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HomeMy WebLinkAboutItem 06.dJune 15, 2020 Item No.________ ACKNOWLEDGE RECEIPT OF LAKEVILLE ARENAS 2021 PROPOSED BUDGET Proposed Action Staff recommends adoption of the following motion: Move to acknowledge receipt of the Lakeville Arenas 2021 Proposed Budget Overview The Joint Powers Agreement between the City of Lakeville and Independent School District No. 194 states “The Board shall approve an annual budget on a calendar year basis. The budget shall set forth projected expenditures and revenues necessary to make Arena Complex lease payments, fund the capital maintenance reserve, and to maintain, operate, and manage the Arena Complex. The budget shall be submitted to the Parties (City and District) 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.” Also included in your packet is the Lakeville Arenas 2019 annual report which highlights some of the events, usage, and financial results for the year and the Arenas Manager’s 2021 proposed budget presentation which provides some high-level points about the budget. Supporting Information o Arenas Manager’s Presentation o Lakeville Arenas 2019 Annual Report o Lakeville Arenas 2021 Proposed Budget Financial Impact: $ Budgeted: Y☐ N☐ Source: Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Jerilyn Erickson, Finance Director N/A N/A 2019 Annual Report & Proposed 2021 Budget Lakeville Ames Arena Lakeville Hasse Arena Arenas Manager *Lease, maintain, operate and manage the Arena Complex in the best interests of the community *Undertake entrepreneurial activities to maximize the return on the public investment Purpose Revenue/Expenditure Comparisons •Overall revenues increased 3.1% $35,669 from 2018. •Expenditures include an allocation to the Capital Reserve fund. •2018 was the final year for the payment to Ames Arena debt service. •Overall expenditures decreased 3.3%($38,528) from 2018.$500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 $1,200,000 $1,300,000 2019 2018 2017 2016 2015 2014 :Revenues :Expenditures Arena Rental By User Group User Group % Change 2019 2018 2017 2016 2015 2014 Lakeville Hockey Association -3.94%1,875 1,952 2,140 2,175 2,343 2,277 ISD 194 -9.35%902 995 927 946 898 878 Summer Programs 72.04%960 558 625 585 597 308 Fall/Spring Clinics -29.41%360 510 695 646 684 714 Arena Events -4.60%456 478 348 328 335 295 Figure Skating 2.27%315 308 286 249 221 249 Turf Users -24.53%120 159 138 209 216 292 Learn To Skate 4.90%150 143 148 145 146 165 Captains Practice 4.72%133 127 97 94 89 93 Public Skating -8.87%113 124 105 106 103 122 Surrounding Youth Associations 16.13%72 62 76 90 62 79 Adult Hockey Group -46.15%14 26 14 24 36 51 Total -2.80%5,470 5,442 5,599 5,597 5,730 5,523 * Over 875 participants during 2019 * Top 25 Program in the entire Midwest * Ice Show opportunities Learn To Skate Highlights Learn To Skate Participants 0 100 200 300 400 500 600 700 800 900 1000 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 * New 10-year agreements began in 2019 - Annual contribution to be used for arena improvements - Provides priority ice time to both organizations - Lakeville Hockey Association - $70,000/year - Heritage Figure Skating Club - $10,000/year Renewed Partnerships •160 parking stalls will be added •Completion date by August 15 Parking Lot Improvements Have Begun * Created Lakeville Arenas Preparedness Plan *Lost Revenue March 13 – May 31 approximately $95,000 *Limited work schedules for part-ime staff *User group restrictions implemented *Uncertain future planning due to COVID-19 COVID-19 Pandemic •Continued Success •Reinvesting in the future 2021 Expectations •Aligned with Apex Efficiency Solutions •Mobilization to begin in Fall 2020 •Ames Arena Rink #2 –Spring 2021 •Ames Arena Rink #1 –Spring/Summer 2022 Ames Arena 2021 Deferred Maintenance Project •Heart of the ice making process –Currently operates on R22 Freon –R22 production is banned by EPA beginning in 2020 Ice Plant •Nearly 10 miles of pipes buried in floor •Currently leaks on both rinks Ice Surface •Current boards have worn out hinges, bent doors and limited repair parts •New boards will include player safety improvements Dasher Boards •Dehumidification Systems •LED Lighting •HVAC Controls •Building Envelope Other •Total Project: ~$7.9M •Annual Utility Savings: ~$63,460 •Annual O&M Savings: ~$11,286 •Total Utility Savings: ~$1.269M/20 yrs •Continue to provide quality, safe ice surfaces for the community Summary •Customer Satisfaction •Arena Financial Performance •Cooperation Overview Lakeville Ames Arena Lakeville Hasse Arena Questions? Comments? 2019 Lakeville Ames Arena Lakeville Hasse Arena Prepared by: Lakeville Arenas 6/3/2020 Annual Review Page 2 Michael Baumann ................................................................ ISD 194, Superintendent Bob Erickson ........................................................................ ISD 194, Board Member Justin Miller ..................................................... City of Lakeville, City Administrator Brian Wheeler ............................................. City of Lakeville, City Council Member Troy Patterson ............................................................. 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 opportunities to all our guests. We strive to build a lifelong commitment in the community to individual and family entertainment through ice, turf, and dry floor events.” CONTENTS Facility Usage ............................................................................................................. 3 Learn To Skate/Heritage Figure Skating Club ........................................................... 4 Dry Floor Events ........................................................................................................ 5 Arena Revenues & Expenditures ............................................................................... 6 Arena Debt Service .................................................................................................... 7 2019 LAKEVILLE ARENAS BOARD OF DIRECTORS ARENA STAFF Shayne Ratcliff, Matt Nelson (Interim), Dan Brettschneider ........... Arenas Manager Dave Carroll ................................................................................... Assistant Manager Matt Nelson .................................................................................... Assistant Manager 30 + seasonal operations and learn to skate staff Page 3 FACILITY USAGE ~Lakeville Hockey Association ice usage decreased due to the new details of the updated agreement between LHA and the Lakeville Arenas. ~Figure Skating ice rented by the Heritage Figure Skating Club remained consistent. ~Summer ice rentals increased significantly. This should be monitored as with a change in Arenas Managers there may be a change in how this number is reported. ~Public Skating hours decreased slightly. ~Turf hours decreased due to favorable spring weather. ~ISD 194 hours decreased as teams had the majority of their games away during the first part of the 19-20 season. Facility Usage Details Arena Rental By User Group User Group % Change 2019 2018 2017 2016 2015 2014 Lakeville Hockey Association -3.94%1,875 1,952 2,140 2,175 2,343 2,277 ISD 194 -9.35%902 995 927 946 898 878 Summer Programs 72.04%960 558 625 585 597 308 Fall/Spring Clinics -29.41%360 510 695 646 684 714 Arena Events -4.60%456 478 348 328 335 295 Figure Skating 2.27%315 308 286 249 221 249 Turf Users -24.53%120 159 138 209 216 292 Learn To Skate 4.90%150 143 148 145 146 165 Captains Practice 4.72%133 127 97 94 89 93 Public Skating -8.87%113 124 105 106 103 122 Surrounding Youth Associations 16.13%72 62 76 90 62 79 Adult Hockey Group -46.15%14 26 14 24 36 51 Total -2.80%5,470 5,442 5,599 5,597 5,730 5,523 Page 4 The Lakeville Arenas Learn to Skate program had an increase of 7.1% in the number of participants in 2019 compared to 2018. The LTS program saw revenues of $62,503 in 2019 compared to $58,260 in 2018. Our staff will continue to monitor and make any needed adjustments in an attempt to maximize program participation. 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 over 50 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 2019 284 238 93 263 878 2018 270 222 120 208 820 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 Session Learn To Skate Comparison Page 5 Craft Show Noseworks K9 Event In an effort to maximize facility usage the Lakeville Arenas continues to offer artificial turf and dry floor rental opportunities during the Spring and Summer months. Over the past years the Arenas have generated additional revenue through many various events. Below are a fe w of the events hosted over the past year. Kids Consignment Sale Home Design Expo Family Fun Fest Movie on the Turf Athletic Rentals Page 6 ARENA REVENUE/EXPENDITURES Revenue/Expenditure Comparisons •Overall revenue increase of 3.1% $35,669 over 2018 •Expenditures include allocation to capital reserve fund, but starting in 2019 do not include payment to Ames Arena debt service •Overall expenditure decrease of 3.3%($38,528) under 2018$500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 $1,200,000 $1,300,000 2019 2018 2017 2016 2015 2014 :Revenues :Expenditures Page 7 ARENA DEBT SERVICE The Lakeville community has arena facilities due to the collaborative efforts of the City of Lakeville, Independent 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 Corporation 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 General 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 