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Item 4
Memorandum To: Mayor and City Council From: Justin Miller, City Administrator Jerilyn Erickson, Finance Director John Hennen, Parks & Recreation Director Date: March 21, 2018 Subject: Indoor Athletic Facility Update BACKGROUND At the October 30, 2017 Special City Council Work Session, the Mayor and City Council received an update regarding the work done by the Indoor Athletic Facility Task Force. The Task Force identified potential locations for a dome facility and then Staff contracted with Tushie Montgomery Architects to prepare estimates to construct the facility at three locations as noted below: •Lakeville North High School – Approximate Cost: $5.6-5.7 million •Lakeville South High School – Approximate Cost: $5.9-6 million •Lakeville Hasse Arena – Approximate Cost $4.9-5 million At that meeting City Council directed Staff to conduct a detailed Pro-Forma Analysis to determine the costs to construct, manage, maintain and operate a sports dome facility if one were to be constructed. MAJOR ASSUMPTIONS INCLUDED PRO- FORMA ANALYSIS •The dome will be open from November through April (6 months each year) •The dome will be at the Hasse Arena site and share entrance/restrooms/concessions with the arena. A dome at another site would be more expensive. •Revenue assumptions o Year 1 revenues of $410K are estimated as halfway between the Savage Dome’s 2017 budgeted revenues of $530K, and the estimated annual revenue fees paid by area associations of $290K. The assumption is that revenues would increase 1.5% per year thereafter. o Naming rights of $125K are included in 2019 revenues. •Cost assumptions o Debt is estimated using a 10-year term. Increasing the term to 15 years could reduce payments by approximately $80K per year for 10 years, however, would add approximately $500K in total interest cost over the debt term. o Labor: The model assumes the facility would be open from 6am to 10:30pm daily, and that we would share Hasse Arena staff when possible. This would result in adding only two facility attendants to cover busier times and times when the Arena isn’t normally open. •Additional facility attendant needed on weeknights from 4- 10:30pm •Additional facility attendant needed on week days from 6am to 2pm The model assumes we will allocate cost for a .25FTE employee to supervise the dome operations, though we may leverage current staff to perform this role. o Capital improvements Model assumes turf replacement would be needed every 12 years, at a cost of $500K plus inflation. Model assumes dome fabric replacement would be needed every 20 years, at a cost of $550K plus inflation. SCENARIOS On March 15, Staff presented four scenarios to the Indoor Athletic Facility Task Force which are noted in the attached spreadsheet and include the following: •Scenario 1 – City of Lakeville pays on 100% of the costs of the project, through 10-year bonds. •Scenario 2 – City of Lakeville and School District 194 split the costs of the project 50%- 50% (assumes 10-year bonds will be issued for the costs and payments split 50%-50%). •Scenario 3 – Area athletic associations contribute $600K (in total) to the construction costs; City of Lakeville and School District 194 split the remaining construction costs 50%-50% (assumes 10-year bonds will be issued for the remaining costs and payments split 50%-50%). •Scenario 4 – Area athletic associations contribute $400K (in total) to the construction costs; City of Lakeville and School District 194 split the remaining construction costs 50%-50% (assumes 10-year bonds will be issued for the remaining costs and payments split 50%-50%). Since the meeting with the Task Force, Staff has also looked at additional scenarios 5-7 which include the following: •Scenario 5 – City of Lakeville pays 100% of the costs of the project, through 10-year bonds with the construction cost reduced from $5.5 million to 4.0 million. •Scenario 6 – City of Lakeville pays 100%, construction costs are $5.5 million, bonds $3.6 million for 15-year term and City makes initial contribution of $1.9 million (source of funds to be determined). •Scenario 7 – City of Lakeville pays 100%, construction costs are $5.5 million, bonds $2.7 million for 10-year term and City makes initial contribution of $2.8 million (source of funds to be determined). As a point of reference, if the City were to subsidize the operation of the facility at a cost of $275,00 annually, this equates to roughly a 1% increase in our current tax levy. Scenarios six and seven achieve this level of subsidy. SUPPORTING INFORMATION March 15th Indoor Athletic Facility Task Force Meeting Minutes Pro-Forma Analysis of the seven scenarios including the Pro-Forma Details of the costs to operate the facility DIRECTION Staff is seeking direction from the City Council regarding next steps. o ▪ ▪ o ▪ o ▪ o ▪ o o ▪ o ▪ o ▪ ▪ o o ▪ o ▪ ▪ o o ▪ City of LakevilleSports Dome (at Hasse Arena site)Pro Forma‐ revised 3/20/18Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 202019 (Build) 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget BudgetScenario 1 (Lakeville pays 100%/ bond 100%)Total operating revenues 102,625 410,500 416,658 422,907 429,251 435,690 442,225 448,858 455,591 462,425 469,362 476,402 483,548 490,801 498,163 505,636 513,220 520,919 528,732 536,663 544,713 Total operating expenditures 62,343 304,524 313,659 323,069 332,761 342,744 353,026 363,617 374,526 385,762 397,334 409,254 1,134,412 434,178 447,203 460,619 474,438 488,671 503,331 518,431 1,527,345 Capital outlay 5,556,870 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 6,921 7,129 7,343 7,563 7,790 8,024 8,264 8,512 8,768 Debt principal/interest 111,137 766,848 744,621 722,393 700,166 677,938 655,711 633,483 611,256 589,028 566,801 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers from other fundsIssuance of debt 5,556,870 Other sources/uses 125,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Net change in fund balance54,144 (665,872) (646,772) (627,859) (609,140) (590,620) (572,308) (554,212) (536,339) (518,698) (501,297) 60,428 (657,786) 49,494 43,617 37,453 30,992 24,224 17,137 9,720 (991,400) Fund balance‐ Jan 10 54,144 (611,728) (1,258,500) (1,886,360) (2,495,499) (3,086,119) (3,658,428) (4,212,640) (4,748,979) (5,267,678) (5,768,975) (5,708,547) (6,366,333) (6,316,838) (6,273,221) (6,235,767) (6,204,775) (6,180,551) (6,163,414) (6,153,694) Fund balance‐ Dec 3154,144 (611,728) (1,258,500) (1,886,360) (2,495,499) (3,086,119) (3,658,428) (4,212,640) (4,748,979) (5,267,678) (5,768,975) (5,708,547) (6,366,333) (6,316,838) (6,273,221) (6,235,767) (6,204,775) (6,180,551) (6,163,414) (6,153,694) (7,145,094) ‐ ‐ ‐ ‐ ‐ Scenario 2 (Lakeville & School District each pay 50% construction; School District pays half of bond payments for 10 year‐term) Total operating revenues 102,625 410,500 416,658 422,907 429,251 435,690 442,225 448,858 455,591 462,425 469,362 476,402 483,548 490,801 498,163 505,636 513,220 520,919 528,732 536,663 544,713 Total operating expenditures 62,343 304,524 313,659 323,069 332,761 342,744 353,026 363,617 374,526 385,762 397,334 409,254 1,134,412 434,178 447,203 460,619 474,438 488,671 503,331 518,431 1,527,345 Capital outlay2,778,435 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 6,921 7,129 7,343 7,563 7,790 8,024 8,264 8,512 8,768 Debt principal/interest55,569 383,424 372,310 361,197 350,083 338,969 327,855 316,742 305,628 294,514 283,400 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers from other fundsIssuance of debt2,778,435 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other sources/uses 125,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Net change in fund balance109,713 (282,448) (274,462) (266,663) (259,057) (251,651) (244,453) (237,471) (230,712) (224,184) (217,897) 60,428 (657,786) 49,494 43,617 37,453 30,992 24,224 17,137 9,720 (991,400) Fund balance‐ Jan 10 109,713 (172,735) (447,197) (713,860) (972,917) (1,224,568) (1,469,021) (1,706,491) (1,937,203) (2,161,387) (2,379,284) (2,318,856) (2,976,642) (2,927,147) (2,883,530) (2,846,077) (2,815,084) (2,790,860) (2,773,724) (2,764,004) Fund