HomeMy WebLinkAboutItem 06.cDate June 7, 2010 Item No.
Acknowledge Receipt of Lakeville Arenas 2011 Budget.
Proposed Action
Staff recommends adoption of the following motion: Move to Acknowledge Receipt of
the Lakeville Arenas 2011 Budget.
Approval of the motion will result in approval of Lakeville Arenas 2011 budget by the
Lakeville Arena 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 1St annually for review
and comment. The Board shall consider any comments received and adopt a final
budget on or before July 1St annually."
The Lakeville Arena Advisory Committee reviewed the budget at its May 19th 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 June 16th meeting — subject to any comments received from the City and
School District.
Primary Issues to Consider
City financial assistance requirements. There is no financial assistance required by
the City for arena operations.
Supporting Information
• Lakeville Arenas Proposed 2011 Budget.
r, Finance Dir
Financial Impact: $ none budgeted: No Source: N.A.
Related Documents (CIP, ERP, etc.):
Notes:
Proposed 2011 Budget
E
Table of Contents
Page
Letter of Transmittal
3
2009 Summary
3
General Fund
7
Revenues
7
Program Budget Descriptions and Expenditures
8
Debt Service Funds
14
Fund Balance
15
Capital Reserve Fund
16
Supplemental information
17
Statement of Revenues and Expenditures
18
14
May 1, 2010
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
2011 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 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.
2009 Summary
The 2009 fiscal year marked the second full year of joint operation of both the Ames and
Hasse Arenas. The joint operation has enabled the Lakeville Arenas organization 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 was able to offer year round public skating during both
weekday and weekend times. The mid-morning weekday public skating saw a
significant patronage.
■ Learn to Skate Program. The learn to skate program has continued to provide
skating opportunities for children and adults of all ages. Enrollment decreased
during 2009 due to tougher economic conditions with an enrollment of 557
3
participants compared to 690 participants in 2008. The program has created great
experiences for our young students that will last a life time.
■ High School attendance. Attendance at high school games remained steady from
2008 despite the downturn in the economy.
2008-9 2009-10
Boys 321 avg/gm
332 avg/gm
Girls 188 avg/gm
186 avg/gm
Total 10,687/42 gms
10,908/43 gms
■ Youth Hockey Associations. Ice rentals for youth hockey increased by nearly 9%
from the previous year. Many of the surrounding communities rented ice from
the arenas as shown below:
2008-09 2009-10
Lakeville
466
515
Apple Valley
18
28
Farmington
35
31
Rosemount
8
1
Total
527
575
■ Adult Hockey League: A new adult hockey league was formed in 2008-09 with
the additional late night hours available with the opening of Hasse Arena. The
league expanded to 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 generated over 225 and 248 hours of
indoor turf opportunities in 2008 and 2009 respectively for local soccer, lacrosse,
softball and baseball associations. Nearly 700 in 2009 and 750 visitors in 2010
turned out to the first annual Free Family Fun Fest consisting of public skating,
games, activities, community booths and a movie on the turf.
2010 Operations
The following is a succinct overview of the salient changes in operations and budget.
■ Ice rentals are projected to stay consistent with the budget. Cooperation between
LHA and ISD 194 has allowed the available ice hours to be fully utilized resulting
in maximum facility usage.
■ Dry floor events including multiple consignment sales, Home Expo and Tae
Kwon Do Competition will generate additional revenue as well as showcase the
facilities for future dry floor events.
4
■ 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. The maintenance projects are being financed from cost
savings derived from updated utility projections. A complete description is
provided in the General Fund narrative.
■ The closure of the Burnsville Ice Center due to major reconstruction has resulted
in additional revenue in both facility rental as the City of Burnsville operates
Hasse Arena as well as additional ice rentals during the month of August and
September after Hasse Arena closes and prior to the BIC reopening.
