HomeMy WebLinkAbout2016-11-01 City Council Work SessionAgenda
City Council Work Session
City of Edina, Minnesota
Edina City Hall Community Rooom
Tuesday, November 1, 2016
5:30 PM
I.Call To Order
II.Roll Call
III.Quarterly Business Meeting - Finance
IV.Adjournment
The City of Edina wants all residents to be comfortable being part of the
public process. If you need assistance in the way of hearing ampli%cation, an
interpreter, large-print documents or something else, please call 952-927-8861
72 hours in advance of the meeting.
Date: November 1, 2016 Agenda Item #: III.
To:Mayor and City Council Item Type:
Advisory Communication
From:Eric Roggeman, Finance Director
Item Activity:
Subject:Quarterly Business Meeting - Finance Information
CITY OF EDINA
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
ACTION REQUESTED:
This item is for information and discussion only. No Council action is required.
INTRODUCTION:
In 2007 the City started a quarterly review process for general fund financials called Quarterly Update. Quarterly
Update is a two-page written summary of finances and notable transactions in the general fund.
In 2012 the City added quarterly business meetings, generally held on the second work session after every
calendar quarter end. At quarterly business meetings staff present finances and notable transactions in the general
fund and all the enterprise funds. For some quarters, financial data is not ready in time to be included in Council
packets prior to the meeting.
This quarter the financial data is ready for the packet deadline and is attached below.
ATTACHMENTS:
Description
September 2016 Quarterly Update
Q3 Business Meeting Power Point Presentation
CITY OF EDINA, MINNESOTA
Quarterly Financial Update
September 2016
G:\P&L's\Quarterly Financial Update\2016\Quarterly Update.docx 1
General Fund - Revenues
General Fund revenues total $22,800,216 through September 30, 2016. This amount represents
62% of total budgeted revenues for all of 2016, which is higher than 59% a year ago at the same
time. The City receives our second half property tax payment in December and property taxes
account for 68% of our budgeted General Fund revenue.
License and permit revenue increased $253,484 from last year due to increased permit activity.
The City has experienced rapid growth in permit revenue since 2009 of 15%, 13%, 16%, 32%,
9% and 7.5% annually from 2010 through 2015. The pace through the first nine months of 2016
is another 7% increase.
The second page of this report shows our intergovernmental revenue exceeds 2015 by
$667,476. However, this apparent increase is actually just the result of a timing difference. In the
final days of September 2016 we received two grants from the State totaling just over $800,000
that we didn’t receive in 2015 until early in the fourth quarter.
General Fund – Expenditures
Total General Fund expenditures are 72.5% of budget so far this year, which is similar to a year
ago. It is common for our expenditures to be consistently distributed throughout the year,
meaning that most years we use about 25% of our budget every quarter. The first quarter is
often slightly lower and the fourth quarter is often slightly higher than 25%. A breakdown of
expenditures by functional category is below.
General government expenditures are 72% of budget so far this year. This functional category
includes Administration, Communications and Technology Services, Human Resources, Finance
and Community Development Departments. Also included in this category are severance
expenditures for all General Fund employees, including those employees who work in other
functions. Severance expenditures have moderated slightly in 2016, with vacation and sick time
payouts of $146,955 so far this year compared to $315,963 a year ago at this time. This
spending category can be influenced significantly by just a few retirements of long-tenured
employees. In years when severance expenditures are higher than budgeted, the excess is paid
for by assigned fund balance (reserves) that we hold in the general fund for this purpose.
Public safety expenditures are 75% of budget for 2016, which is slightly higher than spending in
the first nine months of last year. The public safety function includes the Police and Fire
Departments.
Public works expenditures total 68% of budget for 2016, which is lower than 72.5% in the first
nine months of last year. The public works function reported here includes both the Public Works
and Engineering Departments.
Parks and recreation expenditures are 82% of budget for 2016, which is higher than 71% in the
first nine months of last year. Parks and Recreation is the only department included in this
functional category. A portion of the excess expenditures are for recreation programs that are
also generating revenue above budget targets in the “Charges for service” category.
