HomeMy WebLinkAboutItem 06.fProposed Action
Staff recommends adoption of the following motion: Move to acknowledge receipt of the
Lakeville Arenas 2014 Budget.
Passage of this motion will result in approval of Lakeville Arenas 2014 budget by the Lakeville
Arenas Board at their next meeting.
The Joint Powers Agreement for the Lakeville Arenas (section 6A) states: "The Board shall
prepare an annual budget on a calendar year basis. The budget shall set forth projected
expenditures and revenues to make Arena Complex lease payment, fund capital maintenance
reserve and to maintain, operate and manage the Arena Complex.
The budget shall be submitted to the members on or before June i annually for review and
comment The Board shall consider any comments received and adopt a final budget on or before
July 1s annually."
The Lakeville Arena Advisory Committee reviewed the budget at its June meeting and
recommended forwarding the proposed preliminary budget to the City Council for their
review and comment. The Lakeville Arena Board will consider approval of the budget at its
July 17 meeting -- subject to any comments received from the City and School District.
Primary Issues to Consider
• City financial assistance requirements. There is no financial assistance required by
the City for arena operations.
0 Lakeville Arenas Proposed 2014 Budget
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Finance
Financial Impact: N/A Budgeted: NIA Source:
Related Documents (CIP, FRP, etc.):
Notes:
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Table of Contents
2
Page
Letter of Transmittal
3
2012 Summary
3
General Fund
7
Revenues
7
Program Budget Descriptions and Expenditures
9
Debt Service Funds
13
Fund Balance
14
Capital Reserve Fund
15
Supplemental information
16
Statement of Revenues and Expenditures
16
2
' 7 EVILLE
May 1, 2013
Lakeville Arenas Board members
The Joint Powers Agreement requires the Board to approve an annual budget on a calendar
year basis. The budget must set forth projected expenditures and revenues necessary to
finance lease payments, fund the capital maintenance reserve account and to maintain,
operate, and manage the Arena Complex. The budget must be submitted to the City and
School District prior to June 1. The Board must approve the budget prior to July 1. As such
the proposed 2014 budget is hereby presented to the Board for their consideration and
approval.
The budget is comprised of the following funds in order for the Lakeville Arenas to
effectively manage its financial resources.
General (Operating) Fund. The General Fund accounts for the overall operations
of the Lakeville Arenas.
• Capital Reserve Fund. The Capital Reserve Fund was established to provide the
financing of future equipment replacements and major facility programs.
The salient issues relative to the proposed budget for each of the respective funds are
discussed in the sections attached hereto.
2012 Summary
The 2012 fiscal year marked the fifth full year of joint operation of both the Ames and
Hasse Arenas. The joint operation has enabled the Lakeville Arenas organization to
continue to offer new and expanded opportunities to better serve our customers — the
community. Some of the highlights and initiatives are as follows.
Public Skating. The Arenas have continued to offer year round public skating
during both weekday and weekend hours. Public skating attendance for paid
sessions increased slightly this past year from 3,462 skaters in 2011 to 3,685
skaters in 2012. Our no charge daytime public skating, which is offered during
the school year, has continued to be popular.
■ Learn to Skate Program. The Learn to Skate program has continued to provide
skating opportunities for children and adults of all ages. Enrollment has remained
steady between 550 — 650 skaters per year over the past three years. The Learn to
Skate program has also led to the creation of the Heritage Figure Skating Club,
which is made up of a combination of Learn to Skate students and local figure
skaters. Both of these programs have created great experiences for our young
students that will last a life time.
High school attendance. Attendance at high school games decreased from
2011 -12 due to less successful seasons of the teams.
2009 -10
Boys 332 avgigm
Girls 186 avgygn
10,908143
Total gms
2010 -11
2011 -12
347 avglgm
315 avggm
179 avg/
200 avg/gm
9,833139
gms
11,228144 gms
2012 -13
258 avggm
189 avg�=
9,953145 gms
■ Adult Hockey League. The Lakeville Arenas adult hockey league was formed in
2008 -09 with the additional late night hours available with the opening of Hasse
Arena. The league hosted 6 teams this past season and offered organized team
play for over 90 participants with plans to continue the expansion in coming
years.