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 2011 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 2011 ice rentals during the winter season are expected to remain
steady with summer rentals decreasing slightly due to the reopening of the
Burnsville Ice Center for summer 2011. Ice rental rates are proposed to remain
unchanged at $205/hr. This is the third consecutive season without a rate
increase. Learn to Skate, high school game attendance and concession sales are
expected to remain steady in 2011.
■ Building repair and maintenance items addressed in 2010 will help to reduce
operational and repair costs in 2011.
■ Investment in major maintenance of the Ames Arena. Ames Arena is in need of
major maintenance in order to improve energy and operational efficiencies and to
improve the customer experience of the facility. The energy recovery
dehumidification system installed in 2009 and the low -e ceiling planned for 2010
in Rink 2 are major reasons for the reduction in overall energy consumption.
The primary project contemplated for 2011 is the replacement of the lobby
flooring at an estimated cost of $81,159.
R
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 Arena 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 arena and the
community. The facility is 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.
�,�
41~ mawl.
Shayne Ratcliff
Arena Manager
6
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
2011 revenues from operations are estimated to be $986,635 of which $841,545 (85% of
budget) is from ice rental in order to adequately finance arena operations.
Operating Revenues
Ice Rental
Dry floor
Learn to Skate
Admissions -Public Skating
Event Admissions(Net of ISD Reimb)
Proshop Sales (Net)
Skate Rental
Skate Sharpening
Concessions - gross profit
Concessions - Lease payments
Vending Machines
Advertising Contracts
Vending Royalty
Other - Miscellaneous
Total Revenues
2010
2011
Increase/(decrease)
Estimate
Proposed
Total
%
$ 858,345
$ 841,545
$ (16,800)
-2.0%
30,000
18,500
(11,500)
-38.3%
39,936
34,240
(5,696)
-14.3%
8,500
8,500
-
0.0%
34,000
34,000
-
0.0%
2,000
2,000
-
0.0%
4,100
4,100
-
0.0%
3,100
3,100
-
0.0%
8,200
8,200
-
0.0%
2,500
2,500
-
0.0%
6,550
6,550
-
0.0%
21,000
21,000
-
0.0%
2,000
2,000
-
0.0%
400
400
-
0.0%
$ 1,020,631
$ 986,635
$ (33,996)
-3.3%
The reduction in ice rentals in 2011 is due to the re -opening of the Burnsville Ice Center
during the summer months; the reduction of dry floor revenue is consistent with the seasonal
closure of Hasse Arena.
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.
26%
ft°�.20A%
AO
59%
7
■ Lakeville Hockey Association
■ ISD 194
❑ Outside Hockey Associations
❑ Adult Hockey
■ Public Skating
❑ Learn to Skate
■ Other
In order to adequately finance operations, the ice rental rates for the coming winter season
(2010-11) will remain unchanged at $205 per hour. Non -winter season ice rental is proposed
to remain unchanged at $160 per hour in 2011. The following is a comparison of prime time
winter and summer rates with other communities.
Winter Prime Rate
Summer Prime Rate
2009-10
2010-11
2009-10
2010-11
St Thomas Academy $
210
$ 210
St Thomas Academy
$ 210
$ 210
Burnsville
190
210
Richfield
170
175
Minnesota Made
205
205
Eagan
170
175
Lakeville Arenas
205
205
Burnsville
170
175
Cottage Grove
200
200
Bloomington
170
175
Farmington
185
200
Minnesota Made
165
165
Prior Lake (Dakotah)
185
200
Lakeville A renas
150
160
Apple Valley
165
190
Shakopee
135
150
Shakopee
160
185
Cottage Grove
140
145
Eagan
170
180
Prior Lake (Dakotah)
130
140
Richfield
170
180
Apple Valley
N/A
N/A
Bloomington
170
175
Farmington
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 2010 and 2011. 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 $18,500.
The Learn to Skate program has enrolled over 1,400 participants since it's' return in 2007.
