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Home My WebLink AboutItem 06.eProposed 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. Overview 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 1S annually for review and comment. The Board shall consider any comments received and adopt a final budget on or before July 151 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. Primaa Issues to Consider • City financial assistance requirements. There is no financial assistance required by the City for arena operations. Supporting Information • Lakeville Arenas Proposed 2014 Budget Denner Finance Director Financial Impact: N/A Budgeted: N/A Source: Related Documents (CIP, ERP, etc.): Notes: L 11 1 4 1 1 u � 1 1 qw_ I I- -... Table of Contents 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 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 and to maintain, operate, and manage the Arena. Complex. The budget must be submitted to the City and School District prior to June I'. 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 arena has 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 2010 -11 2011 -12 2012 -13 Boys ° 332 avg/gm 347 avg/gm 315 avg/gm 258 avg/gm Girls 186 avg�= 179 avg/gm 200 avglgn 189 avg�M Total 10,908143 gms 9,$33139 gms 11,228144 gms + 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 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 customer expectations. A complete description is provided in the General Fund narrative. 4 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 Highlights 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 m axmnz e the return on the public investment. Rees�sspppectf dly submitted, J Shayne Ratcliff Arenas Manager General (Operating) Fund The General Fund accounts for the overall operations of the Lakeville Arenas. Operating Revenues In order to adequately finance operations, sufficient revenues must be provided through a concerted effort of maximizin 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. 2013 2014 ESTIMATE PROPOSED Operating Revenues Ice Rental Dry floor Learn to Skate Admissions - Public Skating Event Admissions(Net of ISD Reimb) Skate Sharpening Skate Rental Concessions and pro shop - net Vending Machines Other - Advertising Contract Other - Miscellaneous $ 955,705 $ 866,355 32,570 31,040 42,720 42,720 12,500 13,250 34,000 34,000 5,900 5,900 4,300 4,300 20,000 20,000 6,550 6,550 19,600 19,600 900 900 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. ® Lakeville Hockey Association - 59 %Q Q ISD 194 - 26% •Other Hockey Associations - 3% • Adult Hockey - 4% l@ Public Skating - 4% • Learn to Skate - 2% 13 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 3,200 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 2012 -13 Adj. 2013 -14 Burnsville $ 215 $ - $ 215 Prior Lake 215 - 215 St. Thomas Acad. 215 10 215 Lakeville 215 5 215 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 NIA 190 Bloomington 185 N/A 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 3,200 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 - $ 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 NIA NIA Farmington N/A 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 3,200 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 / 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 $1,044,616 which is a $46,612 (4.3 %) 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. 2013 2014 Increase /(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 116,000 116,000 - 0.0% Debt service 88,626 88,626 - 0.0% Commodities 37,870 37,870 - 0.0% Other 2,500 12,123 9,623 Capital Outlay 30,600 6,550 (24,050 - 78.6 Total $ 1,091,228 $ 1,044,616 $ (46,612 -4 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. 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. 10 2013 2014 Increasel(decrease) Estimate Proposed Total % Salaries and benefits 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. 