6. - 11. ICESR 08-21-2012 MEMORANDUM
TO: Ice Arena Commission, Members
FROM: Rich Czech, Arena Manager
DATE: August 17, 2012
SUBJECT: Agenda Memo—August 21, 2012
6. 2010 Financial update
Attached for your review is the budget information for the years 2009—2011 as well as
current information for the 2012 budget. At the City Council meeting on August 13th the
2012 Arena budget was discussed, the City Council is anticipated to vote on the final
budget on December 3`a
7. Arena Renovation
At the City Council meeting on August 13`h Staff along with Tom Betti from The 292
Architect Group, presented the four options that the Commission reviewed at the special
meeting in July. Staff indicated to council that the Arena Commission recommended
option four due to the fact that it was the most encompass option. All of the Council were
very engaged in the discussion with the mail focus being on costs and partnerships for the
project. In the end the council direct staff to put together a performance report outlining
the possible revenue streams and expenditures to see how a new building would cash
flow.
Staff scheduled a meeting for today F(riday August 17th) with Tom Betti from The 292
Architect Group, Mike Worhrie, from Nelson— Rudie Associates (Consulting Engineers),
and Jeff King, from Ballard/King& Associates, Operation Consultants. With their
assistants a performance evaluation will be developed outlining projected costs of
operating a new facility and the possible revenue we could aspect.
8. Outside banners
Over the last year discussion has taken place about replacing and adding banners to
outside of the Arena due to the fact that the existing banners are worn and tattered. The
banners were a joint effort between Elk River Youth Hockey and the Arena with Youth
Hockey purchasing the banners and the arena paying and installing the lights.
At the recent Elk River Youth Hockey Meeting (august 15th) I briefly discussed the
banners and the cost to replace them. They indicated to me that they are not interested in
fully paying for the banners but would be willing to develop a partnership with the Arena
to replace the banners. One of the board members believes she has a supplier that may
sell the banners at cost to the association. She indicated to me that she will be in contact
with me in the near future to go over pricing. Once I hear back from her indicating prices
I will forward this information to the Commission for discussion.
9. Off Peak Season Ice Rates / Contracted Ice Hours
At the August meeting we typically discuss Off Peak Season Ice rates for the up coming
summer. This allows staff and customers, if rates change, time to plan accordingly. Off
Season Ice Rates begin the last week in March and go through August, the rate is set at
$145.00 an hour and has been at this level for four years.
Below are other Arenas in our region that we compete with for customers during the
summer. The rates noted are what is scheduled for now and could increase by the
summer.
Rogers $145.00
Monticello $145.00
St. Michael $145.00
Maple Grove $155.00
After reviewing these rates and others that do not directly affect us, it's my
recommendation that we hold our rate at $145.00 an hour for one more summer.
Last season we had groups that did not get their contract signed and returned to the Arena
well after their first contracted hour of ice. With no repercussions, except not allowing
them to skate, there was no recourse for a solution. I would like to propose a $5.00 added
fee to hours used by a customer if a contract is not signed and returned or arrangements
are not made in writing by their first scheduled hour of ice. My hope is to expedite the
return of contracts in a timely matter so that they do not linger through the season.
10. Arena Commission Members
At the City Council meeting on August 6th the council approved the ordinance change to
the Arena Commission membership to exclude one Elk River Youth Hockey
Representative and to add a member from the Elk River Figure Skating Club. The new
Elk River Skate Club Representative and the newly appointed Representative from Elk
River Youth Hockey are in the process of completing the application to be on the
commission; once these forms are completed they will be placed on the agenda for
approval at the next available City Council meeting.
11. Booster Club Passes / Players Passes
The Booster Club passes for the boy's and Girl's home games will continue for another
season. These passes, which are two separate passes, discount tickets by $2.00 for adults
and $1.50 for Seniors.
Each booster club (Boys and Girls) will be in charge of creating their own list of people
who would like to purchase the pass. The list of these names would then be given to the
Arena along with a check for the balance of funds owed. Passes will then be given out to
the representative taking care of the passes along with a copy of the pass list indicating
that the balance has been paid in full.
What's new this year are free passes for High School Hockey players. These passes will
allow each team to get into the other teams home games free of charge. Player's rosters
will be submitted to Arena Staff by their respective booster club and the Arena will make
the passes with the players name on it to hand out to the players as they are requested.
12. Other Business
13. Nest Meeting date
Wednesday November 14`h, 2012
14. Adjournment
Elk River Ice Arena
Revenue and Expenditure Summary
For the Period Ending December 31,2011
2013 2012 2011 2010 2009
Requested Budget Actual Actual Actual
REVENUES
Ice Rental 493,000 488,000 493,698 478,393 437,098
Recreation Programs** 94,800 95,800 89,346 94,688 119,288
Admissions 25,500 22,900 25,630 22,573 18,530
Sign Rental 18,000 17,500 18,086 18,002 16,688
Dry Floor Events 19,500 17,400 19,518 17,442 16,038
Vending 11,800 14,000 11,796 13,012 14,215
Skate Sharpening 4,300 4,300 4,223 4,372 4,767
Building Rent 2,600 2,600 2,600 2,600 2,600
Other Mdse Sales/Misc. 3,050 2,900 2,849 2,027 1,666
TOTAL 672,550 665,400 667,746 653,109 630,890
EXPENDITURES
Personal Service 287,500 294,450 265,932 266,627 267,992
Other Operating Expenditures 235,450 220,000 232,895 235,281 240,001
Vending Mdse for Resale 7,000 8,000 6,098 6,958 6,222
Other Mdse for Resale 900 600 840 237 1,335
Recreation Programs 48,850 53,750 34,121 40,037 47,669
TOTAL 579,700 576,800 539,886 549,140 563,219
CONCESSIONS
Sales 78,000 69,000 77,768 69,132 59,510
Less: Product&Supplies 26,900 24,450 32,990 31,988 25,019
Salaries 23,100 22,700 20,084 17,655 16,225
Net Profit 28,000 21,850 24,694 19,489 18,266
OPERATING INCOME(LOSS) 120,850 110,450 152,554 123,458 85,937
Capital Outlay 357,300 20,500 42,143 - -
Building Debt' - - 200,780 199,900 198,450
NET INCOME(LOSS) (236,450) 89,950 (90,369) (76,442) (112,513)
Other Income
Contributions/Rebates 7,300 - 7,012 6,743 4,731
Grant Contribution - - - (39,417) -
Transfers In
Capital Outlay-Liquor Fund 139,200 - - - 6,961
General Fund - - 90,369 76,442 105,552
Beginning Fund Balance 89,950
Change/Ending in Fund Balance - 89,950 7,012 (32,674) 4,731
Cash balance of surcharge 13,755 $ 6,743 $ 39,417
=building debt paid on 12/01/2011
`=Recreation program revenues includes Hockey and Skating programs
8/20/2012