■ Dry Floor Activities. The artificial turf has continued to provide opportunities for
a wide range of indoor activities during the non -ice season. In 2012, over 275
hours of turf activities involving lacrosse, soccer, baseball and softball were
rented at Ames Arena. In addition, over 200 hours of dry floor events were held
including K9 agility competitions, children's consignment sales, dry floor hockey
league and a family circus. We also hosted the 5th Annual Family Fun Fest
which attracted over 1,000 community members.
2013 Operations
The following is a succinct overview of the salient changes in operations and budget.
■ Ice rentals are projected to increase when compared to the original budget due to
the rental of Hasse Arena during the summer months by Total Hockey MN.
Cooperation between LHA and the Arenas has allowed the available ice hours to
be fully utilized during the early tryout season resulting in maximum facility
usage.
Dry floor events including multiple consignment sales and a Home Design Expo
will generate additional revenue as well as showcase the facilities for future dry
floor events.
A number of maintenance projects will be undertaken at the Ames Arena to
maintain the facility at optimum condition and improve conditions to meet
4
customer expectations. A complete description is provided in the General Fund
narrative.
Overall, the Arena operations are very strong both financially and operationally.
Customer satisfaction and community involvement continue to be high. The changes in
the budget and operations will further enhance Arena performance capabilities.
Proposed 2014 Budget Fighlights
Maintaining current programs and expanding facility use opportunities requires an
investment in facility maintenance and equipment. As such, the salient budget proposals
are as follows.
■ The projected 2014 ice rental hours during the winter season are expected to
remain steady with past seasons. Ice rental rates are proposed to remain the same
as 2013 at $215 per hour. Learn to Skate, high school game attendance and
concession sales are expected to remain steady in 2014.
Building repair and maintenance items addressed in 2012 & 2013 will help to
reduce operational and repair costs in 2014.
Investment in major maintenance of the Ames Arena will ensure long term
operational reliability and success at the building. Ames Arena is continually in
need of major maintenance in order to improve energy and operational
efficiencies and to improve the customer experience of the facility. The many
energy efficient improvements over the past years, including an energy recovery
dehumidification system installed in 2009, low -e ceiling installation in 2010 in
Rink 2 and building management controls installed in 2011, are major reasons for
the reduction in overall energy consumption.
Future
One of Lakeville Arenas goals is to continue to focus on marketing efforts which will
result in an expansion of the facility use and revenue base with the expectation that ice
use rates in future years will continue to be competitive with those of surrounding
communities.
The staff has developed a long range plan for future equipment acquisitions and
replacements. An adequate and sufficient financial structure for the Capital Improvement
Fund will enable the Arenas to adequately finance improvements without burdening the
users with higher or volatile future rate adjustments.
The future is indeed very bright for the long term outlook for the Arenas and the
community. The facilities are well structured to accommodate user needs.
Conclusion
The success of these programs has established a foundation for expanded use of the
Arenas by the community's residents in the years to come. Our objective for the coming
year is to expand on the success by creating even greater opportunities and enjoyable
experiences for the customers.
The proposed budget is consistent with the purpose of the Joint Powers Agreement to
"...operate and manage the Arena. Complex in the best interests of the community." The
organization will continue its efforts to undertake entrepreneurial endeavors to maximize the
return on the public investment.
Respectfully submitted,
Y
Shayne Ratcliff
Arenas Manager
6
General (Gperatin ) Fund
The General Fund accounts for the overall operations of the Lakeville Arenas.
In order to adequately tnance operations, sufficient revenues must be provided through a
concerted effort of maximwng facility use rentals and facility use fee adjustments. The 2014
revenues from operations are estimated to be $1,044,615 of which $866,355 (83% of budget)
is from ice rental in order to adequately finance Arena operations.
Ice rental revenues will decrease from 2013 due to the undetermined status of the rental of
Hasse Arena during summer months to Total Hockey MN. Dry floor revenue generated by
turf sales is based on typical spring weather patterns.
Ice rental hours are expected to be 100% rented from November thru February to either the
school district, youth hockey groups, public skating or Learn to Skate programs. The
primary ice customers are listed below.
4% 2'/o76
26 0 )
t
w.
