HomeMy WebLinkAboutItem 05.b
2017
Lakeville Ames Arena
Lakeville Hasse Arena
Prepared by: Shayne Ratcliff
Lakeville Arenas
4/5/2018 Annual Review
Page 2
Michael Baumann ................................................................ ISD 194, Superintendent
Jim Skelly ............................................................................. ISD 194, Board Member
Justin Miller ..................................................... City of Lakeville, City Administrator
Brian Wheeler ............................................. 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
Matt Nelson .................................................................................... Assistant Manager
32 seasonal operations and learn to skate staff
Page 3
The Lakeville Arenas continues to work to increase usage and community awareness in an effort to attract a
wider variety of dry floor events, as well as additional ice and turf rentals.
FACILITY USAGE
Hours Rented by User Group
Lakeville Hockey Association ice usage decreased as new administration continued to reduce the number of
hours each team will skate in an effort to keep kids focused and reduce fatigue during a long winter season.
Figure Skating ice rented by the Heritage Figure Skating Club increased as participation numbers and demand
continues to increase.
Summer ice rentals increased slightly as new programs added during the daytime hours and in the month of
August helped to generate additional rentals.
Public Skating hours remained steady with the previous year.
Turf hours decreased as a warm spring allowed for teams to practice outside earlier than in past years.
ISD 194 hours decreased slightly as teams had the majority of their games on the road during the first part of
the 17-18 season.
Facility Usage Details
User Group 2017 2016 2015 2014 2013
Lakeville Hockey Association 2,140 2,175 2,343 2,277 2,301
Fall/Spring Clinics 695 646 684 714 904
ISD 194 927 946 898 878 907
Summer/AAA Teams 625 585 597 308 674
Turf Users 138 209 216 292 251
Arena Events 348 328 335 295 315
Learn To Skate 148 145 146 165 207
Figure Skating 286 249 221 249 232
Public Skating 105 106 103 122 147
Captains Practice 97 94 89 93 66
Adult Hockey Group 14 24 36 51 59
Surrounding Youth Associations 76 90 62 79 48
Total 5,599 5,597 5,730 5,523 6,111
Page 4
The Lakeville Arenas Learn to Skate program had an increase of 3% in the number of participants in 2017
compared to 2016. The LTS program saw revenues of $53,183 in 2017 compared to $51,525 in 2016. Our
staff will continue to monitor and make any needed adjustments in an attempt to maximize program participa-
tion.
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 47 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
Year
Winter Spring Summer Fall Total
2017 260 172 108 189 729
2016 235 167 107 197 706
2015 217 140 82 154 593
2014 196 137 65 175 573
2013 189 150 68 146 553
2012 237 160 73 130 600
2011 274 118 63 149 604
2010 264 160 42 205 671
2009 198 165 67 127 557
2008 300 179 56 155 690
2007 N/A N/A N/A 191 191
Session
Learn To Skate Comparison
Page 5
Craft Show
Noseworks K9 Event
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 are a few of the events hosted over the past year.
Kids Consignment Sale
Home Design Expo
Family Fun Fest
Movie on the Turf F2W Pro 50
Page 6
ARENA REVENUES
Summary
In 2017, Lakeville Arenas saw an overall revenue decrease of .4% over 2016 in the amount of $5,128.
Revenue Details
• Ice Rental revenues in 2017 increased primarily as a result of additional summer ice rentals from new day-
time programs and additional August rentals.
• Dry Floor Rental revenues decreased slightly due to reduced indoor turf hours as dry weather allowed
teams to begin practicing outside earlier than previous years.
• Public Skating revenues increased in 2017 due to additional sessions during the winter months as a result
of fewer Saturday high school games during the season.
• Event Admissions decreased in 2017 as the home teams were not as successful as in past years and non
conference game schedule was not as competitive as past years.
• Concession sales decreased slightly as attendance at high school games was lower and there was one less
youth hockey tournament compared to previous years.
• Skate Rental revenues increased as a result of increased participation in Learn To Skate classes and addi-
tional public skating sessions.
• Advertising revenue increased due to additional advertisers participating in advertising programs offered
at the Arenas.