With our highly qualified Director and competent staff we expect the program to be a
continued success. For the 2010-11 season, the hours of operation will be expanded to
include:
i) Will consist of (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.
iii) Spring session will include 2 hours on Tuesday evenings and 4.5 hours
on Saturday mornings.
iv) Summer session will consist of 2 hours on Tuesday evenings.
8
The public skating program was very successful during 2009 as result of expanded and
more desirable hours. For the 2010-11 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:OOpm for $4.00/person and $2.00/skate rental. The budget anticipates
approximately $8,500 of revenues from public skate admissions.
Pro Shop Sales / Skate Sharpening are provided at both Ames and Hasse Arena.
Concessions operations at Hasse Arena are managed by the Arena staff. The Lakeville
Ames Arena concession stand is leased to the Lakeville Hockey Association (LHA) for 5
months at $500/month.
Vending Machines revenues and royalties are approximately $8,550.
Expenditures
The 2011 budget is $996,992 which is an $87,931 (8.1%) decrease over the previous year.
The following is a summary of the proposed budget expenditures:
Personnel
Utilities
Contractual
Capital reserve fund
Debt service
Commodities
Other
Capital Outlay
Total
2010
2011
Increase/(decrease)
Estimate
Proposed
Total
%
330,253
353,359
23,106
7.0%
182,139
202,549
20,410
11.2%
194,880
175,958
(18,922)
-9.7%
217,000
110,000
(107,000)
-49.3%
88,626
88,626
-
0.0%
31,025
31,050
25
0.1%
4,500
25,000
20,500
455.6%
46,950
(46,950)
-100.0%
$ 1,095,373 $ 986,542 $ (108,831) -9.9%
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
investment.
Z
Personnel costs account for approximately 36% of the operating costs. The proposed budget
provides for three full time staff members to operate the facilities.
Arena Manager
Facility Superintendent
Assistant Manager
The arena also has a contingent of part-time staff including resurfacer drivers, office workers,
Learn to Skate Director, Learn to Skate Instructors, concession and custodians. Part-time
personnel are scheduled based on facility rental commitments. Hence, part-time personnel
costs are directly proportional to revenues.
Commodities represent approximately 3.0% of the total budget.
Commodities
Office Supplies
Operating Supplies
Motor Fuels
Cleaning Supplies
Clothing
Equipment Parts
Building Repair Supplies
Small Tools/Equipment
Total
2010
Estimate
$ 1,050
6,300
2,425
8,250
1,000
5,000
6,200
800
2011
Proposed
$ 600
6,300
2,650
8,500
1,000
5,000
6,200
RN)
$ 31,025 $ 31,050
10
Increase/(decrease)
Total
2010
2011
Increase/(decrease)
-
Estimate
Proposed
Total
%
Salaries and benefits
-
0.0%
-
0.0%
Salaries - Full Time
$ 148,964
$ 153,422
4,458
3.0%
Salaries - Part Time
106,989
109,244
2,255
2.1%
PERA
17,382
17,840
458
2.6%
FICA
19,580
20,094
514
2.6%
Hospitalization
18,120
31,241
13,121
72.4%
Life and Disability
73
73
-
0.0%
Long Term Disability
339
339
-
0.0%
Dental Insurance
884
884
-
0.0%
Workers Compensation
3,765
3,863
98
2.6%
Unemployment Compensation
2,500
2,500
-
0.0%
Payroll Contingency
11,657
13,859
2,202
18.9%
Total
$ 330,253
$ 353,359
$ 23,106
7.0%
Commodities represent approximately 3.0% of the total budget.