59%
r
r
D Lake#ille Hockey Association - 59 %
171i5D 194 - 26%
❑ Other Hockey Associations -3%
D Ault Hockey - 4 %
■ Public Skating - 4 %
D Learn to Skate -2%
El Other - 2%
7
2013
2014
ESTLMATE
PROPOSED
01peratin-2 Revenues
Ice Rental
$ 955,705
$ 866,355
Dry floor
32,570
31,040
Learn to Skate
42,720
42,720
Admissions -Public Skating
12,500
13,250
Event Admissions(Net of ISD Reimb)
34,000
34,000
Skate Sharpening
5,900
5,900
Skate Rental
4,300
4,300
Concessions and pro shop - net
20,000
20,000
Vending Machines
6,550
6,550
Other - Advertising Contract
19,600
19,600
Other - Miscellaneous
900
900
Total Revenues
1,134,745
1,044,615
Ice rental revenues will decrease from 2013 due to the undetermined status of the rental of
Hasse Arena during summer months to Total Hockey MN. Dry floor revenue generated by
turf sales is based on typical spring weather patterns.
Ice rental hours are expected to be 100% rented from November thru February to either the
school district, youth hockey groups, public skating or Learn to Skate programs. The
primary ice customers are listed below.
4% 2'/o76
26 0 )
t
w.
59%
r
r
D Lake#ille Hockey Association - 59 %
171i5D 194 - 26%
❑ Other Hockey Associations -3%
D Ault Hockey - 4 %
■ Public Skating - 4 %
D Learn to Skate -2%
El Other - 2%
7
In order to adequately finance operations, the winter ice rental rates for the 2013 -14
season will remain unchanged at $215 per hour. Non- winter season ice rental is proposed
to remain unchanged at $160 per hour in 2014. The following is a comparison of prime time
winter and summer rates with other communities for the 2013 -2014 season.
Dry floor program opportunities have been greatly enhanced with the installation of
artificial turf at the Olympic size rink at Ames Arena. Lakeville Arenas will continue to
aggressively pursue renting of the facilities for dry floor activities. Target customers continue
to be youth sports activities such as soccer, lacrosse and baseball. The Arenas have
numerous dry floor events scheduled for 2013. The Arenas will continue to market itself as a
showcase for trade shows and other exhibition programs. Revenues from dry floor activities
are estimated to be $31,040.
The Learn to Skate program has enrolled over 3,2UU participants since its return in 2007.
With our highly qualified Director and competent staff, we expect the program to be a
continued success. For the 2013 -14 season, the hours of operation will continue to include:
i) Four (4) 8 week sessions over the course of a year
• Fall and Winter sessions will be held at Hasse Arena
• Spring and Summer sessions will be held at Ames Arena
ii) Fall/Winter sessions will include 4.5 hours on Saturday mornings and
2 hours on Tuesday mornings and afternoons
iii) Spring session will include 2.5 hours on Tuesday mornings &
evenings and 4.5 hours on Saturday mornings
iv) Summer session will consist of 2.5 hours on Tuesday evenings
8
Winter Prime Rate
Rate
2012 -13
Adj.
2013 -14
Burnsville
$ 215
$ -
$ 215
Prior Lake
215
185
215
St. Thomas Acad.
215
-
215
Lakeville
215
180
215
Farmington
205
5
210
Apple Valley
205
5
210
Cottage Grove
200
5
205
Eagan
190
10
200
Richfield
190
5
195
Shakopee
195
-
195
Minnetonka
190
-
190
Bloomington
185
-
185
Dry floor program opportunities have been greatly enhanced with the installation of
artificial turf at the Olympic size rink at Ames Arena. Lakeville Arenas will continue to
aggressively pursue renting of the facilities for dry floor activities. Target customers continue
to be youth sports activities such as soccer, lacrosse and baseball. The Arenas have
numerous dry floor events scheduled for 2013. The Arenas will continue to market itself as a
showcase for trade shows and other exhibition programs. Revenues from dry floor activities
are estimated to be $31,040.
The Learn to Skate program has enrolled over 3,2UU participants since its return in 2007.
