HomeMy WebLinkAboutVIII-08 Approve 2022 Budget Amendments and Fund Closures
City Council Memorandum
To: Mayor Fasbender & City Councilmembers
From: Chris Eitemiller, Finance Manager
Date: May 1, 2023
Item: 2022 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, 2022.
Background Information:
General Fund: The General Fund balance will increase by approximately $1 million,
with the major revenue changes noted as follows: Non-Departmental decreased from
budget $3,732,448. One significant factor was $2 million not being spent on the City
Hall Dome project. The $2 million is a reimbursable grant from the State of MN.
Another factor was the pace the City has spent the ARPA grant. Because $1,255,948 less
than planned was spent due to the pace of multiple projects, the City could not recognize
this as 2022 revenue. Because of accounting rules, the balance not spent was booked as
unearned revenue. These funds will still be spent as the projects advance to completion.
Building & Inspections’ revenue exceeded budget by $746,077, due to another year that
saw a significant increase in permit revenues issued. The Public Works Engineering
revenue is based on a percentage pertaining to the 2022 street project. Since the budget is
an estimate, it needs to be amended to the actual amount. The Public Works Streets
division slightly exceeded revenue compared to budget due to street opening permits.
The Parks department’s General Fund revenue exceeded budget due to tree removal
service revenues.
General Fund expenditures were $4.2 million under budget. By far, the most significant
portion of this variance was Facilities Management, which finished the year $3,036,489
under budget. This was due to delays in the City Hall Dome project, which was about
$2.2 million less than budgeted. This project will still need to be finished, planned in
2023-2024. Another significant budget variance is in the Finance department. Due to
scheduling issues, much of the Finance system project was delayed, resulting in a positive
budget variance of $316,857. This project will not fully begin until later in 2023, with an
expected completion date in 2024. The most significant variance remaining is in the
Public Works Street division, which finished 2023 $410,770 below budget. Most of this
variance was in capital equipment which was nearly $300,000 below budget because of
delays in receiving orders. The largest of these was $260,000 for a dump truck, which is
expected to be received in 2023. The remainder of savings was in personnel, and
services. Savings in personnel, services, and capital spread across all other departments,
comprises the remainder of this variance.
Special Revenue Funds: The Fire/EMS Fund had a negative budget position for 2022 of
$601,189.98. This was entirely due to lower ambulance revenues. Steps are being taken
that will hopefully improve revenues going forward.
Enterprise Funds: The only enterprise fund that had a negative variance in 2022 was the
Hydro Plant. This variance was $16,091. The reason was costs associated with the
Wildcat Solar Garden. Without these costs, the Hydro Plant would have had a positive
variance.
VIII-08
Fund closures-
Request authorization to close the following funds:
2016 Equipment Certificates
Parks Facilities Bonds 2001
2010 General Obligations Bonds
2011 General Obligations Bonds
2020 Street Improvements
2021 Street Improvements
Before closing the 2021 Improvements fund, staff requests approval to transfer in funds from the
Budget Stabilization Fund. This was planned in the 2021 budget but wasn’t completed. This left the
2021 Improvements fund with a negative balance. Completing this transfer will resolve this situation.
For the other funds, any residual amounts remaining will be transferred to our Debt Redemption fund.
Financial Impact:
The budget amendment creates a significant positive position in the general fund of
$1,022,568. 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:
• 2022 Budget resolution, Fund closures
VIII-08
CITY OF HASTINGS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 5-XX-23
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
2016 Equipment Certificates
Parks Facilities Bonds 2001
2010 General Obligations Bonds
2011 General Obligations Bonds
2020 Street Improvements
2021 Street Improvements
VIII-08
General Fund
Revenues by Major Category:
2023 Budget Change Amended 4/1/23
w/rollovers
Non-Departmental 14,895,919 (3,495,415) 11,400,504
Investments 45,000 (237,033) (192,033)
City Clerk 103,750 2,207 105,957
Finance - - -
Facility Maintenance 33,880 (15,015) 18,865
Planning 17,000 7,837 24,837
I.T.- 612 612
Police 597,056 241,257 838,313
Building & Inspections 431,200 746,077 1,177,277
Safety 10,000 (19,990) (9,990)
Public Works-engineering 511,000 64,940 575,940
Public Works-Streets 611,000 21,226 632,226
Public Works-Street Lights 1,000 3,941 4,941
Parks & Recreation 75,500 41,878 117,378
Miscellaneous - - -
Transfers In 472,380 - 472,380
Total Revenues 17,804,685 (2,637,477) 15,167,208
Expenditures by Major Function:
Council & Mayor 115,157 15,064 100,093
Adminstration 330,496 12,915 317,581
City Clerk 651,097 95,897 555,200
Finance 1,066,765 316,857 749,908
Legal 236,500 7,626 228,874
Facility Management 3,614,684 3,036,489 578,195
Planning 244,460 (4,865) 249,325
I.T.807,158 94,741 712,417
Police 6,036,509 54,563 5,981,946
Building & Inspections 738,386 (27,498)765,884
Safety 2,700 (10,651)13,351
Public Works-Engineering 560,833 42,700 518,133
Public Works-Streets 2,022,652 410,770 1,611,882
Public Works-Street Lights 216,800 (41,828)258,628
Public Works-Sidewalks 25,000 21,075 3,925
Parks & Recreation 126,950 (56,482)183,432
Miscellaneous/Transfers Out 1,557,856 241,991 1,315,865
Total Expenditures 18,354,003 4,209,364 14,144,640
Revenues less Expenditures (549,318) (1,571,886) 1,022,568
Appropriated Fund Balance 549,318 1,571,886 (1,022,568)
VIII-08
Adopted this 1st day of May 2023,
Mary Fasbender, Mayor
Attest:
Kelly Murtaugh, City Clerk
2023 Budget
Special Revenue Funds w/rollovers Change Amended 2/13/23
Revenues:
Fire/EMS 4,608,077 (568,828) 4,039,249
-
Total Revenues 4,608,077 (568,828) 4,039,249
Expenditures:
Fire/EMS 4,636,445 (3,994) 4,640,439
-
Total Expenditures 4,636,445 (3,994) 4,640,439
Revenues less Expenditures (28,368) (572,822) (601,190)
Appropriated Fund Balance (28,368) (572,822) (601,190)
VIII-08