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CITY OF EDINA MINNESOTA
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General Fund - Revenues
Year -End Financial Update
December 2008
General Fund revenues total $28,236,278 for 2008. This amount represents 101 % of
total budgeted revenues for all of 2008.
Property taxes were under budget due to the Governor's action to unallot the second
half Market Value Homestead Credit payment and an increase in delinquencies.
License and permit revenue increased $8,723 from 2007 and finished ahead of budget
thanks to a very active fall. September 2008 permit revenue was particularly strong due
to a couple of large permits issued.
Other revenue was also under budget due to decreases in rental revenue and
investment returns.
General Fund — Expenditures
General Fund expenditures total 99% of budget for 2008. With a large percentage of our
General Fund budget tied to salaries and benefits, it is common for our expenditures to
be very consistent. A breakdown of expenditures by department follows.
General government expenditures total 94% of budget for 2008. Increased spending in
the Elections department for the 2008 general election was more than offset by
decreases in spending related to the Comprehensive Plan and very few severance
payments associated with employee retirements.
Public safety expenditures total 101 % of budget for 2008. Police department
expenditures were over budget due to the women's US Open and the RNC. We received
reimbursement from St. Paul for the RNC that covered our costs for that event. The
Inspections department expenditures were also over budget for the year due to a heavy
workload.
Public works expenditures total 101 % of budget for 2008. The Engineering department
exceeded their expenditure budget due to additional studies and mid -year salary market
adjustments.
Parks expenditures total 95% of budget for 2008. The parks department can have a
spending pattern that is somewhat seasonal and in 2008, January through March
weather was not very good, causing many park maintenance projects to be delayed.
GAP &L's\Investment Advisory Committee \2008 \Quarterly Update December 31, 2008.doc
CITY OF EDINA, MINNESOTA
Year -End Financial Update
December 2008
General Fund
Statement of Revenue, Expenditures and Changes In Fund Balance - Budget and Actual
For the twelve months ended December 31, 2008 (unaudited)
2008 2007
Over/ Increase/
Budget Actual (Under) Actual (Decrease)
Revenues:
(742,800)
(117,479)
625,321
336,449
(453,928)
Taxes (1)
$ 20,241,404 $
19,983,295
$ (258,109) $
19,379,711
$ 603,584
Licenses and permits (2)
2,715,050
2,885,781
170,731
2,877,058
8,723
Intergovernmental (3)
745,000
825,049
80,049
930,840
(105,791)
Charges for service (4)
2,637,388
3,039,841
402,453
2,685,552
354,289
Fines and forfeitures
925,000
968,893
43,893
971,486
(2,593)
Other revenues
598,000
533,419
(64,581)
872,441
(339,022)
Total revenues
27,861,842
28,236,278
374,436
27,717,088
519,190
Expenditures:
272,146 $
672,146
$ 272,819
$ (673)
General government
4,254,566
4,008,170
(246,396)
4,223,064
(214,894)
Public safety
14,097,930
14,214,025
116,095
13,474,727
739,298
Public works
6,400,246
6,470,700
70,454
6,182,326
288,374
Parks
3,851,900
3,660,862
(191,038)
3,500,522
160,340
Total expenditures
28,604,642
28,353,757
(250,885)
27,380,639
973,118
Revenues over (under)
expenditures
(742,800)
(117,479)
625,321
336,449
(453,928)
Other financing sources (uses):
Transfers in (out)
Liquor fund (5)
742,800
742,800
-
721,200
21,600
Construction fund (6)
(450,000)
(450,000)
-
(851,675)
401,675
Sale of capital assets
50,000
96,825
46,825
66,845
29,980
Total other financing sources
342,800
389,625
46,825
(63,630)
453,255
Net increase (decrease)
In fund balance
$ (400,000) $
272,146 $
672,146
$ 272,819
$ (673)
1 The City receives the first property tax payment from the County in June and the second payment in
December.
2 The licenses and permits category includes building permits.
3 The intergovernmental category includes grants from Federal, state and county sources. Generally,
most of the grants the City receives are reimbursement grants, which means that if grant revenue
increases, expenditures must also increase by an equal or greater amount.
4 Charges for services includes ambulance revenue.
5 The annual liquor fund transfer is always made in December.
6 The Council amended the 2008 budget in December when it decided to transfer $400,000
of General fund surplus to the Construction Fund according to the Fund Balance Policy.
