08-05-2024 CCM - Laserfiche WebLink

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City Council Minutes August 5, 2024 --------- Page 6 of 7 Councilmember Wagner asked where the suggested rates put us within the budget. Mr. Stremcha explained many variables will come into play with this budget cycle, such as the restructuring of the organizational chart, and the concession expansion with the catering and liquor components. He feels with the changes there will be a step towards solvency. Mayor Dietz recommended $250 prime, $200 non-prime, and $150 school. Commissioner Mike Westgaard stated that we are comparing a small pool of facilities to about 65 facilities that are members. He came up with about 52 facilities that were comparable and came up with an average of $231. Councilmember Beyer brought up the question of which facilities are subsidized and which are not. Commissioner Mike Westgaard stated they are all different. Commissioner Mike Westgaard further said that they knew there would be an increase, and they expected there would be an increase. However, a $20 or $30 increase is quite substantial. Councilmember Wagner explained the reason we got into this situation was because of the discounted groups and stated that whatever the number is, it has to make sense across the board. She posed the question: how do we solve the problem unless we come up with a standard that is transparent for everyone to see who is paying what? She further said, this facility will not be subsidized by tax dollars. Councilmember Grupa suggested $250 prime, $185 non-prime, and $165 school. Mayor Dietz agrees with Councilmember Wagner that we are different in the fact that we are trying to be net-zero and not to have taxpayers pay. He stated that we told the taxpayers we were going to do this and at the end of the day, the Council is responsible for making the decision. He stated we have a state-of-the-art facility and we have to charge accordingly. He agrees with Councilmember Grupa's suggestion for $250 prime, $185 non-prime, and $165 school. Councilmember Westgaard stated at the end of the day, if we are going to run this like a business so it is not subsidized, then revenues and expenditures have to balance and you need your customers so there has to be a happy medium in all of it (handed out his research). We need to take a look at the facility as a whole. Councilmember Westgaard added that he is more concerned about the turf rates instead of the ice rates and posed the question if the turf groups would pay the increased rates. Mr. Stremcha stated it will come down to the variable if the user groups are willing to stay versus drive to other facilities. Councilmember Westgaard continued to ask, what is it we want to do, and what do we hope to generate in ice revenue? What do we expect to do with our largest customer? He does believe there should be some sort of arrangement or commitment from the biggest user groups stating how much ice they intend to use in order to budget. Councilmember Wagner stated we can go back to the taxpayers asking to make this a subsidized community center and state it would be due to the fact of inflation, or we can wait to see what changes the new facility manager and assistant facility manager will make to reduce rates, but right now we have to figure out rates, so the user groups can plan their budgets and the city can plan their budget. At the