With our highly qualified Director and competent staff, we expect the program to be a
continued success. For the 2013 -14 season, the hours of operation will continue to include:
i) Four (4) 8 week sessions over the course of a year
• Fall and Winter sessions will be held at Hasse Arena
• Spring and Summer sessions will be held at Ames Arena
ii) Fall/Winter sessions will include 4.5 hours on Saturday mornings and
2 hours on Tuesday mornings and afternoons
iii) Spring session will include 2.5 hours on Tuesday mornings &
evenings and 4.5 hours on Saturday mornings
iv) Summer session will consist of 2.5 hours on Tuesday evenings
8
Summer Prime
Rate
2013
Adj.
2014
Richfield
$ 185
$ 10
$ 195
Eagan
185
10
195
Minnetonka
180
10
190
Bloomington
180
5
185
Burnsville
175
10
185
St Thomas Acad. 160
25
185
Lakeville
160
=
160
Prior Lake
150
-
150
Cottage Grove
145
145
Shakopee
145
-
145
Apple Valley
N/A
N/A
N/A
Farmington
NIA
N/A
N/A
Dry floor program opportunities have been greatly enhanced with the installation of
artificial turf at the Olympic size rink at Ames Arena. Lakeville Arenas will continue to
aggressively pursue renting of the facilities for dry floor activities. Target customers continue
to be youth sports activities such as soccer, lacrosse and baseball. The Arenas have
numerous dry floor events scheduled for 2013. The Arenas will continue to market itself as a
showcase for trade shows and other exhibition programs. Revenues from dry floor activities
are estimated to be $31,040.
The Learn to Skate program has enrolled over 3,2UU participants since its return in 2007.
With our highly qualified Director and competent staff, we expect the program to be a
continued success. For the 2013 -14 season, the hours of operation will continue to include:
i) Four (4) 8 week sessions over the course of a year
• Fall and Winter sessions will be held at Hasse Arena
• Spring and Summer sessions will be held at Ames Arena
ii) Fall/Winter sessions will include 4.5 hours on Saturday mornings and
2 hours on Tuesday mornings and afternoons
iii) Spring session will include 2.5 hours on Tuesday mornings &
evenings and 4.5 hours on Saturday mornings
iv) Summer session will consist of 2.5 hours on Tuesday evenings
8
The public skating program was very successful during 2012 as result of increased
community awareness and the reduced season for outdoor ice rinks. For the 2013 -14 winter
season, the hours of operation will continue to be offered in the same manner as last season;
Saturdays from 5:45pm — 7:15pm and Sundays from 1:30pm — 3:00pm for $4.00 /person and
$3.00 /skate rental. The budget anticipates approximately $17,500 of revenues from public
skate admissions and skate rental.
Pro Shop Sales 1 Skate Sharpening are provided at both Ames and Hasse Arena.
Concessions operations at Ames Arena and Hasse Arena have been managed by the Arena
staff since October 2012. Concessions revenue is expected to increase from 2012 due to the
full year of operation by arena staff beginning in 2013. The budget anticipates approximately
$20,000 of revenues from the concession stand operation.
Vending Machines revenues are approximately $6,550.
Expenditures
The 2014 expenditure budget is $1,081,993 which is a $9,235 (0.8 1 /o) decrease over the
previous year. The following is a summary of the proposed budget expenditures:
The majority of the costs attributable to operations are fixed costs such as insurance, debt
service, Capital Reserve and certain personnel costs. As such, the arena must seek to
maximize efficiencies by operating the facilities as one complex with a common
objective — providing quality services for the community and maximizing the return on
the public investment.
9
2013
2014
lncreasel(decrease)
Estimate
Proposed
Total
%
Personnel
373,851
379,775
5,924
1.6%
Utilities
238,450
214,877
(23,573)
-9.9%
Contractual
203,331
188,795
(14,536)
-7.1%
Capital reserve fund
116,000
126,000
10,000
8.6%
Debt service
88,626
88,626
-
0.0 0 /0
Commodities
37,870
37,870
-
0.0 0 /0
Other
2,500
29,000
26,500
Capital Outlay
30,600
17,050
(13,550
- 44.3 %
Total
$ 1,091,228
$ 1,081,993
$ (9,235
-0.8%
The majority of the costs attributable to operations are fixed costs such as insurance, debt
service, Capital Reserve and certain personnel costs. As such, the arena must seek to
maximize efficiencies by operating the facilities as one complex with a common
objective — providing quality services for the community and maximizing the return on
the public investment.
