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2011-09-27 Park Board Packet
AGENDA CITY OF EDINA, MINNESOTA PARK BOARD SPECIAL MEETING CITY COUNCIL CHAMBERS Tuesday, September 27, 2011 7:00 P.M. I. CALL TO ORDER II. ROLL CALL III. APPROVAL OF MEETING AGENDA IV. COMMUNITY COMMENT During "Community Comment," the Park Board will invite residents to share relevant issues or concerns. Individuals must limit their comments to three minutes. The Chair may limit the number of speakers on the same issue in the interest of time and topic. Generally speaking, items that are elsewhere on tonight's agenda may not be addressed ® during Community Comment. Individuals should not expect the Chair or Board Members to respond to their comments tonight. Instead, the Board might refer the matter to staff for consideration at a future meeting. V. REPORTS/RECOMMENDATIONS A. Quality of Life Survey Presentation — City Manager Scott Neal B. Budget Question/Answer Discussion — City Manager Scott Neal C. Enterprise Facility Business Plans D. 2012 Enterprise Facility Budgets E. 2012-2016 Capital Improvement Plans F. Veterans Memorial Public Process VI. CORRESPONDENCE AND PETITIONS VII. CHAIR AND BOARD MEMBER COMMENTS VIII. STAFF COMMENTS IX. 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 amplification, an interpreter, large -print documents or something, please call 952-927-8861 72 hours in advance of the meeting. REPORT/RECOMMENDATION To: EDINA PARK BOARD Agenda Item Item No. V. A. From: John Keprios, Director Park and Recreation Department 1-1 Action z Discussion ❑ Information Date: September 27, 2011 Subject: Quality of Life Survey Presentation — City Manager Scott Neal ACTION REQUESTED: City Manager Scott Neal will present the results of a "Quality of Life Survey" recently conducted by Decision Resources. This was a phone survey of randomly selected Edina residents that asked a wide range of questions related to City services including Parks and Recreation. INFORMATION/BACKGROUND: City Manager Scott Neal will give the Park Board a power point presentation of the results from Decision Resource's "Quality of Life Survey". Park Board members are encouraged to ask questions and provide comment. U O \1`° REPORT/RECOMMENDATION To: EDINA PARK BOARD Agenda Item Item No. V. B. From: John Keprios, Director Park and Recreation Department ❑ Action z Discussion Information Date: September 27, 2011 Subject: Budget Question/Answer Discussion — City Manager Scott Neal ACTION REQUESTED: At the Park Board's request, City Manager Scott Neal will be present to answer questions about the City's budgeting process and other budget related questions from the Park Board. INFORMATION/BACKGROUND: At a previous Park Board meeting, Park Board members requested that the Finance Director attend a Park Board meeting to answer a variety of questions about the City of Edina's funding practices and policies. Finance Director John Wallin is not available on September 27; however, City Manager Scott Neal has offered to answer those questions. The Park Board has asked questions such as: • How are Capital Improvement Plan (CIP) projects funded? • How are levels of CIP funding per department determined? • Does the Park and Recreation Department get its fair share of the available CIP funding compared to other Departments? Why does the Edinborough Trust Fund have such small investment earnings each year? I ask that Park Board members please contact me as soon as possible about any other general City budget related questions that you may have to ensure we are best prepared to answer those questions and concerns. 0 0 ,ZEA' �ArL Le o t� >-Z 0 1AE78 REPORT/RECOMMENDATION To: EDINA PARK BOARD From: John Keprios, Director Park and Recreation Department Date: September 27, 2011 Agenda Item Item No. V. C. Subject: 2010-2011 Enterprise Facility Business Plans ACTION REQUESTED: Action Discussion ❑ Information Staff requests that the Park Board review, ask questions and share your comments regarding the proposed Enterprise Facility Business Plans for: • Braemar Arena • Braemar Golf Course • Centennial Lakes Park • Edina Aquatic Center • Edinborough Park INFORMATION/BACKGROUND: All Park Board members have been given a copy of the Enterprise Facility Business Plans for 2010-2011. The City Council has asked that the Park Board review these Business Plans and provide comments. The Edina Art Center's proposed Business Plan is reviewed by the Edina Art Center Board. Enterprise facility managers will be present to answer any questions. Edina 2 010,-2 nun I I Business Plans CENTENNIAL LAKES PARK Al. ED INA''LIQU0R Of Le a7��:uz ©�) C 1 i V O f v E D 1 N A BRAEMAR ARENA Edina �9^l�� yet, 2010-201 Business Plans T A B L E O F C O N T E N T S Summary.............................................................................................................................................. 1 BusinessStrategy Update..................................................................................................................... 1 Significant Changes in Business/Competitive Environment................................................................... 3 FinancialSummary............................................................................................................................... 4 Summary.............................................................................................................................................. 7 BusinessStrategy Update..................................................................................................................... 9 Significant Changes in Business/Competitive Environment................................................................. 10 FinancialSummary............................................................................................................................. 12 Summary............................................................................................................................................ 14 BusinessStrategy Update................................................................................................................... 15 Significant Changes in Business/Competitive Environment................................................................. 16 FinancialSummary............................................................................................................................. 19 Summary............................................................................................................................................ 22 BusinessStrategy Update................................................................................................................... 24 Significant Changes in Business/Competitive Environment................................................................. 26 FinancialSummary............................................................................................................................. 28 Summary............................................................................................................................................ 30 BusinessStrategy Update................................................................................................................... 30 Significant Changes in Business/Competitive Environment................................................................. 32 CustomerAnalysis.............................................................................................................................. 34 FinancialSummary............................................................................................................................. 37 Summary............................................................................................................................................ 39 BusinessStrategy Update................................................................................................................... 39 Significant Changes in Business/Competitive Environment................................................................. 43 FinancialSummary............................................................................................................................. 45 Summary............................................................................................................................................ 49 BusinessStrategy Update................................................................................................................... 49 Significant Changes in Business/Competitive Environment................................................................. 54 CustomerAnalysis: 2007-2010............................................................................................................ 55 FinancialSummary............................................................................................................................. 57 Edina 200=201 1 Cost Recovery Goals :NTERPRISE COST RECOVERY Braemar Arena Braemar Golf Course Centennial Lakes & Edinborough Parks Edina Art Center Edina Aquatic Center Edina Liquor 2008 2009 2010 2011 Goal 83% 85% 85% 85% 104% 103% 97% 100% 78% 75% 78% 80% 68% 69% 71% 70% 124% 112% 126% 100% 110% 110% 111% 110% Facility Full -Time Employees Part -Time Employees Braemar Arena 5 25 Braemar Golf Course 11 120 Centennial Lakes Park 5 18-20 seasonal Edinborough Park 7 14 Edina Art Center 2 7 Edina Aquatic Center 0* 71 seasonal Edina Liquor 9 35-45 *35 percent of one Park Maintenance employee's salary is charged against the Aquatic Center, as is 20 percent of the salary of the Assistant Park & Recreation Director I,.] ' rlGi -► ► BUSINESS PLAN 6 : � n() :�euu 10-2011 n m D Summary For hockey and figure skating enthusiasts, Braemar Arena, 7501 Ikola Way, features three indoor, regulation -size ice sheets. Braemar is available for open skating, group rental, adult and youth hockey, figure skating programs and dry floor rentals. The facility also offers group skating lessons for ages 4 through adult and is home to the Braemar -City of Lakes Figure Skating Club, the Edina Hornets hockey teams and the Edina Hockey Association. Four customers account for 75.5 percent of the Arena's income: Edina Hockey Association, 34 percent; Braemar -City of Lakes Figure Skating Club, 25 percent; Minnesota Showcase, 10 percent and Edina High School, 6.5 percent. Braemar Arena employs five full-time and 25 part-time workers. The Edina Hockey Association buys approximately 56 percent of its ice from Braemar; Braemar -City of Lakes Figure Skating Club, 100 percent; Braemar Synchro Team, 75 percent; and Edina High School, 95 percent. In 2010, Braemar Arena was able to recover 85 percent of its operating costs in revenues. Earnings from liquor operations continue to subsidize the arena's annual operating loss. Business Strategy �_ Braemar Arena recently completed a major renovation project at a cost of approximately $2.66 million (funded through the sale of bonds and grants). New floor refrigeration pipes, a new board system and new handicap seating and accessibility to the players' boxes were added in the west arena. New dehumidification units were installed in the east and west arenas. The Braemar Arena staff continually looks for new ways to help make the Arena run as energy efficiently as possible. • New dehumidifiers in East and West Arenas • New snow melt pit that uses waste heat for compressors in West Arena • New sub -floor heating system under the West rink floor Staff cautions against proposals to add additional sheets of ice at Braemar Arena due to the number of indoor facilities in this market. The over supply of ice typically means the prime hour definition shrinks earlier in the evening, resulting in fewer hours sold. (If another local arena has an ice time available at 8 p.m., customers won't buy our 9 p.m.) Concessions The Edina Hockey Association currently operates the concessions stand at Braemar Arena. In exchange, Braemar Arena is paid $10,000 per year. After expenses, the Association nets approximately $20,000 BRAEMAR ARENA 1 B R A E M A R A R E N A annually. For its fiscal year ended May 31, 2010, revenues were $173,592 and expenses were $151,125. Management will review the current arrangement, as St. Louis Park gets 20 percent of sales made by the hockey association there and Bloomington Ice Garden gets $11,000 per year from its hockey association.The City of Eden Prairie operates the concessions stand at its arena and reports profits of $35,000 in 2010. Braemar Arena's principal customers continue to be Braemar City of Lakes Figure Skating Club, Edina Hockey Association, Minnesota Showcase Hockey and Edina High School. The most desirable ice times are offered to these customers. These groups represent a significant percentage of our annual revenue. Braemar and other competitive arenas are part of an online system, "Rinkfinder.com." This website is extremely beneficial to arenas such as Braemar in that it allows staff to post ice availability online. Ice reservations and purchasing continue to be accomplished through a follow-up telephone call. Staff feels this website is the most effective way to advertise our available ice times. The use of Rinkfinder is free to member facilities. Skating lessons are advertised through newspaper ads, local schools by fliers and www.Braemar-Arena.com. This has often kept our classes full through the fall — spring seasons. Online registration for skating lessons will be explored in the near future. Braemar continues to be price -competitive with other public arenas. Since September 2010, our price per hour has been $185. This tends to be within $5 to $10 of other nearby public facilities. Bloomington Ice Garden $185/hour prime time, $120/hour non -prime Eden Prairie $190/hour (no non -prime info provided) St. Louis Park $170 (no non -prime rate offered) Minnetonka $180 (no non -prime rate offered) In today's economy, pricing has become as important as ice availability and location. Braemar Arena's peak season is from September through March. Prime hours are 4 to 10 p.m. Monday through Friday and 7 a.m. to 10 p.m. on Saturday and Sunday. Non -prime ice times are 6 a.m. to 4 p.m. and after 10 p.m. Monday through Friday and 6 to 7 a.m. and after 10 p.m. on weekends. Skating class prices vary depending on session length and are listed on all fliers and our website. Prices range from $97 for a 30 -minute class to $226 for a one-hour class. BRAEMAR ARENA 2 i t if P rpt f ark s S i R€tc ►, 5� / 'r r s�Pi' ti!t,,p ,ri�clr?ltlQCtt As noted earlier, indoor ice is over supplied in our market. During peak season, Monday, Tuesday and Thursday night prime -time ice can never be supplied in quantities to meet demand. This has led to the perception that ice is in short supply, thus leading to overbuilding which requires increased subsidization. It also leads to users having the luxury of "shopping" other facilities for more desirable ice times. Staff continues to explore other possible revenue streams, including selling more ice during the summer months — offering open hockey and more open skating hours on the weekends and renting ice to the figure skating on Saturdays. Youth camps will also be explored. In previous years, unless there was a scheduled tournament, the Arena was closed on Saturdays during the summer. Staff is also looking into selling more advertising in the West Arena. Currently, the Edina Hockey Association sells dasher board ads in the South Arena and the Figure Skating Club in the East Arena. The City receives 25 percent of their net income. For its fiscal year ended May 31, 2010, the Edina Hockey Association made $30,875 after paying a $5,000 commission. We are looking into selling our own ads in the West Arena on the dasher boards. If all ads are sold at $1,000/ad, we could generate approximately $20,000 per year. St. Louis Park Rink gets 20 percent of ads sold on score board and walls. No dasher board ads are sold. Score Board ads are $2,500/year, walls $1,500/year. Bloomington Dasher ads sold by the facility for $1,000/year. Minnetonka Contracts with sign company that sells the ads for the Arena on a 60-40 split. (Arena gets 40 percent). Dasher ads are $1,000/year. Eden Prairie Dasher ads sold by the facility for $950/year. Management staff was asked to produce a hypothetical break-even operating scenario for the 2010 operating year by adjusting the primary revenue driver on the operating revenue side of the balance sheet. In the case of Braemar Arena, the primary revenue source is the rental of the facilities ice sheets. If the City were to cover the entire 2010 operating deficit at Braemar Arena by adjusting ice rental rates, ice rental rates would need to be increased by 21.8 percent ($40.40/hour) to $225.40/hour. The local average rental rate for ice time in our market is $181.25. We cannot predict the precise impact of an increase in our ice rental rates of this magnitude, but given the current market rate for ice rental rates, and given that other ice arenas also have unused capacity to rental more ice, it is probable that total operating revenues could decrease in this scenario because customers for our ice would rent their discretionary ice from other arenas. BRAEMAR ARENA 3 B R A E M A R A R E N A Retail Sales Memberships Admissions Building Rental Equipment Rental Class Registration & Other Fees Total Operating Revenues Cost of Goods Sold Personnel Services Contractual Services Commodities Central Services Depreciation Total Operating Expenses (Expense) Excess Tax Increments Intergovernmental Interest and Fiscal Charges Amortization Other Miscellaneous Total Non -Operating Expense Lass Before Transfers 2008 $8,085 3,851 120,558 1,131,385 3,136 132,584 1,399,599 1,036 614,747 671,565 72,936 43,343 286,033 1,689,660 (290,061) (8,354) (2,246) (10,600) ($300,661) Operating Revenues $1,399,599 Operating Expenses (1,689,660) Non-operating Revenues (Expenses) and transfers 94,400 Depreciation 286,033 Bond Proceeds - Bond Principal (220,000) Capital Expenditures - Other Accruals 20,109 Change in Cash & Investments (109,519) January 1 Cash & Investments 94,649 December 31 Cash & Investments ($14,870) Note: 2008-2010 data is based on audited financial statement 2011 data is based on an adopted budget. s, while 2009 $7,718 3,716 111,481 1,157,522 2,997 130,976 1,414,410 880 654,132 608,683 73,241 41,905 286,241 1,665,082 (250,672) 100,124 (5,966) (60) 94,098 ($156,574) $1,414,410 (1,665,082) 196,173 286,241 2,440,000 (225,000) (136,088) 8,146 2,318,800 (14,870) $2,303,930 BRAEMAR ARENA 4 2010 $6,992 5,406 117,843 1,035,429 1,652 134,184 1,301,506 1,045 591,912 524,060 75,679 41,948 292,892 1,527,536 (226,030) 222,000 (90,170) (722) 20,972 152,080 ($73,950) $1,301,506 (1,527,536) 348,486 292,892 (2,515,947) 166,699 (1,933,900) 2,303,930 $370,030 2011 $8,100 4,500 105,000 1,200,000 1,200 125,000 1,443,800 1,500 653,340 574,600 85,500 42,912 340,000 1,697,852 (254,052) (85,100) (85,100) ($339,152) $1,443,800 (1,697,852) 279,900 340,000 (80,000) (285,000) 848 370,030 $370,878 Year Amount Source 2010 $80,000 Edina Liquor 2010 $116,406 Capital Improvement Fund 2009 $80,000 Edina Liquor 2009 $22,075 Capital Improvement Fund 2008 $80,000 Edina Liquor 2008 $25,000 Capital Improvement Fund 2007 $80,000 Edina Liquor 2007 $25,000 Capital Improvement Fund 2006 $85,000 Edina Liquor 2006 $25,000 Capital Improvement Fund 2005 $41,000 Edina Liquor 2005 $45,000 Capital Improvement Fund 2004 $103,000 Edina Liquor 2004 $74,430 Capital Improvement Fund 2003 $8,000 Golf Dome 2003 $6,149 Capital Improvement Fund 2002 $90,157 Capital Improvement Fund 2001 $135,000 Edina Liquor 2001 $75,189 Capital Improvement Fund 2000 $81,000 Edina Liquor Note: Subsidy amount is based on cash position of fund, not annual performance. 2008 2009 2010 Percent of operating expenses covered by operating revenue: 83% 85% 85% BRAEMAR ARENA 5 BRAE MAR ARENA Year Principal Interest Total 2011 $80,000 $84,400 $164,400 2012 100,000 82,600 182,600 2013 100,000 80,600 180,600 2014 100,000 78,350 178,350 2015 100,000 75,725 175,725 2016 105,000 72,775 177,775 2017 105,000 69,625 174,625 2018 110,000 66,262 176,262 2019 110,000 62,550 172,550 2020 115,000 58,613 173,613 2021 120,000 54,200 174,200 2022 125,000 49,300 174,300 2023 130,000 44,200 174,200 2024 135,000 38,900 173,900 2025 135,000 33,500 168,500 2026 140,000 28,000 168,000 2027 150,000 22,200 172,200 2028 15 5, 000 16,100 171,100 2029 160,000 9,800 169,800 2030 165,000 3,300 168,300 Total BRAEMAR ARENA 6 . ......... �--Om . ......... Aniffilmikilawa-011 • B R A E M A R G O L F C O U R S E Braemar Golf Course facilities include three nine -hole regulation courses, two nine -hole executive courses, a driving range, golf dome, pro shop, grill and banquet/ meeting rooms. Between the outdoor facilities and the golf dome, Braemar is open 363 days a year. Braemar is believed to be one of the highest - volume municipal facilities in the state. Braemar's league membership has also been the largest in the state, with more than 450 women and 400 men participating. Even though Braemar faces a down economy in a market that is overbuilt, the regulation courses will exceed 50,000 rounds. Braemar's revenues have historically far exceeded expenses. In 2010, Braemar recovered 97 percent of its expenses. This debt will be retired in 2013, putting the Braemar facilities in a much more favorable financial position while retaining these assets. The debt service that puts Braemar in a negative cash position is primarily the result of the 'new' Clunie nine construction and the Fred Richards executive course, which costs included land acquisition. In an effort to reduce operating expenses, management has eliminated the Assistant Manager/Golf Dome Manager position. Current full-time staffing levels for the maintenance area are down to 6 (from a high of 9). The management area is down to 5 (from a high of 8). A position in each area opened in 2010 and was not filled. Braemar's staff continues to anticipate and adapt business strategies for the ever-changing golf market to grow our customer base and loyalty: • The cost of the non-resident patron card seemed cost prohibitive to many customers last year, so the price has been reduced from $110 to $90. • The golf dome discount cards can now be used at the outdoor range (through mid-May). This increased "late season" sales of the cards at the dome. • The minimum age for juniors on the regulation courses has been lowered two years to age 10 and to age 8 on the executive courses (accompanied by an adult). Staff lowered the group lesson age to 8 also. • Staff constantly works to improve course conditions/playability by more aggressively mowing rough, lowering collar height, and widening approaches to greens. • We have established a reciprocal program for patron cards with Brookview and Baker National golf courses. Our patron card will be valid for the preferred (patron) at the other two courses. Their patron cards will be valid at Braemar all day Mondays and Tuesdays all day and after 1 p.m. on Sundays. 7 B R A E M A R G O L F C O U R S E 8 Golf Dome The Braemar Golf Dome is open from approximately Nov. 1 to March 31 each year. Golf domes revenues have been stable, but, like the golf course, the weather is the largest factor. The 2009-10 season was negatively impacted by good weather, which in turn, helped course revenues. The 2010- 11 season was off to a slow start but will finish strong due to poor weather for outdoor golf (affecting those revenues negatively). Private Rentals The banquet/meeting rooms have shown a slight decline in bookings/revenue with smaller groups comprising more of the rentals: 2008 $70,00 2009 $65,500 158 events 2010 $61,300 151 events Grill Wine is now available at the grill and is purchased through a relationship with Edina Liquor. Wine sales started slow, but are gradually growing. In 2009, Braemar began offering live music on the west deck, boosting beer and wine sales. The operation of the grill and its menu have been studied in the off season. Some enhancements include: • Expanded menu, continually "testing new items," added variety of coffee options • Now selling strong beer, hard lemonade and wine • Bottled beer from beverage cart selling very well • Annual price increases to improve margins, keep up with COGS • Grill POS now able to accept credit cards, ATM onsite • Offering items from outdoor grill on the deck during select times • Expanding live music events on deck • Free Wi-Fi • Eliminated pay phone, installed free courtesy phone • Upgraded to two large screen TVs Pro Shop The pro shop is positioned to do well in 2011, weather permitting. The shop has added some new club lines at minimal cost. Demo days at the dome proved very successful with the new lines. Year-to-date revenue is up 39 percent. We are working with an outside vendor which will allow us to take trade-ins toward new club purchases. • 2009 Sales $208,184 Margin 27.5% • 2010 Sales $216,219 Margin 23.1% (liquidation of old merchandise affected margin) B R A E M A R G O L F C O U R S E To maintain Braemar's premier status, future improvements should be considered. However, capital improvements have been put on hold for a number of years due to the financial constraints of debt service from prior improvements, including the purchase of Fred Richards Executive Course and the expansion at Braemar Golf Course. The Park Board has recommended and approved the commission of a golf consulting firm to review Braemar's operations. A generous gift from the Dahl estate was given to Braemar in 2010. The money has not yet been earmarked for a project. Most of Braemar's planned capital improvements have been put on hold for a number of years due to the financial constraints of the debt service from prior improvements, including the purchase of Fred Richards Executive Golf Course and the expansion of Braemar. Capital improvements could include reconfiguring the driving range to increase the length and hitting capacity by 30 to 40 percent (which by necessity will include some reconfiguration of the executive course) and redesigning the new nine to improve playability. The improvements to the Driving Range could be done in phases with minimal income loss with a quick return on investment and more long-term profitability. The ROI on improvements to the new nine would take longer. An outside consultant confirmed the need for these improvements and the increased revenue potential. We are in the process of hiring a consultant to study areas of opportunity. Although the Clubhouse/Grill areas are dated and could use a "facelift," any major renovation or reconstruction would not show a positive return on investment. This would include expansion of the banquet room for increased capacity. Rentals needing a larger room would not offset the investment/ debt service as we are already well booked on the most desired nights. The fabric of the Braemar Golf Dome is estimated to hold for another 8 to 10 years. Staff has recommended that the Dome be structurally secured and the lobby roof repaired at an estimated cost of $140,000. Braemar continues to be recognized as one of the premier public golf courses in Minnesota. Braemar was recently recognized as one of the top 25 facilities in the "Hacker's Guide" which uses "real golfers" to provide ratings for over 283 courses in the area, including every public 18 -hole course in Minnesota. The patron card philosophy has worked well to establish customer loyalty from our residents. Based on this experience, a non-resident patron card has been offered to increase Braemar's core customer base. In 2007, Patron Card revenue was $106,040. In 2008, it was $110,313, and in 2009 it rose to $123,761. The 258 Non -Resident card sales in 2009 offset the decline in Resident card sales. 