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City of Roseville, MN fin e in o TO: Steve Sarkozy,City Manager Fr+n Ed Bufrell,Finance Director CC: Bob Bierscheid D a t a 08/25/00 Rey Financial Viability of Wildlife Rehabilitation Center General Discussion It is my understanding that the City Council, at the August 28, 2000 meeting, will be reviewing the proposed lease between the City and the Wildlife Rehabilitation Center. The Council's concerns regarding this issue have been primarily with the policy implications including such major questions as: What is the advantage to the taxpayers of Roseville to enter into this type of agreement? what criteria should the Council use to determine who gets to build on Cii land? In addition to the policy decision, there are obviously legal and fiscal issues which are also to the final decision. The Cii Attorney has been working with staff on the lease and reviewing the legal issues. It is appropriate the the Council also have a review of the fiscal perspective as well. As the wildlife Rehabilitation Center currently stands financially, there are strong indications that the organization is not fiscally viable for the short to mid-term. The facts, as we know them at this point in time, are as follows: • Cash Assets as of 12131/99 are approximately 8372,675 with $218,249 restricted for capital purposes leaving $164,426 as unrestricted. This amount is equivalent to approximately 8.1 months of operations. Animal admits account for nearly 50% of operating revenues The addition of approximately 19,000 square feet of building space will cost $345 per square foot for maintenance. This square footage adds 860,000 to $95,000 annually to the budget for building maintenance; an increase in annual budget expendiiures in excess of 30%. • Then? is currently no endowment fund. The Center has indicated an intention to create such a fund as part of the capital campaign. Citv Commitments and Issues s Page 1