balance‐ Dec 31109,713 (172,735) (447,197) (713,860) (972,917) (1,224,568) (1,469,021) (1,706,491) (1,937,203) (2,161,387) (2,379,284) (2,318,856) (2,976,642) (2,927,147) (2,883,530) (2,846,077) (2,815,084) (2,790,860) (2,773,724) (2,764,004) (3,755,403) Scenario 3 (50%‐50% split for construction plus capital contributions of $600K total from athletic associations; School District pays half of bond payments for 10‐year term)Total operating revenues 102,625 410,500 416,658 422,907 429,251 435,690 442,225 448,858 455,591 462,425 469,362 476,402 483,548 490,801 498,163 505,636 513,220 520,919 528,732 536,663 544,713 Total operating expenditures 62,343 304,524 313,659 323,069 332,761 342,744 353,026 363,617 374,526 385,762 397,334 409,254 1,134,412 434,178 447,203 460,619 474,438 488,671 503,331 518,431 1,527,345 Capital outlay2,478,435 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 6,921 7,129 7,343 7,563 7,790 8,024 8,264 8,512 8,768 Debt principal/interest49,569 342,024 332,110 322,197 312,283 302,369 292,455 282,542 272,628 262,714 252,800 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers from other fundsIssuance of debt2,478,435 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other sources/uses 125,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Net change in fund balance115,713 (241,048) (234,262) (227,663) (221,257) (215,051) (209,053) (203,271) (197,712) (192,384) (187,297) 60,428 (657,786) 49,494 43,617 37,453 30,992 24,224 17,137 9,720 (991,400) Fund balance‐ Jan 1‐ 115,713 (125,335) (359,597) (587,260) (808,517) (1,023,568) (1,232,621) (1,435,891) (1,633,603) (1,825,987) (2,013,284) (1,952,856) (2,610,642) (2,561,147) (2,517,530) (2,480,077) (2,449,084) (2,424,860) (2,407,724) (2,398,004) Fund balance‐ Dec 31115,713 (125,335) (359,597) (587,260) (808,517) (1,023,568) (1,232,621) (1,435,891) (1,633,603) (1,825,987) (2,013,284) (1,952,856) (2,610,642) (2,561,147) (2,517,530) (2,480,077) (2,449,084) (2,424,860) (2,407,724) (2,398,004) (3,389,403) Scenario 4 (50%‐50% split for construction plus capital contributions of $400K total from athletic associations; School District pays half of bond payments for 10‐year term)Total operating revenues 102,625 410,500 416,658 422,907 429,251 435,690 442,225 448,858 455,591 462,425 469,362 476,402 483,548 490,801 498,163 505,636 513,220 520,919 528,732 536,663 544,713 Total operating expenditures 62,343 304,524 313,659 323,069 332,761 342,744 353,026 363,617 374,526 385,762 397,334 409,254 1,134,412 434,178 447,203 460,619 474,438 488,671 503,331 518,431 1,527,345 Capital outlay2,578,435 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 6,921 7,129 7,343 7,563 7,790 8,024 8,264 8,512 8,768 Debt principal/interest51,569 355,824 345,510 335,197 324,883 314,569 304,255 293,942 283,628 273,314 263,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers from other fundsIssuance of debt2,578,435 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other sources/uses 125,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Net change in fund balance113,713 (254,848) (247,662) (240,663) (233,857) (227,251) (220,853) (214,671) (208,712) (202,984) (197,497) 60,428 (657,786) 49,494 43,617 37,453 30,992 24,224 17,137 9,720 (991,400) Fund balance‐ Jan 1‐ 113,713 (141,135) (388,797) (629,460) (863,317) (1,090,568) (1,311,421) (1,526,091) (1,734,803) (1,937,787) (2,135,284) (2,074,856) (2,732,642) (2,683,147) (2,639,530) (2,602,077) (2,571,084) (2,546,860) (2,529,724) (2,520,004) Fund balance‐ Dec 31113,713 (141,135) (388,797) (629,460) (863,317) (1,090,568) (1,311,421) (1,526,091) (1,734,803) (1,937,787) (2,135,284) (2,074,856) (2,732,642) (2,683,147) (2,639,530) (2,602,077) (2,571,084) (2,546,860) (2,529,724) (2,520,004) (3,511,403) Scenario 5 (Lakeville pays 100%/ bond 100%; CONSTRUCTION COSTS REDUCED TO $4 MILLION)Total operating revenues 102,625 410,500 416,658 422,907 429,251 435,690 442,225 448,858 455,591 