5. ICESR 11-09-2011MEMORANDUM
TO: Ice Arena Commission, Members
FROM: Rich Czech, Arena Manager
DATE: November 4, 201 I
SUBJECT: Agenda Memo -November 9, 2011
5. Financial Update
Attached for your review is the budget information for the years 2008 - 2010 as well as
current information for the 2011 budget and the requested budget for 2012. Al]
indications suggest that ice sales will supersede budget numbers while the overall
expenditures shall stay flat or below projected budget numbers.
Concessions revenues have already exceeded 2011 budget revenues and is on pace to be
our most profitable year since the Arena took over operations.
6. Ice Arena Renovation Undate
On October 10th 2011 a joint City Council and School Board meeting was held to
discuss the possibility of collaborating on several items, one in which was the
renovation of the Arena. Discussion took place regarding the project; in the end the
School Board is going to discuss their role in the renovation at one of their next work
sessions. During the discussions, the possibility of adding a field house to the east side
of the Olympic rink was discussed. The possibility of a field house was discussed in
2006 when an explanation of the lobby was being considered. A partnership of the
City and the School District to renovate the Arena and to build a field house may be,
in the long run, beneficial to the city. If the School District and the City were to agree
to jointly share in the cost of the operation of a multipurpose facility the city may
benefit from the cost shares.
The other customers that were approached to help finically support the renovation, Elk
River Youth Hockey, Elk River Boy's Booster Club, Elk River Girl's Booster Club,
and the Elk River Figure Skating Club have all verbally committed to supporting the
project, but as of this time I have only received a written commitment from the Elk
River Skating Club. I did however talk to Matt Westgaard, the Elk River Girl's
Booster Club President, and he indicated that their board did vote on a proposal and
that he would have it to me shortly. Lyle Slawson, Elk River Youth Hockey's
Elk River Ice Arena
Revenue antl Expentliture Summary
For the Period Entling October 37, 2017
2011 2011 2010 2008 2008
~ " Budget VTD Actual Actual Actual
REVENUES k. "
Ice Rental 443.000 269,894 478,393 437,098 424,106
Recreation Programs %`~~'~'~, 122.850 90,256 94,688 119,288 139,706
Admissions ~"E# 22,900 17,666 22,573 18,530 23,35a
Sign Rental ~.~ 77,000 934 18,002 16,688 17,293
Dry Floor Events j ~` ~ 14,600 17,168 17,442 16,038 9,034
Vending @% 16,650 8,420 13,012 14,215 17,212
Skafe Sharpening 4,100 3,016 4,372 4,767 4,980
Building Rent `r~,. ~~ 2,600 2,600 2.600 2,600 2,600
Other Mdse Sales/Misc. 1,800 1,844 2.027 1,666 2,238
TOTAL ,. 645,500 411798 653,109 630,890 640,523
EXPENDITURES }~,.Y n;:
u
x,
f ~
~
Personal Service ' 273,800 209,688 266,627 267,992 253,447
Other Operating Expenditures 227,600 172,360 235,281 240,001 268,189
Vending Mdse for Resale ~ 9,000 3,812 6,958 6.222 7,279
Other Mdse for Resale ` "Uy?~'''; 900 - 237 1,335 7,577
Recreation Programs 61,100 29.416 40,037 47,669 55,132
TOTAL 572400 415,296 549,140 563,219 585,624
CONCESSIONS ~,:,• ".M1 +'~,,.
1
Sales .
..1:
" 63.100 49,346 69,132 59,510 66,500
Less: Product 8 Supplies '
;~r ' 24,550 17,238 37,988 25,019 31,544
Salaries 22,700 14.217 17,655 16,225 24,430
Nel Proft 15.850 17,891 19,489 18,266 10,526
n•~ za. `r.
OPERATING INCOME (LOSS) .+~ 88 950 14 393 123 458 85,937 65,425
~
tr, ~
~
Capital Outlay ~ 44,400 40,917 - - 100.202
.
~
`
r
r
~
Builtling DebC v~ 200,800 15.390 199,900 198,450 201,715
NET INCOME (LOSS) ~
R (1562501 (41,914) (76,442) (112,513) (238,492)
Other Income ~~~ `'
Contributions/Rebates ,.;?,~,...- - - 6,743 4,731 7,368
Grant Contribution - - (39.417) - -
i. Y;;
Transfers In 'v "„,
~
Capital Outlay -Liquor Fund ;~"~ ~.~•- - - - 6,961 100,202
General Funtl 156,250 - 76,442 105,552 136,290
Change in Fund Balance (41 9147 (32 674) 4,731 7,368
Cash balance of surcharge $ 6,743 $ 39.417 $ 34,686
' =building tlebt matures on 12/01/2013
11/04/2011