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HomeMy WebLinkAboutItem 052015 Annual Report & Proposed 2017 Budget Lakeville Ames Arena Lakeville Hasse Arena Shayne Ratcliff, Arenas Manager *Lease, maintain, operate and manage the Arena Complex in the best interests of the community *Undertake entrepreneurial activities to maximize the return on the public investment Purpose: Revenue Comparisons •Partnered with City of Burnsville to operate Hasse Arena in Summer, 2010 •Increased summer ice rentals in 2013 •Partnered with Total Hockey MN to run summer training programs at Hasse Arena in summer 2012 & 2013 •Limited Spring ice rentals in 2014 due to maintenance shutdown $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 $1,200,000 $1,300,000 2009 2010 2011 2012 2013 2014 2015 Arena Rental By User Group Public Skating Highlights 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 ‘10-’11 ‘11 -’12 ‘12-’13 ‘13-’14 ‘14-’15 ‘15-’16 Total Skaters * Over 3,000 skaters in ’15-’16 * Skate rentals encouraged non- traditional skaters to participate * Birthday parties, church groups, boy scouts/girl scouts * Nearly 600 participants in 2015 * Average 60% returning skaters * Ice show opportunities Learn To Skate Highlights Learn To Skate 500 525 550 575 600 625 650 675 700 2009 2010 2011 2012 2013 2014 2015 Total Skaters •Heritage Figure Skating Club * Club membership continues to grow and outgrown ice allocation. * 5th Annual Ice Show was held in April, 2015 with over 1,000 people in attendance Figure Skating Highlights 2015-16 State Tournament Participants * Lakeville South Girls HS 6th Place * LHA U12B 1st Place Champions On-Ice Accomplishments Non-Ice Revenue Home Design Expo •Dry Floor Activities * Artificial Turf Rental - Over 200 hrs rented * 8th Annual Family Fun Fest (1,100 people attended) * Dry Floor Events -Home Design Expo -K9 Flyball Competition -Kids Sales (3) Childrens Consignment Sale K9 Flyball Competition •Scoreboard Replacement Project –Replaced original scoreboards from 1994 –Designed new boards to increase advertising opportunities –Added LED lighting to new advertising panels to generate higher rental rates –Partnered with local business to keep fabrication and install costs minimal Increased Revenue Opportunities Old Boards •Scoreboard Advertising Revenue –55% Increase over previous design –Old Boards: $1,750/year –New Boards: $3,900/year New Boards •Ice Plant Control System –5% Electrical Reduction –$3,400 yearly savings –Extended equipment life •$7,300 Total Project –24% Covered by Xcel Energy Rebate –1.7 Year Payback Energy Efficient Improvements •Continued Success * Ice rental hours, public skating & Learn to Skate projected to remain steady with 2015 * Preventive maintenance and Energy efficiencies - Equipment repair and building maintenance - Energy efficient improvements 2016 Outlook •Customer Satisfaction •Arena Financial Performance •Cooperation Overview Lakeville Ames Arena Lakeville Hasse Arena Questions? Contact: Shayne Ratcliff 952-985-2170 sratcliff@lakevillearenas.org Page 20152015 Lakeville Ames Arena Lakeville Hasse Arena Prepared by: Shayne Ratcliff Lakeville Arenas 4/8/2016 Annual Review Page 2 Michael Baumann ....................... ISD 194, Executive Director of Business Services Jim Skelly ............................................................................. ISD 194, Board Member Justin Miller ..................................................... City of Lakeville, City Administrator Bart Davis.................................................... City of Lakeville, City Council Member Robert Finke ................................................................ Community Member-at-Large MISSION STATEMENT “Lakeville Arenas is a customer service organization dedicated to creating and maintaining a fun, family- oriented atmosphere. Our staff is devoted to delivering unparalleled customer service and program opportuni- ties to all our guests. We strive to build a lifelong commitment in the community to individual and family en- tertainment through ice, turf, and dry floor events.” CONTENTS Facility Usage ............................................................................................................ 3 Learn To Skate/Dry Floor Events .............................................................................. 4 Dry Floor Events ........................................................................................................ 5 Arena Revenues ......................................................................................................... 6 Arena Expenditures .................................................................................................... 