Commodities
Office Supplies
Operating Supplies
Motor Fuels
Cleaning Supplies
Clothing
Equipment Parts
Building Repair Supplies
Small Tools/Equipment
Total
2010
Estimate
$ 1,050
6,300
2,425
8,250
1,000
5,000
6,200
800
2011
Proposed
$ 600
6,300
2,650
8,500
1,000
5,000
6,200
RN)
$ 31,025 $ 31,050
10
Increase/(decrease)
Total
%
$ (450)
-42.9%
-
0.0%
225
9.3%
250
3.0%
-
0.0%
-
0.0%
-
0.0%
-
0_0%
$ 25
0.1%
Other Charges and Services are proposed to decrease by $13,422 (7.1%) from $189,380 in
2010 to $175,958 in 2011. 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 Arena's. Advertising is comprised of flyers, signage
and yellow pages advertising. Insurance premiums for liability, property and casualty
insurance provides coverage's for both facilities.
"Other Contractual" ($44,350) includes water treatment services, alarm system monitoring,
water softening, fire extinguisher and sprinkler system testing. Also included in "Other
Contractual" 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
2010
2011
Increase/(decrease)
Other Charp-es and Services
Estimate
Proposed
Total
%
Attorney Fees
$ 50
$ 50
$ -
0.0%
Bank charges
$ 1,500
$ 1,500
$ -
0.0%
Audit
4,275
4,400
125
2.9%
Use of Personal Auto
1,000
1,000
-
0.0%
Advertising
11,700
5,000
(6,700)
-57.3%
Insurance
28,937
30,239
1,302
4.5%
Water and Sewer Service
13,250
12,500
(750)
-5.7%
Waste Disposal
6,750
5,875
(875)
-13.0%
Telephone
920
920
-
0.0%
Postage
340
340
-
0.0%
Other Contractual
28,250
44,350
16,100
57.0%
Equipment Repair and Maintenance
19,550
14,050
(5,500)
-28.1%
Building Repair and Maintenance
54,656
38,125
(16,531)
-30.2%
Contract Landscaping
800
800
-
0.0%
Schools and Conferences
3,750
3,750
-
0.0%
Business Meetings/Misc. Expenses
200
200
-
0.0%
Dues/Subscriptions/Licenses
2,750
3,050
300
10.9%
Snow Removal
10,702
9,809
893
-8_3%
Total
$ 189,380
$ 175,958
$ 13,422
-7_1%
The budget provides for annual audit services. Use of personal auto is attributed to the staff
traveling between the Ames and Hasse Arena's. Advertising is comprised of flyers, signage
and yellow pages advertising. Insurance premiums for liability, property and casualty
insurance provides coverage's for both facilities.
"Other Contractual" ($44,350) includes water treatment services, alarm system monitoring,
water softening, fire extinguisher and sprinkler system testing. Also included in "Other
Contractual" 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 2010 are projected to be $19,550 in order to
address major maintenance requirements at Ames Arena. Some of the significant projects
include repairs and emissions upgrades to ice resurfacers ($10,000), replacing the remaining
aging and unusable sound system components of a 2 -year plan ($5,000), and other minor
repairs/maintenance. The equipment repair costs will decrease by $5,500 (28.1%) for the
coming year as a result of the decrease and scope of maintenance projects. The 2011 projects
include additional replacement dasher board glass ($1,500).
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 2010 are estimated to be $60,156 in order to address major maintenance
requirements at Ames Arena. Some of the significant projects include an ice making
compressor replacement ($16,000), upgraded parking lot signage ($5,500), final work on the
redesigned drainage for the front entrance at Ames ($2,000), repainting locker room walls
($3,500) as well as miscellaneous HVAC, plumbing and electrical repairs. The proposed
2011 budget for building repair and maintenance will decrease by $22,031 (36.6%) as a
result of completing a significant number of major maintenance projects in 2010.
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 Conference and the North American Rink Conference & Expo. Dues and
subscriptions ($3,050) include the Minnesota Department of Health food license for the
concession stand and music service licenses to accommodate public skating.
Snow removal contracts ($9,809) are required for the Ames and the Hasse Arena.