9 • B R A E M A R G O L F C O U R S E Due to the competitive environment, a more aggressive advertising approach, including television, print, internet, radio spots and outdoor advertising, was implemented for the Golf Dome and the Golf Course in 2009. The southwest metropolitan area has been successfully targeted for promoting the Non -Resident patron card, as that is the obvious primary market. Braemar's staff will continue to move forward with diverse advertising supplemented by internal cross promotion in our various revenue centers and a focus on our own broadcast email marketing. The construction of additional golf courses in the metropolitan area, general economic conditions and the demographics of our customers affect Braemar's pricing structure. Pricing is a particularly important issue to our senior golfers, who display a keen interest in value and who are willing to travel to more distant facilities offering cheaper rates. The median age of Braemar Men's Club members is 65.83. With the overbuilding of golf in the metropolitan area, we must continue to be particularly sensitive to our price point in the market. Many courses have gone to dramatic discounting, actually pricing their product at less than it costs to offer. We have offered sensible discounts to select groups. We added an "Under Age 25" rate that has brought a number of new faces to our facility. Our "Super Senior' rate (age 75 or older) helps keep players at our course. We have also gained numerous golfers in our leagues and open play who have dropped out of Country Clubs. J,16ik 4i_C6H'L fit L-tu:;LEEtv..�si�_Qiiip,> Live Environiiicii. Braemar Golf Course continues to provide a premier golf facility in the metropolitan area. Course quality, location and customer service continue to distinguish Braemar from other courses. Notwithstanding these features, Braemar has experienced fluctuations in the number of regulation rounds played during the past few years. The following summarizes regulation rounds played during the past three years: Regulation Courses Executive Course 2008 64,750 22,038 2009 68,996 22,848 2010 60,844 18,578 The variations in rounds are primarily due to weather. Patron card revenues: 2008 $110,313 2009 $123,761 2010 $103,235 10 L / `4D Richards Executive 25,875 25,965 21,965 B R A E M A R G O L F C O U R S E Again, the reciprocal patron privileges and reduced non-resident card rate should increase sales for 2011. The dome's primary competitor by proximity is the year-round outdoor facility Golf Zone in Chanhassen (which was temporarily closed by flooding in the spring). Future improvements to Braemar's golf facilities are designed to maintain its competitive position. Management has evaluated these improvements for their cost/benefit in light of the above -noted volatility in the golf business and the Golf Course Fund's current negative cash balance. A reconfiguration of the driving range is proposed, but put on hold, to expand the number of tees and improve safety. This improvement will encroach into the executive course, which will likewise require some reconfiguration. The current golf environment continues to be competitive and challenging. Braemar, Fred Richards and the Golf Dome remain some of the strongest operations in this weakened marketplace (including other industries). We feel that golf is rebounding and we see "the light at the end of the tunnel" as far as shortly retiring current debt service. It is essential to maintain facilities and aggressively market to maintain market share and have plans and approvals in place to make the proposed improvements as soon as financially possible. Management staff was asked to produce a hypothetical break-even operating scenario for the 2010 operating year by adjusting the primary revenue driver on the operating revenue side of the balance sheet. In the case of Braemar Golf Course, the primary revenue source is the user fee collected by the City in exchange for a round of golf (i.e., "greens fees"). In 2010, there were 101,387 paid rounds of golf sold at the City's municipal golf courses. Approximately 60 percent of those rounds were sold at the regulation golf courses at Braemar and 40 percent were sold at the Braemar and Fred Richards executive courses. The 2010 operating deficit for the golf enterprise was $101,025. If the enterprise were directed to recover 100 percent of its operating deficit through an adjustment only to its primary revenue driver — its greens fees — it could achieve the goal by increasing the average cost of a round of golf by $1. This increase would result in an increase in the cost of a round of golf by 4 percent at Braemar and 12 percent at Braemar and Fred Richards executive courses. In the opinion of management, a user fee increase of this magnitude could be implemented if applied proportionately to average round cost with a high probability of successfully generating the additional revenue needed to achieve the goal of recovering 100 percent of operating expenses with operating revenues. 11 B R A E M A R G O L F C O U R S E Financial Summary: 2008-2011 2008 2009 2010 2011 Liquor Sales $145,904 $146,632 $144,541 $149,000 Retail Sales 233,473 212,886 218,585 234,000 Concessions 243,848 230,776 213,250 249,000 Memberships 110,313 123,761 119,981 135,000 Building Rental 85,603 81,728 228,126 275,000 Admissions 315,013 264,671 70,726 91,000 Rental of Equipment 361,566 359,277 362,763 373,300 Greens Fees 1,846,317 1,880,610 1,738,261 1,921,000 Other Fees 338,547 358,333 346,300 366,000 Total Operating Revenues 3,680,584 3,658,674 3,442,533 3.793,300 Cost of Goods Sold 350,320 338,248 328,821 356,300 Personnel Services 1,748,175 1,774,558 1,636,091 1,714,038 Contractual Services 559,521 580,479 557,828 570,550 Commodities 358,704 323,311 479,783 351,200 Central Services 113,474 110,796 116,958 137,928 Depreciation 407,186 414,656 424,077 427,000 Total Operating Expenses 3,537,380 3,542,048 3,543,558 3,557,016 143,204 116,626 (101,025) 236,284 e (Expense) Excess tax increments - 100,124 - Interest and Fiscal Charges (70,763) (34,362) (17,568) (15,200) Amortization (4,339) (820) (447) - Other Miscellaneous 14,505 (9,809) 5,222 - Totalnon-operating Revenue (60,597) 55,133 (12,793) (15,200) $82,607 $171,759 ($113,818) $221,084 Operating Revenues $3,680,584 $3,658,674 $3,442,533 3,793,300 Operating Expenses (3,537,380) (3,542,048) (3,543,558) (3,577,016) Non-operating Revenues (Expenses) and transfers 109,403 225,133 87,207 84,800 Depreciation 407,186 414,656 424,077 427,000 Bond Principal (510,000) (500,000) (280,000) (280,000) Capital Expenditures (154,960) (173,180) (173,300) (270,000) Other Accruals 46,837 16,683 76,897 - Change in Cash 41,670 99,918 (119,938) 198,084 January 1 Cash (1,128,639) (1,086,969) (987,051) (1,106,989) December 31 Cash ($1,086,969) ($987,051) ($1,106,989) ($908,905) Note: 2008-2010 data is based on audited financial statements, while 2011 data is based on an adopted budget.. BRU';4�R 12 -/ Cj B R A E M A R G O L F C O U R S E As of Dec. 31 Balance 1999 (345,012) 2000 54,973 2001 (80, 966) 2002 79,306 2003 (32,084) 2004 (370,786) 2005 (621,080) 2006 (874,384) 2007 (1,128, 639) 2008 (1,086,969) 2009 (987,051) 2010 (1,106,989) Year Principal Interest Total 2011 280,000 14,700 2 94, 700 2012 285,000 9,050 294,050 2013 310,000 3,100 313,100 Final Debt Payment Total Year Amount Source 2000 $170,000 Edina Liquor 2009 $170,075 Edina Liquor 2010 $100,000 Edina Liquor Note: Subsidy amount is based on cash position of fund, not annual performance. 2008 2009 2010 Percent of operating expenses covered by operating revenue: 104% 103% 97% 13 BUSINESS PLAN 201 0=20 1 C E N T E N N I A L L A K E S P A R K Centennial Lakes continues to provide a unique social and recreational experience for Edina residents and visitors. Centennial Lakes, a 24 -acre park and pond, offers the ultimate urban escape. The park features more than 1.S miles of paved pathways meandering around a 10 -acre lake and interspersed with beautifully landscaped grounds, formal and informal seating areas, swinging benches and fountains. During the summer months, visitors can rent paddleboats, fish in the ponds for a variety of game fish, watch remote - control sailboat races, explore the maze, or try their luck on the bent grass putting course or croquet and lawn bowling lawn. The park also hosts a variety of cultural performances in a 1,000 -seat lakeside amphitheater. At the Hughes Pavilion, visitors can rent banquet space for wedding receptions, business meetings and social events. In the winter months, Centennial Lakes Park offers one of the Twin Cities' finest outdoor skating venues. Visitors can skate across 10 acres of carefully maintained ice or take a spin on one of the park's Norwegian ice sleds. Afterwards, guests can relax by one of the Pavilion's three fireplaces while sipping a cup of hot chocolate from the concession stand. For the convenience of park visitors, Centennial Lakes rents figure and hockey skates for children and adults. Putting course revenues, paddle boat rentals, rental of ice skates and private building rentals are the main sources of self -generated revenue. Association fees continue to be the principal revenue source for the park, but are not expected to keep pace with inflation. The association fees are contractual fees that are charged to each of the 10 members of the Centennial Lakes development and are assessed per dwelling unit or leasable square foot. Leasable square footage fees are subject to a yearly increase based on CPI; dwelling units are frozen at $15 per unit. In 2010, Centennial Lakes Association fees totaled $275,000. Operating losses continue, with losses currently being covered out of the park's investment fund balance and adversely effecting the interest income from the fund. Staff includes one full-time manager, one full-time Assistant Manager, one full-time horticulturist, two full-time maintenance supervisors and 18 to 20 part-time seasonal staff. 14 CENTENNIAL C E N T E N N I A L L A K E S P A R K 15 The majority of capital improvement dollars continue to be spent maintaining and replacing existing infrastructure and equipment. Paver and concrete replacement are some of the major expenditures planned for the next yew few years, and an additional restroom facility just south of Hughes Pavilion is scheduled to be constructed in 2012. arketing Since many of the fee-based amenities in the park — specifically the putting course, ice skating rink and weekend rentals — are near capacity during the prime season, the marketing focus at Centennial Lakes has been on using low-cost means to promote the park to existing park patrons, Centennial Lakes residents and businesses and the greater metropolitan area. These efforts center on the use of brochures, posters and PSA listings to increase awareness of the park and to remind patrons of the park's amenities. Additional marketing is directed toward promoting the park to first-time users, especially for our summer recreational opportunities and building rentals during off-peak times. Paid advertising includes the Yellow Pages, Wedding Guides, Sun -Current, Edina map and others. We also maintain a strong online presence and make frequent use of City Extra, Facebook and Twitter. Surveys of our patrons have shown that the primary way people have found out about the park is through word-of-mouth or they have attended an event or performance at the park. We strongly believe that if we can get someone to visit the park once, there is a high probability that they will become a repeat visitor and use one of our fee-based amenities. Toward this end, we try to attract people to events at the park such as our concert series, Movies in the Park, theater performances, model boat shows and farmers market. In addition, we are a partner in numerous events such as the Taste of Edina, Fall into the Arts Festival, Candleberry Boutique and Pinstripes Ice Bocce tournament. To bring more people into the park, management looks closely at co -sponsoring unique events with development members and non-profit organizations. Rental fees are generally waived whenever Centennial Lakes Park is a partner in an event. The fee-based amenities at Centennial Lakes tend to be priced equal to or slightly higher than comparable amenities at other facilities. Price increases seem to have little effect on the popularity of amenities such as weekend building rentals and ice skates, but there has been some resistance to increases on other amenities. Centennial Lakes Putting Course Centennial Lakes Park* $8 Tournament Greens — Blaine* $6.75-7.75 Boulder Creek — Chaska* $6.50-7.50 Links at Dred Scott $5-7 Adventure Gardens $5-6.50 Moose Mountain $8 *Benterass courses CENTENNIAL LAKES PARK C E N T E N N I A L L A K E S P A R K Paddleboats Centennial Lakes Park Three Rivers Parks Minneapolis Parks Ice Skate Rental Centennial Lakes Park Braemar Arena John Rose Oval The Depot $8 for 1/2hr. $6 for 1/2hr. $17 for 1 hr. $5 $2 (plus $4 admission) $4 (plus $5 admission) $7 (plus $6-8 admission) Hughes Pavilion Rental Comparable pricing for the rental of the Hughes Pavilion is somewhat difficult due to the uniqueness of the facility and the desires of rental clients. It is our belief that our rental fees should be placed toward the top of what the market will bear. Hughes Pavilion Bloomington Center for the Arts Burnsville Performing Arts Center $225/4 hours Monday -Thursday $995/6 hours Friday -Saturday $350/4 hours Sunday $218/3 hours 5-10 p.m. Monday -Thursday $272/3 hours 8 a.m.-10 p.m. Friday, Saturday, Sunday $2,175 Full Day $975/8 hours City of Minnetonka Banquet Room Resident $225-500 Non -Resident $325-750 Minnetonka -based public agency $100-275 Non -Minnetonka -based public agency $150-325 Dakota Lodge (West St. Paul) $225/6 hours 7 a.m.-10 p.m. Monday -Friday $1,000 Weekend Basic Events $1,450 Weekend Deluxe Events Groups that use the park for their own private events are charged a fee. Because they pay an association fee, development members whose events spill over into the Park are not charged a rental fee. ':�Ii6i'iiiiL,!Ii. i_1'1611&eS in bUSi 1 SSJLUit'i Centennial Lakes continues to be an exceptional venue at an exceptional price in the metropolitan area. Studies have found that approximately 80 percent of park patrons come from outside Edina, making it a true desination park. In addition, the recent community opinion survey listed Centennial Lakes as the facility most heavily used by Edina residents. The uniqueness of the park and its recreational and social offerings are major factors in this popularity. �t CENTENNIAL LAKES PARK 16 • C E N T E N N I A L L A K E S P A R K 17 The Centennial Lakes putting course continues to do well, although user numbers have remained relatively constant. Although we are currently the highest -priced miniature golf course in the state, we will recommend a price increase for 2012 as we feel that the market can bear this increase and it is somewhat overdue. The last putting course increase was in 2006. Paddleboat rentals remain popular and additional boats have been purchased for the 2011 season. Croquet and lawn bowling are underutilized. In 2010, only 254 hours of croquet courts and 465 hours of lawn bowling courts were rented. However, both amenities have an appeal to business groups and contribute to our building rentals for company outings. Staff is researching the possibility of serving beer and wine at the lawn games area as this would greatly increase the appeal of this area to business groups and individuals. The addition of Pinstripes Bowling, Bocce & Bistro on the north end of the park might also give our lawn games area some added business as their customers look for an outdoor alternative. The Hughes Pavilion is a popular option for wedding receptions, business meetings and banquets. Even with weekend rates approaching $1,000, the facility is in high demand during the core May -October season, though opportunities do exist for increased revenues during off-peak dates. We will propose a 10 percent increase in weekend rental fees for 2012 due to the popularity of this venue. The Maetzold Amphitheater at Centennial Lakes Park hosts almost 100 performances each summer in the areas of music, dance and theater. Although these performances are complimentary, they are one of the major draws of the park and help solidify its standing as a major community gathering spot. A weekly "Movies in the Park" series has been extremely popular with all ages. In 2010, more than 16,000 people attended the inaugural Centennial Lakes farmers market held on Thursdays from 3 to 7 p.m. with 25 vendors participating. The 2011 market has been expanded by two weeks and up to 35 vendors. While not a major money maker, the market was able to make a profit of more than $2,600 in its first year and was able to provide the community with an abundance of fresh goods and produce. The Centennial Lakes ice rink is the park's major winter draw, but attendance and revenues are very dependent upon the weather. Despite the extreme weather of the past few years, the rink has had the top three revenue-producing seasons in its history, primarily due to increasing the skate rental inventory by 40 percent. Centennial Lakes Park staff has also taken on the responsibility of operating and maintaining the Edina Promenade, a landscaped greenway at the north edge of the park that serves as the backdrop for numerous outdoor sculptures and works of art. f� CENTENNIAL LAKES PARK C E N T E N N I A L L A K E S P A R K Management staff was asked to produce a hypothetical break-even operating scenario for the 2010 operating year by adjusting the primary revenue driver on the operating revenue side of the balance sheet. In the case of Centennial Lakes Park, the primary revenue source is the association fee charged to the residential and commercial properties that comprise the Centennial Lakes development. Association fees account for 40 percent of the operating revenues of Centennial Lakes Park. Sixty percent of the operating revenue is generated by user fees and facility rentals. The Centennial Lakes Park operating deficit for 2010 is estimated to be $153,459. The primary revenue driver at Centennial Lakes — Association Fees — is governed by the Centennial Lakes development agreement. The association fees for residential properties are frozen at their current rate of $15 per unit/month. Association fees for commercial space are tied to the Consumer Price Index (CPI). Because the primary revenue driver in this case is relatively inelastic revenue source, management staff analyzed the potential to recover operating expenses by adjusting the park's user fees and facility rental charges. In order to recover 100 percent of Centennial Lakes 2010 operating deficit through an adjustment to user fees and facility rental costs, it would require an average increase of 40 percent across the board in these revenue sources. This would require increases to the cost of a round of golf from $8 to $11.20, skate rental from $5 to $7, paddleboat rental from $8/30 minutes to $11.20/30 minutes and the Hughes Pavilion from $225/four hours to $315/four hours. Increasing these user fees and facility rental costs by 40 percent would push our cost structure significantly higher than our market competitors in most cases. Management believes there is a moderate risk of this strategy failing to generate additional total revenue as current price sensitive customers would look for other less costly venues to spend their discretionary leisure dollars. �c LAKES PARK 18 C E N T E N N I A L L A K E S P A R K CENTENNIAL LAKES & EDINBOROUGH DARKS Financial Summarv- 7nna..?n , Concessions Memberships Admissions Building Rental Equipment Rental Greens Fees Class Registration & Other Fees Total Operating Revenues Cost of Goods Sold Personnel Services Contractual Services Commodities Central Services Depreciation Total Operating Expenses �LvsS) (Expense) Investment Income Other Miscellaneous Revenue Total Non -Operating Revenue 2008 $56,643 56,051 526,597 272,711 92,324 177,109 484,487 1,665,922 54,848 1,146,551 486,910 264,006 83,355 102,725 2,138, 395 (472,473) 382,007 382,007 ($90,466) Operating Revenues $1,665,922 Operating Expenses (2,138,395) Non-operating Revenues (Expenses) and transfers 382,007 Depreciation 102,725 Capital Expenditures (480,113) Other Accruals 231,225 Change in Cash & Investments (236,629) January 1 Cash & Investments 4,187,649 December 31 Cash & Investments $3,951,020 Note: 2008-2010 data is based on audited financial statement: kip] 2009 $59,413 57,078 563,966 240,489 103,761 215,710 483.640 1,724,057 51,904 1,196, 568 530,599 281,532 79,145 148.125 2,287,873 (563,816) 74,728 2,250 76,978 ($486,838) $1,724,057 (2,287,873) 326,978 148,125 (582,631) (156,626) (827,970) 3,951,020 $3,123,050 while 2011 data is based � �c CENTENNIAL LAKES PARK 2010 $64,402 52,515 569,591 269,352 129,407 176,124 498.486 1,759,877 56,382 1,226,239 445,342 264,634 81,889 193.762 2,268,248 (508,371) 147,300 147,300 (361,071) $1,759,877 (2,268,248) 270,671 193,762 (257,410) 39,806 (261,542) 3,123,050 $2,861,508 m an adopted budget 2011 $130,000 56,00 540,000 237,000 89,500 190,000 500,000 1,742,500 94,000 1,315,580 458,050 277,600 98,772 160,000 2,404,002 (661,502) 98,000 98,000 (563,502) $1,742,500 (2,404,002) 389,000 160,000 (291,000) (403,502) 2,861,508 $2,458,006 C E N T E N N I A L L A K E S P A R K s C I A L , —O A Iw' Historical Analysis of Subsidil Year Amount Source 1999 $206,000 General Fund 2000 $108,000 General Fund 2001 $46,000 General Fund 2001 $56,300 Construction Fund 2002 $54,343 Construction Fund 2003 $277,201 Construction Fund 2004 $98,000 Construction Fund 2005 0 2006 0 2007 0 2008 0 2009 $250,000 Construction Fund 2010 $123,371 Construction Fund Note: Subsidy amount is based on cash position of fund, not annual performance. 2008 2009 2010 Percent of operating expenses covered by operating revenue: 78% 75% 78% �c CENTENNIAL LAKES PARK 20 C E N T E N N I A L L A K E S P A R K 21 CENTENNIAL LAKES PARK BUSINESS PLAN /�Ol 0=20 1 m 10 A m E D I N A A R T C E N T E R Summary The Edina Art Center, located one mile west of Southdale Center at 4701 W. 64th St., provides the community with a place to enjoy art and a chance to learn how to create it. Staff The Art Center has one full-time Director, six part-time office staff, a full-time Program and Gallery Coordinator, a part-time Media Studios Manager (since 1998), approximately 35 instructors and more than 40 volunteers. The part-time staff consists of a bookkeeper, office manager, pottery studio manager, clay/facilities maintenance, workshop coordinator, schedule editor, event coordinator, publicity coordinator, and general registration and membership data entry. In 2010, the Art Center's main office and gift shop hours of operation were reduced. These areas are now open until 8 p.m. instead of 9:30 p.m. Monday through Thursday, saving more than 300 staff hours. Approximately $3,500 will be saved per year. Although some classes run through 9:30 p.m., an instructor is responsible for checking doors and setting the alarm system. Students are asked to make any purchases in the gift shop or supply area before 8 p.m. The full-time Gallery and Program Manager's hours were restructured to take on some of the duties of a part-time office person who was not replaced. Approximately 50 hours per month, or 600 hours per year, were cut with a savings of $7,000. Volunteers are relied on more heavily than ever before. Volunteers come in nearly every day and do everything from filing to cleaning to fundraising. Classes The Edina Art Center offers classes and workshops for all ages and abilities, beginning at birth when young children attend with their parents to the professional artist who is still learning and growing through excellent faculty members. Although the Art Center's emphasis is on fine arts, several classes in the craft area are offered, such as papermaking, jewelry, tie-dye and painting on wearable arts. Watercolor is one of the Art Center's most popular media. Classes are also offered in portraiture, realistic painting and drawing, pastels, acrylics, landscapes, life drawing, porcelain painting, oils, pottery, design, bookmaking, sculpture, mask - making, architecture and more. Art for All Ages workshops were started 20 years ago. In Art for All Ages, children are placed in workshops with adults. Using the one -room schoolhouse type of learning, these workshops have been some of the Art Center's most popular offerings. We have had classes where grandparents have come in with their grandchildren. 