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Gay of <br />Elk <br />River - <br />Request for Action <br />To <br />Item Number <br />Arena Commission <br />8.2 <br />Agenda Section <br />Meeting Date <br />[April <br />Prepared by <br />Action Items <br />17, 2018 <br />Rich Czech, Arena Manager <br />Item Description <br />Reviewed by <br />2018-2019 Ice Rates <br />Cal Portner, City Administrator <br />Reviewed by <br />Action Requested <br />Adopt, by motion, ice rates for the 2018-2019 season. <br />Background/Discussion <br />The Regular Skating Season Rates are charged from September through February. Off Season Rates are <br />charged from March through August. <br />Rates are higher during the regular season due to higher demand and ice availability. Over the years, the <br />Elk River's ice rates have been moderately priced as compared to neighboring arenas. <br />Last Spring the Regular Season prune time hourly rate was set at $195.00 and the non -prime time ice at <br />$145.00. Increases have been typically every two years and have been less than 3%, Last April we raised <br />the prime time rate by $5.00, to 195. and the Non -Prime and Off Season Rates rates were left at $145. <br />Smaller ongoing consistent increases have a smaller impact on our customers and keep us competitive in <br />the market than larger increases over a longer period of time. <br />A number of factors are considered when we are establishing ice rates. Competitor rates and their <br />existing agreements, operating expenditures, and scheduled capital replacements or improvements. <br />It's been several years since the non — prime and summer rates haven't been raised, and a $5. increase <br />wouldn't be out of line with other arenas in the area. <br />The Elk River Arena currently does not have a debt payment (i.e. mortgage), however, we do have many <br />expensive capital improvements that need to be made in the very near future. Any remaining balances <br />from ice revenues not tied to operations are maintained for capital repair and replacement. As noted in <br />the finance report, the Arena purchased a new Zamboni this year which was paid out of these funds. <br />Financial Impact <br />N/A <br />Attachments <br />' Neighboring Arena Hourly Ice Rates <br />■ Consumer Usage Stats <br />Py©Wi EAE0 BY <br />MATURE <br />