9
Personnel costs account for approximately 36% of the operating costs. The proposed budget
provides for three full time staff members to operate the facilities.
Arenas Manager
Facility Superintendent
Assistant Manager
The arena also has a contingent of part -time staff including resurfacer drivers, office workers,
Learn to Skate Director, Learn to Skate Instructors, concession and custodians. Part-time
personnel are scheduled based on facility rental commitments. Hence, part-time personnel
costs are directly proportional to revenues.
Commodities represent approximately 3.5% of the total budget.
2013
2014
Increasel(decrease)
Office Supplies
Estimate
Proposed
Total
%
Salaries and benefits
Cleaning Supplies
9,000
Clothing
2,000
Salaries - Full Time
$ 149,397
$ 166,870
$ 17,473
11.7%
Salaries - Part Time
151,434
135,698
(15,736)
-10.4%
PERA
21,810
21,936
126
0.6%
FICA
23,014
23,146
132
0.6%
Hospitalization
21,212
24,557
3,345
15.8%
Life and Disability
63
76
13
20.6%
Long Term Disability
305
346
41
13.4%
Dental Insurance
1,345
1,614
269
20.0%
Workers Compensation
5,272
5,533
261
5_0%
Total
$ 373,852
$ 379,776
$ 5,924
1_6%
Commodities represent approximately 3.5% of the total budget.
2014
Proposed
$ 545
7,075
1,250
9,000
2,000
5,000
12,000
1,000
$ 37,870
Increase /(decrease)
Total %
$ - 0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
$ 0.0%
10
2013
Commodities
Estimate
Office Supplies
$ 545
Operating Supplies
7,075
Motor Fuels
1,250
Cleaning Supplies
9,000
Clothing
2,000
Equipment Parts
5,000
Building Repair Supplies
12,000
Small Tools /Equipment
1,000
Total
$ 37,870
2014
Proposed
$ 545
7,075
1,250
9,000
2,000
5,000
12,000
1,000
$ 37,870
Increase /(decrease)
Total %
$ - 0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
$ 0.0%
10
Other Charges and Services are proposed to decrease by $44,087 (12 1 /o) from $233,931 in
2013 to $189,845 in 2014. Other charges and services represent approximately 18.0% of the
budget expenses.
The budget provides for annual audit services. Use of personal auto is attributed to the staff
traveling between the Ames and Hasse Arenas. Advertising is comprised of flyers, signage
and yellow pages advertising. Insurance premiums for liability, property and casualty
insurance provides coverage for both facilities.
"Other Contractual" ($19,187) includes water treatment services, alarm system monitoring,
water softening, fire extinguisher and sprinkler system testing. "Fiscal Management Fees" is
a $32,000 charge from the City of Lakeville to provide support services such as payroll,
human resources, annual financial reports, periodical financial reports, accounts payable,
Information Technology support and other administrative support functions for the arenas.
11
2013
2014
Increase/(decrease)
Other Charges and Services
Estimate
Proposed
Total
%
Fiscal Management Fees
$ 32,000
$ 32,000
$ -
0.0%
Attorney Fees
50
50
-
0.0%
Bank Charges
2,820
2,820
-
0.0%
Audit
4,550
4,650
100
2.2%
Use of Personal Auto
375
375
-
0.0%
Advertising
4,500
4,000
(500)
-11.1%
Insurance
30,458
31,342
884
2.9%
Water and Sewer Service
12,000
12,000
-
0.0%
Waste Disposal
7,358
6,700
(658)
-8.9%
Telephone
4,861
5,007
146
3.0%
Postage
340
340
-
0.0%
Other Contractual
19,135
19,187
52
0.3%
Equipment Repair and Maintenance
10,800
10,800
-
0.0%
Building Repair and Maintenance
53,109
39,079
(14,030)
-26.4%
Contract Landscaping
1,500
1,500
0.0%
Schools and Conferences
1,500
1,500
-
0.0%
Business Meetings/Misc. Expenses
200
200
-
0.0%
Dues /Subscriptions /Licenses
4,245
4,245
-
0.0%
Snow Removal
13
13,000
(530)
-3_9%
Total
$ 203,331
$ 188,795
$ 14,536
-7_1%
The budget provides for annual audit services. Use of personal auto is attributed to the staff
traveling between the Ames and Hasse Arenas. Advertising is comprised of flyers, signage
and yellow pages advertising. Insurance premiums for liability, property and casualty
insurance provides coverage for both facilities.