CITY OF EDINA, MINNESOTA
Quarterly Financial Update
September 2016
G:\P&L's\Quarterly Financial Update\2016\Quarterly Update.docx 2
2015
Twelve Month YTD Over/ YTD Increase/
Budget Actual (Under)Actual (Decrease)
Revenues:
Property taxes (1) 25,023,952$ 12,734,487$ (12,289,465)$ 11,671,708$ 1,062,779$
Cable franchise/lodging tax 810,000 437,958 (372,042) 421,504 16,454
Licenses and permits (2) 4,023,160 4,036,012 12,852 3,782,528 253,484
Intergovernmental (3) 1,191,550 1,199,655 8,105 532,179 667,476
Charges for service 3,940,310 3,145,315 (794,995) 2,460,998 684,317
Fines and forfeitures 975,000 628,454 (346,546) 719,748 (91,294)
Other revenues 597,900 618,335 20,435 480,392 137,943
Total revenues 36,561,872 22,800,216 (13,761,656) 20,069,057 2,731,159
Expenditures:
Administration 1,896,810 1,350,120 (546,690) 1,177,620 172,500
Comm & tech services 1,104,618 858,934 (245,684) 751,143 107,791
Human resources 590,345 399,495 (190,850) 326,142 73,353
Severance 200,000 146,955 (53,045) 315,963 (169,008)
Finance 833,624 609,266 (224,358) 579,060 30,206
Community development 1,646,945 1,152,612 (494,333) 1,078,736 73,876
Public works 8,926,600 6,026,442 (2,900,158) 6,226,735 (200,293)
Engineering 1,585,209 1,095,134 (490,075) 1,127,827 (32,693)
Police 11,045,546 8,017,976 (3,027,570) 7,230,401 787,575
Fire 7,457,253 5,784,836 (1,672,417) 5,238,299 546,537
Parks & recreation 1,374,922 1,126,295 (248,627) 1,005,148 121,147
Other - - - - -
Total expenditures 36,661,872 26,568,065 (10,093,807) 25,057,074 1,510,991
Revenues over (under)
expenditures (100,000) (3,767,849) (3,667,849) (4,988,017) 1,220,168
Other financing sources (uses):
Transfers in (out)
Liquor fund (4) 100,000 - (100,000) - -
Other - (64,542) (64,542) (500,000) 435,458
Parkland dedication - - - 800,000 (800,000)
Total other financing source 100,000 (64,542) (164,542) 300,000 (364,542)
Net increase (decrease)
in fund balance -$ (3,832,391)$ (3,832,391)$ (4,688,017)$ 855,626$
1 The City receives the first property tax payment from the County in June and the second payment in December.
2 The licenses and permits category includes building permits.
3 The intergovernmental category includes grants from Federal, state and county sources. Generally,
most of the grants the City receives are reimbursement grants, which means that if grant revenue
increases, expenditures must also increase by an equal or greater amount.
4 The annual liquor fund transfer is always made in December.
Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
General Fund
For the nine months ended September 30, 2016
2016
10/17/2016
1
The CITY of
EDINA
Quarterly Council Business Meeting
Financial Update
October 18, 2016 City Council Work Session
The CITY of
EDINA
Key Metric: Water pumped out
of City wells
•2016 water pumped = 1.9B gallons
vs. 1.9B gallons in 2015.
•2011-2015 average rate was 2.0B
gallons.
•Water pumped through Q3 is 7.5%
below historical average.
www.EdinaMN.gov 2
Utilities Fund
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Q1 Q2 Q3 Q4
Utilities Fund Operating Revenue
2016 Actual 2016 Budget
10/17/2016
2
The CITY of
EDINA
www.EdinaMN.gov 3
Utilities Fund
-
100,000
200,000
300,000
400,000
500,000
600,000
January February March April May June July August September October November December
Water Pumped from Wells
Water Pumped in Units - 2016 2009-2015 Average Water Pumped (units)
The CITY of
EDINA
Key Metric: Customer Counts
•2016 customers = 358,000 vs.
349,000 in 2015.
•2011-2015 average count was
365,000. Based on this figure, 2016
customer numbers are down 2% from
historical averages but up 2.6% from
2015.
www.EdinaMN.gov 4
Liquor Fund
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Q1 Q2 Q3 Q4
Liquor Fund Operating Revenue
2016 Actual 2016 Budget
10/17/2016
3
The CITY of
EDINA
www.EdinaMN.gov 5
Liquor Fund
26.22 26.33 25.56 25.95
-
-
5.00
10.00
15.00
20.00
25.00
30.00
35.00
2013
Q1
2013
Q2
2013
Q3
2013
Q4
2014
Q1
2014
Q2
2014
Q3
2014
Q4
2015
Q1
2015
Q2
2015
Q3
2015
Q4
2016
Q1
2016
Q2
2016
Q3
2016
Q4
Liquor Fund Sales per Customer
Gross revenue (sales) per customer
The CITY of
EDINA
Key Metric: Customer Counts
•2016 customers = 358,000 vs.