Revenues 2017 2016 2015 2014 2013
Charges for services
Ice rental 963,039$ 953,068$ 952,933$ 909,925$ 994,215$
Dry-floor rental 24,685 27,949 26,742 31,294 36,835
Learn to skate 53,183 51,525 43,598 40,003 40,045
Admissions-public skating 12,207 9,477 12,145 13,053 11,999
Event admissions (net)41,750 48,999 51,235 44,012 41,278
Concession/Proshop sales (net)25,973 28,587 27,779 26,872 24,148
Concession stand rental - - - - -
Skate sharpening 6,668 6,221 6,156 6,112 6,499
Skate rental 7,422 6,370 5,972 6,115 4,408
Vending machines 5,713 5,098 6,409 5,800 6,415
Other - advertising contract 32,094 30,151 26,300 20,663 20,832
Total charges for services 1,172,734 1,167,445 1,159,269 1,103,849 1,186,674
Other income
Interest on investments 4,861 3,039 1,334 258 557
Miscellaneous 2,197 14,436 12,141 9,186 2,821
Total revenues 1,179,792 1,184,920 1,172,744 1,113,293 1,190,052
Page 7
ARENA EXPENDITURES
2017 2011
Ames Ice Resurfacer Replacement - $142,294 Lobby & Rink Rubber Flooring Ames Arena - $75,008
Ames Water Heaters Replacement - $29,853 Lobby Benches Ames Arena - $1,848
Compressor #1 Replacement Ames - $16,083
Ames Ice Edger Replacement - $6,750
2016 2010
Ames Radiant Bleacher Heaters - $41,142 Low Emissivity Ceiling Ames #2 - $58,265
Ames Compressor #4 Replacement - $16,083
2015 2009
Ames Scoreboard Replacement - $53,142 Energy Recovery Dehumidification Unit -
Ames Compressor #2 Replacement - $17,000 Ames Arena rink #2 - $223,557
2013 2008
Ames Ice Resurfacer Replacement - $136,328 Evaporative Condenser Replacement -
Ames Roof Top Units - $35,692 Ames Arena - $49,500
2012 2007
Dehumidification Loan Payoff Air Quality Controls Ames Arena - $18,621
Ames Arena Rink #1 - $100,220 Compressor #1 Replacement Ames Arena - $11,898
Capital Improvement Comparisons
Year Operating Capital Outlay Transfer to Capital Fund Total
2017 $971,211 $11,166 $142,000 $1,124,377
2016 $976,052 $32,569 $130,000 $1,138,621
2015 $956,445 $7,544 $128,600 $1,092,589
2014 $964,500 $6,679 $119,600 $1,090,779
2013 $1,011,519 $19,332 $116,000 $1,146,851
Expenditure Comparisons
Summary
In 2017, Lakeville Arenas saw an overall expenditure decrease of 1% over 2016 in the amount of $14,244.
Arena expenditures include capital outlay expenses and transfers to the Capital Improvement Fund required to
provide a financial framework for replacement of the arena infrastructure as it ages including, but not limited
to, roofs, dehumidification, and refrigeration systems.
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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 2006 with a Lease Revenue Bond issued by the Lak-
eville Housing and Redevelopment Authority. The land was contributed by the City of Lakeville and Inde-
pendent School District 194. The Hasse family paid $125,000 for the naming rights in 2007 for a period of 20
years. The 2006 bonds were advance refunded by HRA Lease Revenue Refunding Bonds issued in Septem-
ber, 2016. The final payment on the debt is February 1, 2032.
Ames Arena has $362,270 of debt remaining which
is paid with an annual $95,000 contribution from
the Lakeville 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 about $295,000 annually to
the retirement of the $6.795 million of outstanding
debt.
Page 9
ACHIEVEMENTS
James Metzen Mighty Ducks Grant
In 2017 the Lakeville Arenas applied for and was
awarded a James Metzen Mighty Ducks grant
from the State of Minnesota to improve indoor
air quality at the Ames Arena.
The grant, in the amount of $68,000, helped fi-
nance the purchase of an electric ice resurfacer
and electric ice edger for the Ames Arena.
These upgrades completed the change-over at
Ames Arena from internal combustion to all
electric ice maintenance equipment.
