5.3. SR 04-01-1996 - Laserfiche WebLink

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EXHIBIT A - PAGE 5 REVISED PROPOSAL BY SUB-COMMITTEE .EXPENSES: SALARIES: The salary amount we adjusted for 1995-96 season due to the late November 15th start down to $65,000 fi.om the Feasibility Study and increased it by $2,000 to $76,000 for the 1996-97 season. The present Arena Manager salary is $30,250, part t/me Ice crew is about $ I 1,500 and concession workers are about $5700 for the past 1994-95 season for a total salary of $47450. For 1995-96 the budget figure of $65,000 is a good number for the two rinks would only be open for 6 months. 'The 1996-97 increase to $76,000 would increase both Ice crew and concessions workers as w~ll as increase the Arena Manager's Salary. At present we have one full time Arena Manager and one half time employee during the skating season and other pa~ time Ice Crew (5-6) and Concession (5-6) workers. , BENEFITS: Thc benefits we felt wer~ high but if the City / EDA takes over Operations of the Axenas this would be thc same as the rest of the city employees. At present the Arena Manager receives a $1000 IRA annually and paid medical Blue Cross Blue Shield insurance coverage $1700. The Arena Manager also receives mileage at a ~ate of · $.25 cents per mile which came to about $450 in 1993-94. REPAIRS Fiscal year ending 1994 & 1995 shows the actual Repairs and Ma/ntenance cost at about $14,500. & MTCE. We thought the $39,000 was on the high side but left it as is for the full 1996-97 season. Wedid reduce it for the partial season of 1995-96. We feel some of the expenses could be reduced by using city staff'when needed for special projects. And to be able to use city owned equipment insteadOf renting it. UT~n%Es: The utilities we felt were very high. The total for 1993-94 was $33,$00 and the Actual + Budget for 1994-95 season is at about $33,000. The biggest expense for the utility group is the Electric at about $23,500 1993-94 and $24,$00 for' 1994-95. Gas at $7000, Telephone at $1g00 and san/ration at $1,100. The new building will be bigger and a larger ice sheet but with newer technology should be more efficient also. The Elk River Municipal Utilities Commission has given this project an Economic Development Rate for a 5 year term. The estimate for tripling the electric usage with the special rate would put the cost at about $63,000 for the 1995-96 season. Doubling these other expense the total would be about $g2,000. So we feel a conservative estimate of $90,000 is justified. See Attached. INSURANCE: Them is a new Insurance Company, Cartier Insurance Agency Duluth, Iv[N that strictly insures Ice Arenas and the estimate we received from them was $20,000. 1993-94 insurance totaled $13,000 which includes Property $2560, Liability $3400 + Open Skate $155 + Rollcrblading $250+Dance & Circus $130, Employee Dishonesty $1 I0, Crime $150, Boiler $1600, Worker Compensation $3200, Accident & Medical $900. ZAMBONI: Zamboni Maintenance and Fuel for 1993-94 totaled $2404. 1994-95 is estimated at $3,200. We felt the maintenance was a little on thc high side seeing that in thc 3 previous years we did not total $7,000. But r~ngnizing that thc Zamboni is aging that an increase to $6,000 in 1996-97 should be adequate. DRY FLOOR Increased to $2,000. , EVENTS: EXISTING ARENA DEBT: In November 1995 the debt on the existing arena will be paid off. The balance as of May I, 1995 is about $15,776. The debt is held by three banks, First National Bank of Elk River, Bank of Elk River, and State Bank of Rogers. The payment is $2,500 principle plus interest which is based on one percentage above the T-Bill rate, not less than 8%and not more than 10%. The numbers are shown based on an 8% rate. PAYMENT OF PARTIAL S~ARIZS: There is a request by the committee members to otEset some of the Salaries by payment from the City (Park fees) or Park and Recreation Board for improvements. This may only be needed for the fir~ three year~ or so depending on the bond structure. Rerision Date: 2."27/95,revfeas3,dpm