22 En»uA C E D I N A A R T C E N T E R 23 The Art Center's number of registrants continues to climb slightly. In 1991, enrollment was 1,600 registrations per year. In 1999, this figure had increased to 6,500 and in 2006, 7,200 registrations. By 2009, approximately 8,300 registrations were taken. With an emphasis on individualized, guided education, the Art Center's classes for young people are limited to eight students for the preschool and kindergarten classes and 12 for the first through eighth grade. Adult classes vary according to media. The Edina Art Center currently offers two classes per week at the Edina Senior Center. We also rent out two areas for private studios (96 square feet) that bring in $3,072 of revenue per year. We pay the Senior Center $1,200 per year. It is difficult to schedule more programming at the Senior Center because of parking limitations. The Senior Center has 28 assigned spaces. Additional parking would be necessary if the library, Senior Center and Art Center were to hold functions simultaneously. Sunday afternoon classes and events might be considered in the future. Edina Art Center's Board of Directors The Edina Art Center Board of Directors consists of 11 members appointed by the Edina City Council. They work in an advisory capacity to the City Council. The Board's duties are to make recommendations regarding the operation of the Edina Art Center, plan and recommend to the Council art activities and programs, develop a long-term plan directed toward fulfilling the needs and desires of Edina residents with respect to the arts, recommend programs at the Edina Art Center that are responsive to community desires, periodically report to the Council on matters pertaining to the Art Center and public art in Edina, initiate and oversee fundraising activities that benefit the Art Center and public art in Edina, represent the City at community functions pertaining to the visual arts and with similar bodies and organizations involved with the visual arts, oversee the development and implementation of a public visual arts program in Edina and perform other duties from time to time as directed by the Council. Beginning in the fall of 2010, the Art Center welcomed two new student members from Edina High School to the Board. They worked on a new self portrait exhibit for teens from Edina High School which opened Feb. 24. Edina Public Art The Edina Public Art Committee (EPAC) is a committee of the Edina Art Center Board. The purpose of the Edina Public Art Committee is to promote the public's awareness and enjoyment of community spaces within the City via visual artistic enhancement with two- and three-dimensional pieces of art. One-fourth of the proceeds from the Taste of Creativity fundraiser on Nov. 4, 2010, went directly to public art in Edina. The committee is also working on a possible bronze sculpture as a tribute to Kodiak and all police It is possible that this sculpture will be funded by the Crime Prevention Fund. Membership Memberships steadily increased until 2007, growing from 324 members in 1986 to more than 1,100 in 2007. EmA 1C E D I N A A R T C E N T E R Membership from 2007 to 2010 remained steady at between 1,100 and 1,250. Memberships are valid for one year from the date of purchase. Family memberships include parents and all children under 18. Benefits include invitations to openings and special events, discounts on classes of at least 10 percent, 10 percent reduction on supplies, place to meet and exchange ideas with other art enthusiasts, entry into the annual Members' Juried Show and use of Art Center studios when space is available. Grants are available to any students who have the need through the generosity of the Peggy Kelly Family Fund, Pat Van Valkenburg Children's Scholarship Fund and the Golden Kiwanis. The scholarship grant requests have grown steadily in the past few years. Arts and Healthcare In 2010, the Edina Art Center joined the Midwest Arts in Healthcare Network. Two staff members attended the International Society of Arts in Healthcare conference in Minneapolis. Greer Garden Thanks to private donations and our capital improvement funds, the first phase of the Greer Garden was complete in June of 2010. This area is now a joy to our students and visitors throughout the summer and fall. You will often see folks painting or having their lunch on the deck. Plans for future capital improvements include a better grade of permeable ground cover. Since 2003, very few physical changes have been made to the building. The Peggy Kelly Media Arts Studios were downsized in 2004, the School of Realism was put on hold in 2009 and now a portion of the studios has been designated for office space for the pottery studio manager and a program assistant. Two private rental studio areas remain on the west side. Major roof repairs were made in 2006, 2007 and 2009. The 20 -year-old roof structure over Studio 14 had been holding standing water and leaking in heavy rain or snow melt and was repaired. The other lower -level area received an improved drainage system and a rebuilding of the kiln room roof support. In 2007, the Art Center Board discussed the possibility of adding additional classroom space, but decided to postpone the project due to the economy and the limited growth of the student population. Future needs for capital improvements include a safer parking lot. 24 E D I N A A R T C E N T E R According to evaluations from students, verbal questions, and registration from forms on direct mailings, the number one means of advertising is still "word of mouth." Internet searches are growing fast, but "driving by and saw the sign" comes in second. The printed session schedules have been reduced from five per year to four per year. In the fall of 2010, the printed schedule size for all schedules except spring/summer was reduced from a 16- to 24 -page publication to a 15 -by -18 -inch, two-sided, folded publication. The new format has been received well. It is too early to tell if this will negatively affect registration revenues, but staff estimates a savings of $6,000 a year in printing and postage. The Art Center spends approximately $7,500 per year on paid print advertising. General ads are placed for the Media Arts Studios and workshops. Advertising is also placed to promote events such as the Taste of Creativity, summer camps, gift sale, Tile Conference and art fairs. In addition, the Art Center sends out direct-mail pieces for special events and openings, occasionally sends flyers home with Edina Public Schools students, organizes outreach exhibits at local businesses such as Jerry's Cafe and works with the Communications & Marketing Department to issue several press releases. Most group exhibits are responsible for printing and mailing their own invitations at the group's expense. The Art Center has taken advantage of the City Extra emails and is on Facebook. Year Hourly Non -Member Hourly Member 2009 $7.50 $6.75 2010 $7.75 $7.00 2011 $8.00 $7.20 The Edina Art Center's pricing remains competitive when compared to similar facilities in the metropolitan area, although we are approximately 10 percent higher than our closest competitor: Hourly Hourly Membership Membership Non -Member Member Individual Family Eden Prairie $4.40-$7.20 $3.96-$6.48 $30 $45 Bloomington $7 $6.26 $35 $50 Edina Art Center $8 $7 $30 $45 Banfille-Locke $7.87 $7.25 $21* $29 I 25 EouuA E D I N A A R T C E N T E R Minnetonka $8 $7.20 $50* $50 *The Bonfille-Locke senior and student rate for membership is $16 and the Minnetonka rate for senior membership is $45. The Edina Art Center charges an additional $16 studio fee for pottery classes. Media Arts Studios classes are $14 for non-members and $12 for members. Edina resident members received a $5 discount on classes. Camp rates for 2011 include a substantial discount for Edina resident members. ($74 non-members, $64 members, $54 Edina resident members). Media Studios The Peggy Kelly Media Arts Studios offers classes and workshops in computer graphics, photography and video editing. Additionally, self-service facilities are offered for transfer of video, slides, photos and home movies to DVD. These offerings continue to be popular and should remain viable in the near future. Foreign format conversion and audio dubbing business volume is likely to diminish because of low-priced technology available to home users. Other obsolete technologies (i.e., rental of movie projectors and overhead projectors) are still offered, albeit with little volume, because the equipment is fully amortized. The portrait photo studio was closed in 2011 because it was seldom used. That space will continue to be used as a classroom and video editing studio. significant changes in businessf Lurnpetitive Environtinert As management predicted, the opening of the multi-million dollar Bloomington Art Center and the Minnetonka Center for the Arts five years ago has had some impact on Art Center registration revenue. Eden Prairie Art Center opened in the spring of 2009 and by May of 2010 they had more than doubled their revenue projections. Revenue for 2009 was $80,000. Of that revenue, class and program revenues were $33,700, $2,000 in memberships, $8,500 from the Eden Prairie Foundation and $36,000 from patrons, including the Sampson Family who donated the facility to the City of Eden Prairie. It is difficult to determine an average hourly price for Eden Prairie classes since the instructors set their own hourly rate. The Peggy Kelly Media Arts Studios has a competitive advantage in pricing because our customers provide the labor and creative direction for their projects. The competition offers over-the-counter package processing and the customer receives a standardized finished product some days later. Our pricing target is to be at least 50 percent below the competition, though when adding our Membership fee to a small project, we are occasionally comparably priced. We continue to see coupon or special pricing from the larger firms in movie and video transfer. Our use of discount coupons has seen modest success. Customer Analysis In a recent review of geographical locations on our mailing list, we gathered the following information. This list is comprised of students, potential students, members, other art centers, and art enthusiasts. It does not include businesses or schools. We should note that this does not include the thousands of visitors per year or children (who are included with their parents' addresses.) We are currently exploring the logistics of gathering data to determine a more accurate count of visitors. ^,r EDINA CE0 26 E D I N A A R T C E N T E R 27 City Total Members Non -Members Edina 1,585 654 931 Minneapolis 961 362 599 Eden Prairie 342 134 208 Bloomington 271 101 170 St. Louis Park 199 72 127 St. Paul 196 77 119 Richfield 103 40 63 Other Suburbs combined 1,026 407 643 Totals 4,683 1,847 2,860 Hours It is difficult to compare the hours of the Edina Art Center's operation to those of similar facilities because each art center has a different number of students. The Edina Art Center, with more than 7,000 registrations per year, is open more hours per week than many. Bloomington 43 hours Edina 54.5 Estes Park, Colo. 49 Hyde Park, III. 65 Mendocino, Calif. 49 Minnetonka 61.5 Oak Ridge, Tenn. 41 Sedona, Ariz. 49 Sioux City, Iowa 39 With the recent reduction of 1.5 hours per night Monday through Thursday, the Art Center's hours seem to be working best to serve the needs of students. The Art Center Director recommends that 1.5 hours be added on Fridays so that the facility can remain open until 5 p.m. During the past 10 years, the Art Center has averaged $130,000 per year in subsidies from the Liquor Fund to cover its deficit. The Art Center's primary source of income is the class tuition. Currently, class revenues total approximately $320,000 per year, so to make up this deficit, the class fees would need to be raised approximately 40 percent. In comparison to other Art Centers, this would make the Edina Art Center quite a bit higher than any other area Art Center. We have gradually raised the class fees approximately 3 percent per year over the past five years. EDRA-.,. E D I N A A R T C E N T E R Note: 2008-2010 data is based on audited financial statements, while 2011 data is based on on adopted budget. EDNA CEq 2011 $45,500 500 28,000 356,000 48,000 478,000 24,000 273,882 281,750 53,200 38,856 27,500 699,188 (221,188) 22,000 22,000 ($199,188) $478,000 (699,188) 204,000 27,500 (22,000) (11,688) 145,628 $133,940 28 2008 2009 2010 Retail Sales $40,693 $41,883 $41,003 Concessions 651 444 479 Memberships 27,716 25,496 24,998 Class Registration & Other Fees 335,114 339,469 319,364 Media Studio 47,523 60,925 42,255 Total Operating Revenues 451,697 468,217 428,099 Cost of Goods Sold 22,303 21,094 17,236 Personnel Services 221,416 244,329 219,647 Contractual Services 302,066 293,356 253,025 Commodities 51,670 59,568 54,725 Central Services 36,533 34,847 34,897 Depreciation 30,206 30,124 26,573 Total Operating Expenses 664,194 683,318 606,103 (Coss) (212,497) (95,676) (178,004) (Expense) Excess tax increments - 100,124 - Donations 26,474 19,302 31,701 Total Non -Operating Expense 26,474 119,426 31,701 Loss Before Transfers ($186,023) ($95,675) ($146,303) Operating Revenues $451,697 $468,217 $428,099 Operating Expenses (664,194) (683,318) (606,103) Non-operating Revenues (Expenses) and transfers 161,474 264,426 191,701 Depreciation 30,206 30,124 26,573 Capital Expenditures - - (27,255) Other Accruals 10,440 4,876 2,503 Change in Cash (10,377) 84,325 15,518 January 1 Cash 56,162 45,785 130,110 December 31 Cash $45,785 $130,110 $145,628 Note: 2008-2010 data is based on audited financial statements, while 2011 data is based on on adopted budget. EDNA CEq 2011 $45,500 500 28,000 356,000 48,000 478,000 24,000 273,882 281,750 53,200 38,856 27,500 699,188 (221,188) 22,000 22,000 ($199,188) $478,000 (699,188) 204,000 27,500 (22,000) (11,688) 145,628 $133,940 28 EDINA ART CENTER 29 APS` r^r-f�tTFR Year Amount Source 2010 $150,000 Edina Liquor 2010 $10,000 Construction Fund 2009 $145,000 Edina Liquor 2008 $135,000 Edina Liquor 2007 $1,575 Park Developers Fund 2007 $135,000 Edina Liquor 2006 $110,000 Edina Liquor 2006 $37,000 Construction Fund 2005 $100,000 Edina Liquor 2004 $130,000 Edina Liquor 2004 $25,000 Construction Fund 2003 $111,000 Edina Liquor 2003 $8,587 Construction Fund 2002 $114,000 Edina Liquor 2002 $15,010 Construction Fund 2001 $104,000 Edina Liquor 2001 $8,252 Construction Fund 2000 $139,000 Edina Liquor 1999 $155,000 Edina Liquor Note: Subsidy amount is based on cash position of fund, not annual performance. 2008 2009 2010 Percent of operating expenses covered by operating revenue: 68% 69% 71% 0 0 BUSINESS PLAN 201 0=20 T E D I N A A Q U A T I C C E N T E R The Edina Aquatic Center, formally known as the Edina Municipal Pool, is the oldest pool in the Hennepin County. On Feb. 5, 1957, the voters of the Village approved the issue of $200,000 in bonds for constructing a pool. In addition, the Dayton brothers graciously donated to the Village 15 acres of land and 9.2 acres of Lake Cornelia, with the Village purchasing an additional 10.4 acres of land and 29.2 acres of lake area at a total cost of $50,000. The Edina Municipal Pool officially opened in the summer of 1958 with the pool dedication on July 9, 1958. In 2010, the Edina Aquatic Center recovered 126 percent of its operating expenses for its 80 -day season with operating revenues — an outstanding result for a municipal swimming pool operation. The Edina Aquatic Center is brought to life each year by roughly 71 part-time seasonal, 135 percent full-time maintenance and 120 percent administrative staff, or "cast," members. How We Achieve Success Formula: 1. By taking an aggressively friendly approach — one that encompasses smiles, enthusiasm, sincerity, high energy and, above all, concern for the happiness and safety of the guest. 2. By treating each and every guest as VIP — very important people, and very individual people, too. 3. Cross training and cross utilizing cast members. Our Service Goal: "Give the people everything you can give them, keep the place as clean as you can, keep it friendly and make it a fun place to be." Elements of Our Service Goal: 1. Safety 2. Courtesy 3. Show 4. Efficiency We plan to begin construction of a FlowRider this summer and open the amenity in 2012. The FlowRider will not be included in the daily admission or season ticket fee. Early projected revenues for the FlowRider are 4,000 daily wrist bands at a cost of $5 each for a total of $20,000 and 1,200 add-ons to the season ticket at $50 each for an additional $60,000. The expenses for staffing, electricity and chemicals are projected to be $14,000, for a net of $66,000. 30 E D I N A A Q U A T I C C E N T E R Other smaller capital improvement projects are replacing the epoxy floor in the bathhouse and replacing the water softener and possibly one of three pool heaters. We've traditionally paid for the smaller capital improvement projects through our operational budget. Staff feels that the most important piece is to refresh and renew the facility on an annual basis. Each and every year, thousands of dollars are spent to refresh and renew the facility. It has been our goal to make it look like a brand-new facility for the first guest through the door. in addition, each spring we time mailing out our pool brochures to the previous year's season ticket holders in an attempt to get them to hit the mailboxes on one of the first really nice days of spring. Since 2002, guests have also been able to purchase season tickets online at www.EdinaAquaticCenter.com. Incentives are in place for those who purchase their season tickets on or before April 30. Now more than ever, the facility's website is a cornerstone of marketing. The website is meant to show off the amenities and demonstrate the facility's friendliness and cleanliness. We also added a virtual tour of the facility in 2008 similar to the virtual tours on the websites of Braemar Golf Course, Centennial Lakes Park and Edinborough Park. The facility has begun using social media, Facebook in particular. The Edina Aquatic Center does not place paid advertisements. Management has felt that by refreshing the facility each year and continuing to add new amenities, interest will remain strong and through word of mouth will keep the Edina Aquatic Center the facility of choice. Our pricing strategy recognizes the competitive nature of the aquatic center business as well as the convenience and amenities offered by our facility. Management has always priced daily admission on the high end of the marketplace in an attempt to steer patrons into purchasing season tickets. In 2009, daily admission ranged from a low for the Richfield Municipal Pool at $8 to the Eagan Cascade Bay at $9 and the Edina Aquatic Center at $10. A higher daily admission rate is also a great way to gain revenue out of the large groups that come to frequent aquatic facilities, but also have a tendency to overtax the facility. Groups frequent the Edina Aquatic Center each day during the work week. Groups need to call in advance to make reservations to ensure admittance and travel from as far as Andover, Big Lake, Burnsville, Dayton, Hudson and Spring Lake Park. In the aquatic industry, facilities have given a slight discount to residents when investing in the facility by purchasing a season ticket, but have never separated "resident" from "non-resident" with daily admission fee. It is staff's recommendation to continue this practice. 1 31 EDINA AQUATIC C E NTE R The Edina Aquatic Center currently offers a summer season in which we open the first Saturday after the Edina Public Schools' school year ends and closes the fourth Sunday in August. This allows the Edina Aquatic Center time to properly hire and train the 50 to 60 part-time seasonal employees it takes to bring the facility to life each year. High school employees are not available earlier in the season, and high school and college employees are not available later in the season. We must maintain staffing levels to ensure safety and good customer service. Aquatic Center users continue to "shop" for the newest and most innovative recreational experience. Neighboring communities have either built new or renovated existing facilities to remain _ competitive. St. Louis Park continues to provide the stiffest competition with a new facility in 1997. Richfield and Bloomington have renovated facilities, but lack the star power of Edina, St. Louis Park, Anoka, Apple Valley or Eagan. Anoka and Eagan have the two nicest aquatic centers, with over $7 million invested in each. In 2010, Anoka added a lazy river, additional waterslides and a concession stand and Eagan worked with Themescapes to build a themed ship of their own with slides and a rope swing for patrons to enjoy. In 2009, Apple Valley added a lazy river and a funnel -style waterslide. Other competition surfaced in the last four years with the state's largest Lifetime Fitness center in Chanhassen and the Waterpark of America, an indoor waterpark in Bloomington. The Edina Aquatic Center tries to distinguish itself from other aquatic centers in a number of ways: • Independent 100 percent zero -depth pool with interactive water playground, a particularly attractive design to families with toddlers who are looking to be segregated from the main pool. • Themed platform and zip -line. This is an amenity unique to Edina's facility. • Themed dry playground. The dry play area is clearly superior to other facilities and offers an enhanced play environment. • Waterslide tower off the pool deck with a separate plunge pool. • Step -in -entry into the main pool so that parents can sit on the steps as their children acclimate to the deeper water. • Jeff Ellis and Associates trained and certified lifeguards. Many patrons feel much safer at our facility. Other competitive issues to be mindful of include: • The City of St. Louis Park is looking to add a significant new amenity, either a separate wading pool with large interactive play structure or a surfing pool. 32 E D I N A A Q U A T I C C E N T E R • The City of Bloomington is looking to work with Themescapes to add a themed ship's bow and cable ride like the Edina Aquatic Center's. • The City of Hopkins "Shady Oak Beach" is looking to work with Themescapes to add a similar dry playground to the Edina Aquatic Center's. • The City of St. Paul is currently building a new pool with a theme platform and cable ride. • The Edina Aquatic Center is disadvantaged by its relatively small size (compared with other metro facilities) and the inability to expand in its present location. Learn to Swim History From 1958 through 2002, the Edina Park & Recreation Department ran Learn to Swim lessons at the pool. By the year 2000, with the development of more private indoor climate - controlled Learn to Swim Programs, our numbers began to decline. It also became more and more difficult to find the Water Safety Instructors, so in 2003, the Edina Park & Recreation Department solicited private partnership offers. Our first partnership was a five-year agreement with Foss Swim School. Foss Swim School paid rent to the Edina Aquatic Center to run Learn to Swim lessons in the plunge pool, but also had a developmental swim team called Aqualets utilizing the main pool. At the conclusion of the first five-year agreement, the Edina Park & Recreation Department once again took proposals for a new Learn to Swim contract, but reduced the length to two years to allow great flexibility to go a different direction with the facility if needed. We recently completed the second year of our third Learn to Swim contract and second year of a two-year agreement with Martha Burns. Our net for the 2011 summer season was approximately $28,000. if we decide to eliminate the Learn to Swim program at the Edina Aquatic Center, it will be because we either can't get the facility refreshed in the overnight hours or we'd like to provide a soft opening for our season ticket holders, thus providing more value. i' 33 �, EDI NA A Q U ATI C C E N T E R Types of Season Pass: Resident Individual Resident Family Non -Resident Individual Non -Resident Family Total Passes Total Number of Names Resident Revenue Non - Resident Revenue 2007 2009 2010 438 373 394 1,806 1,623 1,561 192 172 174 903 899 8,40 3,339 3,067 2,969 10,568 9,791 9,269 $334,320 $280,509.30 $242,536.51 (65%) (60%) (58%) $180,350 $189,971.99 $175,004.64 (35%) (40%) (42%) Non -Resident Season Tickets — Top Cities & Number 2007 2009 Minneapolis — 523 Minneapolis - 630 Eden Prairie — 157 Eden Prairie - 139 Bloomington — 100 Richfield - 77 Richfield — 85 Bloomington - 71 St. Louis Park — 42 St. Louis Park - 26 Hopkins — 31 Minnetonka - 22 Minnetonka— 24 Hopkins - 19 St. Paul — 22 Golden Valley - 10 Chanhassen —13 Chanhassen - 7 36 other cities 37 other cities 2010 Minneapolis - 582 Eden Prairie - 116 Richfield - 84 Bloomington - 78 St. Louis Park - 22 Hopkins - 16 Victoria - 11 St. Paul - 9 34 other cities In 2004, the Edina Aquatic Center experienced the coldest and wettest summer on record with 65 days below the average temperature and only one day of 90 degrees or better. In 2005, those that had purchased 2004 season tickets and rarely used them because of the unseasonably cold weather probably thought twice before reinvesting in 2005. That being said, the Edina Aquatic Center saw a high in ticket sales back in 1999 with 4,064 tickets and more than 16,000 names on those tickets. In recent years, the Edina Aquatic Center has settled in at roughly 3,000 passes with between 10,000 and 11,000 names on them. However, slipping below 10,000 names in 2008 and 2009 for the first time since 1997 indicates the need to continually find ways to improve the facility. Facilities that are 40 years newer and cost several million dollars to build such as Anoka, Apple Valley and Eagan have all made significant facility improvements in 2009 and 2010. The most significant was Anoka, reinvesting just short of $3 million. t1: 34 A E D I N A A Q U A T I C C E N T E R W 7 IIX'T IMF H15.1 CH�J� L W IEN:E SIP —.111110111111UPM-- Sim wo m �1115 I FLOWRIDER E)OSTNG DECK ruse OF 5 FW ffrfa CIAIMS FLOWRIDER E D I N A A Q U A T I C C E N T E R f 7LW GATE PAY AREA WY �y AKEA *FTW,H-- F64CL DECK 0"' 36 E D I N A A Q U A T I C C E N T E R 2008 2009 2010 2011 Retail Sales $4,991 $4,759 $7,442 $4,800 Concessions 127,087 101,398 123,879 115,000 Memberships 450,720 464,570 436,524 420,000 Admissions 313,735 261,621 334,851 250,000 Building Rental 26,753 27,468 42,245 29,000 Other Fee 2,102 - 588 - Total Operating Revenues 925,388 859,816 945,529 818,800 Cost of Goods Sold 32,754 28,670 35,902 37,600 Personnel Services 269,949 261,365 270,884 302,034 Contractual Services 131,058 118,074 113,170 107,200 Commodities 87,700 142,570 115,070 76,350 Central Services 27,482 25,056 22,080 23,364 Depreciation 196,575 194,928 194,701 198,000 Total Operating Expenses 745,518 770,663 751,767 744,548 Operating inccn-e/(Loss) 179,518 89,153 193,762 74,252 Non -Operating Revenge, (Expense) Bond Interest and Other (42,145) (27,706) (17,841) (16,550) 137,725 61,447 175,921 57,702 January 1 Net Assets 2,000,196 2,137,921 2,199,368 2,375,289 December 31 Net Assets 2,137,921 $2,199,368 2,375,289 2,432,991 Operating Revenues $925,388 $859,816 $945,529 $818,800 Operating Expenses (745,518) (770,663) (751,767) (744,548) Non-operating Revenues (Expenses) and transfers (42,145) (27,706) (17,841) (16,550) Depreciation 196,575 194,928 194,701 198,000 Bond Principal (115,000) (110,000) (135,000) (125,000) Capital Expenditures - (14,915) - (650,000) Other Accruals (455) (2,995) (1,418) - Change in Cash 218,845 128,465 234,204 519,298 January 1 Cash December 31 Cash 1,179,383 1,307,848 1,542,052 1,022,754 Note: 2008-2010 data is based on audited financial statements, while 2011 data is based on an adopted budget. 