This new equipment will ensure that no harmful
pollutants will be generated during the ice
maintenance process and will help to reduce op-
erating expenses through reduced HVAC operation
previously required to maintain quality air. Lakeville
Hasse Arena has been an all electric facility
since opening in 2007.
James F. Padgett Memorial Award
In 2017 the Lakeville Arenas were awarded the James Padgett Memorial
Award for the achievement of Excellence in Ice Arena Management and
Operations.
This honor is awarded annually by the Minnesota Ice Arena Managers
Association to an organization that has distinguished itself as a leader,
innovator and contributor to the ice arena industry.
Lakeville Arenas was recognized for creating new programs and
partnerships, creative marketing and dry floor rentals as well as equipment
and building modifications designed to maximize energy efficiencies and
operational savings.
Page 10
Summary
Overall, the Lakeville Arenas continued to be very successful in 2017. Ice rental revenues increased slightly
over the previous year due to strong summer rentals. A reduction in usage by the Lakeville Hockey Associa-
tion which started in 2016 has increased in 2017 and may have an impact on overall revenues in future years.
Completion of the Ames Arena debt service in 2019 will also end a long standing partnership with the Lake-
ville Hockey Association allowing a new Facility Use Policy to be created with opportunities for new ice rent-
al sources to be included in overall revenues. Event admissions saw a small reduction as the success of our HS
teams was not as strong as the past few seasons. Concessions revenue saw a slight decrease as fewer specta-
tors attended high school hockey events. Learn to Skate registrations continue to be very strong and are ex-
pected to increase in 2018 as Olympic coverage attracts new skaters. Operational expenditures remained simi-
lar to past years due to the many energy efficient upgrades installed and the strong emphasis we have placed to
monitor and control our energy usage. Equipment such as the new LED lighting 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.
1
Proposed 2019 Budget
2
Table of Contents
Page
Letter of Transmittal 3
2017 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 17
Statement of Revenues and Expenditures 17
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April 12, 2018
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
1st. The Board must approve the budget prior to July 1. As such the proposed 2019 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.
2017 Summary
The 2017 fiscal year marked the tenth 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 to the
community. Public skating attendance for paid sessions increased this past year
from 2,369 skaters in 2016 to 3,125 skaters in 2017 due to additional public skating
sessions primarily during the prime winter season.
▪ 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
4
steady between 600 – 700 skaters per year over the past three years. This past year,
Learn to Skate revenues increased 3% from $51,525 in 2016 to $53,183 in 2017.
The Learn to Skate program continues to partner with 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
skaters that will last a life time.
▪ High School attendance. Attendance at high school games increased slightly on a
per game basis from 2016-17. This increase was a result of successful seasons and
increased fan engagement on the South boys and girls teams.
2013-14 2014-15 2015-16 2016-17 2017-18
Boys 319 avg/gm 417 avg/gm 375 avg/gm 350 avg/gm 342 avg/gm
Girls 193 avg/gm 233 avg/gm 215 avg/gm 177 avg/gm 186 avg/gm
Total 11,139/44 gms 14,317/44 gms 13,964/47 gms 12,286/47 gms 11,970/45 gms
▪ Dry Floor Activities. The artificial turf has continued to provide opportunities for
a wide range of indoor activities during the non-ice season. In 2017, over 150 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 numerous
children’s consignment sales and a Home Design Expo were held. We also hosted
the annual Free Family Fun Fest which attracted over 1,000 community members.
Overall, dry floor revenue decreased slightly in 2017 due to a change in the off-
season training by some youth sports associations resulting in reduced turf rental
hours.
2018 Operations
The following is a succinct overview of the salient changes in operations and budget.
▪ Ice rentals are projected to decrease from 2017 due to a reduction in hours rented
during the prime season by the Lakeville Hockey Association in an effort to reduce
the time commitment to families. Additionally, changes to the off-season training
programs with the North Boys programs and a new high school coach for the South
boys have also contributed to reduced ice rentals during the spring/summer months.
The Arenas will continue to work with the high school coaches to develop
additional programs to fill available ice.
▪ Dry floor events including multiple consignment sales, a Home Design Expo and
multiple craft shows will continue to 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 efficiency and improve conditions to meet
5
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 2019 Budget Highlights
After nearly 25 years the Ames Arena construction debt will be paid off in August 2019.
