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City Council Minutes <br />February 5, 2015 <br />Page 13 <br />Mr. Hecker presented the staff report. Mr. Hecker asked Council to start thinking <br />about the percentage of operating cost they would like to recover for the various <br />activities. He indicated other cities charge fees to offset operations and maintenance <br />of playfields and facilities. He said some athletic associations currently pay field <br />rental and others do not. He stated the athletic groups are aware the city is reviewing <br />the fees but staff hasn't formally met with them yet. <br />Mr. Portner stated the city spends about $200,000 a year in operational costs on <br />three complexes: Oak Knoll, Youth Athletic Complex, and Dave Anderson Athletic <br />Complex. He stated, as a comparison for the Ice Arena, 100% of the operational <br />costs are paid for by the user groups. He stated traditionally people didn't pay for <br />parks or playfields. He noted there are two things to consider: how much should the <br />city subsidize the youth associations with city tax dollars and how equitable are user <br />fees among groups. <br />He noted there is $9 million worth of improvements coming in the future without <br />any funding resources. He stated, depending on Council philosophy, the city could <br />shift the operational costs to the users and taxpayers could pay for the capital <br />improvements. He stated this would create a long-term sustainable plan for funding <br />facilities. He noted there are a lot of factors to discuss. He stated if the Council <br />wants to capture 60%, they don't need to implement it all in the first few years but <br />could work towards it over a period of time. <br />Mr. Hecker reviewed the Activity Center operations compared to other centers in <br />Minnesota. He noted Elk River's operating budget, at $250,000, for senior activities <br />is one of the largest in the state, noting the activity center budget numbers presented <br />tonight doesn't include building and grounds maintenance services. He also <br />questioned Council about the percentage of operating costs they would like to collect <br />from senior users. <br />Mr. Pormer stated Council may not find a number to offset the costs noting the <br />outgoing costs are high due to the expense of the current facility and the lack of <br />multipurpose use space available. He stated the current facility can't be rented out for <br />new revenue without disrupting the current users. <br />Councilmember Wagner questioned why the $250,000 activity center budget is so <br />different from other peer cities. <br />Mr. Hecker stated part of the reason is because Elk River has a dedicated building <br />and two full-time staff. He stated other centers may be connected to other facilities <br />and can be open more hours for rental purposes. <br />Mr. Hecker reviewed the Ice Arena budget and fees. <br />Councilmember Wagner stated she would be interested in what each association is <br />paying for facilities based on numbers we are already using whether they are up front <br />rental or for field improvements. <br />1AtFAE1 BY <br />NATURE <br />