37 E D I N A A Q U A T I C C E N T E R Year Principal Interest Total 2011 $125,000 $15,950 $140,950 2012 135,000 13,350 148,350 2013 140,000 10,600 150,600 2014 80,000 8,200 88,200 2015 75,000 6,075 81,075 2016 80,000 3,750 83,750 2017 85,000 1,275 86,275 $720,000 $59,200 $779,200 Final Debt Payment Represents 2 Bond Issues: Early 1990s to construct original waterslide and zero -depth area - to be retired in 2013. Next issue in 2002 to build plunge pool, cable ride and dry play area to be retired in 2017. Both issues refunded in 2009 with no change in final maturity. 2008 2009 2010 Percent of operating expenses covered by operating revenue: 124% 112% 126% 38 EDINA 'LIQUOR o.J /► BUSINESS PLAN 2010-2011 E D I N A L I Q U O R The City operates three Edina Liquor stores. The 50th & France store is located at 3943 W. 50th St. The Grandview (Vernon) store is located at 5013 Vernon Ave. The Southdale store is located at 6755 York Ave. All three stores are strategically situated in high traffic areas next to or near a major supermarket. Combined, the three Edina Liquor stores generate nearly $1 million a year in net income for the City. This money is used to subsidize many of the City's public amenities, including Braemar Arena, Braemar Golf Course and the Edina Art Center, and pay for some capital expenditures. WilRAS S OU NOT GRIGIO Edina Liquor continues to be one of the top -performing municipal operations in Minnesota. Edina Liquor has ranked in the top three Minnesota municipal operations for net profit and gross sales for each of the past 10 years. Edina Liquor has a staff of nine full-time employees and 35 to 45 part time employees, depending on the season. It is overseen by the Liquor Operations Director with each store having a Store Manager. Our Southdale and Grandview locations each have two Assistant Managers and the 50th & France location has one Assistant Manager. Our Southdale location employs up to 20 part-time, Grandview up to 16 part-time and 50th & France up to 9 part-time employees. Our full-time staff averages over 15 years of service with the City of Edina and over 20 years of experience in retail liquor. Our part-time staff averages over two years of service with the City. One of our current part-time employees has worked for Edina Liquor for more than 50 years (full- and part-time). Wine sales continue to be Edina Liquor's highest sales category, representing over 44 percent of total sales. In 2009, the Southdale store was the largest grossing store of a municipal operation in Minnesota. Our Grandview location is the largest grossing store per square foot of any municipal store in the state. Staff is looking to redesign the layout of the Southdale store on York Avenue. The store was built in 1996 and has served us well. Over time, staff has seen a shift in customers' shopping habits and feels the best way to take advantage of these changes is to change the way that the store currently operates. Other improvements in future years consist of replacing entrance and exit doors at the 50th & France and Southdale locations, replacing beer cooler door lighting with new high -efficiency LED lights at all A. EDINA:: LI V Q UOR 39 E D I N A L I Q U O R three stores, replacing rooftop HVAC units at the Southdale location, and replacing outdoor neon signs with new LED -lit signs. Staff will study the viability and profitability of the 50th & France store since its profits equate to just 10 percent or so of total liquor profits. While there are currently no plans to open a fourth store, the staff at Edina Liquor will continue to study the feasibility of this idea. Many factors need to be considered for this to happen with the most important one being location and whether we own or lease a building. We will continue to explore other ways to expand our operation outside of our current stores within the current liquor laws. In late 2007, the Communications & Marketing Department completed a survey of 265 Edina Liquor customers. Seventy-nine percent of those shoppers live within three miles of their preferred Edina Liquor location. Common comments on the survey were, "proximity," "close to home" and "I drive by on my way to work." According to the survey results, 75 percent of customers shop at Edina Liquor for its convenience or location; 7 percent, friendly staff; 7 percent, coupons; 6 percent, prices; and 5 percent, selection. Like all City departments and facilities, Edina Liquor prides itself in providing exceptional customer service. The survey showed that in the eyes of existing customers, Edina Liquor is doing very well in all areas. Edina Liquor continues to educate the public about its place as a municipal operation and its extensive selection of liquor, beer and wine. Marketing and advertising have been centered on these themes. Wine, liquor and beer tastings are held nearly every weekend and special events with distributors held at various times throughout the year. A bi-monthly newsletter, Edina Liquor Uncorked, has been produced since 2006 and staff is also utilizing Edina's "City Extra," Facebook and Twitter. Edina Liquor is an active member of the Edina Chamber of Commerce and the 50th & France Business & Professional Association. Edina Liquor is a sponsor of the Chamber's annual Emerald Gala and a partner in the Taste of Edina. The Taste of Edina has grown each year and gives Edina Liquor a chance to show the community and customers some of the products that the stores offer. To help build on the Taste of Edina, Edina Liquor held its first spring sale in May of 2010 to coincide with Taste of Edina. Edina Liquor also takes part in the 50th & France Ladies Night Out, held three times a year. In 2010, Edina Liquor participated in the Art Center's first Taste of Creativity. The goal was to add value to those that attended and generate new business for the liquor store. In 2011, Edina Liquor worked with the Edina - Morningside Rotary Club to put on a beer tasting in the Braemar Room at Braemar Golf Course. Edina Liquor will continue to look for opportunities to work with other community organizations. Edina Liquor has been active in direct mail advertising for approximately four years. Our strategy has been to promote more local by zoning where our advertising goes. By using a coupon in our advertising, we are able to track if a campaign is successful. Our goal is to keep our current customers coming back and a coupon gives them one reason to do so. We have much greater success in redemption if the coupon is a percentage off the total purchase versus a specific product discount. Currently, more than 500 coupons are redeemed per month from our direct mail advertising. The City first produced Edina Liquor Uncorked in the summer of 2006 as a means to better educate customers and potential customers on Edina Liquor's extensive selection and excellent customer �s E D I N A I Q U O R 40 • E D I N A L I Q U O R service. Edina Liquor Uncorked is distributed to 370 individuals who have signed up to be on a mailing list. Another 1,500 copies are distributed every two months in all three stores. The newsletter is also available online at www.EdinaLiquor.com. It is in HTML format as opposed to PDF, meaning that all content is found easily on search engines. Edina Liquor has also utilized "City Extra" to keep its customers informed of new products and upcoming events or tastings. Edina Liquor has over 450 subscribers signed up to receive updates. Edina Liquor is also using Facebook and Twitter to get its message out and to keep its customers informed and up to date on new products and tastings that the stores have to offer. These two social media applications have been very effective for us in letting our customers know about new and limited -release craft beers that we receive into our stores. Edina Liquor customers are very computer literate and we are able to use that to our advantage by offering Wine Connect which allows individuals to order liquor, beer or wine online. To be competitive in this market, we need to be able to show our customers Edina Liquor's liquor, beer and wine inventory. Edina Liquor will continue to advertise in a variety of different media. The most successful advertising to date has been a direct mail piece produced by Dollars & Sense. We consistently receive approximately 300 coupons over a three-day period once a month when a 15 percent off wine coupon is published. Our staff is asked quite often by our customers "When is the next coupon coming out?" Other advertisers we work with include Edina Magazine, City Pages, Edina Community Education, Town Planner, Edina Sun -Current, Dex and Verizon phone directories, and Comcast, including its own commercials for cable television to target our core buying groups using zoned -based advertising instead of mass advertising such as radio or network TV. Delivery/Wine Club Currently, Edina Liquor does not deliver any of its products to consumers. We feel that the liability is far too great to risk making home deliveries. Also, with the high cost of fuel and an increase in insurance premiums, we would not see a large enough increase to our bottom line to add this service. To our knowledge, there is not one municipal liquor operation in the metro that makes home deliveries. Edina Liquor does not have a wine club. In the past, we found that those asking for a wine club wanted one in order to get a discount while shopping at our stores. We are always looking for ways to work with groups that want to hold special events and feel we can teach and promote the stores in this ED INAL I Q U 0 R 41 • E D I N A L I Q U O R fashion while also benefiting the community. Edina Liquor will continue to evaluate whether a wine club is in the City's best interest going forward. Online Ordering Edina Liquor currently has an online ordering site within our website, www.EdinaLiquor.com. This site is only to place online orders. The customer has to come to our store to pay for and pick up the product. We do not ship any product from our stores. The reason we do it this way is that it is the only way for us to make a legal sale. We feel it is very important to put a face to the product we are selling, and by selling over the internet we cannot do our job properly. It also could increase liability to the City if an internet transaction were to go bad. Gift Cards Over the past few years, Edina Liquor has promoted its gift cards as a way to purchase liquor, beer or wine without knowing what a person's taste are. We tend to put more emphasis on this during the holiday months as this is the time for more gift giving. Our gift card sales went up 13 percent from 2009 to 2010. Our gift card redemption has also gone up 25 percent from 2009 to 2010. We feel that this area will keep growing as more customers see the benefit to letting the recipient pick out what they like. Edina Liquor continues to work to be as competitive with our competition as possible, while still working to maintain a healthy gross profit. Management continues to adjust its pricing to fit customers' buying habits and feels that the stores compete well with the surrounding competition. While price is always important, we have found that service, selection and well-maintained stores play a big part in a positive shopping experience and repeat business. One area in which Edina Liquor has been more aggressive is its liquor-, beer- and wine -of -the -month specials. It is no surprise that wine is the leader of this promotion, with average sales of 350 to 400 cases sold each month. Because of this success, Edina Liquor is able to get the best price in the market, giving our customers a great value for their money while still being able to make a profit for the stores. To the best of staff's knowledge, there are only a few other stores in the state that can compete with Edina Liquor in terms of cases of wine sold from a single winery in a month. We will continue to look for ways to offer customers the best price and best selection of liquor, beer and wine for this highly successful promotion. Another area in which we look to be aggressive in is the Spring Sale. This sales event will be the only one that we mass advertise to our community and surrounding communities. This spring sale allows us to compete with Surdyk's and Haskell's on an annual basis for business. While the other two run their Spring Sales in March and April, Edina Liquor runs its sale to coincide with Taste of Edina in May. This allows Edina Liquor to capture business before a major holiday and also after the other sales have ended. While sales at Edina Liquor increased 1.7 percent in 2010, our customer count was flat with an increase of only 210 customers. While we are not pleased that our customer count did not increase, we were 0 42 EDINA�� LIQUOR E D I N A L I Q U O R very pleased that sales increased in this economy. The average transaction increase per customer in 2010 was 42 cents. While this is not a large increase per transaction, it looks much better when you know that there were 506,410 customers who came through our doors in 2010. anificant Changes in Business/Competitive Environment Edina Liquor continues to be one of the most profitable municipal liquor operations in the state. Even though Edina Liquor has no geographical competition within the City limits, we are constantly in competition with stores that border our community. Competitors include Richfield Liquor, Eden Prairie Liquor, Trader Joe's, France & 44 Liquor, South Lyndale Liquor, Sam's Club and Costco. We also have competition from the internet, which can affect all stores. Many of these stores will price advertise at some point during the year. Consumers are able to shop and compare at home instead of going to the stores to check out what they want or need. Edina Liquor's goal is to be as competitive as possible while still working within our pricing framework. Customers have become more educated about wine, liquor and beer due to traveling and access to information on the internet. Up until the last few years, our customers tended to purchase more high-end products which they considered to be better. With the turn in the economy, we have seen a change in their buying habits. While they still like high-end products, they are buying them less frequently. Younger consumers are attracted to name brand products and price does not seem to be as much of a factor in their buying decisions. Legislation was passed in 2006 allowing liquor stores in Hennepin County to stay open until 10 p.m. Monday through Saturday. Currently, Minneapolis, Hopkins and Bloomington are the only bordering cities to change to 10 p.m. Edina has the local option to change to the later closing time if it chooses. Whether Sunday sales go through or not, management will look at our hours of operation, especially at our Grandview and 50th & France locations. We'll be looking at our hours between 8 and 10 p.m. on Friday and Saturday. It may be in our best interest to modify the hours at these two stores given that many of the businesses near them close by 8 p.m. at the latest on these two nights. 50th averages 55 customers per hour from 8 to 10 p.m sales per hour both nights also. Grandview averages 86 customers per hour from 8 to 10 p.m. and $1,925 per hour both nights compared to Southdale at 177 customers per hour from 8 to 10 p.m. and $3,687 in sales per hour both nights. Over the past few years, we again are seeing big changes in our industry. While the economy has had a negative effect on many businesses, the liquor business continues to hold its own. Our customers are not buying as much high-end wine, choosing to spend their same money on two bottles instead . on both Friday and Saturday and $1,100 in ED INAL I Q U 0 R 43 E D I N A L I Q U O R of the one that they might normally buy. Consumers are willing to spend more for liquor right now than wine as liquor will last longer. Vodka continues to lead the liquor category with Irish Whiskey and Tequila showing strong gains. Scotch continues to be our second highest liquor sales item with Single Malts still growing. We continue to expand this segment and have become a destination store for scotch. The craft beer category is off the charts compared to other beer categories. While domestic beer is down, the craft segment is showing big gains with no slowdown in sight. Whether it is $20 for a four - pack or $5 for a single bottle, these products are in demand and customers are shopping around to see who has what. As far as wine goes, the big growth area is in the $8 to $15 range. California Chard and Cabernet are our most consistent sellers with wines from Italy, Spain, Argentina and South Africa and New Zealand showing strong growth. As in years past, the City's biggest competitive threat to Edina Liquor continues to be the proposed "Wine in Grocery" or "Wine with Dinner' legislation to allow wine sales in grocery stores. This legislation has been defeated the last nine years and staff will continue to work hard to fight this change. In the years to come, we'll see more movement with legislation to allow Sunday sales. The City will continue to actively work with the Minnesota Municipal Beverage Association and the Minnesota Licensed Beverage Association to defeat liquor legislation that could negatively impact the municipal liquor operation. ✓s 44 E D I N ALIQUOR E D I N A L I Q U O R Liquor Wine Beer Miscellaneous Total Sales Cost of Goods Sold Salaries Contractual Services Commodities Depreciation Central Services Total Operating Expenses 2008 $3,379,613 5,326,949 3,148, 372 266,857 12,121,791 8,940,015 1,329,629 437,691 76,209 193,091 69,874 11,046,509 1,075,282 (1,906) 1,073,376 Operating Revenues $12,121,791 Operating Expenses (11,046,509) Non-operating Revenues (Expenses) and transfers (1,279,706) Depreciation 69,874 Capital Expenditures - Other Accruals 131,841 Change in Cash (2,709) January 1 Cash 1,125,589 December 31 Cash $1,122,880 Note: 2008-2010 data is based on audited financial statements, N 2009 $3,472,354 5,581,778 3,316,016 272,482 12,642,630 9,300,699 1,361,602 472,412 62,538 186,144 65,799 11,449,194 1,193,436 13,147 1,206,583 $12,642,630 (11,449,194) (1,296,953) 65,799 (157,853) 73,262 (122,309) 1,122,880 $1,000,571 hile 2011 data is based c K_EDINA-V LIQUOR 2010 $3,529,415 3,665,986 3,383,851 275,441 12,854,693 9,467,169 1,343,408 449,087 75,228 191,168 68,583 11, 594,643 1,260,050 2,371 1,262,421 $12,854,693 (11,594,643) (1,242,729) 68,583 (2,165) (189,962) (106,223) 1,000,571 $894,348 n an adopted budget. 2011 $3,651,468 5,896,619 3,532,867 286,118 13,367,072 10,103,558 1,406,312 474,989 64,834 206,448 82,340 12,338,481 1,028,591 1,028,591 13,367,072 (12, 338,481) (1,255,100) 82,340 (300,000) (444,169) 894,348 $450,179 45 E D I N A L I Q U O R 2008 2009 2010 Percent of operating expenses covered by operating revenue: 110% 110% 111% A. E D I N r1.0.•'LIQU0R 46 • 2008 2009 2010 Operating Revenues $2,203,910 $2,212,434 $2,240,912 Operating Expenses (2,152,940) (2,130,314) (2,146,453) Operating Income $50,970 $82,120 $94,459 Operating Revenues $5,400,896 $5,672,296 $5,798,260 Operating Expenses (4,801,331) (5,024,611) (5,114,484) Operating Income $599,565 $647,685 $683,776 Operating Revenues $4,516,985 $4,757,900 $4,815,521 Operating Expenses (4,092,238) (4,294,269) (4,333,706) Operating Income $424,747 $463,631 $481,815 2008 2009 2010 Percent of operating expenses covered by operating revenue: 110% 110% 111% A. E D I N r1.0.•'LIQU0R 46 • E D I N A L I Q U O R Year Amount Recipient 2010 $765,100 General Fund 2010 150,000 Construction 2010 150,000 Edina Art Center 2010 80,000 Braemar Arena 2010 100,000 Braemar Golf Course 2009 $765,100 General Fund 2009 150,000 Construction 2009 145,000 Edina Art Center 2009 80,000 Braemar Arena 2009 170,000 Braemar Golf Course 2008 $742,800 General Fund 2008 150,000 Construction Fund 2008 135,000 Edina Art Center 2008 80,000 Braemar Arena 2008 170,000 Braemar Golf Course 2007 $721,200 General Fund 2007 125,000 Construction Fund 2007 135,000 Edina Art Center 2007 80,000 Braemar Arena 2006 $700,230 General Fund 2006 100,000 Construction Fund 2006 110,000 Edina Art Center 2006 85,000 Braemar Arena A. EDINA- -- LIQUOR 47 E D I N A L I Q U O R 1�S 48 E D I N A I Q U 0 R BUSINESS PLAN 20 0-20 1 • E D I N B O R O U G H P A R K With more than 6,000 plants, trees and flowers, Edinborough Park is Minnesota's unique indoor public park. The completely enclosed, one -acre park features a junior -Olympic size swimming pool, a running track and fitness area, a huge indoor playground and a multi-purpose room and play area, all connected by meandering pathways through the densely landscaped interior. In its 250 -seat, Greek -style amphitheater, Edinborough Park presents a full schedule of free cultural arts programs in the areas of music, dance, theater and visual arts from September to May of each year. Edinborough Park continues to provide a unique recreational experience for Edina and its visitors. Edinborough Park employs the following seven full-time positions: Four Building Operations Supervisors, Horticulturist, Assistant Manager and Manager. In addition, we employ approximately 12 part-time staff at our Park Office/Guest Services Counter and two part-time Maintenance staff. With the addition of a Concessions Stand, we plan to employ approximately eight part-time Concessions staff. Only one full-time position has been modified since the change to the fee-based Playpark concept in 2003. The full-time Special Events Coordinator changed to an Assistant Manager S position. Maintenance staffing levels, both full- and part-time, have remained the same. With the addition of our Birthday Party program and Adventure Peak, Guest Services staffing has approximately doubled since 2003. Playpark admissions, birthday parties and season passes are the main sources of self -generated revenue. Association fees charged to residents and businesses in the Edinborough area continue to be a principal revenue source for the park, but are not expected to keep pace with inflation. Operating losses continue, with losses currently being covered out of the parks' investment balance, which adversely affects interest income. 2010 operating revenues were sufficient to cover 78 percent of Edinborough's operating expenses. A change in philosophy to charge admission to Edinborough Park and the addition of the Adventure Peak play structure in 2003 have greatly increased the appeal of Edinborough Park to Edina residents and metropolitan families and have dramatically increased park admission revenues. 