2. - 4. ICESR 03-04-1997 - Laserfiche WebLink

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ICE ARENA Provides • --- for the total operation of the Elk River Ice Arena facility as • . • authorized by the City Council •including debt payments for the 1996/97 ice arena expansion project. 1997 BUDGET COMPARED WITH 1996 BUDGET This is a new budget, and as such, the proposed expenditures and revenues cannot be compared to previous years. In 1996, the City Council agreed to the ownership,financial responsibility, and management of the existing Elk River Ice Arena. Additionally, in 1996 the City Council approved the expansion of the ice arena and the construction of a second sheet of ice was completed by the end of 1996. The financial feasibility`of making the debt payment for the construction of a, second sheet of ice was analyzed in a study completed by Marquette Partners. This April, 1994, report was updated by a City Council appointed :Ice-Arena-Task Force and the-revised financial figures were approved by the City._Council:-These revised figures were used as financial' in order to obtain long term (20 years) financing from local financial institutions for the-construction project: The $2.65'million construction project,was financed-by a Mighty Ducks grant of$250,000, contributions from the Elk . River Youth Hockey Association, a $50,000 donation'from the Rogers Plastic - Foundation, and city f Inds. ; Itis anticipatedrthat the annual operating revenues,will exceed the annual., ; j{ operatuig expenses so that there will be sufficient monies available to make annual debtpayments` Essentially it is believed that the revenue::- generated:froni selling ice time for two sheets of ice will be sufficient to pay off the debt for the construction of one additional sheet of ice.. If not,,the city is"the responsible°agency and will have to.access other funds in-order to meet;- } :this obligation For;this new endeavor the city has hired the current ice • arena employees including the full time arena manager: Additionally, the ._ ' City Council has established an Ice Arena Advisory Commis. sion to help oversee the management of the arena. The adjacent page shows the proposed revenues and expenditures for-1997 - These figures were taken from the revised financial feasibility study:. The : ' city fiscal'year is the calendar year and the ice skating"year" is mainly the. winter season and is part of two different calendar years. Initially this will` complicate the budget process. The first complete year of city:management of s, an ice skating season`at the ice arena will be 1998. These;1998 year end• • = .:figures will be available in 1999, so the 2000 ice arena budget will be the first one based on actual year end figures as managed by the city. 73:.