12
Increase/(decrease)
2010 2011
Total
%
Water Softener -Ames
2,500 -
(2,500)
-100.0%
Lobby Monitors
3,500 -
(3,500)
-100.0%
Lawn Tractor
10,500 -
(10,500)
-100.0%
Dessicant Wheel
20,000 -
(20,000)
-100.0%
Desktop Computer
1,950 -
(1,950)
100.0%
Kaivac Machine
3,500 -
(3,500)
100.0%
Rink 2 LR Flooring
5,000 -
(5,000)
100.0%
Total $
46,950 $ -
$ (46,950)
-100.0%
Equipment Repair and Maintenance costs for 2010 are projected to be $19,550 in order to
address major maintenance requirements at Ames Arena. Some of the significant projects
include repairs and emissions upgrades to ice resurfacers ($10,000), replacing the remaining
aging and unusable sound system components of a 2 -year plan ($5,000), and other minor
repairs/maintenance. The equipment repair costs will decrease by $5,500 (28.1%) for the
coming year as a result of the decrease and scope of maintenance projects. The 2011 projects
include additional replacement dasher board glass ($1,500).
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 2010 are estimated to be $60,156 in order to address major maintenance
requirements at Ames Arena. Some of the significant projects include an ice making
compressor replacement ($16,000), upgraded parking lot signage ($5,500), final work on the
redesigned drainage for the front entrance at Ames ($2,000), repainting locker room walls
($3,500) as well as miscellaneous HVAC, plumbing and electrical repairs. The proposed
2011 budget for building repair and maintenance will decrease by $22,031 (36.6%) as a
result of completing a significant number of major maintenance projects in 2010.
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 Conference and the North American Rink Conference & Expo. Dues and
subscriptions ($3,050) include the Minnesota Department of Health food license for the
concession stand and music service licenses to accommodate public skating.
Snow removal contracts ($9,809) are required for the Ames and the Hasse Arena.
12
Utilities. Natural gas and electrical operating costs are presumed to increase $20,410
(11.2%) in the coming year. The City of Burnsville agreed to pay all of the Hasse Arena
electrical and natural gas costs from March 15 to July 31, 2010. Lakeville Arenas will be
responsible for the full 12 months in 2011. Replacement of the dehumidification system on
Rink #2 with an upgraded energy efficient system has reduced the proposed utility expenses
by nearly 30%. Utilities represent 21% of the total budget and are the predominant reasons
for increases in ice arena operating costs.
13
2010
2011
Increase/(decrease)
Utilities
Estimate
Proposed
Total %
Electric Service
141,909
158,973
17,064 12.0%
Gas Service
40,230
43,576
3,346 8_3%
Total
$ 182,139
$ 202,549
$ 20,410 11.2%
13
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.
2010 2011 Increase/(decrease)
Estimate Proposed Total %
Debt Service Payments $ 88,626 $ 88,626 $
0_0%
The debt service for Hasse Arena is financed by the City of Lakeville and Independent
School District 194. The annual payments ($523,952) are not an obligation of Lakeville
Arenas and therefore not included in the budget.
14
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 $162,645 and $162,738 for 2010 and
2011 respectively.
Estimate Proposed Total %
Operating Revenues
Ice Rental $ 858,345 $ 841,545 $ (16,800) -2.0%
Other revenues 162,286 145,090 (17,196) -10.6%
Total Revenues $ 1,020,631 $ 986,635 $ (33,996) -3.3%
Operating expense
Personnel
330,253
353,359
23,106
7.0%
Utilities
182,139
202,549
20,410
11.2%
Contractual
194,880
175,958
(18,922)
-9.7%
Debt service
88,626
88,626
-
0.0%
Commodities
31,025
31,050
25
0.1%
Other
4,500
25,000
20,500
455.6%
Capital Outlay
46,950
(46,950)
-100.0%
Total
$ 878,373 $
876,542
$ (1,831)
-0_2%
Net increase/(decrease)
142,258
110,093
(32,165)
Capital reserve fund
(217,000)
(110,000)
107,000
-49.3%
Fund balance, beginning
237,386
162,644
(74,742)
Fund balance, ending
$ 162,644 $
162,737
$ 93
The fund balances are adequate and sufficient but not excessive.
