capital Infrastructure Projects as of September 30, 2021
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2021 3rd Quarter Financial Update
Government Funds
General Fund Revenue Summary:
The largest source of revenue is property tax levy. The City received the first-half settlement in July.
The second-half will be paid in two payments; we will receive an advance in December, and the
remainder in January, 2022.
Our investments are not performing well due to the COVID-19 Pandemic.
City Clerk revenues are low due to waiving first-half license fees.
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General Fund Expense Summary:
Legal expenses are running higher than prior years after a change in attorneys. The 2022 budget is
anticipating this trend will continue.
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Parks - Fund 200
Joint Facility revenue is lower than anticipated; we are awaiting the third quarter payment.
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Aquatic Center – Fund 201
This year’s pool operations were very strong, after being closed in 2020 in response to the pandemic.
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Heritage Preservation – Fund 210
Fire & Ambulance – Fund 213
The City received large State and Federal Stimulus payments for Medicare patients, which
explains the large amount in the percentage of budget in the grant revenue line item.
The rural fire contact is paid bi-annually item, so 50% is appropriate.
Charges for Services revenue item is Ambulance revenue, which has increased since the
second quarter financial update.
The Miscellaneous category is higher, which consist of equipment sales, donations, and
insurance recoveries.
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Fire & Ambulance – Fund 213 continued
Police Reserve – Fund 221
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Arena – Fund 615
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Enterprise Funds
The Enterprise funds consist of our three utility funds and the hydro plant.
Water – Fund 600
Water Revenue is steady with 65% collected as of September 30th.
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Sewer – Fund 601
Storm Water – Fund 603
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Hydro – Fund 620
Lower water levels during the summer impacted the hydro plant’s production. This is reflected in the
lower revenue amount generated through third quarter.
For the final quarter of 2021, the plant is expected to be producing at a higher capacity, which should
improve the year’s revenue.
With fewer breakdowns this year, even if revenues stay at current trend, the plant should stay within
budget for the year.
Debt Service expenditures are as anticipated. The principal payment due date is February 1st; all
principal payments were made as of the end of the first quarter. Interest payments are made on
February 1st as well as August 1st.
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Transfers
2021 Transfers
Quarterly transfers are made for administrative charges, internal funding, and savings needs. Transfers
posted for 3rd quarter 2021 were all budgeted transfers or budgeted use of stabilization funds.
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Cash and Investments Balances
Cash balances fluctuate throughout the year based on planned spending, receipt of fund revenues and the
timing of property tax payments. The cash balance within a fund can be one indicator of the health of the
fund.
FUND DESCRIPTION September 30, 2020 September 30, 2021
General Fund 5,926,696 6,519,194
Parks 927,888 1,265,617
Aquatic Center 286,722 306,145
Cable TV 113,122 111,762
Cable Access 39,340 39,423
Heritage Preservation 81,003 84,122
Fire & Ambulance 748,327 983,543
LeDuc Historical Estate Operations 160,696 174,633
Police Reserves 8,925 17,981
DUI Enforcement & Forfeitures 32,590 37,227
Drug Awareness & Forfeitures 12,336 12,339
2015 Equipment Certificates 41,057 6,883
2016 Equipment Certificates 43,575 47,881
Aquatic Center Debt Service 16,426 16,425
Parks Facility Bonds 373,998 323,179
2013 Equipment Certificates 77,852 85,370
2014 Equipment Certificates 61,668 16,461
Parks Capital Projects 75,743 260,903
Budget Stabilization Fund 332,085 345,232
Guardian Angels - TIF (099) 18,248 19,690
HEDRA 706,979 1,369,161
NAPA-TIF (116) (11,005) 6,431
Downtown Redevelopment TIF (007) (19,870) (20,543)
TIF 7 Hudson Sprayers 0 7,455
2020 Improvements (1,261,032) (242,410)
2021 Improvements 0 (9,632)
2022 Improvements 0 (2,867)
Debt Redemption 1,076,724 1,016,100
2016A GO TIF (quasi refunding) Bonds 177,772 176,237
2009A GO Improvement Bonds 105,359 13,783
2010B GO Improvement Bonds 148,859 136,759
2011 GO Improvement Bonds 323,197 148,217
2012 GO Improvement Bonds 134,737 125,680
2013 GO Improvement Bonds 96,832 84,976
2014 GO Improvement Bonds 168,234 172,463
2015 GO Improvement Bonds 168,523 169,116
2016 GO Improvement Bonds 283,790 267,930
2017 GO Improvement Bonds 126,826 108,544
2018 GO Improvement Bonds 148,134 20,274
2019 GO Improvement Bonds 946,285 981,000
2020 GO Improvement Bonds 0 79,701
2021 GO Improvement Bonds 0 0
Water 2,435,792 3,016,737
Wastewater 999,945 2,055,014
Storm Water 723,186 1,011,317
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Arena 503,433 569,990
Hydro Electric (246,451) 127,672
Retiree Health 215,433 64,680
Compensated Absences 192,075 60,645
Vehicle & Equipment Fund 554,996 235,492
Insurance Fund 109,496 242,942
Escrow -Dev/Eng/TIF-HRA 219,974 723,317
Ruth Doffing Trust Fund-Library 97,927 93,948
C. Simmons Trust 221,578 221,625
C. Simmons Residuary 32,713 1,060
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Investments
The City’s total investment portfolio was valued at $16,751,656 as of September 30, 2021.
Allocation of the City’s portfolio is as follows. Additional detail is available in Appendix A.
Additional Information
Further detail of the information presented here may be obtained by contacting the Finance Department. The
Finance Manager may be reached for questions at 651-480-2347 or CEitemiller@Hastingsmn.gov. The Senior
Accountant may be reached at 651-480-2354 or ABertrand@Hastingsmn.gov.
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Appendix A – Investment Holdings
Detail of Municipal Bonds, Agencies and CDs
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Appendix B – Capital Infrastructure Status
Through the third quarter in 2021 the Mill & Overlay, Crack Seal and Seal Coat Programs, Parks Trail
Improvements, and the 21st Street Water Quality programs have been completed. The Water Meter
Replacement program, traffic marking program, 2021 Neighborhood Infrastructure and Sanitary Sewer Lining
Programs are all still in process.
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