Lakeville Housing and Redevelopment Authority. The land was contributed by the City of Lakeville and Independent School District 194. The Hasse family paid $125,000 for the nam- ing rights in 2007 for a period of 20 years. The 2006 bonds were advance refunded by HRA Lease Revenue Refunding Bonds issued in September, 2016. The final payment on the debt is February 1, 2032. The City of Lakeville and Independent School District 194 each contribute about $295,000 annually to the retirement of the $6.080 million of outstanding debt. 1 Proposed 2021 Budget  Updated May 20, 2020  2 Table of Contents                     Page  Letter of Transmittal  3  2019 Summary  3  General Fund 7  Revenues  7  Program Budget Descriptions and Expenditures  10  Fund Balance 14  Capital Reserve Fund 15  Exhibit A – General Fund Statement of Revenue and Expense 16  Exhibit B – Reserve fund  18  Exhibit C – Debt Service 20              3       May 8, 2020    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 2021 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 repairs and improvements.    The salient issues relative to the proposed budget for each of the respective funds are discussed in the  sections attached hereto.    2019 Summary    The 2019 fiscal year marked the twelfth 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 revenue for paid sessions increased this past year from  $17,835 in 2018 to $23,066 in 2019.       Learn to Skate Program.  The Learn to Skate program has continued to provide skating  opportunities for children and adults of all ages.  Enrollment has increased annually for  the past several years to an all‐time high of 878 skaters during 2019.    This past year Learn  to Skate revenues increased 7.3% from $58,260 in 2018 to $62,503 in 2019.  The Learn to  Skate program continues to partner with the Heritage Figure Skating Club which is made  4 up of a combination of Learn to Skate students and local figure skaters. Both programs  have created great experiences for our young skaters that will last a lifetime.     Shayne Ratcliff, former Lakeville Arenas Manager resigned to pursue a professional career  opportunity in Iowa. Mr. Ratcliff was instrumental in administering a successful Arenas  operation during his tenure.     High School attendance.  Attendance at high school games increased for the boys on a  per game basis from 2018‐19 and decreased for the girls. The combined average  attendance for both the boys and girls went down in 2019‐2020. The change in the  proportionate number of boys’ games vs girls’ games including how well the teams are  playing can have an impact on the total attendance per game in each season.        2015‐16 2016‐17 2017‐18 2018‐19 2019‐20  Boys 375 avg/gm 350 avg/gm 342 avg/gm 361 avg/gm 380 avg/gm  Girls 215 avg/gm 177 avg/gm 186 avg/gm 214 avg/gm 182 avg/gm  Total 13,964/47 gms 12,286/47 gms 11,970/45 gms 11,663/40 gms 12,539/46 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 2019, over 110 hours of turf  activities involving lacrosse, soccer, baseball and softball were rented at Ames Arena.  In  addition, over 300 hours of dry floor events including Parks & Recreation programs,  children’s consignment sales and a Home Design Expo were held.  We also hosted the  annual Free Family Fun Fest which attracts over 1,000 community members.  Overall, dry  floor revenue decreased in 2019 due to less hours rented for turf activities.       2020 Operations    The following is a succinct overview of the salient changes in operations and budget.     Ice rentals are projected to decrease from 2019 due mainly to the COVID‐19 pandemic  and the State of Minnesota’s “Stay at Home” order that began in Late March and  anticipated to last into May. The 2020 ice rentals are projected to be $71,000 under  budget estimates.       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. Revenues are also impacted by the COVID‐19 pandemic  resulting in lost revenues from spring sports groups that were not allowed to practice.      A handful of maintenance projects will be undertaken at both arenas to maintain the  facilities at optimum efficiency and improve conditions to meet customer expectations.   A summary is provided in the General Fund narrative.    5 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 2021 Budget Highlights    After 26 years of service to the Lakeville community, the Ames Arena is preparing for the future.   With the original construction debt paid off in August 2019 a long‐standing agreement with the  Lakeville Hockey Association also expired.  Staff worked with our primary users, the Lakeville  Hockey Association and Heritage Figure Skating Club, to secure new long‐term agreements.   