4. ICESR 05-15-1997 - Laserfiche WebLink

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REVISED PROPOSAL BY SUB-COMMITTEE EXPENSES: • SALARIES: The salary amount we adjusted for 1995-96 season due to the late November 15th start down to S65,000 from the Feasibility Study and increased it by S2,000 to$76,000 for the 1996-97 season. The present Arena Manager salary is$30,250, part time Ice crew is about 511,500 and concession workers are about$5700 for the past 1994-95 season for a total salary of$47450. For 1995-96 the budget figure of $65,000 is a good number for the two rinks would only be open for 6 months. The 1996-97 increase to$76,000 would increase both Ice crew and concessions workers as well as increase the Arena Manager's Salary. At present we have one full time Arena Manager and one half time employee during the skating season and other part time Ice Crew(5-6)and Concession(5-6)workers. BENEFITS: The benefits we felt were high but if the City/EDA takes over Operations of the Arenas this would be the same as the rest of the city employees. At present the Arena Manager receives a$1000 IRA annually and paid medical Blue Cross Blue Shield insurance coverage S1700. The Arena Manager also receives mileage at a rate of } •S.25 cents per mile which cameto about$450 in 1993-94. • REPAIRS Fiscal year ending 1994 & 1995 shows the actual Repairs and Maintenance cost at about $14,500. &MTCE. We thought the$39,000 was on the high side but Ieft it as is for the full 1996-97 season. We did reduce it for the partial season of 1995-96. We feel some of the expenses could be reduced by using city staff when needed for special projects. And to be able to use city owned equipment instead of renting it. i UTILITIES: The utilities we felt were very high. The total for 1993-94 was S33,500.and the Actual +Budget for 1994-95 season is at about$33,000. The biggest expense for the utility group is the Electric at about S23,500 1993-94 and$24,500 for 1994-95. Gas at S7000,Telephone at$1800 and sanitation at$1,100. The new building will be bigger and a larger ice sheet but with newer technology should be more efficient also. The Elk River • Municipal Utilities Commission has given this project an Economic Development Rate for a 5 year term. The estimate for tripling the electric usage with the special rate would put the cost at about 563,000 for the 1995-96 • season. Doubling these other expense the total would be about$82,000. So we feel a conservative estimate of ' $90,000 is justified. See Attached. INSURANCE: There is a new Insurance Company, Cartier Insurance Agency Duluth, MN that strictly insures Ice Arenas and the estimate we received from them was$20,000. 1993-94 insurance totaled $13,000 which includes Property$2560,Liability $3400+Open Skate$155+Rollerblading 5250+Dance& Circus 5130,Employee • Dishonesty$110, Crime S150,Boiler$1600, Worker Compensation S3200, Accident&Medical$900. _ZAMBONI: • Zarnboni.Maintenance and Fuel for 1993-94 totaled$2404. .1994-95 is estimated at$3,200....We felt the maintenance was a Iittle on the high side seeing that in the 3 previous years we did not total $7,000. But recognizing that the Zamboni is aging that an increase to 56,000 in 1996-97 should be adequate. DRY FLOOR Increased to$2,000. EVENTS: EXISTING In November 1995 the debt on the existing arena will be paid off. The balance as of May 1, 1995 is ARENA about'S15,776. The debt is held by three banks, First National Bank of Elk River,Bank of Elk River, DEBT: and State Bank of Rogers. The payment is S2,500 principle plus interest which is based on one percentage above the T-Bill rate, not less than 8%and not more than 10%. The numbers are shown based on an 8%rate. PAYMENT There is a request by the committee members to offset some of the Salaries by payment from OF PARTIAL the City(Park fees)or Park and Recreation Board for improvements. This may only be needed for the SALARIES: first three years or so depending on the bond structure. • Revision Date: 2/27/95,revfeas3,dpm