10-16-2023 CCM - Laserfiche WebLink

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City Council Minutes October 16, 2023 Page 9 ■ In the future consider a long-term governmental fund transfer for support of specific areas of the building, such as the senior activity center because it was a governmental fund operation. Councilmember Beyer expressed concerns with the projected concession revenues increasing from $73,000 to $200,000. Mr. Stremcha noted the facility is entering its busiest season. He stated they are increasing events by adding more tournaments and leagues. Councilmember Westgaard further noted the first seven months of the year included a transitioning process to implement the concessions. Councilmember Westgaard questioned where staff would find an extra 1,000 hours of ice to sell. He expressed concern with the projected increases in revenue being a realistic goal to meet. Mr. Stremcha stated the Cornerstone Arena ice would stay in all year except for one month. Mayor Dietz questioned the recreation fees increasing by $100,000. Mr. Stremcha stated its extended programming to fill the shoulder seasons such as summer break away and host leagues. Mayor Dietz asked staff to follow up on analyzing utility bills to reduce costs. Councilmember Westgaard expressed concerns with Personnel Services being two-thirds of total expenditures and continuing to increase the next few years. He questioned if there was any data from comparable facilities regarding their staffing levels. Mr. Stremcha stated the arena component can be compared, but not the other components. Mayor Dietz noted Personnel Services are comparable to the city. Councilmember Westgaard has concerns with the fund balance already being negative when $655,000 in ARPA funds was transferred in 2022 to pay for future capital purchases. He questioned why the fund balance is dropping because it needs to grow to pay for future repairs. Mr. Stremcha stated the rest of 2023 has not been taken into consideration when the facility will be hitting its highest revenue sales. Councilmember Westgaard stated this facility needs to be putting money away and it's struggling to get to zero and questioned if the facility can be self-sustaining without having transfers in from the General Fund budget. Mr. Portner stated with the building being so new it needs to build some history and starting in 2024 they should start to see a trend line. Councilmember Grupa stated the ice portion of the facility should be able to pay for itself, but he questioned the field house. Mr. Stremcha discussed the hard -court surface activities, such as pickleball/basketball as an expanded service offering being considered. Councilmember Beyer suggested changing the budget cycle to July. Councilmember Westgaard questioned revenue contributions of $50,607 which are not a budgeted item. Staff was to review the item and bring back to Council for an update. There was an update on the field house flooring. Mr. Stremcha discussed different options and pricing and noted it's an additional $12,000 for the flexible concrete option. He stated the Council could use the Governmental Building, Building Reserve or ARPA funds to pick up the difference depending on the option selected. The Council also noted the additional expenses of supplies that need to be purchased. F® 1 E R f 1 1 1 MATURE