2010 revenues were up $500,000 from revenues in 2001, and up $489,000 from 2002, prior to addition of Adventure Peak and the "Playpark" concept. These figures include the cost of goods sold. To better meet the needs of our customers, provide better security for the Park's resources, staff and customers, and to generate significant additional revenues, staff recommends several changes to the facility be explored. Staff proposes to hire an architect and engineering consultants to 49 T_ Ed1ribOIUU 1 Park T� p ( D N P E D I N B O R O U G H P A R K complete a feasibility study and make recommendations for a variety of proposed significant facility improvements, including: 1. Park Office and Guest Services Counter relocation 2. Track and Fitness Area expansion and/or space re -utilization 3. Pool cost analysis and possible space re -utilization 4. Lower -level locker room expansion or conversion to "family" restrooms for Playpark 5. Increased Storage 6. Improved Administrative Offices 7. Accessibility to Track and Fitness Area 8. Additional party rental space The following is a description of park improvement needs and alternatives that staff recommends as part of a comprehensive feasibility study. Park Office/Guest Services/Concessions The current admissions office is significantly undersized and is in the wrong location to effectively, efficiently and securely serve paying customers. Would-be paying customers often leave the park after they first walk in because the long lines give them the false impression that the park is over -crowded. Estimates show that in 2010, more than 217,000 people visited the Playpark, 47,000 people visited the Pool/Track and over 26,000 attended birthday parties at the Park. Edinborough scheduled more than 1,240 birthday parties in 2010. This totals an estimated 264,000 people who checked in at the Park Office and an estimated 26,000 birthday party customers who checked into a "birthday party table" that was created to avoid further overcrowding of the Park Office. An additional 15,000 attend cultural performances in the Amphitheater annually. A busy winter day can easily attract 3,000 people to the Park Office, creating long lines and congestion. Staff believes that the best and least expensive option would be to remove two plant beds between the main staircase and the amphitheater and construct a guest services counter to sell admissions and birthday parties and also provide a permanent check-in location for birthday parties. The existing Park Office could then be converted to the concession stand. A concession stand with seating area is estimated to generate between $100,000 and $150,000 in net revenues annually for the Park, in addition to meeting a primary need of our customers. The Park currently generates $23,800 in commissions from snack and beverage vending companies and $7,500 from the sale of ice cream in the Park Office. Track and Fitness Area Edinborough Park currently has a 1/16 -mile, three -lane indoor track with exercise equipment tucked into the corners on the east and west ends. The area includes two elliptical machines, two treadmills, two recumbent bikes, two upright bikes, a multi -station weight machine, ab bench and a rower. In order to accommodate more people and relieve the crowded conditions, the track could be lengthened and an aerobic equipment and weight room could be added. According to the most recent taxis 50 a E D I N B O R O U G H P A R K Park & Recreation Department Needs Assessment Study, Edina residents are interested in more indoor and outdoor walking venues. Land is available for this type of expansion to the north of the existing pool and track. Youth -specific fitness equipment could also be added to attract preteen and teenagers to exercise while combating youth obesity. The existing track floor is 20 years old and is in need of replacement in the next five years. Another option would be to keep the existing floor plan of the track, but eliminate the walking track and use the floor space for additional aerobic and weight equipment. If this option was to be chosen, the floor replacement could be delayed for many years. Adding treadmills, elliptical and bikes would be a more user-friendly alternative to the current short, small, sloped walking/running track. However, staff believes that it will continue to be difficult to compete for fitness customers with the Southdale YMCA, LA Fitness on France Avenue and Lifetime Fitness in Bloomington, all located within two miles of Edinborough. Accessibility to Track and Exercise Equipment Area Currently, there are five steps on a five-foot wide walkway and stairway leading to the Track and Fitness Area, making it difficult or impossible for seniors and people with canes or walkers to access the Track and Fitness Area. A person in a wheelchair must contact the Park Office to have staff walk with him or her outside and provide access via an outside door to the track area. We have customers in wheelchairs and others with mobility challenges who request access to the track area. The track entrance is in the northeast corner of the Park, adjacent to the water heater closet, restrooms and Park Office. This is a challenging accessibility issue that needs a permanent solution. Pool Renovation The pool shell is in need of resurfacing and the tile floor and walls in the pool area are in need of replacement. There is currently $70,000 planned in the Capital Improvement Plan in the year 2011 for pool resurfacing and $80,000 for deck and wall tile in 2013. Staff has been patching the pool surface and repairing deck and wall tile for many years. The pool shell and tile are from the original construction in 1987. As the summer deadline approaches for resurfacing, staff recommends that decision makers consider the long-term desire to financially support pool operations. Lower -Level Locker Rooms The existing locker rooms are grossly undersized, have poor drainage and poor ventilation. The changing areas in both locker rooms can accommodate just three or four people comfortably at one time, making it difficult for Edina Community Education classes, Edina Swim Club and all of the Park's regular fitness customers. The hallway from the pool to the locker rooms is long and cold and the Park has no "family" locker rooms. When families come to the Park needing family locker facilities, staff gives them access to a dressing room in the employee area of the Park next to the Manager's office. This is also the same space that we hope to use to relocate our Birthday Party Coordinator when she loses her office space in the Concessions Stand renovation. There are also no showers in the dressing room and customers are forced to walk through the Park in their swimming suits. 51 Fkhriborough Paiik C i, 0 , o i N n E D I N B O R O U G H P A R K Storage Indoor and outdoor storage is needed for supplies and equipment. The Park was built with very limited storage. The Park's primary storage room is located adjacent to the pool and is very warm with high humidity in a corrosive environment. As part of the feasibility study, more indoor and outdoor storage should be part of the analysis. The addition of concessions will significantly increase our storage demands. We have no storage space for outdoor grounds maintenance equipment. The following is a description of additional miscellaneous equipment and facility repairs, replacements and additions: Adventure Peak Adventure Peak is designed for children ages 2 to 12. There is a small toddler area in the structure and also an inflatable jumper specifically designated for children 5 and under. The upper levels of the play structure are intimidating for many kids under the age of 4 or 5, especially when the Park is very busy. The majority of our customers have children under the age of 5 and are requesting more play space designated specifically for kids ages 1 to 5. We plan to renovate the toddler area of Adventure Peak in 2011. This will more than double the toddler area of Adventure Peak, create a unique seating area for parents and provide new play amenities for our youngest guests. Staff will continue to research and provide new and fresh ideas for this space. • Soft Play. To continue to meet the need for more toddler activities, staff is recommending the addition of "soft play" in the Great Hall. This is geared toward preschoolers and would provide a safe and secure "enclosed" location for kids to play and explore, while providing caregivers an opportunity to relax and watch their kids play in a comfortable environment. • Mini Golf. There is also potential for adding an indoor mini golf course as an amenity for our customers. This is a concept that could be considered as part of an upper-level expansion or track renovation project. Funding Alternatives There are limited funding alternatives for the proposed large expansion projects. One option is to use the remaining Edinborough/Centennial Lakes Park investment fund balance, which currently has a balance of approximately $3 million. The original concept was to rely on interest earnings from the trust fund to help offset operating expenses. Over 50 percent of the trust fund's principal has been used over the past 20 years to cover operational expenses that have been in excess of revenues. By using the fund principal balance, even less interest earnings will be available to offset operational expenses. Staff continues to explore new additional revenues and operational efficiencies to come closer to a financially self-sufficient operation. Without an investment fund principal to rely on to cover our annual operating deficit, the Park operations will then have to rely on a tax subsidy to sustain. There are a number of park improvements that would increase revenues, such as a concessions stand, soft play and renovated fitness facilities. Without continually making new improvements or correcting existing known issues, the revenue stream will plateau and begin to decrease each year while operating expenses climb. A steady capital improvement plan budget is critical to the long-term financial success of the park. 52 S 4 E D I N B O R O U G H P A R K Surveys of Park customers show that 80 percent of clients heard about Edinborough Park by attending a prior event/party at the Park or by word of mouth. Birthday parties have been a steadily growing business and we have utilized the Sun Newspapers, Town Planner Calendars and our website as primary marketing outlets. We started to use Facebook in 2010. Very little marketing for the Play Park, including Adventure Peak, has been done or has been necessary due to the word-of-mouth advertising in the community. The Edinborough Park website continues to be very popular and staff uses it extensively to market events, programs, schedules and amenities. Staff will use the City's existing communications vehicles, including "City Extra" and newsletters, and is aggressively utilizing Facebook to market birthday parties, concerts, events, fitness opportunities and daily Playpark activities. There is great potential to grow the business during the summer months and staff believes that group visits are a profitable and cost effective method to bring customers to the Park. Group visits are similar to birthday parties in that one host brings several potentially new customers to the Park, who will have a great time and want to bring their parents back for a return visit. :iiig; Of Playpark With play amenities and unique environments, Edinborough Park is priced in the mid- to upper -price range compared to the competition. The prices of the competition are all in the $4.50 to $5.50 range, but only include the play structure. Our facility provides an even better value with the Great Hall as a very popular amenity. Edinborough Park/Adventure Peak $6 New Brighton/Eagles Nest $6 Maple Grove/Maple Maze $5 Eagan/Blast $5 Woodbury/Lookout Ridge $5.50 Shoreview $4.50 Eden Prairie $4.50 Pool/Track It is more difficult to provide rates for comparable facilities for our fitness area, which includes the pool and track. Most community centers offer full-service fitness centers with classes and many also include an indoor water park, splash pool or something similar. Daily individual admissions for community centers are as follows: Eden Prairie $8 daily; $34 monthly New Brighton $5 daily; $250 annually Maple Grove $6.50 daily; $185 annually (not fitness equipment) Shoreview $8.25 daily; $286 annually Eagan $10 daily; $35 monthly Chaska $6.25 daily; $293 annually 53 EC�1T1bOI1DUgi1 Park E D I N B O R O U G H P A R K Season Passes and Punch Cards Edina residents prefer to purchase season passes because of affordable pricing and a convenient location. Fifty-five percent of our Adventure Peak season pass holders are Edina residents, while 88 percent of pool and track members are residents. This totals 141 Adventure Peak season pass holders and 409 (including Edinborough Association) pool and track members who are Edina residents. We also sell 10 Admission Value Passes for our regular park patrons. In 2010, we sold 1,890 Value Passes for the Playpark. We recorded 14,303 visits from the sale of these passes. We sold 367 Pool/ Track 10 Admission Value Passes. We recorded 3,069 visits from the sale of these passes. Adventure Peak has continued to exceed expectations both in terms of visitors and revenues. 2004 and 2005 Playpark admission revenues exceeded $365,000. 2006 revenues exceeded $425,000, 2007 revenues exceeded $450,000 2008 revenues exceeded $525,000 and 2009 revenues exceeded $563,000 and in 2010 revenues exceeded $567,000 There was a concern that once the "uniqueness" of Adventure Peak wore off, numbers would level or slowly decline. Attendance and revenues have continued to increase since the opening in 2003. Park staff recommends periodic improvements to Adventure Peak and the Great Hall in order to add new and exciting amenities to keep it fresh. $30,000 was invested in improvements to Adventure Peak in 2006 and $50,000 was invested in 2008. $25,000 will be invested in improvements to the Toddler area in 2011. Other improvements are recommended to increase revenues, provide a better customer experience and improve overall Park safety and security. Edinborough Park continues to be a facility that provides recreational opportunities for people of all ages. While Adventure Peak and The Great Hall Playpark are attractive to young families, it is also a great outlet for grandparents and parents just looking for an exciting family activity. The Amphitheater offers programming for adults on Sunday evenings. The big bands and smaller group entertainment appeals to people of all ages, particularly adults. Entertainment for children is offered at noon on Thursdays in the amphitheater. We also offer popular family events at Halloween and on New Year's Eve. The long-range business plan is to utilize the Great Hall as a multi-purpose facility for a variety of recreation uses. The plan is to use the Great Hall as a fun and safe play space for primarily young children ages 1 to 12 and their supervising adults. New portable play amenities will routinely be introduced to keep the Playpark fresh and exciting. We also hope to add soft play in the Great Hall to attract even more pre-school age kids. Currently, Edinborough Park attracts guests from all over the state and even the upper Midwest. Groups travel over an hour to spend the day at the Park. Guests from outside of Minnesota choose to stay at the adjacent Marriott Residence Inn because of the amenities the Park offers. Edinborough hosts over 105,000 youth visits annually for the recreational, social, educational and physical activities offered at Edinborough. E D I N B O R O U G H P A R K Birthday Parties In 2009, Birthday Parties generated $134,000 and in 2010, they generated $146,000. In 2010, we hosted 1,241 birthday parties with an average of 20 guests per party or approximately 24,820 total party attendees. It is difficult to compare birthday party package prices. Some facilities provide cake and other refreshments. The following are packages/facilities that are most comparable to ours: Adventure Package Peak Package Edinborough $130; $9 per additional child Edinborough $80; $7 per additional child New Brighton $112; $14 per additional child New Brighton $72; $9 per additional child Shoreview $13 per additional child Maple Grove $100; $5 per additional Eagan $125; $12.50 per child Eagan $75; $5 per additional Eden Prairie $129 Woodbury $80; $8 per additional child Woodbury $80; $8 per additional child In 2010, we created a new birthday party brochure and party invitations. In 2011, we plan to add an on-site marketing and party check in station as part of the new guest service counter. We are also planning to provide two new birthday party add-ons, thank -you notes and a group photo opportunity. Staff is exploring costs associated with providing a photo of the birthday group in an Edinborough Park "frame" for the kids to take home as a memory of the party, and as a marketing piece for the Park. It is also worthy to mention that the Park's initial revenue forecasts for Adventure Peak's daily admissions were originally estimated at $220,000 per year. For the third year in a row, the park is exceeding $525,000 per year in revenues for Playpark admissions. Adventure Peak's daily admissions statistics suggest that Adventure Peak is not just a trend or flash in the pan, but by all indications will continue to increase in popularity simply by word of mouth. Continuing to provide new and exciting improvements will go a long way to keep daily admissions strong and profitable. In 2009, the park's original rooftop heating and cooling units and pool ventilation systems were replaced. We are saving more than $40,000 per year in energy with these energy-saving replacements based on our 2007, 2008 and 2009 energy costs. This investment has reduced our heating costs by 30 percent. We have budged $122,000 for light and power and $50,000 for heat. Potential energy saving for lighting retrofits equal $24,000 to $39,500. The cost to install these lights is $111,302 minus a rebate of $51,840, for a final cost of $59,462 — a 1.5 year payback. Edinborough Playpark season pass customers comprise 55 percent Edina residents, 18 percent Minneapolis, 11 percent Bloomington, 7 percent Minnetonka, 4 percent Richfield and 5 percent from other communities. Pool and Track season pass holders are 88 percent Edina residents (58 percent 55 Ed Para *pugh C . � E D E D I N B O R O U G H P A R K if Association members are not included), 13 percent Minneapolis, 3 percent Richfield, 18 percent Bloomington, and 6 percent miscellaneous cities. These percentages have remained consistent for several years. Based on the results of the most recent Park survey, 13 percent of Playpark customers are Edina residents. The City of New Brighton's Eagles Nest provides the closest comparison to Edinborough Park in terms of amenities/play structure, birthday parties and customer count. In 2010, 19 percent of Eagle's Nest customers came from their zip code, which includes Mounds View, Arden Hills and New Brighton. Woodbury's Lookout Ridge has approximately 39 percent resident use. Maple Grove's Maple Maze has approximately 41 percent resident use and Shoreview's Tropical Adventures indoor playground has approximately 55 percent resident use. Shoreview and Maple Grove are not very good comparables, however, due to their extensive community centers and waterpark amenities. Our centralized and convenient location helps us to attract customers from the region. Adventure Peak is also the largest and best play structure in Minnesota and one of the largest in the United States. Edinborough hosts concerts in the amphitheater during the months of September through May. Concert attendance averages 1,500 people per month for our Thursday noon and Sunday night concert series. Since these concerts are free, we have no residency information for these events. Tuesday night concerts were drawing low attendance (an average of 5 —10 customers per concert). Due to the low attendance and budget cuts, these performances were eliminated in 2010. We are currently experimenting with offering Tuesday evenings for groups to perform for free, instead of receiving our typical stipend of $150. Management staff was asked to produce a hypothetical break-even operating scenario for the 2010 operating year by adjusting the primary revenue driver on the operating revenue side of the balance sheet. In the case of Edinborough Park, the primary revenue source is general admissions to the Park, which account for 61 percent of Edinborough's annual operating revenue. The Edinborough Park operating deficit for 2010 is estimated to be $348,043. Because of the operational linkage among the respective operating revenue streams at this facility, the hypothetical break-even analysis considered an adjustment to more than just the primary revenue driver. Our analysis shows that a 50 percent increase in the cost of our general admissions fee, season ticket fee, Ten -Punch Pass fee, and Birthday Party fees would increase our operating revenues by $363,000 — given no change in consumption of those services at the higher rates by our customers. A 50 percent increase in these user fees would increase the cost of a general admission from $6 to $9, the cost of the Adventure Peak birthday party package from $130 to $195, and the cost of a Ten -Punch Pass from $50 to $75. In the judgment of management, increases of this magnitude, particularly in the birthday party packages, would place our cost structure significantly higher than our competitors. There is a high risk that this strategy would not generate the theoretical increase in total revenues as price sensitive families would seek lower cost venues for their leisure experiences. 56 1r�111bOTOLlg11 Park E D I N B O R O U G H P A R K CEN't ENNIAL LAKES rbc EDINBURt; UGH PARKS Financial Slj-1t,, ? ?n I Note: 2008-2010 data is based on audited financial statements, while 2011 data is based on an adopted budget. 57 Fkfipboroull h Park C , • O F [ _ N - 2008 2009 2010 2011 Concessions $56,643 $59,413 $64,402 $130,000 Memberships 56,051 57,078 52,515 56,00 Admissions 526,597 563,966 569,591 540,000 Building Rental 272,711 240,489 269,352 237,000 Equipment Rental 92,324 103,761 129,407 89,500 Greens Fees 177,109 215,710 176,124 190,000 Class Registration & Other Fees 484,487 483,640 498,486 500,000 Total Operating Revenues 1,665,922 1,724,057 1,759,877 1,742,500 Cost of Goods Sold 54,848 51,904 56,382 94,000 Personnel Services 1,146,551 1,196,568 1,226,239 1,315,580 Contractual Services 486,910 530,599 445,342 458,050 Commodities 264,006 281,532 264,634 277,600 Central Services 83,355 79,145 81,889 98,772 Depreciation 102,725 148,125 193,762 160,000 Total Operating Expenses 2,138,395 2,287,873 2,268,248 2,404,002 (472,473) (563,816) (508,371) (661,502) Investment Income 382,007 74,728 147,300 98,000 Other Miscellaneous Revenue - 2,250 - - Total Non -Operating Revenue 382,007 76,978 147,300 98,000 ($90,466) ($486,838) (361,071) (563,502) Operating Revenues $1,665,922 $1,724,057 $1,759,877 $1,742,500 Operating Expenses (2,138,395) (2,287,873) (2,268,248) (2,404,002) Non-operating Revenues (Expenses) and transfers 382,007 326,978 270,671 389,000 Depreciation 102,725 148,125 193,762 160,000 Capital Expenditures (480,113) (582,631) (257,410) (291,000) Other Accruals 231,225 (156,626) 39,806 - Change in Cash & Investments (236,629) (827,970) (261,542) (403,502) January 1 Cash & Investments 4,187,649 3,951,020 3,123,050 2,861,508 December 31 Cash & Investments $3,951,020 $3,123,050 $2,861,508 $2,458,006 Note: 2008-2010 data is based on audited financial statements, while 2011 data is based on an adopted budget. 57 Fkfipboroull h Park C , • O F [ _ N - E D I N B O R O U G H P A R K PARKS Historical of t Year Amount Source 1999 $206,000 General Fund 2000 $108,000 General Fund 2001 $46,000 General Fund 2001 $56,300 Construction Fund 2002 $54,343 Construction Fund 2003 $277,201 Construction Fund 2004 $98,000 Construction Fund 2005 0 2006 0 2007 0 2008 0 2009 $250,000 Construction Fund 2010 $123,371 Construction Fund Note: Subsidy amount is based on cash position of fund, not annual performance. 