The Town of Pipestone added $ 83,893 to its general fund balance in fiscal 2020, which ended December 31, 2020.
This information was part of the audit report presented by Matt Taubert, along with Meulebroeck, Taubert & Co., PLLP, at a special city council meeting on July 22. Taubert said the city was given a clear and unqualified opinion on the audit, “which is exactly what the city is aiming for.
General fund revenues for the year totaled $ 2,898,592. The majority of this amount ($ 1,783,218) came from intergovernmental sources, and the rest came from taxes and special assessments ($ 982,102), licenses and permits ($ 48,481), service fees ($ 35,166) , from various sources ($ 32,691) and fines and forfeitures ($ 16,934). ).
General fund revenues were $ 336,902 over budget. Taubert said this was mainly due to the $ 322,852 in federal COVID funding the city received.
âObviously you weren’t anticipating COVID, so you didn’t budget for it,â Taubert said.
General fund expenditures totaled $ 2,637,700, or $ 242,510 more than expected. The biggest expense was public safety, which totaled $ 1,218,774. The other expenses were for general administration ($ 644,178), miscellaneous ($ 453,685), economic development ($ 278,440) and the senior center ($ 42,623).
Miscellaneous expenses were $ 295,735 higher than expected. Taubert said this was largely due to $ 303,000 in expenses related to COVID, most of which were grants given to businesses.
âWhere we looked at revenue on the front, we also looked at expenses because we didn’t have a COVID expense budget when you were doing the budget in fall 2019,â Taubert said.
General fund income less expenses left a surplus of $ 260,892. Other sources and uses of funding reduced this amount by $ 176,999, leaving an overall general fund surplus of $ 83,893 and increasing the general fund balance to $ 1,278,714.
Taubert said that based on the “rule of thumb” of keeping three to five months of spending in the fund balance, the city is “probably about 146 percent funded.”
âYour general fund is good,â he said, and gives the city âsome leewayâ.
The city has several other special income funds, which Taubert says exist for a specific purpose. Below is a brief summary of the end of each of these funds in 2020.
â¢ The cemetery fund had revenues of $ 37,861 and expenses of $ 26,425. In and out transfers accounted for $ 7,615 in expenses, leaving a surplus of $ 3,821 and bringing the fund balance to $ 196,919.
â¢ The airport fund had revenues of $ 263,510 and expenses of $ 424,420. A transfer of $ 108,000 left a deficit of $ 52,910 and brought the fund balance to $ 102,944.
â¢ The Recreation Fund had revenues of $ 805,701 and expenses of $ 696,790. Transfers in and out were expenditures of $ 4,500, leaving a surplus of $ 104,411 and a fund balance of $ 538,953.
â¢ The street fund had $ 752,506 in income and $ 551,125 in expenses. Transfers totaling $ 58,550 left a surplus of $ 142,831 and brought the fund balance to $ 155,342.
â¢ The municipal construction fund had revenues of $ 72,014 and expenses of $ 51,278. Transfers totaling $ 11,500 left a surplus of $ 9,236 and a fund balance of $ 31,930.
â¢ The Small Town Development Program grant project fund generated income of $ 5 and no expenses, leaving a surplus of $ 5 and bringing the fund balance to $ 8,057.
â¢ The capital fund had revenues of $ 314,202 and expenses of $ 59,182. Incoming and outgoing transfers which added income of $ 210,117 left a surplus of $ 465,137 and a fund balance of $ 1,503,800.
â¢ The Storm Sewer Revolving Fund generated revenues of $ 152,723 and expenses of $ 9,395. Transfers totaling $ 82,100 left a surplus of $ 61,228 and a fund balance of $ 160,051.
â¢ The revolving economic development fund generated revenues of $ 2,292 and expenses of $ 146,734. Transfers totaling $ 24,000 left a deficit of $ 120,442 and a fund balance of $ 93,837.
â¢ The Cable Access Fund generated revenues of $ 49,299 and expenses of $ 45,996, leaving a surplus of $ 3,303 and bringing the fund balance to $ 49,727.
â¢ The Farmer’s Market Fund had revenues of $ 2,022 and expenses of $ 2,789, leaving a deficit of $ 767 and a fund balance of $ 3,448.
The city also has several business funds, which are funded and operated in the same way as a business with the intention that the expenses will be paid by user fees. Below is a summary of these funds and how they ended the year.
â¢ The water fund had total revenues of $ 1,507,226 and expenses of $ 1,323,196. Other non-operating income and expenses added income of $ 1,501,395, leaving a surplus of $ 1,685,425 and bringing the fund balance to $ 10,651,177. Taubert said the surplus was largely due to grants for the water treatment plant and water tower projects which totaled $ 1,164,083.
â¢ The sewer fund had revenues of $ 1,152,278 and expenses of $ 1,003,530. Non-operating income and expenses added expenses of $ 79,259, leaving a surplus of $ 69,489 and increasing the fund balance to $ 6,523,079.
â¢ The garbage fund had revenues of $ 443,665 and expenses of $ 377,952. Non-operating income of $ 2,678 left a surplus of $ 68,391 and increased the fund balance to $ 722,655.
â¢ The Liquor Store Fund generated revenues of $ 1,980,348 and expenses of $ 1,732,271. Non-operating income and expenses added expenses of $ 70,209, leaving a surplus of $ 177,868 and increasing the fund balance to $ 1,213,215.
â¢ The Prairie Winds Fund generated revenues of $ 124,792 and expenses of $ 121,241. Non-operating income and expenses added expenses of $ 30,392, leaving a deficit of $ 26,841 and bringing the fund balance to $ 339,091.
City debt service funds are used to record funds and payments related to infrastructure improvement projects. Together, the debt service funds had revenues totaling $ 1,222,437 and expenses totaling $ 1,264,996. Incoming and outgoing transfers added expenses of $ 30,307, leaving a deficit of $ 72,866 and a fund balance of $ 1,419,439. Taubert said debt service funds are expected to balance out when the projects are paid off.
City capital project funds are used for specific infrastructure projects. These funds had combined income of $ 222,714 and expenses of $ 2,355,490. In and out transfers and bond proceeds added $ 1,839,172 to income, leaving a deficit of $ 293,604 and a negative fund balance of $ 25,683.