Laserfiche WebLink
<br />.. (. >> <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />ICE ARENA <br /> <br />Provides for the administration of the entire operation of the Elk River <br />Ice Arena facility as authorized by the city council including debt <br />payments for the 1996/97 ice arena expansion project. <br /> <br />2000 BUDGET COMPARED WITH 1999 BUDGErr <br /> <br />The city council approved the expansion of the ice arena and the construction <br />of a second sheet of ice was completed in January 1997. The ci~y council <br />agreed to take over the ownership, financial responsibility, andlmanagement <br />of the existing arena and the new arena that are connected to e~ch other. <br /> <br />The city is still trying to get an accurate picture of the annual ice.arena <br />revenues and expenditures. The best available figures are from the 1998city <br />audit. However, these figures need to be adjusted for the budget discussion <br />because of the approximately $110,000 dehumidification capital outlay that <br />was installed that year. With adjustments it is estimated that operating and <br />building debt expenditures exceeded revenues by approximately $78,200 in <br />1998. The projection for 2000 is that expenditures, excluding significant <br />capital items, will exceed revenues by approximately $64,500, so the ice <br />arena program is moving in the right direction financially, but it is going <br />slowly. <br /> <br />The following pages show the 2000 proposed revenues and expenditures. The <br />revenues are projected to decrease by $5,900 as compared to the 1999 <br />adopted budget. However, this 2000 figure is a 4 percent per year increase <br />from 1998 actuals. The expenditures are proposed to increase $17,800 from <br />the adopted 1999 budget. However, the 2000 figure is nearly identical to the <br />adjusted 1998 amount. The reason for the increase in the 2000 expenditures <br />as compared to the 1999 budget has to do with 1999 utility estimate being <br />low. <br /> <br />The initial budgets were based on the Marquette Financial Feasibility Study. <br />This report showed revenue projections for the renting of ice at a high level <br />and the personal services for maintaining and supervising the facility at a <br />low level. These two errors result in the budget gap that is currently being <br />experienced. Accordingly, in the short term, this recreation facility needs city <br />financial support and the ice arena is not unlike other city recreation <br />programs that need city monies. <br /> <br />It will take a number of years before the ice arena facility cash flows, even <br />without considering major capital outlay expenses. The city has taken <br />ownership of the old ice arena and major repairs are anticipated for.both the <br />roof and the floor. These expenditures are in addition to complying with the <br />new state law regarding bleachers. Finally, additional bleachers at the new <br />rink need to be considered in the near future. <br /> <br />61 <br />