G:\P &L's \Investment Advisory Committee \2008 \Quarterly Update December 31, 2008.doc 2
CITY OF EDINA, MINNESOTA
General Fund - Revenues
Quarterly Financial Update
March 2009
General Fund revenues total $1,669,700 through March 31, 2009. This amount
represents 5.8% of total budgeted revenues for all of 2009, which is down compared to
6.0% at the same time last year. The City expects to receive our first property tax
payment of the year from Hennepin County in June. We know property tax revenue will
be less than we budgeted due to the loss of about $230,000 Market Value Homestead
Credit, but do not know how large of an impact delinquencies will have.
License and permit revenue decreased by $111,911 from last year, but still amounts to
24% of our annual budget for 2009.
General Fund — Expenditures
Total General Fund expenditures are 23% of budget so far this year. With a large
percentage of our General Fund budget tied to salaries and benefits, it is common for
our expenditures to be very consistent throughout the year, meaning that most years we
use about 25% of our budget every quarter. A breakdown of expenditures by department
follows.
General government expenditures are 22% of budget so far this year, which is a slight
decrease from the 2008 rate of 23% through the first quarter.
Public safety expenditures are 24% of budget so far this year, which is right where we
expect them to be, and identical to last year's rate.
Public works expenditures are 21 % of budget so far this year, which is a decrease from
the 2008 rate of 23% through the first quarter. The difference is mostly because there
were no significant PW equipment purchases in the first quarter of 2009.
Parks expenditures are 22% of budget so far this year, which is right where we expect
them to be with no significant variances. The parks department can have a spending
pattern that is somewhat seasonal, and it may pick up in the second quarter.
Nondepartmental and other expenditures decreased from the prior year due to timing
differences in large insurance payments and a decrease in overall insurance costs. We
distribute these insurance expenditures to other departments through our Central
Services function at the end of the year as part of the annual audit process, so large
variances during the year can be common.
WP &L'Affivestment Advisory Committee \2009 \Quarterly Update September 30, 2008.doc
CITY OF EDINA, MINNESOTA
Quarterly Financial Update
March 2009
General Fund
Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the three months ended March 31, 2009
2009
2008
Over/ Increase/
Budget Actual (Under) Actual (Decrease)
Revenues:
4,498,511
989,924
(3,508,587)
968,248
21,676
Taxes (1)
$ 21,052,691 $
-
$ (21,052,691) $
- $
128,016
Licenses and permits (2)
2,797,715
680,909
(2,116,806)
792,820
(111,911)
Intergovernmental (3)
757,000
218,041
(538,959)
202,261
15,780
Charges for service (4)
2,701,480
431,081
(2,270,399)
412,003
19,078
Fines and forfeitures
900,000
174,261
(725,739)
148,520
25,741
Other revenues
653,972
165,408
(488,564)
110,606
54,802
Total revenues
28,862,858
1,669,700
(27,193,158)
1,666,210
3,490
Expenditures:
General government
4,498,511
989,924
(3,508,587)
968,248
21,676
Public safety
14,648,719
3,486,578
(11,162,141)
3,358,562
128,016
Public works
6,524,694
1,340,070
(5,184,624)
1,481,211
(141,141)
Parks
3,961,034
853,571
(3,107,463)
744,283
109,288
Other
15,750
15,750
432,766
(417,016)
Total expenditures
29,632,958
6,685,893
(22,947,065)
6,985,070
(299,177)
Revenues over (under)
expenditures
(770,100)
(5,016,193)
(4,246,093)
(5,318,860)
302,667
Other financing sources (uses):
Transfers in (out)
Liquor fund (5)
765,100
(765,100)
Construction fund (6)
(50,000)
50,000
Sale of capital assets
55,000
(55,000)
Total other financing sources
770,100
(770,100)
Net increase (decrease)
In fund balance $
-
$ (5,016,193)
$ (5,016,193)
$ (5,318,860)
$ 302,667
1 The City receives the first property tax payment from the County in June and the second payment in
December.
2 The licenses and permits category includes building permits.
3 The intergovern mental category includes grants from Federal, state and county sources. Generally,
most of the grants the City receives are reimbursement grants, which means that if grant revenue
increases, expenditures must also increase by an equal or greater amount.
4 Charges for services includes ambulance revenue.
5 The annual liquor fund transfer is always made in December.
6 The annual construction fund transfer is always made in December.
G:\P &L's\lnvestment Advisory Committee\2009 \Quarterly Update September 30, 2008.doc 2
CITY OF EDINA
ENTERPRISE FINANCIAL SUMMARY
As of March 31, 2009
Art Center
The Art Center finished 2008 with an operating loss of $212,497, which is slightly
higher than the operating loss we budgeted for the year of $189,673. Class
registration revenues decreased from the prior year, likely due to the economy.