462,425 469,362 476,402 483,548 490,801 498,163 505,636 513,220 520,919 528,732 536,663 544,713 Total operating expenditures 62,343 304,524 313,659 323,069 332,761 342,744 353,026 363,617 374,526 385,762 397,334 409,254 1,134,412 434,178 447,203 460,619 474,438 488,671 503,331 518,431 1,527,345 Capital outlay4,056,870 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 6,921 7,129 7,343 7,563 7,790 8,024 8,264 8,512 8,768 Debt principal/interest81,137 559,848 543,621 527,393 511,166 494,938 478,711 462,483 446,256 430,028 413,801 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers from other funds ‐ Issuance of debt4,056,870 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other sources/uses 125,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Net change in fund balance84,144 (458,872) (445,772) (432,859) (420,140) (407,620) (395,308) (383,212) (371,339) (359,698) (348,297) 60,428 (657,786) 49,494 43,617 37,453 30,992 24,224 17,137 9,720 (991,400) Fund balance‐ Jan 1‐ 84,144 (374,728) (820,500) (1,253,360) (1,673,499) (2,081,119) (2,476,428) (2,859,640) (3,230,979) (3,590,678) (3,938,975) (3,878,547) (4,536,333) (4,486,838) (4,443,221) (4,405,767) (4,374,775) (4,350,551) (4,333,414) (4,323,694) G:\CIP\Sports Dome\Sports Dome Pro Forma 3.20.18 : Summary3/22/2018 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 202019 (Build) 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget BudgetFund balance‐ Dec 3184,144 (374,728) (820,500) (1,253,360) (1,673,499) (2,081,119) (2,476,428) (2,859,640) (3,230,979) (3,590,678) (3,938,975) (3,878,547) (4,536,333) (4,486,838) (4,443,221) (4,405,767) (4,374,775) (4,350,551) (4,333,414) (4,323,694) (5,315,094) Scenario 6 (Lakeville pays 100%; CONSTRUCTION COSTS $5.5M; BONDS $3.6 MILLION (15‐YEAR TERM); INITIAL CITY CONTRIBUTION OF $1.9M)Total operating revenues 102,625 410,500 416,658 422,907 429,251 435,690 442,225 448,858 455,591 462,425 469,362 476,402 483,548 490,801 498,163 505,636 513,220 520,919 528,732 536,663 544,713 Total operating expenditures 62,343 304,524 313,659 323,069 332,761 342,744 353,026 363,617 374,526 385,762 397,334 409,254 1,134,412 434,178 447,203 460,619 474,438 488,671 503,331 518,431 1,527,345 Capital outlay5,500,000 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 6,921 7,129 7,343 7,563 7,790 8,024 8,264 8,512 8,768 Debt principal/interest72,000 379,200 369,600 360,000 350,400 340,800 331,200 321,600 312,000 302,400 292,800 283,200 273,600 264,000 254,400 244,800 ‐ ‐ ‐ ‐ ‐ Transfers from (to) other funds (56,870) Issuance of debt3,600,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other sources/uses 2,025,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Net change in fund balance36,412 (278,224) (271,752) (265,466) (259,374) (253,482) (247,798) (242,329) (237,084) (232,070) (227,297) (222,772) (931,386) (214,506) (210,783) (207,347) 30,992 24,224 17,137 9,720 (991,400) Fund balance‐ Jan 1‐ 36,412 (241,812) (513,564) (779,030) (1,038,404) (1,291,886) (1,539,684) (1,782,013) (2,019,097) (2,251,167) (2,478,464) (2,701,236) (3,632,621) (3,847,127) (4,057,909) (4,265,256) (4,234,264) (4,210,040) (4,192,903) (4,183,183) Fund balance‐ Dec 3136,412 (241,812) (513,564) (779,030) (1,038,404) (1,291,886) (1,539,684) (1,782,013) (2,019,097) (2,251,167) (2,478,464) (2,701,236) (3,632,621) (3,847,127) (4,057,909) (4,265,256) (4,234,264) (4,210,040) (4,192,903) (4,183,183) (5,174,583) Scenario 7 (Lakeville pays 100%; CONSTRUCTION COSTS $5.5M; BONDS $2.7 MILLION (10‐YEAR TERM); INITIAL CITY CONTRIBUTION OF $2.8M)Total operating revenues 102,625 410,500 416,658 422,907 429,251 435,690 442,225 448,858 455,591 462,425 469,362 476,402 483,548 490,801 498,163 505,636 513,220 520,919 528,732 536,663 544,713 Total operating expenditures 62,343 304,524 313,659 323,069 332,761 342,744 353,026 363,617 374,526 385,762 397,334 409,254 1,134,412 434,178 447,203 460,619 474,438 488,671 503,331 518,431 1,527,345 Capital outlay5,500,000 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 6,921 