"Other Contractual" ($19,187) includes water treatment services, alarm system monitoring,
water softening, fire extinguisher and sprinkler system testing. "Fiscal Management Fees" is
a $32,000 charge from the City of Lakeville to provide support services such as payroll,
human resources, annual financial reports, periodical financial reports, accounts payable,
Information Technology support and other administrative support functions for the arenas.
11
Capital Outlay items are included in budget to replace assets; which are no longer
functioning or are beyond their useful life. Items include:
Equipment Repair and Maintenance costs for 2013 are projected to be $10,800 in order to
address maintenance requirements at the arenas. Some of the significant projects include
repairs to ice resurfacers ($5,000), dehumidification repairs ($2,500) and replacement dasher
board glass ($1,500). The equipment repair costs are estimated to remain steady at $10,800
for 2014.
Building Repair and Maintenance provides appropriations for maintenance agreements
relating to HVAC, refrigeration and ice painting as well as major maintenance projects. The
costs for 2013 are estimated to be $53,109 in order to address major maintenance
requirements at Ames Arena. Some of the significant projects include rebuilding a
compressor top end ($6,530), Hasse Arena Ice Plant Relief Valves ($6,500) and Make Up
Air Unit Repairs ($3,500). The proposed 2014 budget for building repair and maintenance
will decrease by $14,030 (26 %) as a result of completing a significant number of major
maintenance projects in 2013.
The budget provides for fertilizer and herbicide applications at the two arenas. Lawn
mowing is performed by arena staff.
Schools and Conferences provides for attendance by arena star at the Minnesota Ice Arena
Managers Workshop & Conference. Dues and subscriptions ($4,245) include the Minnesota
Department of Health food license for the concession stand and music service licenses to
accommodate public skating.
Snow removal contracts ($13,000) are required for the Ames and the Hasse Arena.
Utilities. Utilities are presumed to increase 8% for electrical and remain steady for natural
gas for the upcoming year. Actual utility expenses will decrease due to Hasse Arena not
operating during the summer of 2014. Utilities represent 20% of the total budget and are the
predominant reason for increases in ice arena operating costs.
12
Increase /(decrease)
2013
2014
Total
%
String Trimmer $
1,250 $
-
$ (1,250)
- 100.0%
Video Surveillance
15,000
-
(15,000)
- 100.0%
Replacement Computer
1,050
1,050
0.0%
Lobby Monitors
800
Fire Alarm Panel
5,500
5,500
Ice Edger
-
10,500
10,500
Total $
18,100 $
17,050
$ (250}
-1 . 4 4%
Equipment Repair and Maintenance costs for 2013 are projected to be $10,800 in order to
address maintenance requirements at the arenas. Some of the significant projects include
repairs to ice resurfacers ($5,000), dehumidification repairs ($2,500) and replacement dasher
board glass ($1,500). The equipment repair costs are estimated to remain steady at $10,800
for 2014.
Building Repair and Maintenance provides appropriations for maintenance agreements
relating to HVAC, refrigeration and ice painting as well as major maintenance projects. The
costs for 2013 are estimated to be $53,109 in order to address major maintenance
requirements at Ames Arena. Some of the significant projects include rebuilding a
compressor top end ($6,530), Hasse Arena Ice Plant Relief Valves ($6,500) and Make Up
Air Unit Repairs ($3,500). The proposed 2014 budget for building repair and maintenance
will decrease by $14,030 (26 %) as a result of completing a significant number of major
maintenance projects in 2013.
The budget provides for fertilizer and herbicide applications at the two arenas. Lawn
mowing is performed by arena staff.
Schools and Conferences provides for attendance by arena star at the Minnesota Ice Arena
Managers Workshop & Conference. Dues and subscriptions ($4,245) include the Minnesota
Department of Health food license for the concession stand and music service licenses to
accommodate public skating.
Snow removal contracts ($13,000) are required for the Ames and the Hasse Arena.