The construction of the Ames Arena could not have been possible without a partnership
between the Lakeville Hockey Association, Lakeville Community Corp, ISD 194 and the
City of Lakeville. With the conclusion of the debt service payments a yearly contribution
by the Lakeville Hockey Association of $95,000 annually will be complete. In addition to
the financial contribution change, an ice allocation and usage agreement with LHA will
end resulting in a change in the allocation of ice hours at Ames Arena. We are currently
working with several user groups of the facilities to create a new policy that incorporates
the best opportunity for all groups to rent ice and increase program participation. As such,
the salient budget proposals are as follows:
▪ Ice rental rates for 2019-20 season are proposed to increase by 4% to $235 per hour.
This will mark the first rate increase since the 2015-16 season.
▪ The projected 2019 ice rental hours during the winter season are expected to remain
steady with 2018 hours.
▪ Learn to Skate, high school game attendance and concession sales are expected to
remain steady in 2019.
▪ 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.
Future
The primary goal of Lakeville Arenas 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. A specific issue affecting the ice making equipment at Ames and Hasse
6
Arenas is the planned phase-out by the Environmental Protection Agency of the refrigerant
HCFC-22 (R-22), which is currently the primary refrigerant used to cool the ice sheets in
our arenas. The proposed budget accounts for short term operating requirements while the
Capital Reserve Plan addresses the anticipated intermediate and long-term needs required
to comply with this mandate.
The Capital Reserve Fund reflects debt being issued to fund major capital upgrades starting
in 2020.
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,
Shayne Ratcliff
Shayne Ratcliff
Arenas Manager
7
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 maximizing facility use rentals and facility use fee adjustments. The 2019
revenues from operations are estimated to be $1,126,593 of which $924,600 (82% of budget)
is from ice rental in order to adequately finance Arena operations.
2018 2019 Increase/
ESTIMATE PROPOSED (decrease)
Operating Revenues
Ice Rental 906,720$ 924,600$ 17,880
Dry floor 26,053 23,975 (2,078)
Learn to Skate 54,254 48,060 (6,194)
Admissions-Public Skating 11,500 11,500 -
Event Admissions(Net of ISD Reimb)44,000 44,000 -
Skate Sharpening 6,400 6,100 (300)
Skate Rental 7,000 6,000 (1,000)
Concessions and pro shop - net 26,500 26,500 -
Vending Machines 5,500 5,500 -
Other - Advertising Contract 29,500 28,000 (1,500)
Other - Miscellaneous 7,358 2,358 (5,000)
Total Revenues 1,124,785 1,126,593 1,808
Ice rental hours are expected to be over 97% rented from November through February to
either the school district, youth hockey groups, public skating or learn to skate programs. The
primary ice customers are listed below.
57%27%
4%
4%4%
2%
2%
Ice Rental Hours
Lakeville Hockey Association - 55%
ISD 194 - 26%
Other Hockey Associations - 4%
Adult Hockey - 4%
Public Skating - 4%
Learn to Skate - 2%
Other - 2%
8
In order to adequately finance operations, the winter ice rental rates for the 2019-20 season
will increase to $235 per hour. Non-winter season ice rental rate is proposed to remain
unchanged at $160 per hour in 2019. The following is a comparison of prime-time winter and
summer rates with other communities for the 2018-2019 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 2018. The Arenas will continue to market itself as a showcase for trade
shows and other exhibition programs. Revenues from dry floor activities in 2019 are estimated
to be $23,975.
The Learn to Skate program has enrolled nearly 6,000 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 2018-19 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
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
9
The public skating program increased during 2017 due to additional sessions offered during
the prime winter months. This increase was due to fewer double header high school games on
Saturday afternoons which take scheduling priority over public skating sessions. For the 2018-
19 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.
Event Admissions for high school games are shared with ISD #194 (60% Arenas/40% ISD
194) and will generate approximately $44,000 of revenue.
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 remain steady from 2018 as
overall arena operations will be very similar to the previous year. The budget anticipates
approximately $26,500 of revenues from the concession stand operation.
