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10-10-2022 Conf. Mtg. COUNCIL CONFERENCE MEETING October 10, 2022 5:30 PM Fridley Civic Center -7071 University Avenue N.E. AGENDA 1.Liquor Store #1 (Fridley Market) Exercise Final 5-Year Lease Option 2.September 2022 Year-to-Date Financial Update The City of Fridley will not discriminate against or harass anyone in the admission or access to, or treatment, or employment in its services, program, or activities because of race, color, creed, religion, national origin, sex, disability, age, marital status, sexual orientation or status with regard to public assistance. Upon request, accommodation will Hearing impaired persons who need any interpreter or other persons with disabilities who require auxiliary aids should contact Roberta Collins at (763) 572-3500. (TTD/763-572-3534). 2 Jufn!2/ AGENDA REPORT Meeting Date:October 10, 2022 Meeting Type:City Council Conference Meeting Submitted By:Joe Starks, Director of Finance/City Treasurer Kyle Birkholz, Liquor Operations Manager Title Liquor Store #1 (FridleyMarket) Exercise Final 5-Year Lease Option Background th Council and staff will discuss the 5-year lease option being brought to Council at the October 24 Regular Council Meeting and what it means in the short-term and long-term future. Focus on Fridley Strategic Alignment Vibrant Neighborhoods &PlacesCommunity Identity &Relationship Building X Financial Stability & Commercial ProsperityPublic Safety & Environmental Stewardship Organizational Excellence Attachments and Other Resources Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 3 Jufn!3/ AGENDA REPORT Meeting Date:October 10, 2022 Meeting Type:City Council Conference Meeting Submitted By:Joe Starks, Director of Finance/City Treasurer Title September2022 Year-to-Date Financial Update Background A year-to-date financial updatewill be provided. Focus on Fridley Strategic Alignment Vibrant Neighborhoods &PlacesCommunity Identity &Relationship Building X Financial Stability & Commercial ProsperityPublic Safety & Environmental Stewardship Organizational Excellence Attachments and Other Resources September2022 YTD Financial Update September 2022 YTD Liquor Store Income Statement Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 4 5 Jufn!3/ 569 2,025 (8,446)(4,887) 56,011 17,063 57,371 80,801 (36,909)(23,796)(65,765)(69,828)(16,972)(75,109) 330,032 592,097 150,516 264,575 167,194 329,091 308,499165,069 214,262330,032 (667,783)(482,001)(436,306) (3,743,447) (3,755,256) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 22 vs. 21 YTD22 vs. 21 YTD22 vs. 21 YTD 56,31294,747 (27,017) 194,492318,324199,863294,366243,787328,482226,825424,604840,791142,200 2,653,612 3,650,262 1,143,929 5,482,829 2,134,007 5,320,388 5,208,5106,884,3551,078,4711,469,558 1,729,616 11,428,242 25,365,919 17,531,095 32,258,489 11,428,242 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2021 YTD Actual2021 YTD Actual2021 YTD Actual J F ABEAA DDDH G A/C NoteNoteNote 40%47%43%48%48%42%40%42%32%39%30%24%33%41%40%48%20%47%33%32%47%46%20%19%44%25%40% -19% -148% % Remaining% Remaining% Remaining 70,08569,74048,075 (33,981)(29,745) 139,317225,872121,802328,323947,555172,355104,184275,442541,835415,373419,783 7,875,6261,882,0162,796,0412,260,4545,846,2522,135,2991,377,7411,040,3182,364,2916,444,5467,875,626 16,577,00613,385,967 $ $ $ $ $ $ $ $ $ $$ $ $ $ $ $ $ $ $ $$ $ $ $ $ $ $ $ $ 2022 Balance2022 Balance2022 Balance % of Year Remaining: 25% 56,88189,860 157,583294,528134,098350,377226,815345,545151,716416,158642,165187,245144,225 GENERAL FUND 2,583,784 4,242,359 1,294,445 4,815,046 2,301,201 5,377,759 1,169,882 4,726,5097,192,8541,634,627 1,810,417 11,758,274 25,630,49413,787,648 28,503,23311,758,274 For the fiscal period ending 9/30/2022 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2022 YTD Actual2022 YTD Actual2022 YTD Actual 22,900 296,900520,400255,900678,700296,900517,900255,900691,600159,600157,500192,300 4,465,8007,038,4002,242,0007,075,5004,436,5006,755,5002,210,2007,090,8001,184,0002,050,0002,230,200 