Through these efforts, we finalized a ten‐year agreement with both the LHA and HFSC to provide  guaranteed ice rental hours for both organizations as well as an annual contribution of $80,000  to be used towards the Ames Arena parking lot improvements.    As our building passes its 26th anniversary we have reached the point to begin replacing the major  mechanical and infrastructure components of the facility.  Our long‐term Capital Reserve Fund  has included a plan over the next several years to address the major replacement needs of the  buildings.   Primary funding for these projects will be bonds or some other financing mechanism.   Property tax support and/or other funding source would be needed to make the debt service  payments.       As such, the salient budget proposals are as follows:     The prior year’s budget anticipated ice rental rates to increase to $245 per hour beginning  October 1, 2020 and to $255 per hour beginning October 1, 2021. Based on comparisons  with other local arenas, this budget assumes ice rental rates to remain at the current $235  per hour through the 2020‐2021 and 2021‐22 seasons. The Board should discuss whether  to increase rates as previously proposed.      The projected 2021 ice rental hours during the winter season from October – March are  expected to increase slightly from 2020 ice rental hours.        Learn to Skate, high school game attendance and concession sales are expected to  remain steady in 2021.      Replacement of the major mechanical systems at Ames Arena including ice rink floors, ice  making plant, dasher boards, dehumidification systems and LED lighting. The design  phase and construction footings will take place in 2020. The final phases are planned to  begin in March of 2021 and continue over two summers to provide a complete  replacement of the existing systems. Hasse Arena will also have LED lighting replaced,  HVAC controls improved upon and the building envelope resealed.      Future    The primary goal of Lakeville Arenas is to continue to focus on building positive relationships with  all of our user groups which will result in an expansion of the Arenas use and revenue base with  the expectation that ice use rates in future years will continue to be competitive with those of  surrounding communities.    6 The future holds exciting promise as we look to improve upon our past success in regard to the  operations and maintenance infrastructure which in turn will pave the path for the long‐term  outlook for both the community and Lakeville Arenas.    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 build on  the past success of the Arenas, update our infrastructure and continue to create 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,        Dan Brettschneider  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 2021 revenues from  operations are estimated to be $1,139,418 of which $922,970 (81% of budget) is from ice rental in  order to adequately finance Arena operations.   2020 2021 Estimate Proposed Total % Operating Revenues Ice Rental 886,790           922,970           36,180    4.1% Dry floor 14,870              20,470              5,600      37.7% Learn to Skate 45,070              60,520              15,450    34.3% Admissions‐Public Skating 14,000              20,000              6,000      42.9% Event Admissions(Net of ISD Reimb) 44,000              44,000               ‐           0.0% Skate Sharpening 6,400                6,400                 ‐           0.0% Skate Rental 7,000                8,000                1,000      14.3% Concessions and pro shop ‐ net 26,500              26,500               ‐           0.0% Vending Machines 5,500                5,500                 ‐           0.0% Other ‐ Advertising Contract 22,700              22,700               ‐           0.0% Rebates/Dividends/Miscellaneous 2,000                2,000                 ‐           0.0% Other ‐ Miscellaneous 358                    358                     ‐           0.0%      Total  Revenues 1,075,188        1,139,418        64,230    6.0% 2021 vs 2020 Est. Increase/Decrease   Ice rental hours are expected to be over 92% rented from November through February to either the  school district, youth hockey groups, figure skating, public skating or learn to skate programs. The  primary ice customers are listed below.                           In order to keep competitive and to adequately finance operations, the winter ice rental rates for  the 2020‐2021 and the 2021‐2022 seasons are proposed to remain at $235 per hour. Non‐winter  54%32% 3% 4% 3%3%1% Ice Rental Hours Lakeville Hockey Association ‐ 48% ISD 194 ‐ 29% Other Hockey Associations ‐ 4% Figure Skating 4% Public Skating ‐ 3% Learn to Skate ‐ 3% Other ‐ 1% 8 season ice rental rate is proposed to remain unchanged at $165 per hour in 2021.  