7,129 7,343 7,563 7,790 8,024 8,264 8,512 8,768 Debt principal/interest54,000 372,600 361,800 351,000 340,200 329,400 318,600 307,800 297,000 286,200 275,400 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers from other funds (56,870) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Issuance of debt2,700,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other sources/uses 2,925,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Net change in fund balance54,412 (271,624) (263,952) (256,466) (249,174) (242,082) (235,198) (228,529) (222,084) (215,870) (209,897) 60,428 (657,786) 49,494 43,617 37,453 30,992 24,224 17,137 9,720 (991,400) Fund balance‐ Jan 1‐ 54,412 (217,212) (481,164) (737,630) (986,804) (1,228,886) (1,464,084) (1,692,613) (1,914,697) (2,130,567) (2,340,464) (2,280,036) (2,937,821) (2,888,327) (2,844,709) (2,807,256) (2,776,264) (2,752,040) (2,734,903) (2,725,183) Fund balance‐ Dec 3154,412 (217,212) (481,164) (737,630) (986,804) (1,228,886) (1,464,084) (1,692,613) (1,914,697) (2,130,567) (2,340,464) (2,280,036) (2,937,821) (2,888,327) (2,844,709) (2,807,256) (2,776,264) (2,752,040) (2,734,903) (2,725,183) (3,716,583) Major Assumptions:1) Labor‐ Costs currently include allocation of .25FTE for recreation supervisor, and incremental staff time (Additional attendant for 4‐10:30pm on weeknights; Additional attendant for M‐F 6am‐2pm for Senior/other rec day time classes during the week).2) Turf Replacement‐ Costs currently assume turf replacement would be needed ever 12 years, at a cost of $500K (in 2018) plus 3% inflation per year (12‐14 years advised by Greystone). 2) Dome Fabric Replacement‐ Costs currently assume dome fabric replacement would be needed ever 20 years, at a cost of $550K (in 2018) plus 3% inflation per year (range of 20‐23 years advised by Greystone). 4) Revenues‐ Revenue assumptions are inbetween the Savage dome's 2017 budget and the current total estimated facility rental fees paid by area athletic associations). Lakeville dome revenues could vary significantly depending on customer types and desired schedules.5) Construction Costs‐ Scenarios 1‐4, 6 and 7 are based on construction costs of $5.5M; Scenario 5 is based on construction cost of $4M. G:\CIP\Sports Dome\Sports Dome Pro Forma 3.20.18 : Summary3/22/2018 City of LakevilleSports Dome (at Hasse Arena site)Pro Forma‐ DETAILS1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5%Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 202019 (Build) 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget BudgetNotes on assumptionsRevenues:Rental Income‐ Exempt 85,000 340,000 345,100 350,277 355,531 360,864 366,277 371,771 377,347 383,007 388,753 394,584 400,503 406,510 412,608 418,797 425,079 431,455 437,926.91 444,496 451,163 Average of Savage 2017 budget and estimate annual athletic assn rental costs, plus 1.5% inflation per year Rental Income‐ Taxable 10,000 40,000 40,600 41,209 41,827 42,455 43,091 43,738 44,394 45,060 45,736 46,422 47,118 47,825 48,542 49,270 50,009 50,759 51,521 52,294 53,078 Average of Savage 2017 budget and estimate annual athletic assn rental costs, plus 1.5% inflation per year Daily User Fees 3,750 15,000 15,225 15,453 15,685 15,920 16,159 16,402 16,648 16,897 17,151 17,408 17,669 17,934 18,203 18,476 18,753 19,035 19,320 19,610 19,904 Average of Savage 2017 budget and estimate annual athletic assn rental costs, plus 1.5% inflation per year Advertising 3,750 15,000 15,225 15,453 15,685 15,920 16,159 16,402 16,648 16,897 17,151 17,408 17,669 17,934 18,203 18,476 18,753 19,035 19,320 19,610 19,904 Average of Savage 2017 budget and estimate annual athletic assn rental costs, plus 1.5% inflation per year Concessions 125 500 508 515 522.84 531 538.64 547 555 563 572 580 589 598 607 616 625 634 644.01 654 663.48 Average of Savage 2017 budget and estimate annual athletic assn rental costs, plus 1.5% inflation per year Donations ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Investment/interest income ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Other/Miscellaneous ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Revenues102,625 410,500 416,658 422,907 429,251 435,690 442,225 448,858 455,591 462,425 469,362 476,402 483,548 490,801 498,163 505,636 513,220 520,919 528,732 536,663 544,713 102% 102% 102% 102% 102% 102% 102% 102% 102% 102% 102% 102% 102% 102% 102% 102% 102% 102% 102%27,236 Expenditures (Current):3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% Annual COLA applied to expenses below 6012 Salaries ‐ regular ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6015 Salaries ‐ overtime ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6020 Salaries ‐ part time ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Recreation Supervisor (.25 FTE) 5,199 20,797 21,420 22,063 22,725 23,407 24,109 24,832 25,577 26,344 27,135 27,949 28,787 29,651 30,540 31,457 32,400 33,372 34,373 35,405 36,467 Grade 25, Cost in 2020 (at top) with 2.5% annual increases from current 2018 rate (73,186). Per Shayne, we wouldn't need to ADD any supervisor time… but we might want to allocate some of Shayne's time from Arenas (?) Facility Attendants (2 part time employees November‐ April)6,302 25,207 25,963 26,742 27,544 28,371 29,222 30,098 31,001 31,931 32,889 33,876 34,892 35,939 37,017 38,128 39,272 40,450 41,663 42,913 44,201 Amounts from Shayne on 2/13/18‐ incremental time to add an attendant on weeknights from 4‐10:30pm, plus an attendant during possible weekday usage. 6030 Temporary labor ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Savage 2017 budget (2 staff per shift)‐ had $45K… Per Shayne, we wouldn't need this if next to Hasse site. 6041 PERA 863 3,450 3,554 3,660 3,770 3,883 4,000 4,120 4,243 4,371 4,502 4,637 4,776 4,919 5,067 5,219 5,375 5,537 5,703 5,874 6,050 No PERA on temporary labor 6044 FICA/Medicare 880 3,519 3,625 3,734 3,846 3,961 4,080 4,202 4,328 4,458 4,592 4,730 4,871 5,018 5,168 5,323 5,483 5,647 5,817 5,991 6,171 Formula, based on current rates 6051 Hospitalization insurance ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ N/A‐ all temporary &/or part‐time employees 6052 Life and disability ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ N/A‐ all temporary &/or part‐time employees 6054 Dental insurance ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ N/A‐ all temporary &/or part‐time employees 6055 Workers compensation 300 1,201 1,237 1,274 1,312 1,351 1,392 1,434 1,477 1,521 1,567 1,614 1,662 1,712 1,763 1,816 1,871 1,927 1,985 2,044 2,105 W/C rate from 2018 budget for facility attendant 6056 Unemployment compensation ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6057 Cafeteria plan ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ N/A‐ all temporary &/or part‐time employees 6058 OPEB/Pension Expense ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total personnel 13,543 54,174 55,799 57,473 59,197 60,973 62,802 64,686 66,627 68,626 70,684 72,805 74,989 77,239 79,556 81,943 84,401 86,933 89,541 92,227 94,994 6110 Office supplies 125 500 515 530 546 563 580 597 615 633 652 672 692 713 734 756 779 802 826 851 877 Savage dome 2017 budget 6120 Operating supplies 1,250 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 6,921 7,129 7,343 7,563 7,790 8,024 8,264 8,512 8,768 Savage dome 2017 budget 6121 Motor fuels ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6123 Cleaning supplies 250 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 1,344 1,384 1,426 1,469 1,513 1,558 1,605 1,653 1,702 1,754 Savage dome 2017 budget 6124 Clothing 25 100 103 106 109 113 116 119 123 127 130 134 138 143 147 151 156 160 165 170 175 6131 Equipment parts ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6133 Building repair supplies 175 700 721 743 765 788 811 836 861 887 913 941 969 998 1,028 1,059 1,091 1,123 1,157 1,192 1,227 Savage dome 2017 budget 6139 Paper supplies ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6150 Promotions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6180 Computer supplies ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total