15
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 2010 and 2011 Capital Reserve Fund is responsible for the annual payments on the lease
agreement ($10,800) for the Rink #1 dehumidification.
In addition, the Capital Reserve Fund includes $47,844 for the installation of a Low -E ceiling
in Ames Rink #2 in 2010 and $81,159 for the replacement of the lobby flooring in Ames
Arena in 2011.
The following is a summary of the Capital Reserve Fund Budget.
Revenues
Transfers from Operating Fund
Interest on investments
Total revenues
Expenditures
Dehumidification Lease
Ames #2 Low -E Ceiling
Ames Arena lobby flooring
Total expenditures
Net increase/(decrease)
Balance January 1
Balance December 31
16
2010 2011
$ 217,000 $ 110,000
138 1,723
217,138 111,723
10,800 10,800
47,844 -
- 81,159
58,644 91,959
158,494 19,764
13,791 172,285
$ 172,285 $ 192,049
Revenues Rate
Transfers from Operating Fund 3.0%
Transfers from Operating Fund
Interest on investments 1.00/0
Total revenues
Exuenditures
Year
Dehumidification Lease
131,955
Roof - Sheet 1
2019
Roof - Sheet 2
2023
Roof - Hasse
2033
Refrigeration Equipment - Ames
2018
Refrigeration Equipment - Hasse
2028
Refrigeration - underground - rink 1
2024
Refrigeration - underground - rink 2
2028
Refrigeration - underground - rink 3
2038
Dasher Boards - Sheet 1
2024
Dasher Boards - Sheet 2
2028
Dasher Boards - Hasse
2038
Dehumidification - Sheet 1
2021
Dehumidification - Sheet 2
2029
Dehumidification - Hasse
2022
Parking lot - Ames 5,100 sq yds
2019
Parking lot - Hasse
2048
Resurfacer - Rink 1
2013
Resurfacer - Rink 2
2018
Resurfacer - Hasse
2028
Flooring Lobby - Ames
2011
Flooring Lobby - Hasse
2023
Artificial turf
2023
Ceiling - rink 2
2010
Scoreboard - Rink 1
2016
Scoreboard - Rink 2
2023
Scoreboard - Hasse
2033
Signage - Hasse
2023
Total expenditures
Net increase/(decrease)
Balance January 1
Balance December 31
Capital Projects Fund
5 -Year Plan
2010 2011
2012 2013 2014
217,000 110,000 113,000 116,000 119,000
138 1,723 1,920 2,962 2,832
217,138 111,723 114,920 118,962 121,832
10,800 10,800
81,159
47,844
10,800 10,800
121,155
10,800
58,644
91,959
10,800
131,955
10,800
158,494
19,764
104,120
(12,993)
111,032
13,791
172,285
192,049
296,169
283,176
172,285
192,049
296,169
283,176
394,208
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Lakeville Arena
Statement of Revenue and Expense
18
2009
2010
2010
2011
Actual
Budget
Estimate
Estimate
Operating Revenues
Ice Rental
$ 839,060
$ 850,055
$ 858,345
$ 841,545
Dry floor
19,714
30,000
30,000
18,500
Learn to Skate
37,686
34,240
39,936
34,240
Admissions -Public Skating
11,523
4,500
8,500
8,500
Event Admissions(Net of ISD R(
46,139
23,000
34,000
34,000
Proshop Sales (Net)
1,962
2,000
2,000
2,000
Skate Sharpening
4,153
3,500
4,100
4,100
Skate Rental
3,520
2,500
3,100
3,100
Concessions - net profit
8,163
13,300
8,200
8,200
Concessions - Lease payments
1,500
4,000