Vending Machines revenues are approximately $5,500.
Advertising contracts are anticipated to generate approximately $28,000. Current contracts
are in place with 26 local and regional companies and organizations.
Expenditures
The 2019 expenditure budget is $1,115,477 which is a $5,727 (0.5%) decrease over the
previous year. The following is a summary of the proposed budget expenditures:
The majority of the costs attributable to operations are fixed costs such as insurance, debt
service, Capital Reserve and certain personnel costs. As such, the arena must seek to
maximize efficiencies by operating the facilities as one complex with a common objective
– providing quality services for the community and maximizing the return on the public
investment.
2018 2019
Estimate Proposed Total %
Personnel 392,208$ 405,874$ 13,666$ 3.5%
Utilities 239,785 251,774 11,989 5.0%
Contractual 200,340 185,584 (14,756) -7.4%
Capital Reserve Fund 150,000 210,000 60,000 40.0%
Debt Service 88,626 - (88,626) -100.0%
Commodities 48,245 48,245 - 0.0%
Capital Outlay 2,000 14,000 12,000 600.0%
Total 1,121,204$ 1,115,477$ (5,727)$ -0.5%
Increase/(decrease)
10
Personnel costs account for approximately 38% of the operating costs. The proposed budget
provides for three full time staff members to operate the facilities including a 3% COLA
beginning January 1, 2019.
Arenas Manager
(2) Assistant Managers
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.
2018 2019
Estimate Proposed Total %
Salaries and benefits
Salaries - Full Time 176,228$ 184,582$ 8,354$ 4.7%
Salaries - Part Time 134,602 135,814 1,212 0.9%
PERA 17,518 18,144 626 3.6%
FICA 23,779 24,510 731 3.1%
Hospitalization 30,648 33,083 2,435 7.9%
Life and Disability 178 178 - 0.0%
Long Term Disability 396 396 - 0.0%
Dental Insurance 1,782 1,871 89 5.0%
Workers Compensation 7,078 7,295 217 3.1%
Total 392,209$ 405,873$ 13,664$ 3.5%
Increase/(decrease)
Commodities represent approximately 4% of the total budget.
2018 2019
Commodities Estimate Proposed Total %
Office Supplies 545$ 545$ -$ 0.0%
Operating Supplies 11,200 11,200 - 0.0%
Motor Fuels 100 100 - 0.0%
Cleaning Supplies 10,000 10,000 - 0.0%
Clothing 2,400 2,400 - 0.0%
Equipment Parts 3,000 3,000 - 0.0%
Building Repair Supplies 18,000 18,000 - 0.0%
Small Tools/Equipment 1,500 1,500 - 0.0%
Computer Supplies 1,500 1,500 - 0.0%
Total 48,245$ 48,245$ -$ 0.0%
Increase/(decrease)
11
Other Charges and Services are proposed to decrease by $14,756 (7.3%) from $200,340 in
2018 to $185,584 in 2019. Other charges and services represent approximately 17% of the
budget expenses.
2018 2019
Other Charges and Services Estimate Proposed Total %
Fiscal Management Fees 32,640$ 33,293$ 653$ 2.0%
Attorney Fees 50 50 - 0.0%
Bank Charges 2,400 2,450 50 2.1%
Audit 5,775 5,891 116 2.0%
Use of Personal Auto 200 200 - 0.0%
Advertising 5,500 5,500 - 0.0%
Insurance 20,016 21,017 1,001 5.0%
Water and Sewer Service 14,013 14,293 280 2.0%
Waste Disposal 7,704 7,704 - 0.0%
Telephone 2,872 1,372 (1,500) -52.2%
Postage 100 100 - 0.0%
Other Contractual 17,302 17,302 - 0.0%
Equipment Repair and Maintenance 10,700 10,595 (105) -1.0%
Building Repair and Maintenance 61,837 46,487 (15,350) -24.8%
Contract Landscaping 2,000 2,000 - 0.0%
Schools and Conferences 1,500 1,500 - 0.0%
Business Meetings/Misc. Expenses 200 200 - 0.0%
Dues/Subscriptions/Licenses 5,205 5,130 (75) -1.4%
Snow Removal 10,326 10,500 174 1.7%
Total 200,340$ 185,584$ (14,756)$ -7.4%
Increase/(decrease)
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 publication advertising. Insurance premiums for liability, property and casualty insurance
provides coverage for both facilities.