19,633,90042,207,50019,633,90041,889,20013,637,40019,633,900 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2022 Current Budget2022 Current Budget2022 Current Budget Revenues General FundCable TV FundSolid Waste AbatementPolice Activity FundSNC FundWater Utility FundSewer Utility FundStorm Water Utility FundLiquor Fund TOTAL REVENUESExpenditures General FundCable TV FundSolid Waste AbatementPolice Activity FundSNC FundWater Utility FundSewer Utility FundStorm Water Utility FundLiquor Fund TOTAL EXPENDITURESGF Revenue Types TaxesSpecial AssessmentsLicenses and PermitsIntergovernmentalCharges for ServicesFines and ForfeituresMiscellaneousOther Financing Sources TOTAL GF REVENUES 6 Jufn!3/ 59,284 94,278 14,181 43,675 (24,442) 148,277 257,208 (4,335,908) (3,743,447) $ $ $ $ $ $ $ $ $ 22 vs. 21 YTD 121,203483,768 927,528 1,051,278 1,144,502 4,345,541 6,477,147 2,980,128 17,531,095 $ $ $ $ $ $ $ $ $ 2021 YTD Actual I Note 42%35%25%98%28%28%36%20%30% % Remaining 68,739 588,638417,320392,667294,557301,064515,049 735,851 488,185 2,632,5761,150,691 5,846,252 Revenue $ $ $ $ $ $ $ $ $ $ $ $ 2022 Balance 9,633 96,761 527,443 1,110,562 1,238,780 6,625,424 2,994,309 1,184,736 13,787,648 40,656,50981,945,53323,328,984 Valuation $ $ $ $ $ $ $ $ $ $ $ $ 2022 YTD Actual 2,158 2,0401,840 loss on investments. 165,500402,300822,000 1,699,2001,656,1009,258,0004,145,0001,485,800 19,633,900 # of Permits unrealized $ $ $ $ $ $ $ $ $ 2022 Current Budget GF Dept. Expenditures LegislativeCity ManagementFinanceNon-DepartmentalPublic SafetyPublic WorksCommunity ServicesCommunity Development TOTAL GF EXPENDITURES Notes:A - 1st Half Property Tax Settlement received in July, 2nd in December and short settlement in January.B - 3rd Quarter Cable Franchise Fee payment will be received in late October.C - Program revenue above last year's level but currently under budget due to timing of summer and fall programmingD - Timing of utility bills and receipt of paymentsE - Liquor Store sales down 12% year-over-year at this time, but above pre-pandemic levels. See Liquor Store income statement trend.F - See building permit trend belowG - 1st installment of Municipal State Aid and Local Government Aid received in July, 2nd in December. Police aid and fire aid (pass through) received in OctoberH - 2021 negative amount due to I - 2021 YTD amount includes $4,321,388 transfer from General Fund to Community Investment FundJ - MCES monthly invoice billed/paid in advanceBuilding Permit ActivityYear2020 YTD2021 YTD2022 YTD Jufn!3/ Liquor Store #1 - Fridley MarketSeptember YTD Category2019202020212022 Sales 3,495,335 4,100,542 4,523,019 3,994,441 Cost of Sales 2,547,570 2,987,992 3,215,263 2,855,909 Gross Profit ($) 947,765 1,112,550 1,307,756 1,138,532 Gross Profit (%)27.12%27.13%28.91%28.50% Operating Expenses 668,491 699,128 814,999 822,536 413,422 492,757 315,996 Income/Loss 279,274 Nonoperating Revenues 884 (1,688) (8,584) 6,202 Nonoperating Expenses 18,642 21,974 10,000 - Net Profit/Loss261,516389,759474,173322,198 Transfer 208,875 208,875 208,875 208,875 Liquor Store #2 - Hwy. 65September YTD Category2019202020212022 Sales 1,003,761 667,652 968,394 814,403 Cost of Sales 764,768 506,229 717,810 624,504 Gross Profit ($) 238,993 161,423 250,584 189,898 Gross Profit (%)23.81%24.18%25.88%23.32% Operating Expenses 170,666 180,102 196,564 169,685 Income/Loss 68,327 (18,679) 54,021 20,214 Nonoperating Revenues - 50 - - Nonoperating Expenses - - - - Net Profit/Loss 68,327 (18,629) 54,021 20,214 Transfer 45,000 45,000 45,000 45,000 Liquor Stores - CombinedSeptember YTD Category2019202020212022 Sales 4,499,096 4,768,194 5,491,414 4,808,844 Cost of Sales 3,312,339 3,494,221 3,933,073 3,480,413 Gross Profit ($) 1,186,758 1,273,973 1,558,340 1,328,431 Gross Profit (%)26.38%26.72%28.38%27.62% Operating Expenses 839,156 879,230 1,011,562 992,221 Income/Loss 347,601 394,743 546,778 336,210 Nonoperating Revenues 884 (1,638) (8,584) 6,202 Nonoperating Expenses 18,642 21,974 10,000 - Net Profit/Loss 329,844 371,130 528,194 342,412 Transfer 253,875 253,875 253,875 253,875 7