2,500
2,500
Vending Machines
6,775
9,717
6,550
6,550
Other - Advertising Contract
28,977
21,000
21,000
21,000
Vending Royalty
2,000
2,000
2,000
2,000
Other - Miscellaneous
1,728
400
400
400
Total Revenues
1,012,900
1,007,912
1,020,631
986,635
Expenditures
Salaries and benefits
Salaries - Full Time
148,503
148,964
148,964
153,422
Salaries - Part Time
98,453
102,260
106,989
109,244
PERA
13,301
16,330
17,382
17,840
FICA
18,919
19,219
19,580
20,094
Hospitalization
9,826
44,682
18,120
31,241
Life and Disability
73
78
73
73
Long Term Disability
374
641
339
339
Dental Insurance
619
1,336
884
884
Workers Compensation
2,634
3,396
3,765
3,863
Unemployment Compensation
12,302
-
2,500
2,500
Payroll Contingency
-
15,469
11,657
13,859
Total
305,004
352,374
330,253
353,359
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Statement of Revenue and Expense
Other Charges and Services
Attorney Fees
2009
2010
2010
2011
Bank charges
Actual
Budget
Estimate
Estimate
Commodities
4,150
4,515
4,275
4,400
Office Supplies
774
520
1,050
600
Operating Supplies
5,608
6,450
6,300
6,300
Motor Fuels
2,173
2,425
2,425
2,650
Cleaning Supplies
6,200
8,250
8,250
8,500
Clothing
2,258
850
1,000
1,000
Chemicals
-
-
-
-
Equipment Parts
1,468
5,000
5,000
5,000
Building Repair Supplies
12,448
6,200
6,200
6,200
Tires
-
-
-
-
Small Tools/Equipment
1,436
800
800
800
Total
32,365
30,495
31,025
31,050
Other Charges and Services
Attorney Fees
22
-
50
50
Bank charges
1,308
900
1,500
1,500
Audit
4,150
4,515
4,275
4,400
Use of Personal Auto
90
1,000
1,000
1,000
Advertising
2,436
3,400
11,700
5,000
Insurance
28,263
29,802
28,937
30,239
Water and Sewer Service
11,061
13,250
13,250
12,500
Waste Disposal
4,312
6,750
6,750
5,875
Telephone
248
920
920
920
Postage
-
340
340
340
Other Contractual
38,286
27,700
28,250
44,350
Equipment Repair and Maintena
28,159
14,200
19,550
14,050
Building Repair and Maintenanc
74,619
48,781
60,156
38,125
Contract Landscaping
5,721
800
800
800
Schools and Conferences
3,081
3,750
3,750
3,750
Business Meetings/Misc. Expen:
-
200
200
200
Dues/Subscriptions/Licenses
2,409
2,585
2,750
3,050
Snow Removal
7,914
9,809
10,702
9,809
Capital Outlay
20,620
8,000
46,950
10,450
Total
232,699
176,702
241,830
175,958
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Utilities
Electric Service
Gas Service
Total
Contingency
Debt Service Payments
Total expenditures
Net Income (Loss)
U
Lakeville Arena
Statement of Revenue and Expense
2009
2010
2010
2011
Actual
Budget
Estimate
Estimate
148,828
177,585
141,909
158,973
50,903
79,056
40,230
43,576
199,731
256,641
182,139
202,549
-
10,000
4,500
25,000
88,626
88,626
88,626
88,626
858,425
922,538
878,373
876,542
$ 154,475
$ 85,374
$ 142,258
$ 110,093
Capital Reserve Fund
(72,000)
(76,000)
(217,000)
(110,000)
Fund Balance Beginning of Year
154,911
159,178
237,386
162,645
Fund Balance End of Year $
237,386 $
168,552 $
162,645 $
162,738
20