4.8. SR 07-25-1994 - Laserfiche WebLink

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REVISED PROPOSAL BY SUB-COMMITTEE . Below is the documentation for the changes we have made to the numbers on the previous page. The year we concentrated our efforts on was the first full year of operation ending May 31, 1996. Assumptions were that the years following would have a similar cost percentage adjustments as shown in the Feasibility study. REVENUES: ICE RENTAL: The committee strongly believes that the hourly fee for the Olympic sheet of ice would be at least S105 per hour not SlOO as mentioned in the study, for the 1994-95 season. As the study Slated Anoka, being our closest ice sales competitor, sells theirs for S115. (The Elk River Youth Hockey Board has taken the position in the past several years that we need to charge an hourly ice rental that will cover our building expenses.) The year of 1995-96 season the cost would be $100 for the existing rink and S110 for the Olympic ice sheet for prime time. We would propose that the Associations renting the ice take a share of both ice sheets in their contracts. This would increase the rental income by over $10,000 (1838+881 hours 12 for both rinks and muliply by SlO for the differance in the cost from both sheets. The Feasibility has School District 728 with a contract of S26,400 in 1994-95 and $27,000 in 1995-96. We took that as a separate line item because of contract negotiations presently going on. it appears that the ice rental contract will be going on an hourly hasis and no longer on a lease for the 1994-95 year. The nmnber of hours are being estimated at 260 at SlOO per hour for a total of$26,000. The 1995-96 season the rates will be S100 & $110 for an average ofS105 for 260 hour estimated usage totaling S27,300. This lease contract annual amount ofS22 152 has not changed since 1983. The old School District 728 contract has been from 5:30 am to 5:30 p.m. Which makes it available for the Elementary, Junior High and Senior High Gym classes if they so desire. The last few years this type of ice usage has continued to increase to a total of 48 in the 1993-94 season. This will not be include in their new ice rental agreement. ADMISSIONS: We left as Slated from the Feasibility Study but will be looking at the possibility of charging an additional dollar per ticket, which would have to be approved by the School District 728 and Conference. . DRY FLOOR EVENTS: The Feasibility Study stated the possibility for additional usage was there for indoor soccer or other events but excluded them from the Study figures. The committee has concluded after talking with the Soccer Board that indoor soccer could bring in revenues ofS12,000 to S18,000 by charging $45-$65 per hour. We added an amount ofS6,000 for year 1994-95 for the spring of 1995 and an additional $6,000 for 1995-96 to total $12,000 for 1995-96. With other events bringing the total to $18,000. Anoka started indoor soccer this past year and has revenues of about S12,000 the first year. A carpet would have to be purchased for the floor with estimated cost of S30,000. This expense will be added into the initial construction cost as a one time cost. SIGN RENTAL: The committee felt with a strong campaigu that sigu rental could increase by $10,000 in the new arena. . ADDmONAL The additional revenues we noted on the bottom of the page which includes the fundraising events LINE REVENUES: that youth hockey does every year. The track record for the past eight years shows an average profit per year of about S15,000. The pulltabs would be the other additional item on this line. The pulltabs will be starting in July 1994 at Dicks Riverfront Bar. We estimate $5,000 should be available in 1994-95 and up to S18,000 in fiscal year 1995-96. We realize that these numbers may not be able to be nsed as revenues in the cash flow estimate but we wanted to make a note that these will be available for other expenses or improvements. Other additional income could be special fund-raisers, and pledges from individuals, groups and industry to possibly raise and additiOnal $50,000 to S75,000 per year. There are approximately 400 families involved in hockey and skating. lfeach pledged $100 a year for 3 years it would raise $40,00 a year for a total of S120,000. Pledges might range from $25 _ $500 per year. Note: As of June 1,1994 the Youth Hockey Board has S35,000 in a savings account and has a balance of about S40,000 in their checking account. Revision Date: 7/21194 2