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MEMORANDUM <br />TO: Ice Arena Commission Members <br />FROM: Rich Czech, Arena Manager <br />DATE: March 29, 2005 <br />SUBJECT: Agenda Memo -March 29, 2005 <br />5. Review 2004 operating finances current information on 2005 financial status <br />Attached for your review are the financial summaries for the Arena for the years 2001, <br />2002, and 2003, along with the budget for 2004 and 2005. Included is some historical <br />data and an outline of capital improvements that have been made over the year. <br />The large increase in ice sales from 2003 to 2004 is primarily due to the Barn being in <br />operation for the full season. As you are aware, in 2003 the Barn started about six weeks <br />late due to the leaks in the pipes in the Barn's floor. Another reason ice sales increased <br />was that there were about 100 more hours sold between the months of January and May. <br />Another area that dramatically increased from 2003 to 2004 is the admissions. In 2004 <br />there were 20 more High School games played at the Arena than in 2003. <br />This is a reflection of the Rogers High School Hockey teams not having a program the <br />2002 - 2003 season, so they did not have any games in the months of January through <br />February in 2003, thus there were not as many games played in 2003. <br />Revenues such as vending, skate sharpening, and the concession stand rental did not <br />dramatically change each year. If they were to change, there would have to be a dramatic <br />change in the price we were to charge for the product; and in the case of the concession <br />stand a change in the lease payment would have to be re-negotiated with Elk River Youth <br />Hockey. The concession stand and the lease will be discussed later on in the agenda. <br />Operating expenditures for 2004 were actually lower than in 2003. This was largely due <br />to the fact that in 2003 we had a lot of expenses repairing the Barn floor before we could <br />install ice. <br />As you are aware of, in 2004 we replaced the Barn's floor and boards; this needed to be <br />done if we were to have ice for the 2004 - 2005 season. Along with the new floor and <br />boards for the Barn, a new condenser was installed for the ice plant along with a <br />backpressure regulator for the Olympic rink. The total capital outlay for these projects <br />was $447,630.00. Removing the capital items from the equation, the Arena was <br />$39,260.00 in the red this year, which is less than what was predicted. <br />