2008 2009 2010 Percent of operating expenses covered by operating revenue: 78% 75% 78% I Np?bOrough Part 58 E D I N B 0 R 0 U G H P A R K 59 _d Park CENTENNIAL LAKES PARK Fdinborough Pa& C i i r O i E D I N A O � � N�ED NA� BRAEMAR �. ARENA E D I N A LIQUOR owetit \j1ooi��oxATti�/ rasa www.CityofEdina.com Finance Department 952-826-0366 Communications & Marketing Department 952-826-0359 o� e tf 0 IV •'v�Ok.pOP.lj'Y'9� !F3$8 REPORT/RECOMMENDATION To: EDINA PARK BOARD Agenda Item Item No. V. D. From: John Keprios, Director Park and Recreation Department F-1 Action z Discussion Information Date: September 27, 2011 Subject: 2012 Enterprise Facility Budgets ACTION REQUESTED: Staff requests that the Park Board review, ask questions and share your comments regarding the proposed 2012 enterprise facility budgets. INFORMATION/BACKGROUND: Included in the September 13, 2011 packet were the five proposed enterprise facility budgets for 2012. The City Council has asked that the Park Board review these budgets and provide comments. The Edina Art Center's proposed budget is reviewed by the Edina Art Center Board. Enterprise facility managers will be present to answer any questions. ATTACHMENTS (all were previously included in the September 13, 2011 Park Board packet): • Braemar Arena 2012 Budget • Braemar Golf Course 2012 Budget • Edina Aquatic Center 2012 Budget • Edinborough Park 2012 Budget • Centennial Lakes Park 2012 Budget CITY OF EDINA Arena Fund Budget 2009 2010 2011 2011 2012 2013 Actual Actual Estimated Budgeted Proposed Proposed G:\Budget\2012 Budget\Enterprise Budgets\2012 Arena.xlsx 9/1/2011 Operating revenues Retail sales $ 2,026 $ 2,039 $ 2,100 $ 2,100 $ 2,000 $ 2,000 Concessions sales 5,692 4,953 14,000 6,000 15,000 15,000 Memberships 3,716 5,406 5,000 4,500 5,000 5,000 Admissions 111,481 117,843 105,000 105,000 105,000 105,000 Building rental 1,157,522 1,035,429 1,100,000 1,200,000 1,100,000 1,200,000 Rental of equipment 2,997 1,652 1,400 1,200 1,400 1,400 Class registration & other 130,976 134,184 121,000 125,000 127,000 127,000 Total revenues 1,414,410 1,301,506 1,348,500 1,443,800 1,355,400 1,455,400 Operating expenses Cost of sales and services 880 1,045 1,500 1,500 1,500 1,500 Personal services 654,132 591,912 653,340 653,340 662,326 674,551 Contractual services 608,683 524,060 540,000 574,600 552,600 579,650 Commodities 73,241 75,679 76,400 85,500 87,750 87,750 Central services 41,905 41,948 42,912 42,912 43,800 44,700 Depreciation 286,241 292,892 340,000 340,000 400,000 420,000 Total expenses 1,665,082 1,527,536 1,654,152 1,697,852 1,747,976 1,808,151 Operating loss (250,672) (226,030) (305,652) (254,052) (392,576) (352,751) Nonoperating revenues, (expenses), and transfers Excess tax increments 100,124 - Intergovernmental - 222,000 Investment income (loss) (5,924) 10,285 Gain (loss) on assets Bond interest & other - (102) 4,187 (90,892) (85,100) (85,100) (83,320) (81,320) Miscellaneous Transfers 102,075 6,500 196,406 - 365,000 - 365,000 - 405,000 255,000 Total nonoperating 196,173 348,486 279,900 279,900 321,680 173,680 Change In net assets (54,499) 122,456 (25,752) 25,848 (70,896) (179,071) ® January 1 net assets 2,194,631 2,140,132 2,262,588 2,262,588 2,236,836 2,165,940 December 31 net assets $ 2,140,132 $ 2,262,588 $ 2,236,836 $ 2,288,436 $ 2,165,940 $ 1,986,869 Non -GAAP cash reconciliation Change in net assets $ (54,499) $ 122,456 $ (25,752) $ 25,848 $ (70,896) $ (179,071) Depreciation 286,241 292,892 340,000 340,000 400,000 420,000 Bond proceeds Bond principal 2,440,000 (225,000) - - (80,000) (80,000) (100,000) (100,000) Capital expenditures (136,088) (2,515,947) (573,706) (285,000) (265,000) (95,000) Other accruals 8,146 166,699 - - - Change In cash 2,318,800 (1,933,900) (339,458) 848 (35,896) 45,929 January 1 cash (14,870) 2,303,930 370,030 370,030 30,572 (5,324) December 31 cash $ 2,303,930 $ 370,030 $ 30,572 $ 370,878 $ (5,324) $ 40,605 G:\Budget\2012 Budget\Enterprise Budgets\2012 Arena.xlsx 9/1/2011 CITY OF EDINA ENTERPRISE BUDGET PAGE - 2 �UND: FUNCTION: AREA: TPROGRAM: ARENA OPERATING REVENUE SUMMARY OF REVENUE 2009 20102011 2012 2013 ,CCT. DESCRIPTION ACTUAL ACTI161 O -cT OPERATING REVENUE $ - $ 222,000 $ - $ - $ 4805 TRANSFER 102,075 4414 RETAIL SALES $ 2,026 $ 2,039 $ 2,100 $ 2,100 $ 2,000 $ 2,000 4415 VENDING & CONCESSION 5,692 4,953 14,000 6,000 15,000 15,000 4532 SEASON TICKETS 3,716 5,406 5,000 4,500 5,000 5,000 4542 SPECTATOR FEES 100,622 4544 DAILY SKATING FEES 105,506 95,000 95,000 95,000 95,000 10,859 4556 ICE RENTAL 1,157,522 12,337 1,035,429 10,000 1,100,000 10,000 1,200,000 10,000 1,100,000 10,000 1,200,000 4581 SKATE RENTAL 1,180 1,521 1,400 1,200 1,400 1,400 4584 LOCKER RENTAL 1,817 131 - 4607 REGISTRATION FEES 107,678 4609 CASH OVER/SHORT 115,609 105,000 105,000 110,000 110,000 22 (29) 4611 SKATE SHARPENING 23,276 18,604 16,000 20,000 17,000 17,000 $ 1,301,506 $11,34 8,500 $ 1,443,800 $ 1,355,400 $ 1.455.400 OPERATING REVENUE $ 1,414,410 NONOPERATING & TRANSFERS 4205 FEDERAL AID $ - $ 222,000 $ - $ - $ 4805 TRANSFER 102,075 196,406 $ 365,000 365,000 405,000 255,000 INVESTMENT INCOME (5,924) 10,285 TAX INCREMENT 100,124 _ 8070 MISC REVENUE - 6,500 8102 GAIN/LOSS ON ASSET 41187 - $ 196,275 $ 439,378 $ 365,000 $ 365,000 $ 405.000 $ 25.Ii nnn G:\Budget\2012 Budget\Enterprise Budgets\2012 Arena.xlsx 9/1/2011 1:04 PM • CITY OF EDINA ENTERPRISE BUDGET PAGE - 3 FUND: FUNCTION:AREA: PROGRAM: ARENA OPERATING ADMINISTRATION 5510 SUMMARY OF EXPENDITURES 2009 2010 2011 2012 2013 ACCT. DESCRIPTION ACTUAL ACTUAL ESTIMATED BUDGETED Proposed Proposed COST OF GOODS SOLD: 5510 COST OF GOODS $ 880 $ 1,045 $ 1,500 $ 1,500 $ 1,500 $ 1,500 PERSONAL SERVICES: 6010 SALARY - REGULAR EMP 145,916 95,363 122,903 122,903 126,390 128,918 6013 SALARY - TEMP EMP 48,621 49,412 50,000 50,000 51,000 52,020 6030 PENSIONS 11,937 8,921 12,536 12,536 12,861 13,118 6034 SOCIAL SECURITY 13,863 11,729 13,228 13,228 13,570 13,841 6040 FLEX PLAN 18,834 12,735 19,200 19,200 19,200 19,200 6045 WORKERS COMPENSATION 4,541 5,976 8,161 8,161 6,599 6,731 6090 OPEB EXPENSE 3,383 2,687 1,506 1,506 1,074 1,074 247,095 186,823 227,534 227,534 230,694 234,902 CONTRACTUAL SERVICES: 6103 PROFESSIONAL SERVICES 52,908 63,057 50,000 50,000 50,000 55,000 6104 CONFERENCES - - - - 3,000 3,000 6105 DUES & SUBSCRIPTIONS 3,268 2,765 3,000 3,000 4,000 4,000 6107 MILEAGE OR ALLOWANCE 3,381 1,182 1,300 1,500 1,500 1,500 6130 PROF SERVICES AUDIT 1,500 1,500 2,000 2,000 2,000 2,000 6136 PROF SERVICES OTHER 85,998 31,624 10,000 40,000 10,000 10,000 147,055 100,128 66,300 96,500 70,500 75,500 COMMODITIES: 6406 GENERAL SUPPLIES 96 8,426 - - - - 6513 OFFICE SUPPLIES 2,976 2,179 2,000 3,000 2,500 2,500 6575 PRINTING 1,329 857 750 750 1,000 1,000 6610 SAFETY EQUIPMENT 1,465 910 1,250 1,250 1,250 1,250 5,866 12,372 4,000 5,000 4,750 4,750 CENTRAL SERVICES: 6802 PERSONAL SERVICES 18,264 17,544 17,208 17,208 17,600 18,000 6803 GENERAL 23,641 24,404 25,212 25,212 25,700 26,200 6808 EQUIPMENT OPERATION 492 492 500 500 41,905 41,948 42,912 42,912 43,800 44,700 DEPRECIATION: 6910 DEPRECIATION 286,241 292,892 340,000 340,000 400,000 420,000 NONOPERATING EXPENSES 8220 INTEREST EXPENSE 42 90,170 84,400 84,400 82,600 80,600 8230 AMORTIZATION 60 722 700 700 720 720 102 90,892 85,100 85,100 83,320 81,320 TOTAL ADMINISTRATION $ 729,144 $ 726,100 $ 767,346 $ 798,546 $ 834,564 $ 862,672 G:\Budget\2012 Budget\Enterprise Budgets\2012 Arena.xlsx 9/1/2011 1:04 PM CITY OF EDINA ENTERPRISE BUDGET PAGE - 4 FUND: ARENA FUNCTION: OPERATING AREA: I BUILDING & GROUNDS PROGRAM: 5511 SUMMARY OF EXPENDITURES ACCT. DESCRIPTION 2009 ACTUAL 2010 ACTUAL 2011 LIGHT & POWER 2012 Proposed 2013 Proposed 6188 TELEPHONE 6189 SEWER & WATER 6201 LAUNDRY 6250 PERSONAL SERVICES: 4,000 4,000 4,000 238,800 204,196 240,000 6010 SALARY REG EMP 6011 OT REG EMP $ 106,953 4,843 $ 103,658 2,289 $ 87,747 - $ 87,747 _ $ 90,848 _ 92,665 6013 SALARY TEMP EMP 6030 PENSIONS 6034 SOCIAL SECURITY 6040 FLEX PLAN 6045 WORKERS COMPENSATION 6090 OPEB EXPENSE 135,242 14,553 17,969 15,433 10,378 - 138,530 16,172 18,392 16,405 10,919 - 150,000 17,236 18,189 19,575 11,237 1,506 150,000 17,236 18,189 19,575 11,237 1,506 153,000 17,679 18,655 19,571 9,098 1,074 156,060 18,033 19,028 19,571 9,280 1,074 5,400 305,371 306,365 305,490 305,490 309,925 315,711 :ONTRACTUAL SERVICES: 6105 DUES & SUBSCTIPTIONS 6136 PROF SERVICES OTHER 6180 CONTRACTED REPAIRS 6182 RUBBISH REMOVAL 6185 LIGHT & POWER 6186 HEAT 6188 TELEPHONE 6189 SEWER & WATER 6201 LAUNDRY 6250 ALARM SERVICE COMMODITIES: 6406 GENERAL SUPPLIES 6511 CLEANING SUPPLIES 6532 PAINT 6581 GASOLINE TOTAL BUILDING & GROUNDS - 399 - 45,000 45,000 45,000 39,180 42,614 40,000 40,000 40,000 45,000 36,070 34,920 33,000 30,000 30,000 35,000 2,896 2,487 4,000 4,000 4,000 4,000 238,800 204,196 240,000 240,000 240,000 245,000 93,813 82,607 100,000 110,000 110,000 115,000 6,375 5,136 - 5,400 5,400 5,400 1,245 1,339 1,500 1,000 2,000 2,000 1,478 2,041 2,000 2,000 2,000 2,000 619 2,369 700 700 700 750 420,476 378,108 421,200 433,100 434,100 454,150 31,991 29,338 40,000 45,000 45,000 45,000 22,704 21,232 20,000 23,000 23,000 23,000 1,711 1,177 2,400 1,500 2,000 2,000 - - - 1,000 1,000 1,000 56,406 51,747 62,400 70,500 71,000 71,000 $ 782,253 1 $ 736,220 $ 789,090 $ 809,090 $ 815,025 $ 840.861 G:\Budget\2012 Budget\Enterprise Budgets\2012 Arena.xlsx 9/1/2011 1:04 PM I* � 0 CITY OF EDINA ENTERPRISE BUDGET PAGE FUND: ARENA FUNCTION: OPERATING AREA: ICE MAINTENANCE PROGRAM: 5521 SUMMARY OF EXPENDITURES ACCT. DESCRIPTION 2009 ACTUAL 2010 ACTUAL 2011 2012 Proposed 2013 Proposed PERSONAL SERVICES: 6010 SALARY REG EMP 6011 OT REG EMP $ 52,811 1,849 $ 52,356 2,186 $ 53,927 - $ 53,927 - $ 55,297 56,403 6013 SALARY TEMP EMP 6030 PENSIONS 6034 SOCIAL SECURITY 6040 FLEX PLAN 6045 WORKERS COMPENSATION 6090 OPEB EXPENSE 23,751 4,802 6,075 9,051 3,327 - 20,783 4,948 5,753 9,351 3,347 - 38,000 6,665 7,032 9,600 4,339 753 38,000 6,665 7,032 9,600 4,339 753 38,760 6,819 7,195 9,600 3,499 537 39,535 6,955 7,339 9,600 3,569 537 101,666 98,724 120,316 120,316 121,707 123,938 CONTRACTUAL SERVICES: 6180 CONTRACTED REPAIRS 6215 EQUIP MAINTENANCE 38,449 2,703 43,476 2,348 50,000 2,500 42,000 3,000 45,000 3,000 47,000 3,000 41,152 45,824 52,500 45,000 48,000 50,000 COMMODITIES: 6406 GENERAL SUPPLIES 6581 PROPANE 10,903 66 11,560 - 10,000 10,000 12,000 12,000 10,969 11,560 10,000 10,000 12,000 12,000 $ 153,787 $ 156,108 $ 182,816 $ 175,316 $ 181,707 $ 185.938 TOTAL ICE MAINTENANCE G:\Budget\2012 Budget\Enterprise Budgets\2012 Arena.xlsx 9/1/2011 1:04 PM CITY OF EDINA Golf Course Fund Budget 2009 2010 2011 2011 2012 2013 Actual Actual Estimated Budgeted Proposed Proposed Operating revenues Liquor sales $ 146,632 $ 144,541 $ 133,000 $ 149,000 $ 147,000 $ 151,000 Retail sales 212,886 218,585 241,700 234,000 252,100 259,450 Concessions sales 230,776 213,250 188,000 249,000 243,800 248,000 Memberships 123,761 119,981 95,000 135,000 110,000 118,000 Admissions 264,671 228,126 295,000 275,000 275,000 278,000 Building rental 81,728 70,726 82,000 91,000 90,000 94,000 Equipment rental 359,277 362,763 302,000 373,300 372,800 379,600 Greens fees 1,880,610 1,738,261 1,562,000 1,921,000 1,764,000 1,818,000 Other fees 358,333 346,971 335,800 366,000 396,000 399,000 Total revenues 3,658,674 3,443,204 3,234,500 3,793,300 3,650,700 3,745,050 Operating expenses Cost of sales and services 338,248 328,821 319,600 356,300 349,400 356,800 Personal services 1,774,558 1,636,091 1,582,552 1,714,038 1,790,101 1,823,446 Contractual services 580,479 557,828 534,505 570,550 580,650 597,750 Commodities 323,311 479,783 307,150 351,200 368,100 383,900 Central services 110,796 116,958 137,928 137,928 141,380 144,200 Depreciation 414,656 424,077 414,500 427,000 404,500 404,500 Total expenses 3,542,048 3,543,558 3,296,235 3,557,016 3,634,131 3,710,596 Operating Income (loss) 116,626 (100,354) (61,735) 236,284 16,569 34,454 Nonoperating revenues, (expenses), and transfers Excess tax increments 100,124 - - - - - Bond interest & other (44,991) (12,793) (15,200) (15,200) (9,550) (3,100) Transfers 170,000 99,329 100,000 100,000 100,000 100,000 Total nonoperating 225,133 86,536 84,800 84,800 90,450 96,900 Change in net assets 341,759 (13,818) 23,065 321,084 107,019 131,354 January 1 net assets 2,013,091 2,354,850 2,341,032 2,341,032 2,364,097 2,471,116 December 31 net assets $ 2,354,850 $ 2,341,032 $ 2,364,097 $ 2,662,116 $ 2,471,116 $ 2,602,470 Non -GAAP cash reconciliation Change in net assets $ 341,759 $ (13,818) $ 23,065 $ 321,084 $ 107,019 $ 131,354 Depreciation 414,656 424,077 414,500 427,000 404,500 404,500 Bond principal (500,000) (280,000) (280,000) (280,000) (285,000) (310,000) Capital expenditures (173,180) (173,300) (270,000) (270,000) (175,000) (195,000) Other accruals 16,683 (76,897) Change In cash 99,918 (119,938) (112,435) 198,084 51,519 30,854 January 1 cash (1,086,969) (987,051) (1,106,989) (1,106,989) (1,219,424) (1,167,905) December 31 cash $ (987,051) $ (1,106,989) $ (1,219,424) $ (908,905) $ (1,167,905) $ (1,137,051) GABudget\2012 Budget\Enterprise Budgets\2012 Golf Course.xlsx 9/1/2011 CITY OF EDINA ENTERPRISE BUDGET PAGE - 2 G:1Budget12012 Bud get\Enterprise Budgets\2012 Golf Course.xlsx 9/1/2011 1:06 PM • CITY OF EDINA ENTERPRISE BUDGET PAGE - 3 FUND: FUNCTION: AREA: PROGRAM: GOLF DOME I 1 1 5210 SUMMARY OF REVENUE AND EXPENDITURES 2009 2010 2011 2012 2013 ACCT. DESCRIPTION ACTUAL ACTUAL ESTIMATED BUDGETED Proposed Proposed DIRECT EXPENSES: 5510 COST OF GOODS SOLD 3,366 2,376 2,500 2,500 2,800 2,900 PERSONAL SERVICES: 6010 SALARY REG EMP 26,441 24,290 - - - - 6011 OT REG EMP 93 2,222 2,222 2,266 2,311 6013 SALARY TEMP EMP 60,045 53,037 55,560 55,560 56,671 57,804 6014 OTTEMPEMP 2,457 2,065 1,000 1,000 1,020 1,040 6030 PENSIONS 3,848 3,538 4,262 4,262 4,347 4,434 6034 SOCIAL SECURITY 6,928 6,175 4,497 4,497 4,586 4,678 6040 FLEX PLAN 1,790 1,632 - - - - 6045 WORKERS COMPENSATION 852 856 717 717 779 795 6090 OPEB EXPENSE - - - - - - 102,361 91,686 68,258 68,258 69,669 71,062 CONTRACTUAL SERVICES: 6103 PROFESSIONAL SERVICES 4,229 3,168 4,000 - 2,000 2,000 6122 ADVERTISING OTHER 18,155 22,142 14,000 20,000 19,000 20,000 6130 PROF SERVICES AUDIT 600 600 600 600 600 700 6180 CONTRACTED REPAIRS 3,150 7,138 13,000 4,000 7,000 9,000 6182 RUBBISH REMOVAL 395 427 500 500 500 600 6185 LIGHT & POWER 18,586 17,942 18,000 19,000 20,000 20,000 6186 HEAT 82,596 63,343 77,000 85,000 83,000 84,000 6188 TELEPHONE 1,742 1,862 800 - 600 - 6189 SEWER & WATER 175 180 200 - 200 300 6230 SERVICE CONTRACT EQUP 5,859 8,280 12,500 6,500 7,000 8,000 135,487 125,082 140,600 135,600 139,900 144,600 COMMODITIES: 6406 GENERAL SUPPLIES 2,496 1,245 1,500 1,300 1,500 1,500 6511 CLEANING SUPPLIES 730 101 400 500 500 500 6513 OFFICE SUPPLIES 241 54 200 300 300 300 6530 REPAIR PARTS 2,182 972 2,300 1,000 1,500 2,000 6590 RANGE BALLS 542 11,306 5,000 5,000 5,000 6,000 6610 SAFETY EQUIPMENT 103 - 650 200 400 400 6,294 13,678 10,050 8,300 9,200 10,700 CENTRAL SERVICES: 6802 PERSONAL SERVICES 4,368 4,236 4,080 4,080 4,116 4,200 6803 GENERAL 4,931 5,038 6,000 6,000 6,100 6,200 9,299 9,274 10,080 10,080 10,216 10,400 DEPRECIATION: 6910 DEPRECIATION 5,724 5,093 4,500 7,000 4,500 4,500 OPERATING EXPENSES 262,531 247,189 235,988 231,738 236,285 244,162 NONOPERATING: 8220 INTEREST 13 - - - - - 8230 AMORTIZATION 13 - - - - TOTAL DOME EXPENSES $ 262,544$ 247,189 $ 235,988 $ 231,738 $ 236,285 $ 244,162 G:\Budget\2012 Budget\Enterprise Budgets\2012 Golf Course.xlsx 9/1/2011 1:06 PM CITY OF EDINA ENTERPRISE BUDGET PAGE - 4 FUND: FUNCTION: AREA: PROGRAM: GOLF COURSE OPERATING I REVENUE SUMMARY OF REVENUE ACCT. DESCRIPTION 2009 ACTUAL 2010 ACTUAL 2011 ESTIMATEDU 2012 2013 Proposed Proposed GENERAL REVENUE 4414 MISCELLANEOUS $ 1,006 $ 1,289 $ 1,000 $ 1,000 $ 1,300 $ 1,500 4531 PATRON CARDS 123,761 119,981 95,000 135,000 110,000 118,000 4571 CART & CLUB RENT/STOR 22,530 22,963 19,500 25,000 26,000 27,000 4584 LOCKER RENTAL 940 578 700 800 800 900 4591 GREEN FEES EIGHTEEN 960,662 903,412 810,000 975,000 915,000 945,000 4592 GREEN FEES NINE HOLE 471,008 441,381 405,000 490,000 445,000 460,000 4602 GOLF LESSONS 43,504 46,142 79,000 49,000 79,000 77,000 4603 COMP HANDICAPS 958 869 1,800 2,000 2,000 2,000 4609 CASH OVER/SHORT 1,930) 1,667 - OPERATING REVENUE 1,622,439 1,534,948 1,412,000 1,677,800 1,579,100 1,631,400 8010 INCOME ON INVESTMENT 8070 EXCESS TAX INCREMENT 100,124 8070 MISC REVENUE 1,718 _ - 4806 TRANSFERS 170,000 99,329 100,000 100,000 100,000 100,000 40NOPERATING REVENUE 271,843 99,329 100,000 100,000 100,000 100,000 TOTAL GENERAL REVENUE $ 1,894,282 $ 1,634,277 $ 1,512,000 $ 1,777,800 $ 1,679,100 $ 1,731,400 G:\Budget\2012 Budget\Enterprise Budgets12012 Golf Course.xlsx 9/1/2011 1:06 PM CITY OF EDINA ENTERPRISE BUDGET PAGE - 5 FUND: FUNCTION: AREA: PROGRAM: GOLF COURSE BRAEMAR ADMINISTRATION 5410 SUMMARY OF EXPENDITURES 2009 2010 2011 2012 2013 ACCT. DESCRIPTION ACTUAL ACTUAL ESTIMATED BUDGETED Proposed Proposed PERSONAL SERVICES: 6010 SALARY- REGULAR EMP $ 246,072 $ 161,479 $ 176,441 $ 176,441 $ 212,944 $ 217,203 6011 OT - REGULAR EMP 6,523 5,207 707 707 721 735 6013 SALARY - TEMP EMP 162,131 163,051 181,820 181,820 185,456 189,165 6014 OT TEMP EMP 1,942 2,639 2,000 2,000 2,040 2,081 6030 PENSIONS 19,904 20,113 26,169 26,169 29,086 29,668 6034 SOCIAL SECURITY 30,198 30,283 27,614 27,614 30,689 31,303 6040 FLEX PLAN 24,948 20,147 26,622 26,622 32,854 32,854 6045 WORKERS COMPENSATION 3,410 3,432 3,493 3,493 5,341 5,448 6090 OPEB EXPENSE 8,220 6,008 1,866 1,866 1,802 1,802 503,348 412,359 446,732 446,732 500,933 510,259 CONTRACTUAL SERVICES: 6103 PROFESSIONAL SERVICES 64,328 60,865 33,000 47,000 45,000 47,000 6104 CONFERENCES & SCHOOL 1,722 1,210 300 900 900 900 6105 DUES & SUBSCRIPTIONS 6,232 4,997 6,000 6,000 6,000 6,100 6107 MILEAGE OR ALLOWANCE 5,203 2,458 1,500 5,500 5,000 5,100 6122 ADVERTISING 47,206 35,625 32,000 40,000 45,000 46,000 6130 PROF SERVICES AUDIT 2,000 3,983 2,335 2,000 2,500 2,500 6132 PROF SERVICES GOLF 88,800 93,748 85,000 95,000 90,000 92,000 6155 BANK SERVICE CHARGES - 7,276 - - - - 6188 TELEPHONE 383 - - - 6230 SERVICE CONTRACTS 11,852 13,102 14,000 14,000 15,000 16,000 6235 POSTAGE 560 434 350 600 600 600 228,286 223,698 174,485 211,000 210,000 216,200 COMMODITIES: 6406 GENERAL SUPPLIES 35,310 35,937 13,000 19,000 19,000 19,500 6513 OFFICE SUPPLIES 3,865 4,046 3,000 5,500 5,500 5,700 6575 PRINTING 18,803 10,814 6,000 13,000 13,000 13,300 6610 SAFETY EQUIPMENT 1,265 1,539 700 2,000 1,500 1,600 59,243 52,336 22,700 39,500 39,000 40,100 CENTRAL SERVICES: 6802 PERSONAL SERVICES 34,608 34,236 33,972 33,972 35,364 36,100 6803 GENERAL 63,910 68,195 88,404 88,404 90,200 92,000 6808 EQUIPMENT OPERATION 2,979 5,253 5,472 5,472 5,600 5,700 101,497 107,684 127,848 127,848 131,164 133,800 DEPRECIATION: 6910 DEPRECIATION 408,932 418,984 410,000 420,000 400,000 400,000 NONOPERATING: 8102 (GAIN) LOSS ON DISPOSAL 11,601 (5,222) - - - - 8220 INTEREST 34,349 17,568 14,700 14,700 9,050 3,100 8230 AMORTIZATION 820 447 500 500 500 - 46,770 12,793 15,200 15,200 9,550 3,100 TOTAL ADMINISTRATION $ 1,348,076 $ 1,227,854 $ 1,196,965 $ 1,260,280 $ 1,290,647 $ 1,303,459 G:\Budget\2012 Budget\Enterprise Budgets\2012 Goff Course.xlsx 9/1/2011 1:06 PM CITY OF EDINA ENTERPRISE BUDGET PAGE -6 FUND: GOLF COURSE FUNCTION: BRAEMAR A AREA: CLUBHOUSE PROGRAM: 5420 SUMMARY OF EXPENDITURES ACCT. DESCRIPTION 2009 ACTUAL 2010 ACTUAL 2011 ESTIMATED BUDGETED 2012 Proposed 2013 Proposed 500 11,000 4,400 68,000 11,000 - 6189 SEWER & WATER 6230 SERVICE CONTRACTS 6250 ALARM SERVICE 6,715 3,234 4,248 14,662 3,239 6,369 10,000 3,300 5,000 10,000 3,000 4,000 10,000 4,000 5,000 REVENUE 121,621 126,207 114,000 107,300 112,300 114,000 4553 RENTAL OF PROPERTY $ 64,012 $ 57,617 $ 64,000 $ 70,000 $ 70,000 $ 73,000 COMMODITIES: PERSONAL SERVICES: 6406 GENERAL SUPPLIES 6511 CLEANING SUPPLIES 6530 REPAIR PARTS 6610 SAFETY EQUIPMENT 4,600 590 5,577 - 8,867 1,448 2,279 - 5,500 600 2,300 - 7,000 1,000 5,000 500 6,800 900 6,000 500 6010 SALARY REG EMP 6011 OT REG EMP 6013 SALARY TEMP EMP 6014 OT TEMP EMP 28,816 7,808 16,289 202 28,161 7,507 15,997 633 19,335 6,262 16,000 19,335 6,262 18,685 21,764 6,387 17,000 22,199 6,515 17,340 6030 PENSIONS 6034 SOCIAL SECURITY 6040 FLEX PLAN 6045 WORKERS COMPENSATION 6090 OPEB EXPENSE 3,304 3,833 4,776 467 3,334 3,739 3,880 418 - 3,211 3,388 3,360 389 246 3,211 3,388 3,360 389 246 3,274 3,455 3,360 419 191 3,339 3,524 3,360 427 191 65,495 1 63.669 1 52.191 5d R7R C;r, fiFn Ga am 186,295 CONTRACTUAL SERVICES: 6103 PROFESSIONAL SERVICES 6180 CONTRACTED REPAIRS 6182 RUBBISH REMOVAL 6185 LIGHT & POWER 6186 HEAT 6188 TELEPHONE 100 6,384 4,919 67,795 10,305 17,921 414 8,604 4,208 60,804 8,889 19,018 - 13,000 4,200 64,000 9,000 5,500 500 8,000 4,300 67,000 10,500 - 500 11,000 4,300 67,000 10,500 - 500 11,000 4,400 68,000 11,000 - 6189 SEWER & WATER 6230 SERVICE CONTRACTS 6250 ALARM SERVICE 6,715 3,234 4,248 14,662 3,239 6,369 10,000 3,300 5,000 10,000 3,000 4,000 10,000 4,000 5,000 10,000 4,000 5,100 121,621 126,207 114,000 107,300 112,300 114,000 COMMODITIES: 6406 GENERAL SUPPLIES 6511 CLEANING SUPPLIES 6530 REPAIR PARTS 6610 SAFETY EQUIPMENT 4,600 590 5,577 - 8,867 1,448 2,279 - 5,500 600 2,300 - 7,000 1,000 5,000 500 6,800 900 6,000 500 7,000 900 7,000 500 10,767 12,594 8,400 13,500 14,200 15,400 TOTAL CLUB HOUSE 197,883 202,470 174,591 175,676 182,350 186,295 NET INCOME (LOSS) $ 133,871) $ 144,853) $ 110,591 $ (105,676) $ (112,350) $ (113,295) G:\Budget\2012 Budget\Enterprise Budgets\2012 Golf Course.xlsx 9/1/2011 1:06 PM CITY OF EDINA ENTERPRISE BUDGET PAGE - 7 FUND: FUNCTION: AREA: PROGRAM: GOLF COURSE BRAEMAR I GRILL 5421 SUMMARY OF EXPENDITURES 2009 2010 2011 2012 2013 ACCT. DESCRIPTION ACTUAL ACTUAL ESTIMATED BUDGETED Proposed Proposed REVENUE 4405 WINE SALES $ 7,589 $ 7,056 $ 6,000 $ 7,000 $ 7,000 $ 8,000 4406 BEER SALES 139,043 137,485 127,000 142,000 140,000 143,000 4521 CONCESSIONS SALES 204,182 187,236 165,000 220,000 215,000 217,000 5510 COST OF GOODS SOLD (113,251) (100,880) (95,000) (119,000) (115,000) (116,000) 5513 COST OF GOODS - WINE (1,564) (1,900) (2,500) (2,500) (2,700) 5514 COST OF GOODS - BEER 41,199 43,099 40,000 45,000 42,500 44,000 NET REVENUE 194,800 187,798 161,100 202,500 202,000 205,300 PERSONAL SERVICES: 6010 SALARY REG EMP 38,147 39,464 45,954 45,954 47,097 48,039 6011 OT REG EMP - - 505 505 515 525 6013 SALARY TEMP EMP 93,948 100,250 90,906 90,906 92,724 94,578 6014 OTTEMPEMP 156 1,149 600 600 612 624 6030 PENSIONS 4,795 5,859 10,004 10,004 10,218 10,422 6034 SOCIAL SECURITY 10,186 10,842 10,554 10,554 10,694 10,908 6040 FLEX PLAN 7,511 8,049 9,600 9,600 9,600 9,600 6045 WORKERS COMPENSATION 1,458 1,697 1,683 1,683 1,832 1,869 6090 OPEB EXPENSE - - 704 704 546 546 156,201 167,310 170,510 170,510 173,838 177,111 CONTRACTUAL SERVICES: 6102 CONTRACTUAL SERVICES 4,164 1,996 2,200 3,500 3,000 3,300 6103 PROFESSIONAL SERVICES - 139 - - - - 6180 CONTRACTED REPAIRS 3,310 7,643 8,000 8,000 9,000 9,000 6201 LAUNDRY 1,012 1,260 1,100 1,300 1,300 1,400 6230 SERVICE CONTRACT EQUP 1,135 38 1,100 1,100 1,200 1,300 9,621 11,076 12,400 13,900 14,500 15,000 COMMODITIES: 6406 GENERAL SUPPLIES 20,032 27,095 23,000 22,000 24,000 25,000 6511 CLEANING SUPPLIES 5,646 3,143 4,400 4,400 4,900 5,100 25,678 30,238 27,400 26,400 28,900 30,100 TOTAL GRILL 191,500 208,624 210,310 210,810 217,238 222,211 NET INCOME (LOSS) $ 3,300 $ 20,826 $ 49,210 $ 8,310 $ 15,238 $ 16,911 G.\Budget\2012 Budget\Enterprise Budgets\2012 Golf Course.xlsx 9/1/2011 1:06 PM CITY OF EDINA ENTERPRISE BUDGET PAGE - 8 FUND: GOLF COURSE FUNCTION: BRAEMAR AREA: MAINTENANCE PROGRAM: 5422 SUMMARY OF EXPENDITURES ACCT. DESCRIPTION 2009 ACTUAL 2010 ACTUAL 2011 2012 Proposed 2013 Proposed PERSONAL SERVICES: 6010 SALARY REG EMP 6011 OT REG EMP 6013 SALARY TEMP EMP 6014 OTTEMPEMP 6030 PENSIONS 6034 SOCIAL SECURITY 6040 FLEX PLAN 6045 WORKERS COMPENSATION 6090 OPEB EXPENSE $ 334,228 13,318 130,173 3,927 25,612 35,956 48,417 5,301 - $ 330,691 13,384 126,721 3,431 26,769 34,764 45,260 5,437 $ 291,000 13,130 107,000 5,000 35,768 37,742 56,160 6,019 4,118 $ 336,812 13,130 138,420 5,000 35,768 37,742 56,160 6,019 4,118 $ 345,051 13,393 141,188 5,100 36,594 38,612 56,160 6,560 3,194 $ 351,952 13,661 144,012 5,202 37,326 39,384 56,160 6,691 3,194 596,932 586,457 555,937 633,169 645,852 657,582 CONTRACTUAL SERVICES: 6103 PROFESSIONAL SERVICES 6180 CONTRACTED REPAIRS 6182 RUBBISH REMOVAL 6185 LIGHT & POWER 6186 HEAT 6188 TELEPHONE 6189 SEWER & WATER 6201 LAUNDRY 6250 ALARM SERVICE 6251 SHARED MAINTENANCE 6275 COURSE BEAUTIFICATION 1,486 16,608 6,707 6,011 2,700 1,149 79 3,488 179 7,437 7,914 - 20,227 5,233 6,264 2,353 1,429 891 3,525 360 444 3,722 - 25,000 5,500 6,500 3,000 1,300 500 3,500 200 18,000 5,000 5,000 20,000 5,500 7,000 3,000 - - 3,900 50 20,000 5,000 3,000 22,000 5,800 7,000 3,300 500 500 3,900 200 20,000 5,000 4,000 22,000 5,800 7,200 3,400 500 500 4,000 300 21,000 5,500 53,758 44,448 68,500 69,450 71,200 74,200 COMMODITIES: 6406 GENERAL SUPPLIES 6517 SAND GRAVEL & ROCK 6518 ASPHALT 6530 REPAIR PARTS 6540 FERTILIZER 6541 PLANTINGS & TREES 6543 SOD & BLACK DIRT 6545 CHEMICALS 6556 TOOLS 6581 GASOLINE 6611 IRRIGATION EQUIPMENT 18,357 7,409 600 38,914 22,479 6,542 10,909 26,146 4,134 19,982 16,771 18,241 5,799 - 37,970 23,085 7,676 13,838 32,241 703 26,336 5,024 26,000 6,000 3,000 38,000 24,000 6,000 12,000 31,000 1,500 25,000 15,000 30,000 7,000 5,000 39,000 24,000 6,000 12,000 35,000 1,500 25,000 19,000 30,000 7,000 5,000 40,000 25,000 7,000 13,000 40,000 1,500 26,000 22,000 31,000 7,500 6,000 41,000 25,000 7,000 13,000 42,000 1,500 27,000 23,000 224,000 172,243 170,913 187,500 203,500 216,500 $ 822,933 $ 801,818 $ 811,937 $ 906,119 $ 933,552 $ 955,782 TOTAL MAINTENANCE G:\Budget\2012 Budget\Enterprise Budgets\2012 Golf Course.xlsx 9/1/2011 1:06 PM CITY OF EDINA ENTERPRISE BUDGET PAGE -9 FUND: FUNCTION: AREA: PROGRAM: GOLF COURSE BRAEMAR I GOLF CARS 5423 SUMMARY OF EXPENDITURES 2009 2010 2011 2012 2013 ACCT. DESCRIPTION ACTUAL ACTUAL ESTIMATED BUDGETED Proposed Proposed REVENUE 4562 RENTAL GOLF CARS $ 318,396 $ 325,801 $ 270,000 $ 330,000 $ 330,000 $ 335,000 PERSONAL SERVICES: 6010 SALARY REG EMP 390 - 7,166 7,166 7,346 7,493 6011 OT REG EMP - - - - - - 6013 SALARY TEMP EMP 21,664 23,628 16,000 23,230 23,695 24,169 6014 OT TEMP EMP - - - - - - 6030 PENSIONS 713 988 2,204 2,204 2,251 2,296 6034 SOCIAL SECURITY 1,689 1,807 2,325 2,325 2,375 2,423 6040 FLEX PLAN 65 - 1,440 1,440 1,440 1,440 6045 WORKERS COMPENSATION 241 285 371 371 403 411 6090 OPEB EXPENSE 106 106 82 82 24,762 26,708 29,612 36,842 37,592 38,314 CONTRACTUAL SERVICES: 6180 CONTRACTED REPAIRS 13 104 - 500 500 500 6216 LEASE LINES 11,665 9,820 8,000 9,000 9,000 9,500 11,678 9,924 8,000 9,500 9,500 10,000 COMMODITIES: 6406 GENERAL SUPPLIES 4,587 5,306 4,200 6,000 6,000 6,500 6530 REPAIR PARTS 10,801 3,833 3,000 1,500 1,500 1,800 6710 EQUIP REPLACEMENT - 145,976 - - - - 15,388 155,115 7,200 7,500 7,500 8,300 TOTAL GOLF CARS 51,828 191,747 44,812 53,842 54,592 56,614 NET INCOME (LOSS) $ 266,568 $ 134,054 $ 225,188 $ 276,158 $ 275,408 $ 278,386 G:\Budget\2012 Budget\Enterprise Budgets\2012 Golf Course.xlsx 9/1/2011 1:06 PM CITY OF EDINA ENTERPRISE BUDGET PAGE - 10 FUND: FUNCTION: AREA:PROGRAM: GOLF COURSE BRAEMAR RANGE 5424 SUMMARY OF EXPENDITURES 2009 2010 2011 2012 2013 ACCT. DESCRIPTION ACTUAL ACTUAL ESTIMATED BUDGETEDProposed Proposed REVENUE 4593 GREEN FEES EXEC CRS $ 231,191 $ 189,873 $ 165,000 $ 235,000 $ 195,000 $ 198,000 4601 DRIVING RANGE 316,135 301,726 255,000 315,000 315,000 320,000 547,326 491,599 420,000 550,000 510,000 518,000 PERSONAL SERVICES: 6010 SALARY REG EMP - - - - - - 6013 SALARY TEMP EMP 95,576 92,985 78,000 101,015 103,035 105,096 6014 OTTEMPEMP 725 689 500 1,500 1,530 1,561 6030 PENSIONS 2,911 2,927 7,433 7,433 7,581 7,733 6034 SOCIAL SECURITY 7,367 7,166 7,842 7,842 7,999 8,159 6040 FLEX PLAN - - - - 6045 WORKERS COMPENSATION 864 901 1,251 1,251 1,359 1,386 107,443 104,668 95,026 119,041 121,504 123,935 CONTRACTUAL SERVICES: 6103 PROFESSIONAL SERVICE - - - - 6180 CONTRACTED REPAIRS 1,006 1,175 900 1,200 1,200 1,300 6189 SEWER & WATER - 45 120 - 150 150 1,006 1,220 1,020 1,200 1,350 1,450 COMMODITIES: 6406 GENERAL SUPPLIES 7,878 7,671 8,500 8,500 8,500 8,700 6530 REPAIR PARTS 1,031 2,306 2,500 2,500 2,700 2,900 6543 SOD & BLACK DIRT 1,472 847 1,000 1,500 1,500 1,600 6590 RANGE BALLS 4,437 9,375 10,000 10,000 10,000 11,000 14,818 20,199 22,000 22,500 22,700 24,200 TOTAL RANGE 123,267 126,087 118,046 142,741 145,554 149,585 NET INCOME (LOSS) $ 424,059 $ 365,512 $ 301,954 $ 407,259 $ 364,446 $ 368,415 G:\Budget\2012 Budget\Enterprise Budgets\2012 Golf Course.xlsx 9/1/2011 1.06 PM CITY OF EDINA ENTERPRISE BUDGET PAGE - 11 FUND: FUNCTION: AREA: PROGRAM: GOLF COURSE RICHARDS ADMINISTRATION 5430 SUMMARY OF EXPENDITURES 2009 2010 2011 2012 2013 ACCT. DESCRIPTION ACTUAL ACTUAL ESTIMATED BUDGETED Proposed Proposed REVENUE 4415 VENDING SALES $ - $ - $ - $ $ - $ 4416 MISCELLANEOUS 75 95 200 200 200 4522 CONCESSIONS SALES 23,158 23,218 19,500 25,000 25,000 27,000 4552 RICHARDS RENTAL - - - _ - 4563 RENT GOLF CARS 13,150 10,002 8,900 12,500 12,000 12,500 4572 CAR, CART & CLUB RENTAL 4,261 3,419 2,900 5,000 4,000 4,200 4594 GREENS FEES 217,749 203,595 182,000 221,000 209,000 215,000 5510 COST OF GOODS SOLD (9,041) (9,874) (8,100) (8,500) (9,000) (9,500) 5514 COST OF GOODS - BEER 2,734 2,417 2,100 3,800) 2,600 2,700 NET REVENUE 246,618 228,038 203,300 251,200 238,600 246,700 PERSONAL SERVICES: 6010 SALARY REG EMP 1,319 804 - - _ 6013 SALARY TEMP EMP 39,932 40,848 38,000 41,413 42,241 43,086 6014 OT TEMP EMP 266 86 250 250 255 260 6030 PENSIONS 1,012 947 3,020 3,020 3,080 3,142 6034 SOCIAL SECURITY 3,176 3,190 3,187 3,187 3,251 3,316 6040 FLEX PLAN 19 87 - - - 6045 WORKERS COMPENSATION 470 526 508 508 552 563 46,194 46,488 44,965 48,378 49,379 50,367 CONTRACTUAL SERVICES: 6103 PROFESSIONAL SERVICES - - - - 6107 MILEAGE & ALLOWANCE 100 100 100 6122 ADVERTISING OTHER - 500 - - 6180 CONTRACTED REPAIRS 620 3,208 800 500 1,000 1,000 6182 RUBBISH REMOVAL 1,009 866 1,200 1,200 1,200 1,200 6185 LIGHT & POWER 5,245 5,762 5,900 5,500 6,000 6,200 6186 HEAT 2,695 1,879 2,500 2,800 3,000 3,100 6188 TELEPHONE 2,277 991 1,200 2,000 1,500 1,500 6189 SEWER & WATER 1,259 364 1,200 2,000 1,500 1,500 6230 SERVICE CONTRACT EQUP 325 69 500 500 500 500 13,430 13,139 13,300 15,100 14,800 15,100 COMMODITIES: 6406 GENERAL SUPPLIES 1,655 1,292 1,600 2,000 2,000 2,100 6511 CLEANING SUPPLIES 58 - 100 200 200 200 6513 OFFICE SUPPLIES 161 283 300 200 200 250 6530 REPAIR PARTS - - - 200 200 350 6575 PRINTING 959 500 - - 6577 LUMBER - 2,833 1,575 2,000 3,100 2,600 2,900 TOTAL ADMINISTRATION 62,457 61,202 60,265 66,578 66,779 68,367 G:\Budget\2012 Budget\Enterprise Budgets\2012 Golf Course.xlsx 9/1/2011 1:06 PM CITY OF EDINA ENTERPRISE BUDGET PAGE - 12 FUND: FUNCTION: AREA: PROGRAM: GOLF COURSE RICHARDS MAINTENANCE 5431 SUMMARY OF EXPENDITURES 2009 2010 2011 2012 2013 ACCT. DESCRIPTION ACTUAL ACTUAL ESTIMATED TO= Proposed Proposed_ PERSONAL SERVICES: 6010 SALARY REG EMP $ 41,163 $ 40,588 $ 47,772 $ 47,772 $ 48,948 $ 49,927 6011 OT REG EMP 1,440 2,463 1,000 4,040 4,121 4,203 6013 SALARY TEMP EMP 30,112 23,281 18,000 32,633 33,286 33,952 6014 OTTEMPEMP 967 497 1,000 1,000 1,020 1,040 6030 PENSIONS 4,189 3,014 6,195 6,195 6,335 6,462 6034 SOCIAL SECURITY 5,697 5,117 6,537 6,537 6,684 6,818 6040 FLEX PLAN 7,888 7,890 9,600 9,600 9,600 9,600 6045 WORKERS COMPENSATION 884 802 1,042 1,042 1,136 1,159 6090 OPEB EXPENSE - - 704 704 546 546 92,340 83,652 91,850 109,523 111,676 113,707 CONTRACTUAL SERVICES: 6103 PROFESSIONAL SERVICES 360 - 500 - 6180 CONTRACTED REPAIRS 5,006 2,670 1,200 2,500 2,600 2,600 6185 LIGHT & POWER - - - 2,000 2,000 2,100 6251 SHARED MAINTENANCE - - 500 2,000 2,000 2,000 5,366 2,670 1,700 7,000 6,600 6,700 COMMODITIES: 6406 GENERAL SUPPLIES 601 5,151 2,200 5,000 5,100 5,200 6517 SAND, ROCK& GRAVEL 1,100 - 1,800 2,000 2,100 2,100 6518 ASPHALT 2,956 - - 6530 REPAIR PARTS 5,547 5,689 3,900 3,000 3,500 3,700 6540 FERTILIZER - 2,999 4,500 6,500 5,500 5,500 6541 PLANTINGS & TREES - 707 500 2,000 2,000 2,000 6543 SOD & BLACK DIRT - 1,942 800 2,000 2,000 2,000 6545 CHEMICALS 2,774 1,584 1,800 2,000 2,000 2,000 6556 TOOLS - 221 200 300 300 500 6581 GASOLINE 2,323 2,354 2,200 2,900 3,000 3,200 15,301 20,647 17,900 25,700 25,500 26,200 TOTAL MAINTENANCE 113,007 106,969 111,450 142,223 143,776 146,607 TOTAL RICHARDS COURSE 175,464 168,171 171,715 208,801 210,555 214,974 NET INCOME (LOSS) $ 71,154 $ 59,867 $ 31,585 $ 42,399 $ 28,045 $ 31,726 G:\Budget\2012 Budget\Enterprise Budgets\2012 Golf Course.xlsx 9/1/2011 1:06 PM CITY OF EDINA ENTERPRISE BUDGET PAGE - 13 FUND: FUNCTION: AREA: PROGRAM: GOLF COURSE BRAEMAR PRO SHOP 5440 SUMMARY OF EXPENDITURES 2009 2010 2011 2012 2013 ACCT. DESCRIPTION ACTUAL ACTUAL ESTIMATED BUDGETED Proposed Proposed REVENUE 4412 PRO SHOP SALES $ 209,675 $ 213,945 $ 240,000 $ 230,000 $ 250,000 $ 257,000 5511 COST OF GOODS 167,093 170,175 170,000 175,000 175,000 179,000 42,582 43,770 70,000 55,000 75,000 78,000 NET REVENUE PERSONAL SERVICES: 6010 SALARY REG EMP 57,808 34,394 13,500 - 15,656 15,.969 6011 OT REG EMP 1,807 1,776 1,776 - 1,776 1,812 6013 SALARY TEMP EMP 2,025 4,718 - 23,000 - - 6014 OT TEMP EMP 11 - - - - 6030 PENSIONS 3,924 2,925 2,925 1,668 1,264 1,289 6034 SOCIAL SECURITY 4,733 3,326 3,326 1,760 1,334 1,361 6040 FLEX PLAN 9,051 5,851 5,851 - 3,360 3,360 6045 WORKERS COMPENSATION 134 93 93 281 227 232 6090 OPER EXPENSE - - - - 191 191 79,482 53,094 27,471 26,709 23,808 24,214 CONTRACTUAL SERVICES: 6106 MEETINGITRAVEL EXP - - 6122 ADVERTISING & OTHER 226 364 500 500 500 500 226 364 500 500 500 500 COMMODITIES: 6406 GENERAL SUPPLIES 746 2,488 2,000 1,200 2,000 2,000 TOTAL PRO SHOP 80,454 55,946 29,971 28,409 26,308 26,714 NET INCOME (LOSS) $ 37,872 $ 12,176 $ 40,029 $ 26,591 $ 48,692 $ 51,286 G:\Budget\2012 Budget\Enterprise Budgets\2012 Golf Course.xlsx 9/1/2011 1:06 PM CITY OF EDINA Aquatic Center Budget G:\Budget\2012 Budget\Enterprise Budgets\2012 Aquatic Center.xlsx 9/1/2011 2009 2010 2011 2011 2012 2013 Actual Actual Estimated Budgeted Proposed Proposed Operating revenues Retail sales $ 4,759 $ 7,442 $ 4,800 $ 4,800 $ 4,800 $ 5,000 Concessions sales 101,398 123,879 118,000 115,000 125,000 128,000 Memberships 464,570 436,524 380,000 420,000 485,000 488,000 Admissions 261,623 334,851 320,000 250,000 280,000 284,000 Building rental 27,468 42,245 36,000 29,000 39,000 39,000 Other fees (2) 588 Total revenues 859,816 945,529 858,800 818,800 933,800 944,000 Operating expenses Cost of sales and services 28,670 35,902 32,600 37,600 38,000 39,200 Personal services 261,365 270,844 297,250 302,034 319,127 325,400 Contractual services 118,074 113,170 117,100 107,200 127,575 133,400 Commodities 142,570 115,070 83,650 76,350 84,850 111,050 Central services 25,056 22,080 23,000 23,364 24,084 24,564 Depreciation 194,928 194,701 198,000 198,000 175,000 250,000 Total expenses 770,663 751,767 751,600 744,548 768,636 883,614 Operating income (loss) 89,153 193,762 107,200 74,252 165,164 60,386 Nonoperating revenues, (expenses), and transfers Bond interest & other (27,706) (17,841) (16,550) (16,550) (13,950) (11,100) Total nonoperating (27,706) (17,841) (16,550) (16,550) (13,950) (11,100) Change in net assets 61,447 175,921 90,650 57,702 151,214 49,286 January1 net assets 2,137,921 2,199,368 2,375,289 2,375,289 2,465,939 2,617,153 December 31 net assets $ 2,199,368 $ 2,375,289 $ 2,465,939 $ 2,432,991 $ 2,617,153 $ 2,666,439 Non -GAAP cash reconciliation Change in net assets $ 61,447 $ 175,921 $ 90,650 $ 57,702 $ 151,214 $ 49,286 Depreciation 194,928 194,701 198,000 198,000 175,000 250,000 Bond principal (110,000) (135,000) (125,000) (125,000) (135,000) (140,000) Capital expenditures (14,915) - (650,000) (650,000) (600,000) (50,000) Other accruals (2,995) (1,418) - - - Change in cash 128,465 234,204 (486,350) (519,298) (408,786) 109,286 January 1 cash 1,179,383 1,307,848 1,542,052 1,542,052 1,055,702 646,916 December 31 cash $ 1,307,848 $ 1,542,052 $ 1,055,702 $ 1,022,754 $ 646,916 $ 756,202 G:\Budget\2012 Budget\Enterprise Budgets\2012 Aquatic Center.xlsx 9/1/2011 CITY OF EDINA ENTERPRISE BUDGET PAGE - 2 FUND: FUNCTION: AREA: PROGRAM: AQUATIC CENTER OPERATING REVENUE SUMMARY OF REVENUE 2009 2010 2011 2012 2013 ACCT. DESCRIPTION ACTUAL ACTUAL ESTIMATED BUDGETED Proposed Proposed GENERAL REVENUE 4532 SEASON TICKETS $ 464,570 $ 436,524 $ 380,000 $ 420,000 $ 485,000 $ 488,000 4541 GENERAL ADMISSIONS 261,623 334,851 320,000 250,000 280,000 284,000 4551 RENTAL OF PROPERTY 4609 CASH OVER/SHORT 27,468 (2) 42,245 588 36,000 - 29,000 - 39,000 - 39,000 8070 MISCELLANEOUS - - $ 753,659 $ 814,208 $ 736,000 $ 699,000 $ 804,000 $ 811,000 TOTAL GENERAL REVENUE G:\Budget\2012 Budget\Enterprise Budgets\2012 Aquatic Center.xlsx 9/1/2011 1:03 PM • CITY OF EDINA ENTERPRISE BUDGET PAGE - FUND: AQUATIC CENTER FUNCTION:AREA: OPERATING ADMINISTRATION PROGRAM: 5310 SUMMARY OF EXPENDITURES ACCT. DESCRIPTION 2009 ACTUAL 2010 ACTUAL 2011 ESTIMATED BUDGETED 2012 Proposed- 2013 Proposed REVENUE 4414 MISC RETAIL SALES 5510 COST OF GOODS SOLD TOTAL REVENUE $ 4,759 2,518 $ 7,442 4,304) $ 4,800 2,600 $ 4,800 2,600 $ 4,800 3,000) $ 5,000 3,200 2,241 3,138 2,200 2,200 1,800 1,800 PERSONAL SERVICES: 6010 SALARY - REG EMP 6013 SALARY - TEMP EMP 6014 OTTEMPEMP 6030 PENSIONS 6034 SOCIAL SECURITY 6040 FLEX PLAN 6045 WORKERS COMPENSATION 13,878 163,097 1,766 937 13,869 813 6,740 15,301 160,988 2,395 1,073 13,691 1,731 5,767 16,500 185,000 3,000 1,400 16,000 1,900 7,200 16,731 194,000 4,000 1,503 16,427 1,920 7,202 17,152 207,880 4,080 1,540 17,527 1,920 7,594 17,495 212,038 4,162 1,571 17,878 1,920 7,746 201,100 200,946 231,000 241,783 257,693 262,810 CONTRACTUAL SERVICES: 6103 PROFESSIONAL SERVICES 6104 CONFERENCES & SCHOOL 6105 DUES & SUBSCRIPTIONS 6122 ADVERTISING OTHER 17,793 1,402 1,508 670 19,921 724 1,179 130 19,000 750 1,250 150 10,000 1,500 1,000 18,000 1,500 1,200 19,000 1,500 1,200 6130 PROF SERVICES AUDIT 6189 SEWER & WATER 6235 POSTAGE 600 1,565 945 600 1,385 1,122 600 1,500 1,200 600 1,500 1,250 600 1,600 1,275 600 1,600 1,275 24,483 25,061 24,450 15,850 24,175 25,175 COMMODITIES: 6406 GENERAL SUPPLIES 6513 OFFICE SUPPLIES 6575 PRINTING 6610 SAFETY EQUIPMENT 5,422 - 4,379 2,431 8,937 - 3,402 - 8,500 - 3,000 1,200 5,000 250 3,600 1,500 8,000 250 3,750 1,800 8,400 250 3,850 2,000 12,232 12,339 12,700 10,350 13,800 14,500 CENTRAL SERVICES: 6802 PERSONAL SERVICES 6803 GENERAL 6808 EQUIPMENT OPERATION 7,944 14,754 2,358 7,812 14,268 8,000 15,000 7,668 15,696 8,076 16,008 8,232 16,332 25,056 22,080 23,000 23,364 24,084 24,564 DEPRECIATION: 6910 DEPRECIATION 194,928 194,701 198,000 198,000 175,000 250,000 NONOPERATING EXPENSE 8220 INTEREST 8230 AMORTIZATION 26,942 764 17,248 593 15,950 600 15,950 600 13,350 600 10,600 500 27,706 17,841 16,550 16,550 13,950 11,100 TOTAL ADMINISTRATION 485,505 472,968 505,700 505,897 508,702 588,149 NET INCOME (LOSS) $ 483,264) $ (469,830) $ 503,500) $ (503,697) $ 506,902) $ 586,349) G:\Budget\2012 Budget\Enterprise Budgets\2012 Aquatic Center.xlsx 9/1/2011 1:03 PM ITY OF EDINA ENTERPRISE BUDGET PAGE - 4 D: AQUATIC CENTER PERSONAL SERVICES: 6010 SALARY REG EMP 6011 OT REG EMP 6013 SALARY TEMP EMP 6014 SALARY OT TEMP EMP 6030 PENSIONS 6034 SOCIAL SECURITY 6040 FLEX PLAN 6045 WORKERS COMPENSATION CONTRACTUAL SERVICES: 6103 PROFESSIONAL SERVICES 6180 CONTRACTED REPAIRS 6182 RUBBISH REMOVAL 6185 LIGHT & POWER 6186 HEAT 6188 TELEPHONE 6201 LAUNDRY COMMODITIES: 6406 GENERAL SUPPLIES 6511 CLEANING SUPPLIES 6530 REPAIR PARTS 6532 PAINT 6545 CHEMICALS TOTAL OCCUPANCY FUNCTION: AREA: PROGRAM: OPERATING OPERATING 5311 SUMMARY OF EXPENDITURES 2009 2010 2011 2,000 2012 2013 ACTUAL ACTUAL ESTIMATEDProposed 12,750 35,000 Proposed 16,858 18,000 15,000 17,500 18,000 129,921 $ 20,590 $ 20,982 $ 21,000 $ 18,980 $ 19,462 $ 19,851 - - - 1,800 1,800 1,836 12,471 15,597 12,000 10,000 10,200 10,404 297 - - 293 299 305 1,390 1,469 1,500 1,528 1,564 1,595 2,497 2,728 2,800 2,377 2,430 2,479 2,955 3,598 3,600 3,592 3,590 3,590 973 1,130 1,100 1,100 1,107 1,129 41,173 45,504 42,000 39,670 40,452 41,189 1,722 1,908 1,900 1,500 1,850 2,000 38,984 35,210 36,000 22,000 36,500 38,000 1,609 1,803 2,000 1,750 1,800 1,950 17,569 20,872 21,000 20,500 22,000 22,500 29,202 23,228 26,000 40,000 35,000 37,000 1,476 1,005 1,500 1,500 1,500 1,600 2,884 3,887 4,000 3,400 4,000 4,250 93,446 1 877913 92,400 90,650 102,650 107.300 45,323 33,446 38,000 34,000 35,000 37,500 2,074 1,678 1,750 2,000 2,000 2,250 67,898 46,671 12,000 12,000 12,750 35,000 14,626 16,858 18,000 15,000 17,500 18,000 129,921 98,653 69,750 63,000 67,250 92,750 $ 264,540 $ 232,070 $ 204,150 $ 193,320 $ 210,352 $ 241,239 G:\Budget\2012 Budget\Enterprise Budgets\2012 Aquatic Center.xlsx 9/1/2011 1:03 PM CITY OF EDINA ENTERPRISE BUDGET PAGE - 5 FUND: FUNCTION: AREA:PROGRAM: AQUATIC CENTER OPERATING CONCESSIONS 5320 SUMMARY OF EXPENDITURES 2009 2010 2011 2012 2013 ACCT. DESCRIPTION ACTUAL ACTUAL ESTIMATED BUDGETED Proposed Proposed REVENUE 4521 CONCESSIONS SALES $ 101,398 $ 123,879 $ 118,000 $ 115,000 $ 125,000 $ 128,000 5510 COST OF GOODS SOLD 26,152 31,598) 30,000 35,000 (35,000) (36,000 75,246 92,281 88,000 80,000 90,000 92,000 TOTAL REVENUE PERSONAL SERVICES: 6013 SALARY TEMP EMP 17,084 21,982 22,000 18,500 18,870 19,247 6034 SOCIAL SECURITY 1,307 1,682 1,500 1,415 1,444 1,473 6045 WORKERS COMPENSATION 701 730 750 666 668 681 19,092 24,394 24,250 20,581 20,982 21,401 CONTRACTUAL SERVICES: 6103 PROFESSIONAL SERVICES - 65 - - 6180 CONTRACTED REPAIRS - - - 500 500 650 6201 LAUNDRY 145 131 250 200 250 275 145 196 250 700 750 925 COMMODITIES: 6406 GENERAL SUPPLIES 417 4,078 1,200 3,000 3,800 3,800 6511 CLEANING SUPPLIES - - - 417 4,078 1,200 3,000 3,800 3,800 TOTAL CONCESSIONS 19,654 28,668 25,700 24,281 25,532 26,126 NET INCOME (LOSS) $ 55,592 $ 63,613 $ 62,300 $ 55,719 $ 64,468 $ 65,874 G:\Budget\2012 Budget\Enterprise Budgets\2012 Aquatic Center.xlsx 9/1/2011 1:03 PM r • CITY OF EDINA Edinborough Fund Forecast G:1Budget\2012 Budget\Enterprise Budgets\2012 New Edinborough.xlsx 9/1/2011 2009' 2010' 2011• 2011' 2012 2013 Actual Actual Estimated Budgeted Proposed Proposed Operating revenues Concessions sales $ 29,386 $ 29,328 $ 60,000 $ 100,000 $ 175,000 $ 185,000 Memberships 57,078 52,515 56,000 56,000 56,000 56,000 Admissions Building rental 563,735 569,591 590,000 540,000 550,000 550,000 Equipment rental 143,442 7,814 163,492 180,000 142,000 150,000 150,000 Association fees and other 203,245 11,397 217,122 9,000 210,000 8,500 210,000 8,500 212,100 8,500 214,200 Total revenues 1,004,700 1,043,445 1,105,000 1,056,500 1,151,600 1,163,700 Operating expenses Cost of sales and services 40,055 42,164 60,000 80,000 99,000 105,000 Personal services 666,921 677,701 743,011 755,611 783,210 797,479 Contractual services 386,027 316,198 327,600 332,600 331,500 335,000 Commodities 175,145 148,342 193,200 180,700 182,200 187,700 Central services 39,573 38,495 55,632 55,632 57,148 58,200 Depreciation 98,750 128,994 106,667 106,667 100,000 120,000 Total expenses 1,406471 1,351894 1,486110 1,511,210 1,553,058 1,603,379 Operating Income (loss) (401,771) (308,449) (381,110) (454,710) (401,458) (439,679) Nonoperating revenues, (expenses), and transfers Interest income 37,364 73,650 49,000 49,000 42,000 33,250 Miscellaneous 1,125 - - - Transfers 250,000 102,091 235,000 235,000 220,000 215,000 Total nonoperating 288,489 175,741 284,000 284,000 262,000 248,250 Change in net assets (113,282) (132,708) (97,110 (170,710) (139,458) (191,429 January 1 net assets - - 2,515,917 2,376,459 December 31 net assets $ $ - $ 2,515,917 $ $ 2,376,459 $ 2,185,030 Non -GAAP cash reconciliation Change in net assets $ (113,282) $ (132,708) $ (97,110) $ (170,710) $ (139,458) $ (191,429) Depreciation 98,750 128,994 106,667 106,667 100,000 120,000 Capital expenditures (512,510) (194,949) (235,000) (235,000) (220,000) (215,000) Other accruals (117,470) 29,854 Change in cash (644,512) (168,809) (225,443) (299,043) (259,458) (286,429) January 1 cash - - 1,205,917 946,459 December 31 cash $ $ - $ 1,205,917 $ - $ 946,459 $ 660,030 G:1Budget\2012 Budget\Enterprise Budgets\2012 New Edinborough.xlsx 9/1/2011 CITY OF EDINA ENTERPRISE BUDGET PAGE - 2 FUND: FUNCTION:AREA: PROGRAM: EDINBOROUGH UNALLOCATED COMBINED 5610 SUMMARY OF EXPENDITURES 2009 2010 2011 2012 2013 ACCT. DESCRIPTION ACTUAL ACTUAL ESTIMATEDProposed Proposed GENERAL REVENUE 4604 GRANTS, AWARDS, OTHER $ - $ - $ $ $ $ 4606 ASSOCIATION FEES 203,128 120,827 4609 CASH OVER/SHORT 117 67 _ OPERATING REVENUE 203,245 120,760 37,364 73,650 49,000 49,000 42,000 33,250 8010 INVESTMENT INCOME 8070 MISC REVENUE 1,125 - _ 4806 TRANSFERS 250,000 102,091 235,000 235,000 220,000 215,000 NONOPERATING REVENUE 288,489 175,741 284,000 284,000 262,000 248,250 TOTAL GENERAL REVENUE $ 491,734 $ 296,501 $ 284,000 $ 284,000 $ 262,000 $ 248,250 PERSONAL SERVICES: 6010 SALARY - REGULAR EMP $ 12,904 $ - $ - $ _ $ $ - 6013 SALARY - TEMP EMP - 6030 PENSIONS 6034 SOCIAL SECURITY 6040 FLEX PLAN 6045 WORKERS COMPENSATION 6090 OPEB EXPENSE - 12,904 CONTRACTUAL SERVICES: 6103 PROFESSIONAL SERVICES 6104 CONFERENCES & SCHOOL - 6105 DUES & SUBSCRIPTIONS - 6107 MILEAGE OR ALLOWANCE - 6122 ADVERTISING OTHER 6130 PROF SERVICES AUDIT - 6136 PROF SERVICES OTHER 12,749 _ 6180 CONTRACTED REPAIR - 6188 TELEPHONE 6230 SERVICE CONTRACT EQUP 6235 POSTAGE - 12,749 COMMODITIES: 6406 GENERAL SUPPLIES 932 - 6513 OFFICE SUPPLIES - 6575 PRINTING 647 6610 SAFETY EQUIPMENT 1,579 _ CENTRAL SERVICES: 6802 PERSONAL SERVICES 12,907 6803 GENERAL 20,465 _ 6808 EQUIPMENT OPERATION 6,201 39,573 - - - _ _ DEPRECIATION: 6910 DEPRECIATION 98,750 127,007 106,667 106,667 100,000 120,000 UNALLOCATED NET INCOME $ 326,179 $ 169,494 $ 177,333 $ 177,333 $ 162,000 $ 128,250 G:\Budget\2012 Budget\Enterprise Budgets\2012 New Edinborough.xlsx 9/1/2011 1:10 PM CITY OF EDINA ENTERPRISE BUDGET PAGE - 3 FUND: FUNCTION: AREA: PROGRAM: EDINBOROUGH/CENT LAKE I ADMINISTRATION EDINBOROUGH PARK 5621 SUMMARY OF EXPENDITURES 2009 2010 2011 2012 2013 ACCT. DESCRIPTION ACTUAL ACTUAL ESTIMATED BUDGETED Proposed Proposed PERSONAL SERVICES: 6010 SALARY - REGULAR EMP $ 143,249 $ 153,305 $ 153,476 $ 153,476 $ 157,332 $ 160,479 6013 SALARY - TEMP EMP 109,425 107,594 130,000 145,000 118,000 120,360 6030 PENSIONS 13,238 14,135 21,640 21,640 19,961 20,360 6034 SOCIAL SECURITY 18,671 19,338 22,833 22,833 21,062 21,483 6040 FLEX PLAN 13,336 18,962 19,200 19,200 19,200 19,200 6045 WORKERS COMPENSATION 1,120 1,332 4,775 4,775 5,011 5,111 6090 OPEB EXPENSE 2,769 2,107 1,028 1,028 702 702 301,808 316,773 352,952 367,952 341,268 347,695 CONTRACTUAL SERVICES: 6103 PROFESSIONAL SERVICES 1,270 122 1,000 1,000 1,000 1,200 6104 CONFERENCES & SCHOOL 2,220 726 2,600 2,500 3,500 3,000 6105 DUES & SUBSCRIPTIONS 1,747 1,037 2,000 2,000 2,000 2,000 6106 MEETING EXPENSE - - 100 6107 MILEAGE OR ALLOWANCE 3,395 2,814 4,000 5,000 4,000 4,500 6122 ADVERTISING OTHER 8,683 3,149 5,000 6,000 7,000 7,000 6130 PROF SERVICES AUDIT - 850 1,000 1,000 1,000 1,000 6136 PROF SERVICES OTHER 12,520 8,851 12,000 12,000 12,000 12,000 6180 PROF SERVICES OTHER - 514 6188 TELEPHONE 7,648 5,303 2,500 2,500 2,500 2,500 6230 SERVICE CONTRACT EQUP 1,469 1,603 2,000 1,000 1,500 1,500 6235 POSTAGE 1,077 1,157 1,500 1,500 1,500 1,500 40,029 26,126 33,600 34,600 36,000 36,200 COMMODITIES: 6406 GENERAL SUPPLIES 8,938 8,774 9,000 9,000 9,000 9,000 6513 OFFICE SUPPLIES 2,470 2,889 7,000 7,000 5,000 5,000 6575 PRINTING 5,558 7,489 7,000 7,000 7,000 7,000 6610 SAFETY EQUIPMENT 1,845 1,784 2,000 2,500 2,500 2,500 18,811 20,936 25,000 25,500 23,500 23,500 CENTRAL SERVICES: 6802 PERSONAL SERVICES - 12,984 13,152 13,152 13,848 14,100 6803 GENERAL 23,699 40,824 40,824 41,500 42,300 6808 EQUIPMENT OPERATION 1,812 1,656 1,656 1,800 1,800 38,495 55,632 55,632 57,148 58,200 DEPRECIATION: 6910 DEPRECIATION - TOTAL ADMINISTRATION $ 360,648 $ 402,330 $ 467,184 $ 483,684 $ 457,916 $ 465,595 G:\Budget\2012 Budget\Enterprise Budgets\2012 New Edinborough.xlsx 9/1/2011 1:10 PM CITY OF EDINA ENTERPRISE BUDGET PAGE -4 'UND: FUNCTION: AREA: PROGRAM: EDINBOROUGH/CENT LAKE OPERATIONS EDINBOROUGH PARK 5620 SUMMARY OF EXPENDITURES 20092010 2011 2012 2013 ,CCT. DESCRIPTION ACTUAL ACTUAL c�.,.,.,�va D-----, 4523 CONCESSION SALES 4532 SEASON TICKETS 4541 ADMISSIONS 4554 BUILDING RENTAL 4557 BIRTHDAY PARTY RENTAL 4584 LOCKER RENTAL 4585 SOCK SALES 4606 ASSOCIATION FEES 5510 COST OF GOODS SOLD NET REVENUE $ 29,386 57,078 563,735 10,385 133,057 529 7,285 - 40,055 761,400 $ 29,328 52,515 569,591 27,371 136,121 1,269 10,128 96,362 42,164 880,521 $ 60,000 56,000 590,000 45,000 135,000 1,500 7,500 210,000 60,000 1,045,000 $ 100,000 56,000 540,000 12,000 130,000 1,500 7,000 210,000 80,000 976,500 $ - 56,000 550,000 10,000 140,000 1,500 7,000 212,100 43,000 933,600 $ 56,000 550,000 10,000 140,000 1,500 7,000 214,200 (45,000; 933,700 PERSONAL SERVICES: 6010 SALARY REG EMP 6011 OT REG EMP 6013 SALARY TEMP EMP 6030 PENSIONS 6034 SOCIAL SECURITY 6040 FLEX PLAN 6045 WORKERS COMPENSATION 6090 OPEB EXPENSE CONTRACTUAL SERVICES: 224,804 3,583 38,837 17,692 19,894 39,762 7,637 - 228,716 5,767 37,706 18,761 20,400 41,514 8,064 - 241,062 6,000 40,000 20,638 21,777 48,091 9,921 2,570 241,062 600 43,000 20,638 21,777 48,091 9,921 2,570 228,093 7,140 54,000 20,969 22,126 48,090 8,839 1,755 232,655 7,283 55,080 21,388 22,569 48,090 9,016 1,755 352,209 360,928 390,059 387,659 391,012 397,836 6103 PROFESSIONAL SERVICES 6180 CONTRACTED REPAIRS 6182 RUBBISH REMOVAL 6185 LIGHT & POWER 6186 HEAT 6188 TELEPHONE 6189 SEWER & WATER 6201 LAUNDRY 6230 SERVICE CONTRACT EQUP 6250 ALARM SERVICE 47,752 59,744 4,444 118,010 44,428 - 9,506 1,332 47,168 865 23,971 70,246 3,596 116,821 40,922 2,338 8,933 2,672 18,148 2,425 17,000 62,000 6,000 120,000 48,000 5,000 10,000 3,000 21,000 2,000 17,000 62,000 6,000 122,000 50,000 5,000 10,000 3,000 21,000 2,000 17,000 65,000 5,000 120,000 45,000 4,000 10,000 3,000 24,000 2,500 18,000 65,000 6,000 120,000 45,000 4,000 10,000 3,000 25,000 2,800 :OMMODITIES: 333,249 290,072 294,000 298,000 295,500 298,800 6406 GENERAL SUPPLIES 6511 CLEANING SUPPLIES 6530 REPAIR PARTS 6532 PAINT &LUMBER 6540 FERTILIZER & SOIL 6545 CHEMICALS 6556 TOOLS 6610 SAFETY EQUIPMENT 6620 PLANTS & TREES 84,955 30,741 13,719 816 776 4,378 297 19,073 62,898 23,855 17,693 854 1,142 5,494 1,014 224 14,232 80,000 30,000 28,000 1,000 1,500 5,000 1,000 700 21,000 80,000 30,000 15,000 1,000 1,500 5,000 1,000 700 75,000 30,000 20,000 1,000 1,500 5,000 1,000 700 20,000 78,000 32,000 20,000 1,000 1,500 5,500 1,000 700 20,000 IEPRECIATION: 154, 755 127,406 168,200 E21515,200 154,200 159,700 6910 DEPRECIATION - 1,987 - AL OPERATIONS 100,128 $ 192,741 1 $ 135,6411 $ 92,8881 $ 77 G:\Budget\2012 Budget\Enterprise Budgets\2012 New Edinborough.xlsx 9/1/2011 1:10 PM k • .7 CITY OF EDINA ENTERPRISE BUDGET PAGE -5 FUND: FUNCTION: AREA: PROGRAM: EDINBOROUGH/CENT LAKE CONCESSIONS I EDINBOROUGH PARK SUMMARY OF EXPENDITURES 2009 2010 2011 2012 2013 ACCT. DESCRIPTION ACTUAL ACTUAL ESTIMATEUProposed Proposed REVENUE: 4523 CONCESSION SALES $ $ $ $ $ 175,000 $ 185,000 5510 COST OF GOODS SOLD NET REVENUE (56,000)60,000 119,000 125,000 PERSONAL SERVICES: 6010 SALARY REG EMP _ 6011 OT REG EMP 6013 SALARY TEMP EMP 6030 PENSIONS 43,000 43,860 6034 SOCIAL SECURITY - - - 3,118 3,180 6040 FLEX PLAN - 3,290 3,356 6045 WORKERS COMPENSATION - 6090 OPEB EXPENSE - - 1,522 1,552 CONTRACTUAL SERVICES: - 50, 930 51,948 6103 PROFESSIONAL SERVICES 6180 CONTRACTED REPAIRS 6188 TELEPHONE 6189 SEWER & WATER COMMODITIES: 6406 GENERAL SUPPLIES - 2,500 2,500 6511 CLEANING SUPPLIES - 2,000 2,000 6530 REPAIR PARTS DEPRECIATION: 4,500 4,500 6910 DEPRECIATION TOTAL CONCESSIONS $ - $ $ $ - $ 63,570 $ 68,552 G:\Budget\2012 Budget\Enterprise Budgets\2012 New Edinborough.xlsx 9/1/2011 1:10 PM CITY OF EDINA Centennial Fund Forecast 2009' 2010' 2011` 2011 2012 2013 Actual Actual Estimated Budgeted Proposed Proposed Operating revenues Concessions sales $ 30,027 $ 35,074 $ 30,000 $ 30,000 $ 32,000 $ 34,000 Building rental 97,047 105,860 95,000 95,000 102,000 105,000 Equipment rental 95,947 118,010 90,000 81,000 102,000 109,000 Greens fees 215,710 176,124 170,000 190,000 200,000 205,000 Association fees and other 280,626 281,364 290,000 290,000 300,000 305,000 Total revenues 719,357 716,432 675,000 686,000 736,000 758,000 Operating expenses Cost of sales and services 11,849 14,218 14,000 14,000 16,000 17,000 Personal services 529,647 548,538 562,969 559,969 578,764 589,340 Contractual services 144,572 129,144 134,600 125,450 138,650 140,650 Commodities 106,387 116,292 96,900 96,900 101,400 102,400 Central services 39,572 43,394 43,140 43,140 44,028 44,904 Depreciation 49,375 64,768 53,333 53,333 55,000 57,000 Total expenses 881,402 916,354 904,942 892,792 933,842 951,294 Operating Income (loss) (162,045) (199,922) (229,942) (206,792) (197,842) (193,294) Nonoperating revenues, (expenses), and transfers Interest income 37,364 73,650 49,000 49,000 42,000 38,500 Miscellaneous & donations 1,125 - - - - Transfers 21,280 56,000 56,000 205,000 47,000 Total nonoperating 38,489 94,930 105,000 105,000 247,000 85,500 Change In net assets (123,556) (104,992) (124,942) (101,792) 49,158 (107,794) JanuaryI net assets 1,509,551 1,558,709 December 31 net assets $ $ $ 1,509,551 $ $ 1,558,709 $ 1,450,915 Non -GAAP cash reconciliation Change in net assets $ (123,556) $ (104,992) $ (124,942) $ (101,792) $ 49,158 $ (107,794) Depreciation 49,375 64,768 53,333 53,333 55,000 57,000 Capital expenditures (70,121) (62,461) (56,000) (56,000) (205,000) (47,000) Other accruals (39,156) 9,952 Change In cash (183,458) (92,733) (127,609) (104,459) (100,842) (97,794) January 1 cash 1,205,917 1,105,075 December 31 cash $ - $ $ 1,205,917 $ $ 1,105,075 $ 1,007,281 G:\Budget\2012 Budget\Enterprise Budgets\2012 New CentennialAu 9/1/2011 CITY OF EDINA ENTERPRISE BUDGET PAGE - 2 FUND: CENTENNIAL LAKES FUNCTION: --rAREA: UNALLOCATED COMBINED PROGRAM: 5610 SUMMARY OF EXPENDITURES