“Other Contractual” ($17,302) includes water treatment services, alarm system monitoring,
water softening, fire extinguisher and sprinkler system testing. “Fiscal Management Fees” is
a 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.
Equipment Repair and Maintenance costs for 2018 are projected to be $10,595 in order to
address maintenance requirements at the arenas. Some of the significant projects include
maintenance to ice resurfacers ($5,500), dehumidification repairs ($1,250) and replacement
dasher board glass ($1,000). The equipment repair costs are estimated to remain comparable
at $10,595 for 2019.
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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 2018 are estimated to be $61,837 in order to address major maintenance requirements
at the arenas. Some of the significant projects include the repairs to the HVAC systems
($10,000), repairs to the refrigeration system ($4,500), repairs to emergency exit
doors/hardware ($4,500) as well as several painting projects ($3,000). The proposed 2019
budget for building repair and maintenance will decrease by $15,350 a result of completing a
significant number of major maintenance projects in 2018.
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 ($5,130) will include the
Minnesota Department of Health food license for the concession stand, software licenses for
ice scheduling software (MaxGalaxy), annual elevator operating permit and music service
licenses to accommodate public skating.
Snow removal contracts ($10,500) are required for the Ames and the Hasse Arena.
Utilities. Utilities are presumed to increase 5% for electrical and 5% for natural gas for the
upcoming year. Utilities represent 24% of the total budget and are the predominant reason for
increases in ice arena operating costs.
2018 2019
Utilities Estimate Proposed Total %
Electric Service 196,320$ 206,136$ 9,816$ 5.0%
Gas Service 43,464 45,637 2,173 5.0%
Total 239,784$ 251,773$ 11,989$ 10.0%
Increase/(decrease)
Capital Outlay items are included in budget to replace assets; which have exceeded their
useful life. Items include:
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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 ($88,626). Final payment on the Ames
Arena debt will mature in August 2019. The LHA pull-tab revenues are pledged to the City
for payment of the debt and therefore, not accounted for within the Lakeville Arenas budget.
2018 2019
Estimate Proposed Total %
Debt Service Funding 88,626$ -$ (88,626)$ -100.0%
Increase/(decrease)
The debt service for Hasse Arena is financed by the City of Lakeville and Independent
School District 194. The annual payment ($583,550) is not an obligation of Lakeville
Arenas and therefore, not included in the budget.
Transfer to Capital Reserve Fund. The transfer has been increased $60,000 to cover
increased capital expenditures in 2019 - 2025.
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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 proposed budget results in an ending balance of $517,894 in 2018 and $529,010 in 2019.
2018 2019
Estimate Proposed Total %
Operating Revenues
Ice Rental 906,720$ 924,600$ 17,880$ 2.0%
Other revenues 218,065 201,993 (16,072) -7.4%
Total Revenues 1,124,785$ 1,126,593$ 1,808$ 0.2%
Operating expenses
Personnel 392,208$ 405,874$ 13,666.00$ 3.5%
Utilities 239,785 251,774 11,989 5.0%
Contractual 200,340 185,584 (14,756) -7.4%
Debt service 88,626 - (88,626) -100.0%
Commodities 48,245 48,245 - 0.0%
Capital reserve fund 150,000 210,000 60,000 40.0%
Capital Outlay 2,000 12,000 10,000 500.0%
Total 1,121,204$ 1,111,477$ (7,727)$ -0.7%
Net increase/(decrease)3,581 11,116 9,535
Fund balance, beginning 514,313 517,894 3,581
Fund balance, ending 517,894$ 529,010$ 11,116$
Increase/(decrease)
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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 following is a summary of the Capital Reserve Fund Budget.
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The Capital Reserve Fund reflects debt being issued to fund major capital upgrades starting
in 2020. The repayment of the debt is shown here for purposes of showing the impact on
fund balances and General Fund transfers. Further discussion would be needed regarding
other funding sources (e.g. ISD#194, City of Lakeville, LHA, etc). Separate debt service
funds would be established.
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