commodities 1,825 7,300 7,519 7,745 7,977 8,216 8,463 8,717 8,978 9,247 9,525 9,811 10,105 10,408 10,720 11,042 11,373 11,714 12,066 12,428 12,801 Savage dome 2017 budget approximates $7K total "commodities" 6210 Professional services 500 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610 2,688 2,768 2,852 2,937 3,025 3,116 3,209 3,306 3,405 3,507 Savage dome 2017 budget 6221 Audit 375 1,500 1,545 1,591 1,639 1,688 1,739 1,791 1,845 1,900 1,957 2,016 2,076 2,139 2,203 2,269 2,337 2,407 2,479 2,554 2,630 Savage dome 2017 budget 6218 Bank charges & credit card fees 1,050 4,200 4,326 4,456 4,589 4,727 4,869 5,015 5,165 5,320 5,480 5,644 5,814 5,988 6,168 6,353 6,543 6,740 6,942 7,150 7,365 Savage dome 2017 budget 6234 Use of personal auto ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6255 Advertising 500 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610 2,688 2,768 2,852 2,937 3,025 3,116 3,209 3,306 3,405 3,507 Savage 2017 budget (Cost for sponsorships‐ banners) 6261General liability/property insurance 625 2,500 2,575 2,652 2,732 2,814 2,898 2,985 3,075 3,167 3,262 3,360 3,461 3,564 3,671 3,781 3,895 4,012 4,132 4,256 4,384 Savage dome 2017 budget (rounded up) 6271 Electric 13,750 55,000 56,650 58,350 60,100 61,903 63,760 65,673 67,643 69,672 71,763 73,915 76,133 78,417 80,769 83,192 85,688 88,259 90,907 93,634 96,443 Savage dome 2017 budget 6272 Gas 27,500 110,000 113,300 116,699 120,200 123,806 127,520 131,346 135,286 139,345 143,525 147,831 152,266 156,834 161,539 166,385 171,376 176,518 181,813 187,268 192,886 Savage dome 2017 budget 6274 Water 125 500 515 530 546 563 580 597 615 633 652 672 692 713 734 756 779 802 826 851 877 Savage dome 2017 budget 6275 Waste disposal 100 400 412 424 437 450 464 478 492 507 522 538 554 570 587 605 623 642 661 681 701 Savage dome 2017 budget 6276 Telephone 150 600 618 637 656 675 696 716 738 760 783 806 831 855 881 908 935 963 992 1,021 1,052 Savage dome 2017 budget 6277 Postage ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6280Other contractual‐ Dome tear down and put back up once per year ‐ 22,500 23,175 23,870 24,586 25,324 26,084 26,866 27,672 28,502 29,357 30,238 31,145 32,080 33,042 34,033 35,054 36,106 37,189 38,305 39,454 Cost to tear down/put back up estimate of $22,500 per John Hennen 2/9/18 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5%Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 202019 (Build) 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget BudgetNotes on assumptions6280Other contractual (shared with Arena) ‐ 20,000 20,600 21,218 21,855 22,510 23,185 23,881 24,597 25,335 26,095 26,878 27,685 28,515 29,371 30,252 31,159 32,094 33,057 34,049 35,070 Per Shayne, Arena incurs $60K‐70K per year on building repair/contractual items for 3 ice sheets, locker rooms, lobbies, bathrooms, etc. Assume some allocation of these costs if the sports dome shares the common areas (1/3 of $60K per year estimated). 6282 Contract equipment repair ‐ 2,650 2,730 2,811 2,896 2,983 3,072 3,164 3,259 3,357 3,458 3,561 3,668 3,778 3,892 4,008 4,129 4,252 4,380 4,511 4,647 WSP 2016 actual 6283 Contract building repair ‐ 10,000 10,300 10,609 10,927 11,255 11,593 11,941 12,299 12,668 13,048 13,439 13,842 14,258 14,685 15,126 15,580 16,047 16,528 17,024 17,535 Savage dome 2017 budget was $30K, however included several one‐time items/improvements. Actuals in prior years were less than $5K. Should be safe with $10K average per year. 6285 Contract landscaping ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6286 Contract cleaning ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6288 Contract data processing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6290 Rents ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6291 Rents building ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6295Major Maintenance‐ TURF REPLACEMENT ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 712,880 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Cost of turf replacement every 