We transferred in a subsidy of $135,000 from the Liquor fund, but it was not
enough to keep the unrestricted net assets of the Art Center from turning
negative. This is similar to the situation the golf course has been in for several
years, although the Art Center's deficit is currently much smaller at $20,262.
Through March of 2009, Art Center revenues have increased compared to the
same period last year. However, this number can fluctuate with the timing of
classes and programs that are held at the Art Center.
Aquatic Center
The Aquatic Center had a very good 2008 from a financial perspective, finishing
with operating income of $179,870 compared to the $99,008 we budgeted for.
Revenues increased 7% from 2007 even though headcount was fairly steady.
The Aquatic Center is the most financially healthy of our recreational enterprises.
The Aquatic Center hasn't opened for business in 2009 yet, but preliminary
figures on season ticket sales indicate that we are off to another good start.
Golf Course
The Golf Course finished 2008 with operating income of $143,204, which is less
than the budgeted operating income of $418,883. This operating income plus a
subsidy transfer of $170,000 from the Liquor fund were enough to offset debt
payments, so the cash situation is roughly the same as it was last year. The Golf
Course fund now has negative unrestricted net assets of $1,530,402. The Golf
Course made the final payment on some of their debt on January 1, 2009, and is
scheduled to refinance the rest on April 29, 2009. This should help the Golf
Course to earn back some of the accumulated deficit starting in FY 2010, but it
could take several years after that until the deficit is eliminated.
New for 2009 at the Golf Course is the non - resident patron card, which is now
available to any non - resident at a slightly higher price than the resident patron
card. While it is still early in the 2009 season, total sales of patron cards have
been good in April. However, through March of 2009 the Golf Course had an
operating loss of $427,631, which is much larger than the operating loss of
$332,771 for the first three months of 2008. Much of the increase in expenses is
due to timing since weather in March was nicer in 2009 than it was in 2008,
causing the golf course staff to start preparations earlier this year.
G: \Budget \Enterprise budgets\2010 Enterprise Budgets \Enterprise analysis.doc
Ice Arena
The Ice Arena had an operating loss of $290,061 in 2008, which was higher than
the budgeted operating loss of $192,383, due mostly to revenues that were
under budget. Revenues for the year decreased 1 % from 2007. We transferred in
a subsidy of $105,000 from the Liquor fund and Construction fund, but it was not
enough to keep the unrestricted net assets of the Ice Arena from turning
negative. This is similar to the situation the golf course has been in for several
years, although the Ice Arena's deficit is currently much smaller at $82,799.
Through March 2009, the Ice Arena's revenues are pretty much identical to the
same period in 2008, but expenses have increased slightly.
Edinborouah /Centennial Lakes
The Edinborough /Centennial fund (EPCL) had an operating loss of $472,473 in
2008, which was right on budget, although revenues and expenses were both
slightly above budget. We did not subsidize the EPCL in 2008 with a transfer, so
the loss was funded fully from reserves. Unrestricted net assets of the EPCL at
year -end were $3,480,555. Although the reserve amount sounds large, it will be
gone in only a few years at the current pace due to the number of CIP projects
planned and the "snowball effect" of declining future interest earnings when
investments are spent down.
Through March 2009, both revenues and expenses have increased slightly from
the 2008 levels.
Liquor
The Liquor fund ended 2008 with operating income of $1,073,376, which was
under budget due to a smaller increase in sales combined with higher product
costs. We transferred subsidies of $1,277,800 out of the Liquor fund, which was
greater than the income, meaning we depleted some of the fund's unrestricted
net assets during the year. This practice is not sustainable for future years.
Through March 2009 liquor sales have increased about 4% from the year before.
Utilities
The Utility fund had operating income of $3,468,306 in 2008. This amount is
consistent with the required levels according to the rate study and will be used to
build new infrastructure and pay debt service.
Water consumption is down 7% through the first 3 months of 2009, but revenue
is keeping pace with the prior year due to rate increases. Financial performance
in the Utility fund depends heavily on the summer months when we charge
higher rates for lawn irrigation.
