ICESR MEMO 04-02-2002 - Laserfiche WebLink

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City of Elk River MEMORANDUM TO: Ice Arena Commission FROM: Rich Czech, Arena Manager DATE: April 2, 2002 SUBJECT: Agenda Memo 5. Review 2001 Operating Finances. Current Information on 2002 Financial Status Attached for your review are the financial summaries for the arena from 1997 —2002. With capital improvements and debt service it will be awhile before the arena cash flows. For 2001 you will see that the budget indicates a deficit of$52,460. Under contributions/rebates you will notice there is $7,540. The Veterans of Foreign Wars (VFW) donated $5,000 for the boulevard display sign scheduled for installation in a few days. If this money were taken out then the actual deficit would be $57,460. However, some of this deficit is from the bleachers. Elk River Youth Hockey's portion of$10,000 was not due until 2002 so it was not included in the 2001 budget. The surcharge of one dollar to all Elk River High School Hockey games collected for the 2001 —2002 season was $8,831. However, only $2,540 was collected during games played in the fall of 2001. The actual deficit, excluding capital improvements, is $28,619. This is up slightly from what was budgeted and up substantially from 2000. Most of the added deficit can be contributed to utility costs, which was budgeted at $94,500. The actual cost for utilities was closer to $111,000. Another reason for the added deficit is that as the building and its equipment get older, more money is being spent on maintaining the arena. From replacing light bulbs to maintaining the ice plant, along with everything in between, more money and time is being spent to keep the building operating effectively. As I noted above, the high school gate receipts only took in $8,831. At this pace we will fall short of the $30,000 we were hoping to collect over three years. We may need to extend the surcharge of one dollar per ticket for an extra season to collect the total $30,000.