349,000 in 2015.
•2011-2015 average count was
369,000. Based on this figure, 2016
customer numbers are down 2%
from historical averages but up 2.6%
from 2015.
•In 2016 the City budgeted a transfer
of $700,000 out of the Liquor Fund
to support other City activities.
www.EdinaMN.gov 6
Liquor Fund
(200,000)
(100,000)
-
100,000
200,000
300,000
400,000
500,000
600,000
Q1 Q2 Q3 Q4
Liquor Fund Operating Income
2011 2012 2013 2014 2015 2016
10/17/2016
4
The CITY of
EDINA
Key Metric: Season passes sold
•2016 YTD passes = 2,505 (7,395
people) vs. 3,265 (10,218 people) in
2015.
•2012-2015 average sales were 3,345
(10,418 people).
•New POS system was installed for
2016 season. The new system is
much better at tracking customers.
However, the data is not comparable
to data from the old POS system.
www.EdinaMN.gov 7
Aquatic Center Fund
0%
10%
20%
30%
40%
50%
60%
Q1 Q2 Q3 Q4
Aquatic Center Operating Revenue
2016 Actual 2016 Budget
The CITY of
EDINA
www.EdinaMN.gov 8
Golf Course Fund
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Q1 Q2 Q3 Q4
Golf Course Fund Operating Revenue
2016 Actual 2016 Budget
10/17/2016
5
The CITY of
EDINA
Status of 2014 Six-Step Strategy
•Expenses are better aligned with
revenues.
•Operating income (loss) improved.
•Cash flow from operations is very
good:
•2013 = $4,286
•2014 = $348,568
•2015 = $610,102
•Debt service has increased by
about $180K/year.
www.EdinaMN.gov 9
Golf Course Fund
(600,000)
(400,000)
(200,000)
-
200,000
400,000
600,000
Q1 Q2 Q3 Q4
Golf Course Fund Operating Income
(Loss)
2011 2012 2013 2014 2015 2016
The CITY of
EDINA
www.EdinaMN.gov 10
Arena Fund
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Q1 Q2 Q3 Q4
Braemar Arena Operating Revenue
2016 Actual 2016 Budget
10/17/2016
6
The CITY of
EDINA
Arena financial status
•Cash flow from operations is
better:
•2013 = ($11,223)
•2014 = $324,967
•2015 = $291,423
•Debt service is about
$360K/year.
www.EdinaMN.gov 11
Arena Fund
(400,000)
(300,000)
(200,000)
(100,000)
-
100,000
200,000
300,000
Q1 Q2 Q3 Q4
Braemar Arena Operating Income
(Loss)
2011 2012 2013 2014 2015 2016
The CITY of
EDINA
www.EdinaMN.gov 12
Art Center Fund
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Q1 Q2 Q3 Q4
Art Center Operating Revenue
2016 Actual 2016 Budget
10/17/2016
7
The CITY of
EDINA
www.EdinaMN.gov 13
Edinborough Park Fund
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Q1 Q2 Q3 Q4
Edinborough Operating Revenue
2016 Actual 2016 Budget
The CITY of
EDINA
www.EdinaMN.gov 14
Centennial Lakes Fund
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Q1 Q2 Q3 Q4
Centennial Lakes Operating Revenue
2016 Actual 2016 Budget
10/17/2016
8
The CITY of
EDINA
www.EdinaMN.gov 15
Sports Dome Fund
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Q1 Q2 Q3 Q4
Braemar Field Operating Revenue
2016 Actual 2016 Budget
The CITY of
EDINA2016 General Fund
Revenue
•2016 Q3 = $22.8M vs. $20.1M in 2015 (13.6% increase)
•62% of budget, compared to 59% in 2015. 2011-2015 average rate is 58%.
Expenditures
•2016 Q3 = $26.6M vs. $25.1M in 2015 (6.0% increase)
•72.5% of budget, compared to 72% in 2015. 2011-2015 average rate is 71%
Key Metric: License & Permit Revenue
•2016 Q3 = $ 4M vs. $ 3.8M in 2015, 7% increase & on pace for new record
•100% of budget, compared to 99% in 2015
www.EdinaMN.gov 16
10/17/2016
9
The CITY of
EDINA2016 General Fund Expenditures
www.EdinaMN.gov 17
70.5%
77.8%
67.7%73.1%70.0%67.5%69.1%
72.6%
77.6%81.9%
0.0%
75.0%
2016 General Fund Budget Spent