6.0. SR 07-26-1999 - Laserfiche WebLink

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. . . 2000 Budget July 21, 1999 Pag-e 11 Ice Arena Budl!et The ice arena budget is projected to have a shortfall between available revenues and expenditures in the amount of $64,600. This is better than the actual shortage (without capital outlays or transfers) in 1998 of $78,182. We are going in the right direction, but it is going slowly. The problem is that there is only so much ice time to be rented out and in order to substantially change revenues we need more summer programs or summer hockey leagues. The other issue with the ice arena budget relates to the expectations that were set forward with the Marquette Study. The Marquette Study indicated that in 1997, ice rental revenues would be $364,715. The most realistic projection that we have is that ice rental revenues in the year 2000 will only be at $324,650. This is a substantial difference between reality and expectations. The other false expectations had to do with personal services. The Marquette Study indicated that in 1997 personal services would be in the $84,400 range. Putting a 3 percent inflation factor to this amount means that personal services would be about $96,600 in the year 2000. The 2000 budget proposal shows personal services at $135,300. Again, this is a substantial difference between expectations and reality. The difference between these two expectations is essentially the shortage we are experiencing in our budget for 2000. Most of our youth athletic programs receive subsidies from the city for either development of facilities or for operating expenses. Annually there are funds in the budget to help with the maintenance of youth baseball, girls youth softball, and youth soccer fields. For some reason there is an expectation that the city should not be assisting with indoor skating activities. In the balance of youth activities, some contribution on an annual basis from the city for the ice arena operating expenses does not seem unreasonable. At this time the city must address a $64,600 shortage. 2000 BUDGET GAP. THE TAX LEVY. AND MISCELLANEOUS FINANCIAL ISSUES At this point, the difference between available revenues and projected expenditures is about $193,150. This amounts to approximately 3.8 percent of the general fund budget. The ice arena situation makes balancing this budget even more of a challenge. As previously noted in the revenues section, if the COPS FAST officer is not hired and the CSO employee not hired, then revenues and expenditures will be reduced and the budget gap will be adjusted down by $32,100 to create a budget problem of "only" $171,150.