Utilities. Utilities are presumed to increase 8% for electrical and remain steady for natural
gas for the upcoming year. Actual utility expenses will decrease due to Hasse Arena not
operating during the summer of 2014. Utilities represent 20% of the total budget and are the
predominant reason for increases in ice arena operating costs.
12
Debt Service. The Ames Arena was financed with the issuance of debt which is repaid with
IRA pull -tab revenues ($95,000) and arena operations ($88,626). Final payment on the
Ames Arena debt is in August 2019. The LHA pull -tab revenues are pledged to the City for
payment of the debt and therefore not accounted for within the Lakeville Arena budget.
2413 2014 Increase /(decrease)
Estimate Proposed Total %
Debt Service Payments $ 88,626 $ 88,626 $ - 0.0%
The debt service for Hasse Arena is financed by the City of Lakeville and Independent
School District 194. The annual payments ($523,952) are not an obligation of Lakeville
Arenas and therefore not included in the budget.
13
2013
2014
Increase/ (decrease)
Utilities
Estimate
Proposed
Total
%
Electric Service
$ 183,066
$ 168,193
$ (14,873)
-8.1%
Gas Service
55,384
46,684
8,700
- 15.7 %
Total
$ 238,450
$ 214,877
$ 23,573
- 23.8
Debt Service. The Ames Arena was financed with the issuance of debt which is repaid with
IRA pull -tab revenues ($95,000) and arena operations ($88,626). Final payment on the
Ames Arena debt is in August 2019. The LHA pull -tab revenues are pledged to the City for
payment of the debt and therefore not accounted for within the Lakeville Arena budget.
2413 2014 Increase /(decrease)
Estimate Proposed Total %
Debt Service Payments $ 88,626 $ 88,626 $ - 0.0%
The debt service for Hasse Arena is financed by the City of Lakeville and Independent
School District 194. The annual payments ($523,952) are not an obligation of Lakeville
Arenas and therefore not included in the budget.
13
Fund balance
Arena revenues are highly cyclical with revenues exceeding expenditures in the months of
November through April. However, in the months of May through October, expenditures
tend to exceed revenues. Cash balances are at their lowest in October and early November.
As such, it is important that the fund balances at the beginning of the year are adequate to
provide sufficient worldng capital to sustain operations through the first 10 months of the
year.
The proposed budget results in an ending balance of $310,416 and $273,039 for 2013 and
2014 respectively.
Operating expense
Personnel
2013
2014
Increase /(decrease)
1.6%
Estimate
Proposed
Total %
Operating Revenues
-9.9%
Contractual
203,331
Ice Rental
$ 955,705
$ 866,355
$ (89,350) -9.3%
Other revenues
179,040
178,260
(780) -0.4%
Total Revenues
$ 1,134,745
$ 1,044,615
$ (90,130) -7.9%
Operating expense
Personnel
$ 373,851
$ 379,775
$ 5,924.00
1.6%
Utilities
238,450
214,877
(23,573)
-9.9%
Contractual
203,331
188,795
(14,536)
-7.1%
Debt service
88,626
88,626
-
0,0%
Commodities
37,870
37,870
-
0.0%
Capital reserve fund
116,000
126,000
10,000
8.6%
Other
2,500
29,000
26,500
1060.0%
Capital Outlay
30,600
17,050
(13,550
- 44.3 %
Total
$ 1,091,228
$ 1,081,993
$ (9,235)
-0.8%
Net increase/(decrease)
43,517
(37,378)
(80,895)
Fund balance, beginning
266,900
310,417
43,517
Fund balance, ending
$ 310,417
$ 273,039
$ (37,378
The fund balances are adequate and sufficient but not excessive.
14
Capital Reserve Fund
The purpose of the Capital Reserve Fund is to provide a financial fi amework for replacement
of the arena infrastructure as it ages including but not limited to roofs, dehumidification, and
refrigeration systems.
The 2013 Capital Reserve Fund includes $141,255 to replace the ice resurfacer on Rink #1
and $29,264 to replace the roof top units for the Rink #1 lobby and locker rooms.
The 2014 Capital Reserve Fund has no items scheduled for replacement.
The following is a summary of the Capital Reserve Fund Budget.