The Board will need  to consider if the rates should remain unchanged or increase based on previous budget discussions.     The following is a comparison of prime‐time winter and summer rates with other communities for the  2019‐2020 and 2020‐2021 seasons.      Winter         Prime Non‐Prime Prime Non‐Prime      2019‐20   2019‐20   2020‐21   2020‐21    Lakeville               235               235               235               235    Burnsville               230               230               230               230    Eagan               225               160               230               165    Eden Prairie               220               170               230               175    Farmington                225               225               230               230    Prior Lake (Dakotah)                224               150               227               227    Apple Valley               220               170               225               170    Woodbury                  225       Shakopee               220               220               225               225    Bloomington               207               150               224               150    Inver Grove Heights                  220       Rosemount               205               205               215               215    Cottage Grove                  215       S St. Paul                  210       Hastings                  200                  Summer         Prime Non‐Prime Prime Non‐Prime    2019 2019 2020 2020   Burnsville               205               145               205               145    Eden Prairie               200               170               205               175    Bloomington               175               150               175               150    Shakopee               165               165               170               170    Apple Valley               160               160               170               170    Lakeville               160               160               165               165    Eagan               155               155               165               165    Prior Lake (Dakotah)                150               100               150               150    Rosemount               125               125               135               135              9 Dry floor program opportunities have been 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 will continue to market itself as a showcase for trade shows and  other exhibition programs.  A number of the dry floor events that were scheduled for 2020 have been  cancelled due to COVID‐19 Arenas closures.  Revenues are expected to decrease as dry floor  availability will be shortened to allow for the Ames #2 ice floor replacement in the Spring and Summer  of 2021.  Revenues from dry floor activities in 2021 are estimated to be $20,470.    The Learn to Skate program has enrolled nearly 7,900 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 2020‐21 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:  (i) 3.5 hours on Saturday mornings  (ii) 1.5 hours on Monday evenings  iii) Spring session will include  (i) 2.5 hours on Tuesday evenings   (ii) 4.5 hours on Saturday mornings  iv) Summer session will include:  (i) 2.5 hours on Tuesday evenings      The public skating program increased during 2019 due to additional sessions offered during the prime  winter months and additional marketing strategies.  For the 2020‐2021 winter season, the hours of  operation will continue to be offered in the same manner as last season: Saturdays from 6:00pm –  8:00pm and Sundays from 1:00pm – 3:00pm for $5.00/person and $3.00/skate rental.  The budget  anticipates approximately $20,000 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 2020 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 $22,700.  We will be contacting all  current contract advertising holders in 2020 and marketing to businesses regarding the great potential  to reach new customers by advertising at the Arenas.       10 Expenditures  The 2021 expenditure budget is $1,149,872 which is a $59,656 (5.5%) increase over the previous year.     The following is a summary of the proposed budget expenditures:    The majority of the costs attributable to operations are fixed costs such as insurance, utility costs,  Capital Reserve Fund contributions and certain personnel costs.  As such, the arena must seek to  maximize efficiencies by operating the facilities as one complex with a common objective –  providing quality services for the community and maximizing the return on the public investment.      Personnel costs account for approximately 36.7% of the operating costs.  The proposed budget  provides for three full‐time staff members to operate the facilities including a 3% COLA beginning  January 1, 2021.      