7 Arena Debt Service .................................................................................................... 8 Summary .................................................................................................................... 8 LAKEVILLE ARENAS BOARD OF DIRECTORS ARENA STAFF Shayne Ratcliff .................................................................................. Arenas Manager Dave Carroll ................................................................................... Assistant Manager Andrew Stoffel ............................................................................... Assistant Manager 32 seasonal operations and learn to skate staff Page 3 Facility usage has increased over the last 5 years due to additional and a wider variety of dry floor events, as well as additional ice rentals due to higher demand. FACILITY USAGE Hours Rented by User Group Lakeville Hockey Association ice usage increased slightly in 2015 due to the addition of two post season tournaments. Summer ice rentals increased as new high school coaches expanded summer training opportunities and addi- tional clinics began targeting the Lakeville area due to growth and on ice successes. Public Skating hours decreased due to additional double header Saturday high school hockey games which have scheduling priority over public skating. Turf hours decreased due to the extension of the ice season to accommodate post season tournaments hosted by LHA. Adult League hours decreased as the arena no longer offers the program. Due to a lack of ice availability the adult league teams have moved to arenas with more desirable ice hours. Facility Usage Details Page 4 The Lakeville Arenas Learn to Skate program had an increase in the number of participants in 2015 compared to 2014. The LTS program saw revenues of $43,598 and staffing expenses of $18,478 for 2015. Staff will continue to review and adjust this program while at the same time provide a quality program. LEARN TO SKATE PROGRAM In 2011, the Lakeville Arenas Learn To Skate joined with the City of Farmington Learn To Skate to create a new figure skating club called Heritage Figure Skating Club. The Heritage Figure Skating club consists of skaters from Lakeville, Farmington and surrounding areas to offer additional skating opportunities beyond the Learn To Skate program. The Club started with 17 members in 2011 and has a current membership of 36 skaters. In 2012, the Heritage Figure Skating Club hosted the first Ice Skating Show at the Lakeville Arenas. The club continues to be an asset to the Arenas as a major user of ice during non prime spring and summer seasons. HERITAGE FIGURE SKATING CLUB Page 5 Kids Consignment Sale K9 Flyball Competition DRY FLOOR EVENTS In an effort to maximize facility usage the Lakeville Arenas continues to offer artificial turf and dry floor rent- al opportunities during the Spring and Summer months. Over the past years the Arenas have generated addi- tional revenue through many various events. Below is a portion of events hosted over the past year. Kids Consignment Sale Home Design Expo Family Fun Fest Movie on the Turf Family Fun Fest Turf Activities Page 6 ARENA REVENUES Summary In 2015, Lakeville Arenas saw an overall revenue increase of 5% over 2014 in the amount of $59,451. Revenue Details  Ice Rental revenues in 2015 increased due to additional spring and summer clinics were provided by new high school hockey coaches and increased demand from outside clinics to expand to the Lakeville area.  Dry Floor Rental revenues decreased slightly due to an extended ice season to accommodate additional post season tournaments hosted by LHA.  Public Skating revenues decreased in 2015 due to fewer sessions during the winter months as a result of increased Saturday high school games during the season.  Event Admissions increased in 2015 due to the success of the high school hockey teams, specifically, the North Boys attempt at an undefeated season.  Concession sales increased due to the increased high school game attendance.  Skate Rental revenues remained steady as non traditional skating families continue to visit the arenas.  Advertising revenue increased due to increased advertising opportunities in the Arenas and as additional businesses desired to advertise in the arenas. Page 7 ARENA EXPENDITURES Expenditure Comparisons (Includes Capital Outlay expenses and Transfers to Capital Improvement Fund) Capital Outlay Expenses  2015 - Amplifier - $427, POS Equipment - $1,236, Ice Plant BMS - $2,210, Restroom Faucets and motion flushers - $3,671.  