G: \Budget \Enterprise budgets\2010 Enterprise Budgets \Enterprise analysis.doc
Enterprise Facility
Recreational Enterprises
Art Center
Aquatic Center
Golf Course
Ice Arena
Edinborough /Centennial
Recreational Subtotal
CITY OF EDINA
ENTERPRISE FUND PROFIT AND LOSS SUMMARY
FISCAL YEAR 2008
2008 Unaudited Results
Operating
Operating Operating Income
Revenues Expenses (Loss)
$ 451,697 $ 664,194 $ (212,497)
925,388 745,518 179,870
3,680,584 3,537,380 143,204
1,399,599 1,689,660 (290,061)
1,665,922 2,138,395 (472,473)
8,123,190 8,775,147 (651,957)
2008 Budget
Operating
Operating Operating Income
Revenues Expenses (Loss)
$ 500,500 $ 690,173 $ (189,673)
818,800 719,792 99,008
4,107,800 3,688,917 418,883
1,457,800 1,650,183 (192,383)
1,572,000 2,040,108 (468,108)
8,456,900 8,789,173 (332,273)
Increase (Decrease)
Operating
Operating Operating Income
Revenues Expenses (Loss)
$ (48,803) $ (25,979) $ (22,824)
106,588
25,726
80,862
(427,216)
(151,537)
(275,679)
(58,201)
39,477
(97,678)
93,922
98,287
(4,365)
(333,710)
(14,026)
(319,684)
Other Enterprises
Liquor 12,121,791 11,046,509 1,075,282 12,358,740 11,125,721 1,233,019 (236,949) (79,212) (157,737)
Utilities 13,544,728 10,076,422 3,468,306 13,280,000 10,115,037 3,164,963 264,728 (38,615) 303,343
Other Subtotal 25,666,519 21,122,931 4,543,588 25,638,740 21,240,758 4,397,982 27,779 (117,827) 145,606
GRAND TOTAL $ 33,789,709 $ 29,898,078 $ 3,891,631 $ 34,095,640 $ 30,029,931 $ 4,065,709 $ (305,931) $ (131,853) $ (174,078)
G: \Budget \Enterprise budgets\2010 Enterprise Budgets\Budget worksession.xls 4/24/2009
CITY OF EDINA
ENTERPRISE FUND PROFIT AND LOSS SUMMARY
FIRST QUARTER 2009
YTD Through March 2009
Operating
Operating Operating Income
Enterprise Facility Revenues Expenses (Loss)
Recreational Enterprises
Art Center
Aquatic Center
Golf Course
Ice Arena
Edinborough /Centennial
Recreational Subtotal
Other Enterprises
Liquor
Utilities
Other Subtotal
GRAND TOTAL
$ 131,107 $ 156,290 $ (25,183)
23,298 75,700 (52,402)
293,369 721,000 (427,631)
369,294 447,504 (78,210)
493,105 536,704 (43,599)
1,310,173 1,937,198 (627, 025)
2,634,698 2,537,588 97,110
2,964,676 2,702,922 261,754
5,599,374 5,240,510 358,864
YTD Through March 2008
Operating
Operating Operating Income
Revenues Expenses (Loss)
$ 118,402 $ 151,464 $ (33,062)
23,033 81,195 (58,162)
298,932 631,703 (332,771)
367,268 424,517 (57,249)
468,256 490,243 (21,987)
1,275,891 1,779,122 (503,231)
2,539,066
2,405,429
133,637
2,851,429
2,447,969
403,460
5,390,495
4,853,398
537,097
Increase (Decrease)
Operating
Operating Operating Income
Revenues Expenses (Loss)
$ 12,705 $
4,826
$ 7,879
265
(5,495)
5,760
(5,563)
89,297
(94,860)
2,026
22,987
(20,961)
24,849
46,461
(21,612)
34,282 158,076 (123,794)
95,632 132,159 (36,527)
113,247 254,953 (141,706)
208,879 387,112 (178,233)
$ 6,909,547 $ 7,177,708 $ (268,161) $ 6,666,386 $ 6,632,520 $ 33,866 $ 243,161 $ 545,188 $ (302,027)
G: \Budget \Enterprise budgets\2010 Enterprise Budgets \Budget worksession.xls 4/24/2009
SHORT TERM — 2009
• Freeze on filling vacant police officer position
• Freeze on filling vacant street department position
• Reduced hours /laid off part time building inspectors
• Freeze wages on returning PT and temporary employees
• Reduce fuel budget by $100,000
• Defer $250,000 in equipment replacement purchases
• Defer FlowRider
• Add Justice Department Grant - $30,000
• Move equipment purchases from General Fund to Revolving Fund
• Reduce records management budget
• Reduce General Fund contribution to CIP - $50,000
• Scrutinize any contingency budget spending
• Restrict out of town travel
LONGER TERM — e o-as �- h'-- °�'" ' CL4 1 070
• Increase useful life of equipment
• 2010 pay freeze /step freeze
• City Manager group ideas
• Restrict take home vehicles
• Other revenue sources, e.g. street light utility, franchise fees
• Selected service level reductions
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