Arenas Manager    (2) Assistant Managers    The arena also has a contingent of part‐time staff including resurfacer drivers, office workers, Learn to  Skate Director, Learn to Skate Instructors, concession and custodians.  Part‐time personnel are  scheduled based on facility rental commitments.  Hence, part‐time personnel costs are directly  proportional to revenues.    2020 2021 Estimate Proposed Total % Salaries and benefits Salaries ‐ Full Time 175,222$         190,291$         15,068$       8.6% Salaries ‐ Part Time 137,288            148,414            11,125          8.1% PERA 13,142              14,272              1,130            8.6% FICA 23,907              25,911              2,004            8.4% Hospitalization 27,898              30,341              2,443            8.8% Life/Long Term Disability 373                    384                    11                  2.9% Dental  Insurance 1,741                1,881                139                8.0% Workers  Compensation 9,215                10,235              1,020            11.1%      Total  388,787$         421,727$         32,941$       8.5% 2021 vs 2020 Est. Increase/Decrease      11 Commodities represent approximately 5% of the total budget.    2020 2021 Estimate Proposed Total % Commodities Office Supplies 470$                 470$                  ‐$        0.0% Operating Supplies 17,700              17,700               ‐           0.0% Motor Fuels 200                    200                     ‐           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  54,770$           54,770$            ‐$        0.0% 2021 vs 2020 Est. Increase/Decrease   Other Charges and Services are proposed to decrease by $20,797 (8.2%) from $252,535 in 2020 to  $231,738 in 2021. Other charges and services represent approximately 20% of the budget expenses.     2020 2021 Estimate Proposed Total % Other Charges and Services Fiscal Agent fees 34,500$            35,190$            690$               2.0% Bank  charges 2,575                2,590                15                    0.6% Audit 6,300                6,489                189                 3.0% Use  of Personal Auto 300                    300                     ‐                  0.0% Advertising 7,500                5,500                (2,000)             ‐26.7% Insurance 19,792              20,782              990                 5.0% Water and Sewer Service 17,500              17,500               ‐                  0.0% Waste  Disposal 11,250              11,250               ‐                  0.0% Telephone 1,872                1,872                 ‐                  0.0% Other Contractual 14,865              15,252              387                 2.6% Equipment Repair and Maint. 27,027              27,422              395                 1.5% Building Repair and Maint. 85,306              65,400              (19,906)           ‐23.3% Contract Landscaping 2,000                2,000                 ‐                  0.0% Schools and Conferences 2,000                2,000                 ‐                  0.0% Dues/Subscriptions/Licenses 5,791                5,791                 ‐                  0.0% Snow Removal 13,957              12,400              (1,557)             ‐11.2%      Total  252,535$         231,738$         (20,797)$        ‐8.2% 2021 vs 2020 Est. Increase/Decrease   The budget provides for annual audit services.  Use of personal auto is attributed to the staff traveling  to continuing education schools and conferences.  Advertising is comprised of flyers, signage and  12 publication advertising.  Insurance premiums for liability, property and casualty insurance provides  coverage for both facilities.    “Other Contractual” ($15,252) 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 2020 are projected to be $27,027 in order to address  maintenance requirements at the arenas.  Some of the significant projects include replacement  batteries and maintenance on the ice resurfacers ($16,500), repairs to the sound system ($2,000) and  an updated annual copy machine maintenance program ($3,327). The equipment repair costs in 2021  will be similar to the 2020 projection.    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 2020 are  estimated to be $85,306 in order to address major maintenance and cold weather repairs at the  arenas.  Some of the significant projects include repairs to the make‐up air units at Hasse, bearings on  an ice plant motor at Hasse, Zamboni room heater unit at Ames, and door closer repairs at both  facilities. The proposed 2021 budget for building repair and maintenance will decrease by $19,906.     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 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 ($12,400) are required for the Ames and the Hasse Arena.      