2014 - $800, Bleacher Heaters, $1,769, Fire Alarm Panel, $4,110, Cash Register Computers  2013 - $484, Lobby Monitor, $717, String Trimmer, $2,039 Concession Equipment, $2,322, Fire Alarm Panel, $4,475, Freon Detection System, $9,298, Hasse Ice Resurfacer Batteries  2012 - $966 - Popcorn Maker, $2,293 - Cash Register, $2,610 - Rental Skates, $3,000 - Ames Arena Skate Sharpener, $5,587 - HVAC Controls, $6,537 - Ames Arena Floor Scrubber, $8,000 - Pickup Truck, $9,900 - Parking Lot Fencing, $19,609 - Hasse Meeting/Locker Room Renovation  2011 - $1,957 - Lobby Monitors, $2,035 Desktop Computer, $9,838 Air Quality/Building Management Controls Ames Arena, $15,039 Compressor Replacement, $20,762 Desiccant Wheel Replacment  2010 - $6,096 for Rink 2 locker room flooring, $3,747 for Kaivac cleaning machine, $19,142 for Rink 2 lighting upgrade, $2,950 for water softener replacement at Ames and $11,012 for lawn tractor.  2009 - $11,558 for POS cash management, $1,562 for rental skates, $1,769 for desktop computer, and $2,367 for lobby countertops and $3,364 for network upgrades.  2008 - $4,741 for rental skates, $11,955 for hot water heaters and $7,949 for condenser tank replacement. Operating Capital Outlay Total 2015* $ 1,085,045 $ 7,544 $ 1,092,589 2014* $ 1,084,100 $ 6,679 $ 1,090,779 2013* $ 1,127,519 $ 19,332 $ 1,146,851 2012* $ 1,104,326 $ 61,319 $ 1,165,645 2011* $ 975,773 $ 49,631 $ 1,025,404 2010* $ 1,000,335 $ 42,947 $ 1,043,282 2009* $ 903,605 $ 20,620 $ 924,225 2008* $ 849,236 $ 24,645 $ 873,881 Page 8 ARENA DEBT SERVICE The Lakeville community has arena facilities due to the collaborative efforts of the City of Lakeville, Inde- pendent School District 194, and the Lakeville Hockey Association (LHA). Ames Arena - The issuance of $1.375 million of Ice Arena Lease Revenue Bonds by the Lakeville Housing and Redevelopment Authority along with community contributions solicited by the Lakeville Community Cor- poration and Lakeville Hockey Association provided the financing for construction of the first phase of the Ames Arena in 1994. Independent School District 194 was also a partner with the land contribution. The City of Lakeville financed the concrete floor and the temporary seating. An additional sheet of ice was constructed to Ames Arena in 1997 with financing from $1.305 million of Gen- eral Arena Bonds issued by the City of Lakeville. A Mighty Ducks grant ($250,000) was provided by the State of Minnesota. The City of Lakeville and Lakeville Hockey Association each contributed $250,000 to the project. Independent School District 194 financed the construction of changing rooms. The permanent seating was financed in 2002 with a short term loan combined with contributions from the LHA and Independent School District 194. The short-term loan has been paid in full from LHA contributions. Hasse Arena - Hasse Arena construction was financed in 2007 with a General Obligation Lease Revenue Bond issued by the Lakeville Housing and Redevelopment Authority. The land was contributed by the City of Lakeville and Independent School District 194. The Hasse family paid $125,000 for the naming rights. Ames Arena has $722,565 of debt which is paid with an annual $95,000 contribution from the Lake- ville Hockey Association and an annual $88,636 payment from Arena operations. The final payment on the debt is August 1, 2019. The City of Lakeville and Independent School Dis- trict 194 each contribute $326,500 annually to the retirement of the payment of the $11.345 million of outstanding debt. Arena Operations $88,636 Lakeville Hockey Assn $95,000 Ames Arena Annual Debt Page 9 Summary Overall, the Lakeville Arenas were very successful in 2015. Ice rental revenues increased due to a combina- tion of factors including additional camps/clinics offered by high school coaches, increased interest from re- gional training companies to offer opportunities in the area and overall increased demand. As a result of con- tinued success by the HS hockey teams both event admissions and concessions revenues showed increases. Attendance at public skating sessions decreased slightly due to fewer public skating sessions caused additional double header high schools games on Saturday afternoons. Operational expenditures remained similar to 2014 due to the many energy efficient upgrades installed over the past years. Equipment such as the new LED light- ing in Ames #1, ice plant controls on the Ames Arena ice plant and occupancy sensors in locker rooms have all attributed to these savings. As we continue to focus on additional revenue sources and attracting new customers and users to our pro- grams, we are still very focused on retaining our current users as well as reducing our operating expenses through energy saving ideas, staff training and overall operational efficiency.