ACCT. DESCRIPTION 2009 ACTUAL 2010 ACTUAL 2011 ESTIMATED BUDGETED 2012 Proposed 2013 Proposed GENERAL REVENUE 4606 ASSOCIATION FEES $ 280,510 $ 166,856 $ $ $ $ _ 4609 CASH OVER/SHORT 116 66 OPERATING REVENUE 280,626 166,790 _ 37,364 73,650 49,000 49,000 - 8010 INVESTMENT INCOME 8070 MISC REVENUE 1,125 - - _ 4806 TRANSFERS - 21,280 56,000 56,000 NONOPERATING REVENUE 38,489 94,930 105,000 105,000 $ 319,115 $ 261,720 $ 105,000 $ 105,000 $ - $ _ TOTAL GENERAL REVENUE PERSONAL SERVICES: 6010 SALARY - REGULAR EMP $ 12,904 $ - $ $ _ $ $ _ 6013 SALARY - TEMP EMP - 6030 PENSIONS 6034 SOCIAL SECURITY 6040 FLEX PLAN 6045 WORKERS COMPENSATION 6090 OPEB EXPENSE - 12,904 CONTRACTUAL SERVICES: 6103 PROFESSIONAL SERVICES - - 6104 CONFERENCES & SCHOOL 6105 DUES & SUBSCRIPTIONS 6107 MILEAGE OR ALLOWANCE 6122 ADVERTISING OTHER 6130 PROF SERVICES AUDIT - - 6136 PROF SERVICES OTHER 12,749 _ 6180 CONTRACTED REPAIR - 6188 TELEPHONE 6230 SERVICE CONTRACT EQUP 6235 POSTAGE - 12,749 COMMODITIES: 6406 GENERAL SUPPLIES - 6513 OFFICE SUPPLIES 6575 PRINTING - 6610 SAFETY EQUIPMENT CENTRAL SERVICES: 6802 PERSONAL SERVICES 12,906 _ 6803 GENERAL 20,465 6808 EQUIPMENT OPERATION 6,201 - _- 39,572 - _ DEPRECIATION: 6910 DEPRECIATION 49,375 63,504 53,333 53,333 $ 204,515 $ 198,216 $ 51,667 $ 51,667 $ UNALLOCATED NET INCOME $ G:\Budget\2012 Budget\Enterprise Budgets12012 New Centennial.xlsx 9/1/2011 1:07 PM CITY OF EDINA ENTERPRISE BUDGET PAGE - 3 FUND: CENTENNIAL LAKES PARK FUNCTION: OPERATIONS AREA: CENTENNIAL LAKE PROGRAM: 5751 SUMMARY OF EXPENDITURES 2009 2010 2011 2012 2013 ACCT. DESCRIPTION ACTUAL ACTUAL ESTIMATED BUDGETED Proposed Proposed REVENUE: 4524 CONCESSION SALES 4555 BUILDING RENTAL 4581 SKATE RENTAL 4583 PBOAT RENTAL 4593 GREENS FEES $ 30,027 97,047 48,096 47,851 215,710 $ 35,074 105,860 63,278 54,732 176,124 $ 30,000 95,000 45,000 45,000 170,000 $ 30,000 95,000 45,000 36,000 190,000 $ 32,000 102,000 50,000 52,000 200,000 $ 34,000 105,000 55,000 54,000 205,000 4606 ASSOCIATION FEES - 114,574 290,000 290,000 300,000 305,000 OPERATING REVENUE 438,731 549,642 675,000 686,000 736,000 758,000 8010 INVESTMENT INCOME - - - - 42,000 38,500 8020 DONATIONS - _ 8070 MISC REVENUE - _ 4806 TRANSFERS - 205,000 47,000 NONOPERATING REVENUE - 247,000 85,500 TOTAL REVENUE $ 438,731 $ 549,642 $ 675,000 $ 686,000 $ 983,000 $ 843,500 G:\Budget\2012 Budget\Enterprise Budgets\2012 New Centennial.xlsx 9/1/2011 1:07 PM CITY OF EDINA ENTERPRISE BUDGET PAGE - FUND: FUNCTION: AREA: PROGRAM: CENTENNIAL LAKES PARK ADMINISTRATION I CENTENNIAL LAKES 5760 SUMMARY OF EXPENDITURES 2009 ACCT. DESCRIPTION ACTUAL 2010 ACTUAL 2011 2012 Proposed 2013 Pro osed ESTIMATED GIN= PERSONAL SERVICES: 6010 SALARY - REGULAR EMP 6013 SALARY - TEMP EMP 6030 PENSIONS 6034 SOCIAL SECURITY 6040 FLEX PLAN 6045 WORKERS COMPENSATION 6090 OPEB EXPENSE $ 135,725 46,290 9,161 14,025 13,605 2,051 2,769 $ 147,000 52,630 10,252 15,294 15,826 2,464 2,107 $ 150,589 50,721 14,595 15,400 19,200 2,163 1,028 $ 150,589 50,721 14,595 15,400 19,200 2,163 1,028 $ 154,766 53,000 15,063 15,894 19,200 4,112 702 $ 157,861 54,060 15,364 16,212 19,200 4,194 702 223,626 245,573 253,696 253,696 262,737 267,593 CONTRACTUAL SERVICES: 6103 PROFESSIONAL SERVICES 6104 CONFERENCES & SCHOOL 6105 DUES & SUBSCRIPTIONS 6106 MEETING EXPENSE 5,086 568 1,593 - 732 110 1,730 314 2,000 600 3,200 - 4,000 1,000 2,000 100 2,000 800 4,200 2,000 800 4,200 6107 MILEAGE OR ALLOWANCE 6122 ADVERTISING OTHER 6130 PROF SERVICES AUDIT 6136 PROF SERVICES OTHER 6180 CONTRACTED REPAIRS 6188 TELEPHONE 6230 SERVICE CONTRACT EQUP 6235 POSTAGE 2,434 8,700 53 14,443 2,025 2,222 873 47 1,576 3,219 850 20,416 - 2,476 444 88 1,500 3,200 850 20,000 250 2,200 300 200 2,000 3,000 850 18,000 - 2,000 300 400 1,600 3,500 850 20,000 500 2,400 300 200 1,600 3,500 850 20,000 500 2,400 300 200 38,044 31,955 34,300 33,650 36,350 36,350 COMMODITIES: 6406 GENERAL SUPPLIES 6513 OFFICE SUPPLIES 6575 PRINTING 6610 SAFETY EQUIPMENT 3,427 1,938 4,154 690 2,498 1,978 3,667 1,029 2,500 2,000 4,000 600 2,500 2,000 4,000 600 2,500 2,000 4,000 600 2,500 2,000 4,000 600 10,209 9,172 9,100 9,100 9,100 9,100 CENTRAL SERVICES: 6802 PERSONAL SERVICES 6803 GENERAL 6808 EQUIPMENT OPERATION - - - 12,084 19,910 11,400 11,928 21,600 9,612 11,928 21,600 9,612 12,192 22,032 9,804 12,432 22,476 9,996 - 43,394 43,140 43,140 44,028 44,904 DEPRECIATION: 6910 DEPRECIATION 1,264 - - 55,000 57.000 AL ADMINISTRATION 1 $ 271,879 $ 331,358 $ 340,236 1 $ 339,586 1 $ 407,215 1 $ 414.947 1 G:\Budget\2012 Budget\Enterprise Budgets\2012 New Centennial.xlsx 9/1/2011 1:07 PM CITY OF EDINA ENTERPRISE BUDGET D: I FUNCTION: AREA: CENTENNIAL LAKES PARK OPERATIONS CENTENNIAL LAKE SUMMARY OF EXPENDITURES 2009 2010 1 2011 T. DESCRIPTION ACTUAL I ACTUAL 5510 COST OF GOODS SOLD PERSONAL SERVICES: 6010 SALARY REG EMP 6011 OT REG EMP 6013 SALARY TEMP EMP 6014 OT TEMP EMP 6030 PENSIONS 6034 SOCIAL SECURITY 6040 FLEX PLAN 6045 WORKERS COMPENSATION 6090 OPEB EXPENSE CONTRACTUAL SERVICES: 6103 PROFESSIONAL SERVICES 6180 CONTRACTED REPAIRS 6182 RUBBISH REMOVAL 6185 LIGHT & POWER 6186 HEAT 6189 SEWER & WATER 6201 LAUNDRY 6230 SERVICE CONTRACT EQUP 6250 ALARM SERVICE COMMODITIES: 6406 GENERAL SUPPLIES 6511 CLEANING SUPPLIES 6530 REPAIR PARTS 6532 PAINT & LUMBER 6540 FERTILIZER & SOIL 6556 TOOLS 6620 PLANTS & TREES TOTAL OPERATIONS PAGE -5 iGRAM: 5761 2012 1 2013 11,849 14,2181 14,0001 14,0001 16,0001 17.0001 121,347 116,732 110,205 110,205 112,955 115,214 - 3,019 1,000 1,000 1,020 1,040 69,581 73,637 73,000 70,000 75,000 76,500 39 199 - - 8,810 9,945 13,139 13,139 13,702 13,976 14,467 14,982 13,862 13,862 14,458 14,747 17,138 17,827 21,691 21,691 21,690 21,690 3,787 4,543 5,333 5,333 5,623 5,735 - - 1,158 1,158 789 789 235,169 240,884 239,388 236,388 245,237 249,691 7,273 5,169 5,000 1,000 5,000 5,000 23,709 25,286 22,000 20,000 22,000 23,000 385 338 500 500 500 500 38,113 39,386 40,000 35,000 40,000 40,000 10,443 9,321 10,000 12,000 10,000 10,000 1,444 200 2,500 2,500 2,500 2,500 10,638 9,416 11,000 11,000 11,000 12,000 577 1,152 1,300 800 1,300 1,300 92,582 90,268 92,300 82,800 92,300 94,300 54,364 49,139 45,000 45,000 47,000 48,000 7,736 11,016 8,000 8,000 9,000 9,000 9,684 24,990 9,000 8,000 9,000 9,000 1,715 1,535 1,000 500 1,000 1,000 12,800 7,368 10,000 12,000 10,000 10,000 159 675 300 300 300 300 4,388 5,380 5,500 5,000 6,000 6,000 907846 100,103 78,800 78,800 82.300 83.300 $ 430,4461 $ 445,4731 $ 424,4881 $ 411,9881 $ 435,8371 $ 444,291 1 G:\Budget\2012 Bud get\Enterprise Budgets12012 New Centennial.xlsx 9/1/2011 1:07 PM CITY OF EDINA ENTERPRISE BUDGET PAGE -6 FUND: CENTENNIAL LAKES PARK FUNCTION: ADMINISTRATION AREA: PROMENADE PROGRAM: 5765 SUMMARY OF EXPENDITURES ACCT. DESCRIPTION 2009 ACTUAL 2010 ACTUAL 2011 2012 Proposed 2013 Proposed PERSONAL SERVICES: 6010 SALARY - REGULAR EMP 6013 SALARY - TEMP EMP 6030 PENSIONS 6034 SOCIAL SECURITY 6040 FLEX PLAN 6045 WORKERS COMPENSATION 6090 OPEB EXPENSE $ 35,138 10,241 2,484 3,640 5,423 1,022 - $ 35,471 13,329 2,576 3,895 5,641 1,169 - $ 36,535 16,000 3,809 4,019 7,200 1,935 387 $ 36,535 16,000 3,809 4,019 7,200 1,935 387 $ 37,452 16,320 3,899 4,114 7,200 1,541 264 $ 38,201 16,646 3,977 4,196 7,200 1,572 264 57,948 62,081 69,885 69,885 70,790 72,056 CONTRACTUAL SERVICES: 6103 PROFESSIONAL SERVICES 6180 CONTRACTED REPAIRS 6185 LIGHT AND POWER 6235 POSTAGE - 827 370 _ - 3,399 3,522 _ 1,500 2,000 4,500 - 4,000 5,000 2,000 3,000 5,000 2,000 3,000 5,000 1,197 6,921 8,000 9,000 10,000 10,000 -OMMODITIES: 6406 GENERAL SUPPLIES 6511 CLEANING SUPPLIES 6530 REPAIR PARTS 6540 FERTILIZER AND SOIL 6620 PLANTS AND TREES 5,332 - - 6,032 - - 985 - 5,000 800 1,000 1,000 1,200 5,000 1,000 1,000 1,000 1,000 6,000 1,000 1,000 1,000 1,000 6,000 1,000 1,000 1,000 1,000 5,332 7,017 9,000 9,000 10,000 10,000 :ENTRAL SERVICES: 6802 PERSONAL SERVICES - _ 6803 GENERAL _ 6808 EQUIPMENT OPERATION )EPRECIATION: 6910 DEPRECIATION - _ 'OTAL PROMENADE $ 64,477 $ 76,019 $ 86,885 $ 87,885 $ 90,790 $ 92.056 G:\Budget\2012 Budget\Enterprise Budgets\2012 New Centennial.xlsx 9/1/2011 1:07 PM ok e�� 7 7 0 If78(i REPORPRECOMMEN DATION To: EDINA PARK BOARD From: John Keprios, Director Park and Recreation Department Date: September 27, 2011 Agenda Item Item No. V. E. 7// 1-1 Discussion Information Subject: 2012-2016 Capital Improvement Plans II ACTION REQUESTED: Staff recommends the Park Board approve the proposed 2012-2016 Park and Recreation Department Capital Improvement Plans and the five-year CIP plans for Braemar Arena, Braemar Golf Course, Centennial Lakes Park, Edinborough Park and Edina Aquatic Center. INFORMATION/BACKGROUND: Enclosed in the September 13, 2011 Park Board packet was a copy of proposed Park and Recreation Department 2012-2016 Capital Improvement Plan (CIP). As mentioned at the August 9, 2011 Park Board meeting, staff recommends delaying the Natural Resources Assessment project that is currently proposed by the Park Board as a 2012 project. It is also relevant to mention that a professional tree/horticulture consulting firm was hired (and funded by a grant) in 2004 to conduct a study in all of Edina's wooded park lands to determine the amount of buckthorn in each area and prioritize the removal. Also previously enclosed were copies of the "Edina Parks Priority Rankings" and "Edina Park Summary - Priority Based" and Edina Park Summary - Hourly Based" created by the consultant. This is important data to help us in our efforts to better manage our natural forests. That was a need for specific natural resources information (buckthorn) that has been met. The proposed Natural Resources Assessment project would no doubt provide additional helpful information; however, during difficult economic times staff suggests that this need for additional information can be delayed. If desired, the Park Board could request to have our City Forester attend a future Park Board meeting and answer questions and address concerns about our woodlands and natural landscape areas. Staff was asked to research and provide information regarding the age of the current park shelter buildings. Here are the years that the twelve (12) park shelter buildings were constructed: 1968 - Creek Valley Park 1970 - Pamela Park 1974 - Arden Park 1974 - Countryside Park 1974 - Strachauer Park 1974 - Highlands Park 1974 - Normandale Park 1979 - Lewis Park 1997 - Cornelia School Park 1997 - Todd Park 1997 - Walnut Ridge Park 1997 - Weber Park Minor improvements have been made to the older park shelter buildings over the years; however, no major renovations other than the addition at Highlands Park shelter building to house cell tower electronic equipment was added five years ago. Staff was also requested to provide an alternative playground equipment replacement schedule for consideration because modern metal and plastic playground equipment has such a long life expectancy. The document that shows a 15, 20 and 25 year replacement schedule was included in the September 13th meeting packet. In many cases, these durable long-lasting playground equipment structures may be best served to simply update, enhance and renovate in the future as opposed to total removal and replacement. That would be a much more cost effective approach to consider when it is decided to replace or upgrade. At the August Park Board meeting, staff was requested to attempt to prioritize the list of future Capital Improvement Plan projects that are currently not on the 5 -year plan. Attached is a list of those projects shown in order of priority as proposed by staff. 2 These "unfunded projects" are basically an ever-changing list of projects that staff continually updates as suggestions are received from the Park Board, the general public and from other staff. If you have projects that you feel should be added to this on-going list, please inform staff. ATTACHMENTS (all were previously included in the September 13, 2011 Park Board packet): • 2012-2016 Capital Improvement Plan (CIP) for Parks 2012-2016 CIP for Braemar Golf Course 2012-2016 CIP for Braemar Arena 2012-2016 CIP for Centennial Lakes Park 2012-2016 CIP for Edinborough Park 2012-2016 CIP for Edina Aquatic Center Edina Parks Priority Rankings Edina Park Summary — Priority Based Edina Park Summary — Hourly Based Future Capital Improvement Plan Projects 3 T- O CD o N O O Cl O (D (D O N O O O O O O (O (D (D aI OC. CD Cl N j)co,�Dl OO C EA M O CD O CD O CD O CD O CD O 0 O Q O O N 0 0 0 0 0 0l 0 O CD (n I-- 0 C7 0 M 0 'T Lo cr O (D O 00 O co (n o0 (C) EA N 0 0 0 0 0 0 C'41 0 O 0 O 0 O 0 O 0 O O C O U') N 00 (D O 00 (D N to Q N N N LL U CM U- E 0 J cn O C c+ W 70F- O p p F- m p F - Q i c C 06 CC _ O O C O C C (n N ..r C O E cu ca > c LL U _ cn C VN (B C O _Q. C d N O C O X— N D- W CLCL �j X m C W 70 F+ .o O O C Q O— J W JQ� ` cu C O O C C n cu Y Y O O (0 p N > _ S� N N Z E m O T� >� d d c0 a Q a) .Y Ncn ^ Ocu '-' a Y Y O U C N L 0 0 0 _� Y N O O cu D.. m � Y ` � (A Z a� LL CL O O O Y (0 Y Y c0 i cQ L (6 CJ (D Q N N fn C C CL a. a 0Y C c0 J N O� O O N Q �i Z3 zQfU O O 1 O U j N COIL (B IL N O z > O F- City of Edina, MN Capital Improvement Plan 2012 thru 2016 PROJECTS & FUNDING SOURCES BY DEPARTMENT Department Project# Priority 2012 2013 2014 2015 2016 Total JAquatic Center CL -06-005 n/a 25,000 25,000 Paint South Park Railings CL -08-003 n/a 28,000 28,000 Renovate Putting Greens Flowrider AQC-03-001 n/a 430,000 CL -09-007 n/a 120,000 120,000 Replace Park Sound System 430,000 Flowrider Completion AQC-12-001 n/a 100,000 n/a 15,000 15,000 Centrum Planter Beds CL -10-006 100,000 Replace Heaters AQC-12-002 n/a 70,000 70,000 Pool Deck Repairs AQC-12-003 n/a 50,000 50,000 Bathhouse Roof and Other Improvements AQC-12-004 n/a 50,000 50,000 Replace Pool Filters AQC-12-005 n/a 60,000 60,000 SCS Play Structure AQC-12-006 n/a 300,000 300,000 Aquatic Center Total 600,000 50,000 50,000 60,000 300,000 1,060,000 Aquatic Center Fund 600,000 50,000 50,000 60,000 300,000 1,060,000 Aquatic Center Total 600,000 50,000 50,000 60,000 300,000 1,060,000 (Arena Replace Zamboni A-09-002 n/a 140,000 140,000 Water System Repairs A-10-003 n/a 60,000 60,000 Replace Zamboni A-10-004 n/a 140,000 140,000 Parking Lot Resurfacing A-11-001 n/a 125,000 35,000 160,000 Replace Zamboni A-12-001 n/a 140,000 140,000 Make-up Water Tanks A-12-002 n/a 50,000 50,000 Arena Total 265,000 95,000 140,000 50,000 140,000 690,000 Construction Fund 265,000 95,000 140,000 50,000 140,000 690,000 Arena Total 265,000 95,000 140,000 50,000 140,000 690,000 !Centennial Lakes Park Replace HVAC Units CL -06-005 n/a 25,000 25,000 Paint South Park Railings CL -08-003 n/a 28,000 28,000 Renovate Putting Greens CL -08-004 n/a 25,000 25,000 Add Restroom Facility CL -09-007 n/a 120,000 120,000 Replace Park Sound System CL -09-008 n/a 32,000 32,000 Replace Concrete CL -09-009 n/a 15,000 15,000 Centrum Planter Beds CL -10-006 n/a 20,000 20,000 Page I Department Project# Priority 2012 2013 2014 2015 2016 Total Paver Replacement CL -11-001 n/a 32,000 32,000 New Pickup CL -11-002 rUa 25,000 25,000 Paver Replacement CL -11,003 rda 20,000 20,000 Replace HVAC Units CL -12-001 n/a 25,000 25,000 Centennial Lakes Park Total 205,000 47,000 45,000 45,000 25,000 367,000 Construction Fund 205,000 47,000 45,000 45,000 25,000 367,000 Centennial Lakes Park Total 205,000 47,000 45,000 45,000 25,000 367,000 Edinborough Park Replaster Pool EP -00-017 n/a 70,000 70,000 Replace Carpeting EP -06-007 n/a 12,000 12,000 Security Camera System EP -08-007 n/a 12,000 12,000 Soft Play for Great Hall EP / -08-011 n/a 40,000 40,000 Pool and Wall Tile EP -08-021 n/a --- 80,000 80,000 Lift to Birthday Party Area EP -09-014 n/a 40,000 40,000 Track Floor EP -09-015 n/a _._ - 65,000 65,000 Concrete repairs EP -09-016 n/a, 1.251000 125,000 Adventure Peak Remodel EP -09-021 n/a' . 25,000 25,000 North Sidewalk EP -10-011 n/a 30,000 30,000 Track Air Conditioning EP -11-005 n/a 65,000 65,000 Adventure Peak Wave Slide EP -11-006 n/a 25,000 25,000 Exterior Entryway Doors EP -11-007 rda 80,000 80,000 Interior Entryway Doors EP -11-008 n/a 60,000 60,000 Upstairs Restroom Remodel EP -11-009 n/a 30,000 30,000 Adventure Peak Renovation EP -11-010 n/aJ55,OOO' 30,000 30,000 Lighting retrofit EP -12-001 n/a , i " 55,000 Pod Boiler EP -12-002 rda 12,000 12,000 Park Boiler EP -12-003 n/a 25,000 25,000 Pond and Waterfall Renovation EP -12-004 n/a 20,000 20,000 Edinborough Park Total 220,000 215,000 174,000 162,000 130,000 901,000 Construction Fund 220,000 215,000 174,000 162,000 130,000 901,000 Edinhorough Park Total 220,000 215,000 174,000 162,000 130,000 901,000 Golf Course Braemar: Maintenance Equipment GC -12-001 n/a 135,000 145,000 155,000 155,000 160,000 750,000 Braemar: Miscellaneous Equipment GC -12-002 n/a 40,000 50,000 50,000 55,000 60,000 255,000 Golf Dome: Structural Building Repair GC -12,003 n/a 140,000 140,000 Braemar: Cart Paths and Tees GC -12-004 n/a 20,000 20,000 Driving Range Expansion GC -12-005 n/a 550,000 550,000 Page 2 Department Project# Priority 2012 2013 2014 2015 2016 Total Braemar: Carpeting GC -12-006 n/a 25,000 25,000 Braemar: Slit Drainage 3 Fairways GC -12-007 n/a 110,000 110,000 Braemar: Clubhouse Roof Replacement GC -12-008 n/a 80,000 80,000 160,000 Braemar: Cart Paths 1-9 GC -12-009 n/a 100,000 100,000 Braemar: Cart Paths 10.18 GC -12-010 n/a 100,000 100,000 n/a Golf Course Total 335,000 770,000 395,000 390,000 320,000 2,210,000 320,000 2,210,000 Golf Course Fund 175,000 195,000 205,000 210,000 220,000 1,005,000 Unfunded 160,000 575,000 190,000 180,000 100,000 1,205,000 400,000 Golf Course Total 335,000 400,000 Lewis Park: Pathway lighting PK -08-006 n/a 770,000 395,000 390,000 320,000 2,210,000 30,000 Natural resources inventory assessment PK -09-005 n/a 100,000 Fark & Recreation Pamela Park: Renovate senior athletic field PK -00-033 n/a 330,000 330,000 Pamela Park: New athletic field PK -07,004 n/a 400,000 400,000 Lewis Park: Pathway lighting PK -08-006 n/a 30,000 30,000 Natural resources inventory assessment PK -09-005 n/a 100,000 100,000 Countryside Park: Playground & Pathway PK -10-004 n/a 330,000 330,000 Pamela Park: South Parking Lot Expansion PK -10-005 n/a 40,000 40,000 Pamela Park: North Parking Lot Expansion PK -10-006 n/a 45,000 45,000 Pamela Park: West Parking Lot Expansion PK -10-007 n/a 60,000 60,000 Rosland Park: Pathway Renovation PK -11-005 n/a 250,000 250,000 Bredeson Park: Comfort Station Renovation PK -11-006 n/a 75,000 75,000 Normandale Park: Replace Warming House/Shelter PK -11-007 n/a 650,000 650,000 Parks Department Equipment Replacement PK -12-001 n/a 367,500 20,000 83,000 42,325 133,255 646,080 VanValkenburg Park construction PK -12-002 n/a 600,000 600,000 Park & Recreation Total 1,047,500 600,000 483,000 692,325 733,255 3,556,080 Construction Fund 680,000 580,000 400,000 650,000 600,000, 2,910,000 Equipment Replacement Program 367,500 20,000 83,000 42,325 133,255 646,080 Park & Recreation Total 1,047,500 600,000 483,000 692,325 733,255 3,556,080 Grand Total 2,672,500 1,777,000 1,287,000 1,399,325 1,648,255 8,784,080 Page 3 f « M 2R00000�32oQQ■oco a } > \§sl'm§I2§m§2���2_j_j_j_j_j_j_j �_I $ c0 � > 2 . 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X v W o =, m < CL o m X m 'C � Z = t^ .... r N W Lp '� m cn m y> In to r- 8 we N ���z o CL CD 2 C vi O Ui m NN 0 ...1 0 W 1 3 3 cu a� UI N 00 O OW o No r Nm CDZa AN �U DCd1 88ZAa�86p8O vOvvg� Q' UI O O NN o I O W N -1 fD r G) G7ID 0 0 0 0 0 0 0 0 0 0 m o cr n O C v y , 0000 0 �0 � O 0 ^. 7r ii 0) 7�C 7�C N 7�C '# o 7�C x ^� N N 0 W Z N 0��1 ? O 2 0 Sc Q2 0 0 0 X `S m CL � a obi Ol a FUTURE CAPITAL IMPROVEMENT PLAN PROJECTS The following is a list of park capital improvement projects that are currently not part of the 5 -year Capital Improvement Plan list. These are capital improvement projects that have been recommended by residents and/or staff. At the August 9, 2011 Park Board meeting, staff was asked to prioritize the list of "Unfunded Capital Improvement Plan Projects." The following Unfunded Capital Improvement Plan Projects appear in order of priority as recommended by staff. As time permits, staff will make an attempt to place estimated costs of each project. The criteria that staff uses when prioritizing capital improvement projects are in the following order: • Correct safety sensitive related matters • Repair or replace worn infrastructure first before adding new • Maintain and add more biking/walking paths The above criteria to prioritize capital improvement projects are consistent with the results of the 2006 Community Attitude and Interest Survey (Needs Assessment Survey). ATHLETIC FIELD LIGHTING Replace the athletic field lighting on fields 1, 2 and 3 at Courtney Fields to provide better and safer lighting for baseballs higher than 50 feet at night. FENCING Replace all perimeter fencing around Bredesen Park Nature Trail ATHLETIC FIELD DEVELOPMENT/RENOVATION • Develop or renovate athletic fields at the following locations: • Walnut Ridge Park rectangular field • Countryside Park west baseball field (grade needs to be raised) • Cornelia School Park softball and baseball fields • Weber Park baseball field NEW PATHWAY Add a new pathway around the perimeter of Highlands Park. IRRIGATION SYSTEMS Design and install underground irrigation at the following sites: • Countryside Park west baseball field • Highlands Park soccer and softball field • Rosland Park baseball field • Todd Park softball field • Weber Park baseball field and softball field • Wooddale Park softball field TOT LOT BASEBALL FIELDS Upgrade all tot lot baseball fields (grading, sodding and bases) at the following sites: • Alden Park 6750 Belmore Lane • Arden Park 5230 Minnehaha Blvd. • Birchcrest Park 6016 Hansen Rd. • Normandale Park 6501 Warren Ave. So. • Sherwood Park Sherwood and Edenmoor St. • St. John's Park West 601h St. and St. John's Ave. • Tingdale Park 59`h and Tingdale Ave. • Wooddale Park Wooddale Ave. and 501h St. PARK SHELTER BUILDINGS & COMFORT STATIONS Upgrade or replace park shelter buildings at: • Creek Valley Park • Lewis Park • Pamela Park Replace the comfort station building at Bredesen Park Design and build replacement park shelter buildings at: • Arden Park • Countryside Park • Highlands Park • Normandale Park • Strachauer Park TENNIS COURT BANG -BOARDS Install concrete wall tennis bang -boards at the following locations: Pamela Park tennis courts Lewis Park tennis courts SKATE PARK Develop a small (no user fee) skate park TENNIS COURT LIGHTS Experiment with tennis court lighting at one park (Lewis Park?) PICNIC SHELTER Construct an outdoor picnic shelter at Van Valkenburg Park. ARCHERY RANGE Design and construct a safe archery range site at Braemar Park. There was a heavily used archery range at Braemar Park until the new nine -hole golf course was developed. PLAYGROUND EQUIPMENT REPLACEMENT LIST Park Year Installed 15 Year 20 Year 25 Year Lewis Park 1995 2010 2015 2020 Rosland Park 1996 2011 2016 2021 Countryside Park 1996 2011 2016 2021 Arden Park 1997 2012 2017 2022 Birchcrest Park 1997 2012 2017 2022 Braemar Park 1997 2012 2017 2022 Garden Park 1997 2012 2017 2022 Highlands Park 1997 2012 2017 2022 Strachauer Park 1997 2012 2017 2022 Tingdale Park 1997 2012 2017 2022 Todd Park 1997 2012 2017 2022 Walnut Ridge Park 1997 2012 2017 2022 Weber Park 1997 2012 2017 2022 Wooddale Park 2000 2015 2020 2025 Heights Park 2002 2017 2022 2027 Normandale Park 2003 2018 2023 2028 Sherwood Park 2003 2018 2023 2028 Kojetin Park 2005 2020 2025 2030 Alden Park 2007 2022 2027 2032 McGuire Park 2008 2023 2028 2033 York Park 2008 2023 2028 2033 Pamela Park 2009 2024 2029 2034 Chowen Park 2011 2026 2031 2036 REPORURECOMMEN DATION To: EDINA PARK BOARD Agenda Item Item No. V. F. From: John Keprios, Director Park and Recreation Department z Action 1-1 Discussion F-1 Information Date: September 27, 2011 Veterans Memorial Public Process Subject: ACTION REQUESTED: Staff recommends that the Park Board approve the proposed public process for the Edina Veterans Memorial. Tues., October 25, 2011, 6:30 p.m. to 8:00 p.m. - Open House in Council Chambers Mon., November 7, 2011, 7:00 p.m. - Park Board Meeting (Receive Public Testimony) Tues., November 15, 2011, 7:00 p.m. - City Council Meeting (Public Hearing) INFORMATIOWBACKGROUND: Before the Veterans Memorial project design and location are approved by City Council, there must be a formal public process. Staff recommends that the public process begin with an Open House conducted in the Council Chambers on Tuesday, October 25 from 6:30 p.m. to 8:00 p.m. I propose that we mail notices to residents with 1,000 feet of Utley Park and also place notices in the Edina Sun Current as well as on the City's website. The Open House would be an informal gathering that welcomes comments from residents both verbally and in writing. Volunteer Veterans Committee members will be present to answer questions as well as the project architect and staff. Attending residents will be informed that their views can also be expressed at the November 7th Park Board meeting and at the City Council's November 15th Public Hearing. Public input from the Open House will be assembled and shared with the Park Board and City Council. The next step will be for the Park Board at their November 7th monthly meeting to accept public testimony and then make a recommendation to the City Council on the proposed design and location. Staff also suggests that the City Council conduct a formal Public Hearing on the matter at their Tuesday, November 15th meeting. Staff proposes to mail notices to all property owners within 1,000 feet of Utley Park which includes 108 property owners. The Council would take public testimony and make a final decision on the proposed design and location. Staff will also have a proposed project budget which includes detailed construction costs plus a long-term maintenance plan with an estimate of future maintenance expenses. If approved by Council, the Veterans Memorial Committee could then commence their fundraising campaign.