12 years ($500K estimate per Savage model… assumes 3% inflation per year)6295Major Maintenance‐ DOME FABRIC REPLACEMENT ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 993,361 Cost of dome fabric replacement every 20 years ($550K estimate cost in 2018 per Greystone construction)… assume inflation of 3% per year 6309 Pan‐O‐Prog Fireworks ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6310 Miscellaneous 1,250 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 6,921 7,129 7,343 7,563 7,790 8,024 8,264 8,512 8,768 Savage dome 2017 budget (equipment rental) 6311 Schools and conferences ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6313 Dues and subscriptions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6314 Licenses ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6317 Property taxes ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6320 Pest control ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6322 Snow removal ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6370 Credit card fees 1,050 4,200 4,326 4,456 4,589 4,727 4,869 5,015 5,165 5,320 5,480 5,644 5,814 5,988 6,168 6,353 6,543 6,740 6,942 7,150 7,365 Savage dome 2017 budget ‐ Total contractual 46,975 243,050 250,342 257,852 265,587 273,555 281,762 290,214 298,921 307,888 317,125 326,639 1,049,318 346,531 356,927 367,635 378,664 390,024 401,725 413,776 1,419,551 Total expenditures‐operating 62,343 304,524 313,659 323,069 332,761 342,744 353,026 363,617 374,526 385,762 397,334 409,254 1,134,412 434,178 447,203 460,619 474,438 488,671 503,331 518,431 1,527,345 Expenditures‐capital/debt6540 Capital outlay 5,556,870 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 6,921 7,129 7,343 7,563 7,790 8,024 8,264 8,512 8,768 Savage dome 2017 budget had $15K in 2016 budget, but nothing in any other years. $5K per year seems conservative. Interest on debt 111,137 211,161 188,934 166,706 144,479 122,251 100,024 77,796 55,569 33,341 11,114 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Principal bond maturities ‐ 555,687 555,687 555,687 555,687 555,687 555,687 555,687 555,687 555,687 555,687 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total expenditures‐capital/debt 5,668,007 771,848 749,771 727,698 705,629 683,566 661,507 639,453 617,405 595,362 573,325 6,720 6,921 7,129 7,343 7,563 7,790 8,024 8,264 8,512 8,768 Excess (deficiency) of revenues over expenditures (5,627,726) (665,872) (646,772) (627,859) (609,140) (590,620) (572,308) (554,212) (536,339) (518,698) (501,297) 60,428 (657,786) 49,494 43,617 37,453 30,992 24,224 17,137 9,720 (991,400) Other financing sources (uses)4910 Transfers from other funds ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Issuance of debt 5,556,870 6611 Bond Discount/Issue Costs ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5455 Bond Premium ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6610 Bond Interest payment ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4350 PERA/Other income ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ XXXX Naming rights revenue 125,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5010 Adjust for disposal of assets ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total other financing sources (uses)5,681,870 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Net change in fund balance54,144 (665,872) (646,772) (627,859) (609,140) (590,620) (572,308) (554,212) (536,339) (518,698) (501,297) 60,428 (657,786) 49,494 43,617 37,453 30,992 24,224 17,137 9,720 (991,400) Fund balance‐ Jan 154,144 (611,728) (1,258,500) (1,886,360) (2,495,499) (3,086,119) (3,658,428) (4,212,640) (4,748,979) (5,267,678) (5,768,975) (5,708,547) (6,366,333) (6,316,838) (6,273,221) (6,235,767) (6,204,775) (6,180,551) (6,163,414) (6,153,694) Fund balance‐ Dec 3154,144 (611,728) (1,258,500) (1,886,360) (2,495,499) (3,086,119) (3,658,428) (4,212,640) (4,748,979) (5,267,678) (5,768,975) (5,708,547) (6,366,333) (6,316,838) (6,273,221) (6,235,767) (6,204,775) (6,180,551) (6,163,414) (6,153,694) (7,145,094)