4. ICESR 05-15-1997 - 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 1.996, the City Council agreed to take over 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 feasibil.ity;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 approvedby the ' - City Council. These revised figures Y gores were used as financial projections m". order to obtain long term (20 years) financing from local financial institutions for the construction project:',-The $2.65 million construction project,was - finan ;� •...4.•'-,,,,,••` '��i r 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 funds F•' 1 It is anticipated that the annual operating revenueslwsli exceed the'annual operating expenses so that there will be sufficient monies'available'to make --, 1x the annual debt payments Essentially it is believed:that the revenue generated from'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 Forthis`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 Commissionto help oversee the management of the arena. , 1 ' * -2:-' *- The adjacent''page shows theproposed 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 2" • complicate"the budget process. The first complete year of city.management of. ; 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 _ , L -.i "r r , , A 4p ':------1 ;' Y 1