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City of <br /> Elk Request for Action <br /> ever <br /> To Item Number <br /> Ice Arena Commission 7.6 <br /> Agenda Section Meeting Date Prepared by <br /> Arena Manager's April 8,2014 Rich Czech,Arena Manager <br /> Update <br /> Item Description Reviewed by <br /> 2014-2015 Ice Rates Michael Hecker, Parks and Recreation Director <br /> Reviewed by <br /> Cal Portner, City Administrator <br /> Action Requested <br /> Adopt ice rates for 2014-15 season. <br /> Background/Discussion <br /> The regular skating season rates apply to September through the end of February,with offseason rates <br /> beginning in March through the summer. <br /> Rates are higher during the season due to higher demand and the availability of ice. Historically,Elk <br /> River's rates are moderately lower than neighboring arenas. <br /> Ice rates were set at$185/hr.last season. Increases are typically every two years with increases at about <br /> 3%. When increases lag a third or fourth season,increases are pushed over 6%. Small increases every <br /> two years seem to be more acceptable rather larger increases over a longer period of time. <br /> There are two major factors that are considered for setting ice rates, our competitors,including <br /> agreements over and beyond the actual hour paid for ice. We also consider operation expenditures and <br /> planned capital improvements. Since the debt service was paid off in 2011, the arena shows a net gain, <br /> however when factoring in upcoming capital costs, the profits are not sufficient to cover needed repairs <br /> or replacements. <br /> Financial Impact <br /> • Increasing rates would offset upcoming costs. <br /> Attachments <br /> • Neighboring Arena's Hourly ice rates / Arena Contributions <br /> • Customer Usage Stats <br /> • Arena Partnerships <br /> P' 0WIAEU 0 <br /> Ali ' <br />