Revenues
Transfers from Operating Fund
Interest on investments
Total revenues
Ex enditures
Ice Resurfacer Rink #1
RTU - Ames 1
RTU - Ames 1A
Total expenditures
Net increasel(decrease)
Balance January 1
Balance December 31
2013 2014
$ 116,000 $ 126,000
288 234
$ 116,288 $ 126,234
$ 141,255
14,632
14,632
$ 170,519 $ -
(54,231) 126,234
288,126 233,896
$ 233,896 $ 360,130
15
Lakeville Arenas
Statement of Revenue and Expense
2012 2013 2014
Actual ESTIMATE PROPOSED
Operatinz Revenues
Ice Rental
$ 959,541 $
955,705 $
866,355
Dry floor
39,106
32,570
31,040
Learn to Skate
43,488
42,720
42,720
Admissions - Public Skating
14,740
12,500
13,250
Event Admissions(Net of ISD Reimb)
45,047
34,000
34,000
Skate Sharpening
6,718
5,900
5,900
Skate Rental
4,351
4,300
4,300
Concessions and pro shop - net
13,183
20,000
20,000
Concessions - Lease payments
1,000
-
Vending Machines
6,206
6,550
6,550
Other - Advertising Contract
19,793
19,600
19,600
Vending Royalty
2,000
-
-
Other - Miscellaneous
8,103
900
900
Total Revenues
1,163,276
1,134,745
1,044,615
Expenditures
Salaries and benefits
Salaries - Full Time
148,180
149,397
166,870
Salaries - Part Time
143,681
151,434
135,698
PERA
16,681
21,810
21,936
FICA
22,063
23,014
23,146
Hospitalization
21,020
21,212
24,557
Life and Disability
65
63
76
Long Term Disability
335
305
346
Dental Insurance
1,479
1,345
1,614
Workers Compensation
4,908
5,272
5,533
Total
358,412
373,851
379,775
16
Lakeville Arenas
Statement of Revenue and Expense
2012 2013 2014
Actual ESTIMATE PROPQ;
Commodities
Office Supplies
553
545
545
Operating Supplies
9,221
7,075
7,075
Motor Fuels
3,087
1,250
1,250
Cleaning Supplies
7,782
9,000
9,000
Clothing
2,605
2,000
2,000
Equipment Parts
4,125
5,000
5,000
Building Repair Supplies
13,411
12,000
12,000
Small Tools/Equipment
553
1,000
1,000
Total
41,337
37,870
37,870
Other Charges and Services
Fiscal Agent fees
32,000
32,000
32,000
Attorney Fees
50
50
Bank charges
2,329
2,820
2,820
Audit
4,400
4,550
4
Use of Personal Auto
241
375
375
Advertising
7,672
4,500
4,000
Insurance
29,600
30,458
31,342
Water and Sewer Service
11,471
12,000
12,000
Waste Disposal
7,105
7,358
6,700
Telephone
4,798
4,861
5,007
Postage
190
340
340
Other Contractual
21,436
19,135
19,187
Equipment Repair and Maintenance
22,435
10,800
10
Building Repair and Maintenance
118,081
53,109
39,079
Contract Landscaping
1,455
1,500
1,500
Schools and Conferences
1,132
1,500
1,500
Business Meetings/Misc. Expenses
73
200
200
Dues /Subscriptions/Licenses
4,101
4,245
4,245
Snow Removal
12,210
13,530
13,000
Capital Outlay
61,319
30,600
17,050
Total
342,047
233,931
205,845
17
Lakeville Arenas
Statement of Revenue and Expense
Utilities
Electric Service
Gas Service
Total
Contingency
Loan payments
Debt Service Payments
Subtotal - Operating Expenditures
Net Operating Income (Loss)
Transfer To Capital Reserve Fund
Total expenditures
Net Total Income (Loss)
Fund Balance Beginning of Year
Fund Balance End of Year
2012 2013 2014
Actual ESTIMATE PROM
173,497
183,066
168,193
46,395
55,384
46,684
219,892
238,450
214,877
-
2,500
29,000
2,331
-
-
88,626
88,626
88,626
1,052,645
975,229
955,992
110,631
159,516
88,623
113,000 116,000 126,000
$ 1,165,645 $ 1,091,229 $ 1,081,992
$ (2,369) $ 43,516 $ (37,377)
269,269 266,900 310,416
$ 266,900 $ 310,416 $ 273,039
18