HomeMy WebLinkAboutVIII-14 Approve Annual Budget Adjustments and Fund Closures
City Council Memorandum
To: Mayor Fasbender & City Councilmembers
From: Chris Eitemiller, Finance Manager
Date: February 22, 2022
Item: 2021 Budget Amendment and Fund Closures
Council Action Requested:
Council is asked to approve a budget amendment and Fund closures. All of these will
have an effective date of December 31, 2021.
Background Information:
General Fund: The General Fund balance will increase by approximately $2.1 million,
with the major revenue changes noted as follows: Non-Departmental increased
$1,203,189 due to the first receipt of ARPA funds. City Clerk decreased by $39,720
associated with licensure refunds to offer small business assistance to local businesses.
Building & Inspections has an increase in revenue totaling $232,923, due to another year
that saw a significant increase in permit revenues issued. The engineering revenue is
based on a percentage pertaining to the 2021 street project. Since this is an estimate, it
needs to be amended to the actual amount. The Public Works Streets division revenue
shortfall compared to budget is due to the City’s share of the Highway 316 project
decreasing considerably. This resulted in both reduced municipal state aid revenues and
grant revenues. These two revenues comprised the funding for the City’s share of this
project. The Parks department’s General Fund revenue increased after receiving a
recycling grant from Dakota County.
General Fund expenditures were $3.6 million under budget. By far, the most significant
portion of this variance was the Public Works Street division, which finished the year
$2,150,702 under budget. This was due to the City’s share of the Highway 316 project
being over $2 million less than originally expected. Final payments for this project
cannot be made until spring 2022, so there may be some adjustments to the project’s final
total. Beyond the Highway 316 project, Public Works’ personnel expenses were
$170,000 under budget, and Police saw a positive personnel variance of $207,000.
Savings in personnel, services, and capital spread across all other departments, comprises
the remainder of this variance.
Special Revenue Funds: The Cable Access Fund had an increase due to the increase in
revenue associated with the cable access franchise fees. There is an associated expense
increase in this fund as well, because these revenues are a pass through. The LeDuc
Historic Estate changes are based on the receipts received from the trust. Half of these
receipts are passed through to the Dakota County Historical Society. The changes
associated with this fund are due to the decrease in monies received from the trust. The
Arena fund saw budgeted increases in both revenues and expenditures. The revenue
increase consisted of a transfer from the general fund to help fund the capital adjustments.
Increases for seasonal salaries, as well as for capital equipment, account for budgeted
spending increases totaling $138,607. After these budget changes, the fund’s plan was for
nearly $69,000 less revenue than expenditures. Positive variances in personnel and
supplies reduced this to $45,358.
Enterprise Funds: None of the enterprise funds had a negative variance in 2021,
including the Hydro Plant.
VIII-14
Fund closures: Request authorization to close the following funds:
Drug Awareness Fund
2015 Equipment Certificates
Swimming Pool
2014 Equipment Certificates
2009 GO Improvement Bonds
Any residual amounts in these funds will be transferred to our Debt Redemption fund.
Financial Impact:
The budget amendment creates a significant positive position in the general fund of
$2,163,644. The final year-end position for the fund may vary slightly as adjusting entries
associated with our annual audit are made.
Advisory Commission Discussion:
None.
Council Committee Discussion:
None.
Attachments:
• 2021 Budget resolution, Fund closures
VIII-14
CITY OF HASTINGS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 02- -22
A RESOLUTION AMENDING THE 2022 BUDGET AND FUND CLOSURES
AND TRANSFERS
WHEREAS, the Mayor and City Council adopted the 2022 budget on December 6,
2021; and
WHEREAS, there is a need to amend the budget and close funds;
WHEREAS, there is also the need to transfer any residual monies from funds closing;
WHEREAS, any residual dollars from the following funds will be transferred to the
debt redemption fund for future council direction;
NOW THEREFORE LET IT BE RESOLVED THAT, the budget is amended as
follows with an effective date of December 31, 2022:
Fund closures
Drug Awareness Fund
Swimming Pool
2009 GO Improvement Bonds
2014 Equipment Certificates
2015 Equipment Certificates
VIII-14
General Fund
Revenues by Major Category:
2022 Budget Change Amended 2/22/22
w/rollovers
Non-Departmental 10,757,449 1,203,189 11,960,638
Investments 45,000 (52,304) (7,304)
City Clerk 103,750 (39,720) 64,030
Finance - - -
Facility Maintenance 18,380 (700) 17,680
Planning 17,000 11,401 28,401
I.T.- 638 638
Police 659,043 41,686 700,729
Building & Inspections 431,200 232,923 664,123
Safety 10,000 1,904 11,904
Public Works-engineering 315,400 124,342 439,742
Public Works-Streets 3,273,000 (1,768,703) 1,504,297
Public Works-Street Lights 1,000 (735) 265
Parks & Recreation 75,500 169,783 245,283
Miscellaneous - - -
Transfers In 686,288 3,000 689,288
Total Revenues 16,393,010 (73,295) 16,319,715
Expenditures by Major Function:
Council & Mayor 120,657 26,502 94,155
Adminstration 307,899 51,813 256,086
City Clerk 536,023 104,930 431,093
Finance 642,740 34,910 607,830
Legal 166,500 (87,034)253,534
Facility Management 506,098 10,911 495,187
Planning 140,552 4,814 135,738
I.T.865,667 105,700 709,432
Police 5,719,435 195,207 5,524,228
Building & Inspections 622,092 (16,297)638,389
Safety 2,700 (6,739)9,439
Public Works-Engineering 570,136 81,528 488,608
Public Works-Streets 4,698,692 2,150,702 2,547,990
Public Works-Street Lights 216,800 23,445 193,355
Public Works-Sidewalks 25,000 (911)25,911
Parks & Recreation 127,000 (12,214)139,214
Miscellaneous/Transfers Out 2,530,072 924,191 1,605,881
Total Expenditures 17,798,063 3,641,992 14,156,071
Revenues less Expenditures (1,405,053) (3,715,287) 2,163,644
Appropriated Fund Balance 1,405,053 3,715,287 (2,163,644)
VIII-14
Adopted this 22nd day of February 2022,
Mary Fasbender, Mayor
Attest:
Kelly Murtaugh, City Clerk
2022 Budget
Special Revenue Funds w/rollovers Change Amended 2/22/22
Revenues:
Cable Access 336,000 20,405 356,405
LeDuc Historic Estate 59,500 (19,445) 40,055
Arena 645,310 (41,408) 603,902
Total Revenues 1,040,810 (40,448) 1,000,362
Expenditures:
Cable Access 336,000 20,614 356,614
LeDuc Historic Estate 76,355 14,633 61,722
Arena 713,917 64,657 649,260
Total Expenditures 1,126,272 99,904 1,067,596
Revenues less Expenditures (85,462) (140,352) (67,234)
Appropriated Fund Balance (85,462) (140,352) (67,234)
VIII-14