04-08-2014 ICE MIN - Laserfiche WebLink

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Arena Commission Minutes Page 2 April 8, 2014 ----------------------------- 6 Financial Update Finance Director Tim Simon reviewed the Arena’s 2013 performance and notes that because the Arena is a special revenue fund- any profits that are made throughout the year, stay in the Arena’s account for the following year. Simon comments the Ice Rental numbers for 2013 were above budget, but down $5,000 from their projection. The recreation programs are trending a decrease, however this corresponds to a decrease in the cost of staff for those programs. Advertising sign rentals have increased $6,000 an increase of $11,000 in the past few years. Arena Manager Czech notes that we anticipated that one of our Zamboni advertisers would not renew their contract, but they did, and we also picked up some additional advertisers, and added the option of advertising on our scheduling monitor. Finance Director Tim Simon states that the figures are for a January – December year- and that the arena had interest income from the money in the account from 2012 and 2013. Commissioner Cunningham notes that there will be revenue losses in 2014 due to the games that were played at Hockey Day in MN. Czech continues that due to the numerous school cancellations this year, and the subsequent game cancellations, there will be a dip in revenue there as well, as rescheduled games are not always at a favorable time if they can be made up. Finance Director Simon continues with personnel service and operating expenses coming in close to budget, and the concessions revenue coming in at $24,302 which was a slight decrease from 2011 and 2012. The arena had a net income of $144,754, which was a decrease from 2012. In addition, due to the delay of the capital outlay projects, the arena had an additional “income” of $68,586 since the projects weren’t completed, but budgeted for. Collectively, at the end of 2013, the Arena had a balance of $245,125 in it’s account. This money will move forward to 2014- so there are now sufficient funds for the capital outlay projects that were slated for 2013 (roof membrane for the barn and dehumidification system). Due to the debt service being paid off in 2011, the Arena has not needed a transfer from the general fund for a few years. Arena Manager Czech adds that the roof membrane will cost between $100,000- $125,000, and it is hard to spend the money on it, if there is a possibility of a new facility. Commissioner Westgaard inquires about the progress of a new building. Arena Manager Czech notes there will be more information later in the meeting. (Finance Director Tim Simon leaves)