Utilities.  Utilities are presumed to increase 10% for electrical and natural gas for the upcoming year.   Utilities represent 27% of the total budget and are the predominant reason for increases in ice arena  operating costs.      2020 2021 Estimate Proposed Total % Utilities Electric Service 200,161$         220,177$         20,016$         10.0% Gas  Service 64,054              70,460              6,406             10.0%      Total  264,215$         290,637$         26,422$         10.0% 2021 vs 2020 Est. Increase/Decrease        13 Debt Service. The Hasse Arena was financed with a Lease Revenue Bond in 2006 by the Lakeville  Housing and Redevelopment Authority.   The 2006 bonds were advanced refunded by HRA Lease  Revenue Refunding Bonds, Series 2016A.  The debt service for Hasse Arena is financed by the City  of Lakeville and Independent School District 194.  The annual payment (~$580,000) is not an  obligation of Lakeville Arenas and therefore, not included in the budget.  The final debt payment  is February 2032.    Debt will be issued by the City of Lakeville for the Ames Arena parking lot project.  The projected  costs are anticipated to be $800,000. Contributions from the Lakeville Hockey Association and the  Heritage Figure Skating Club are pledged to pay the principal on the debt. The Lakeville Arenas  operations will be paying the interest on the debt.  The interest is included in the operating  budget.    The City of Lakeville anticipates issuing debt for the APEX energy efficiency improvements.  The  annual debt service payment is not anticipated to be an obligation of Lakeville Arenas and  therefore, not included in the budget.    Transfer to Capital Reserve Fund.  The transfer ($135,000) has been adjusted to cover increased  capital expenditures in 2021 ‐ 2026.        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 $547,390 in 2020 and $536,911 in 2021.    2020 2021 Estimate Proposed Total % Operating Revenues Ice Rental 886,790$          922,970$          36,180$         4.1% Other Revenues 188,398            216,448            28,050            14.9% Total Revenues 1,075,188         1,139,418         64,230            6.0% Operating Expenses Personnel 388,787            421,727            32,940            8.5% Utilities 264,216            290,637            26,421            10.0% Contractual 252,535            231,738            (20,797)           ‐8.2% Commodities 54,770               54,770                ‐                  0.0% Capital Reserve Fund 130,000            135,000            5,000              3.8% Debt Service ‐                     16,025               16,025            0.0% Total Expenses 1,090,308         1,149,897         59,589            5.5% Net Increase/(Decrease) (15,120)             (10,479)             4,641               ‐30.7% Fund Balance Beginning of Year 562,510            547,390            (15,120)           ‐2.7% Fund Balance End of Year 547,390$          536,911$          (10,479)$         ‐1.9% 2021 vs 2020 Est. Increase/Decrease  A  detailed General fund for 2020‐2025 is presented in Exhibit A.   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 following is a summary of the Capital Reserve Fund Budget. A detailed presentation can be found  in Exhibit B:    2020 2020 2021 Adopted Estimate Proposed Revenues Transfers from Operating Fund 130,000$   130,000$       135,000$      Interest on investments 110              217                 224                      Total  revenues 130,110     130,217         135,224         Capital Projects 1,048,570  123,570         189,300              Net increase/(decrease) (918,460)    6,647              (54,076)              Balance  January 1110,225     216,960         223,607              Balance  December 31 (808,235)$ 223,607$       169,531$      Lakeville Arenas  Reserve  Fund    The Arena is proposing to undergo significant upgrades to both facilities starting in 2020.  Construction cost will be accounted for in the City’s capital improvement fund.     The first project is the expansion of the Ames arena parking lot. The projected costs are  anticipated to be $800,000. Contributions from the Lakeville Hockey Association and the Heritage  Figure Skating Club are pledged to pay the principal on the debt. The Lakeville Arenas operations  will be paying the interest on the debt.     The second project is the APEX energy efficiency improvements which will begin in 2020 with  design costs and footing installations. Installing the footings in 2020 before winter will allow for  construction to start as soon as the normal ice season wraps up in February 2021. The total project  is expected to be $7.9 million and will span two years. Design and construction costs will be  accounted for in the City’s capital improvement fund. Debt will be issued to cover the project  costs. Further discussions will be needed regarding other funding sources. (e.g. ISD#194, City of  Lakeville, utility saving, etc).  