2013 2014 Increasel(decrease) Commodities Estimate Proposed Total % Office Supplies $ 545 $ 545 $ - 0.0% Operating Supplies 7,075 7,075 0.0% Motor Fuels 1,250 1,250 0.0% Cleaning Supplies 9,000 9,000 0.0% Clothing 2,000 2,000 - 0.0% Equipment Parts 5,000 5,000 - 0.0% Building Repair Supplies 12,000 12,000 - 0.0% Small Tools/Equipment 1,000 1,000 0.0 Total $ 37,870 $ 37,870 $ - 0.0% 10 Other Charges and Services are proposed to decrease by $44,087 (12 %) 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 Increasel(decrease) Other Charges and Services Estimate Pro , »osed 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 13,530 13,000 (530 - 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 staff 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 Total $ 18,100 $ 6,550 $ (10,750) - 59.4 % 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 staff 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 LHA 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. 2013 2014 Increaset(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 Increasel(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 LHA 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. 2013 2014 Increaset(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 working capital to sustain operations through the first 10 months of the year. The proposers budget results in an ending balance of $310,416 Operating Revenues Ice Rental Other revenues Total Revenues Operating expense PersonneI Utilities Contractual Debt service Commodities Capital reserve fund Other Capital Outlay Total Net increase/(decrease) Fund balance, beginning Fund balance, ending 2013 2014 Increasel(decrease) Estimate Proposed Total % $ 955,705 $ 866,356 $ (89,349) -9.3% 179,040 178,260 (780) -0.4% $ 1,134,745 $ 1,044,616 $ (90,129) -7.9% $ 373,851 238,451 203,331 88,626 37,870 116,000 2,500 30,600 $ 379,775 214,877 188,795 88,626 37,870 116,000 12,123 6,550 $ 5,924.00 (23,574) (14,536) 9,623 (24,050} $ (46,613} (43,516) 43.516 1.6% -9.9% -7.1% 0.0% 0.0% 0.0% 384.9% - 78.6 % -4.3% $ 1,091,229 43,516 266,900 $ 310,416 $ 1,044,616 310,416 $ 310,416 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 framework 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 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 Expenditures Ice Resurfacer Rink #1 RTU - Ames 1 RTU - Ames 1 A Total expenditures Net increase /(decrease) Balance January 1 Balance December 31 2013 2014 $ 116,000 $ 116,000 288 234 $ 116,288 $ 116,234 $ 141,255 14,632 14,632 - $ 170,519 $ (54,231) 116,234 288,126 233,896 $ 233,896 $ 350,130 15 Lakeville Arenas Statement of Revenue and Expense Oyeratiniz Revenues Ice Rental Dry floor Learn to Skate Admissions- Public Skating Event Admissions(Net of ISD Reimb) Skate Sharpening Skate Rental Concessions and pro shop - net Concessions - Lease payments Vending Machines Other - Advertising Contract Vending Royalty Other - Miscellaneous Total Revenues Expenditures Salaries and benefits Salaries - Full Time Salaries . Part Time PERA FICA Hospitalization Life and Disability Long Term Disability Dental Insurance Workers Compensation 2012 2013 2014 Actual ESTIMATE PROPOSED $ 959,541 39,106 43,488 14,740 45,047 6,718 4,351 13,183 1,000 6,206 19,793 2,000 8,103 1,163,276 148,180 143,681 16,681 22,063 21,020 65 335 1,479 4,908 $ 955,705 $ 866,355 32,570 31,040 42,720 42,720 12,500 13,250 34,000 34,000 5,900 5,900 4,300 4,300 20,000 20,000 6,550 6,550 19,600 19,600 ;•11 •if, 1,134,745 1,044,615 149,397 151,434 21,810 23,014 21,212 63 305 1,345 5,272 166,870 135,698 21,936 23,146 24,557 76 346 1,614 5,533 Total 358,412 373,851 379,775 16 Lakeville Arenas Statement of Revenue and Expense Other Charles and Services Fiscal Agent fees 2012 2013 2014 Attorney Fees Actual ESTIMATE PROPOSED Bank charges 2,329 Commodities 2,820 Audit 4,400 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 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 Charles 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 4,650 Use of Personal Auto 241 375 375 Advertising 7,672 4,500 400 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 10,800 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 6,550 Total 342,047 233,931 196,845 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 PROPOSED 173,497 183,066 168,193 46,395 55,384 46,684 219,892 238,450 214,877 - 2,500 12,123 2,331 - - 88,626 88,626 88,626 1,052,645 975,229 928,615 110,631 159,516 116,000 113,000 116,000 116,000 $ 1,165,645 $ 1,091,229 $ 1,044,615 $ (2,369) $ 43,516 $ - 269,269 266,900 310,416 $ 266,900 $ 310,416 $ 310,416 18