Exhibit C shows a debt service fund that would be established by the  City of Lakeville. A tax levy is anticipated in 2021 for both the city and ISD #194. The debt service  fund is presented for informational purposes only and is not a Lakeville Arenas debt service fund.     Exhibit A 2017 2018 2019 2020 2020 2021 2022 2023 2024 2025 Actual Actual Actual Adopted Estimate Preliminary Projected Projected Projected Projected Operating Revenues Ice Rental 963,039$ 914,009$ 914,006$ 957,825$ 886,790$ 922,970$ 950,630$ 976,325$ 1,007,895$ 1,007,895$ Dry floor 24,685 28,533 17,553 23,455 14,870 20,470 20,000 20,000 20,000 20,000 Learn to Skate 53,183 58,260 62,503 58,028 45,070 60,520 60,520 60,520 60,520 60,520 Admissions-Public Skating 12,207 17,835 23,066 14,000 14,000 20,000 20,000 20,000 20,000 20,000 Event Admissions(Net of ISD Reimb) 41,750 52,038 37,339 44,000 44,000 44,000 44,000 44,000 44,000 44,000 Skate Sharpening 6,668 6,223 5,964 6,400 6,400 6,400 6,400 6,400 6,400 6,400 Skate Rental 7,422 8,324 8,554 7,500 7,000 8,000 8,000 8,000 8,000 8,000 Concessions and pro shop - net 25,973 25,134 26,118 26,500 26,500 26,500 26,765 27,033 27,303 27,576 Vending Machines 5,713 6,598 6,376 5,500 5,500 5,500 5,500 5,500 5,500 5,500 Other - Advertising Contract 32,094 29,052 22,718 29,500 22,700 22,700 22,700 22,700 22,700 22,700 Rebates/Dividends/Miscellaneous 4,861 1,502 51,189 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Other - Miscellaneous 2,197 5,485 13,276 358 358 358 358 358 358 358 Total Revenues 1,179,792 1,152,993 1,188,662 1,175,066 1,075,188 1,139,418 1,166,873 1,192,836 1,224,676 1,224,949 Expenditures Salaries and benefits Salaries - Full Time 171,629 174,244 191,079 192,376 175,222 190,291 195,048 199,924 204,922 210,045 Salaries - Part Time 134,976 157,427 148,379 145,759 137,288 148,414 152,124 155,927 159,825 163,821 PERA 17,932 15,984 14,348 18,812 13,142 14,272 14,629 14,994 15,369 15,753 FICA 22,534 24,484 25,162 25,867 23,907 25,911 26,559 27,223 27,903 28,601 Hospitalization 30,539 32,103 33,718 33,083 27,898 30,341 32,465 34,737 37,169 39,771 Life and Long Term Disability 2,293 569 482 574 373 384 394 404 414 424 Dental Insurance 1,114 1,785 1,856 1,871 1,741 1,881 1,975 2,073 2,177 2,286 Workers Compensation 7,415 7,233 8,762 7,699 9,215 10,235 10,491 10,753 11,022 11,297 Unemployment Compensation - 2,504 - - - - - - - - Total 388,432 416,333 423,786 426,041 388,787 421,727 433,683 446,035 458,801 471,998 Commodities Office Supplies 284 475 3,005 545 470 470 479 489 499 509 Operating Supplies 10,764 19,493 15,475 17,700 17,700 17,700 18,054 18,415 18,783 19,159 Motor Fuels 1,201 345 565 200 200 200 204 208 212 216 Cleaning Supplies 7,408 10,550 10,708 10,000 10,000 10,000 10,200 10,404 10,612 10,824 Clothing 2,363 1,871 2,473 2,400 2,400 2,400 2,448 2,497 2,547 2,598 Equipment Parts 4,267 3,409 2,688 3,000 3,000 3,000 3,060 3,121 3,184 3,247 Building Repair Supplies 18,389 12,120 14,012 18,000 18,000 18,000 18,360 18,727 19,102 19,484 Small Tools/Equipment 891 2,305 305 1,500 1,500 1,500 1,530 1,561 1,592 1,624 Computer Supplies - - 151 1,500 1,500 1,500 1,530 1,561 1,592 1,624 Total 45,567 50,568 49,382 54,845 54,770 54,770 55,865 56,983 58,122 59,285 Lakeville Arena Statement of Revenue and Expense Page 16 Exhibit A 2017 2018 2019 2020 2020 2021 2022 2023 2024 2025 Actual Actual Actual Adopted Estimate Preliminary Projected Projected Projected Projected Lakeville Arena Statement of Revenue and Expense Other Charges and Services Fiscal Agent fees 32,292 33,000 33,792 33,293 34,500 35,190 35,894 36,612 37,344 38,091 Attorney Fees - - - 50 - - - - - - Bank charges 2,299 2,483 2,133 2,550 2,575 2,590 2,642 2,695 2,749 2,803 Audit 5,775 5,950 6,125 6,075 6,300 6,489 6,684 6,817 6,954 7,093 Use of Personal Auto - 335 230 200 300 300 306 312 318 325 Advertising 8,822 4,919 6,247 5,500 7,500 5,500 5,610 5,722 5,837 5,953 Insurance 19,322 19,942 19,151 21,986 19,792 20,782 21,821 22,257 22,702 23,156 Water and Sewer Service 14,875 17,151 16,076 17,500 17,500 17,500 17,500 17,500 17,850 18,207 Waste Disposal 8,171 10,698 11,241 11,250 11,250 11,250 11,500 9,500 9,690 9,884 Telephone 5,362 4,535 1,980 1,872 1,872 1,872 1,909 1,948 1,987 2,026 Postage - - 16 100 - - - - - - Other Contractual 16,483 12,575 10,939 17,252 14,865 15,252 15,477 15,787 16,102 16,424 Equipment Repair and Maintenance 8,551 7,643 3,402 24,095 27,027 27,422 27,970 17,863 18,091 18,622 Building Repair and Maintenance 74,262 60,184 125,744 63,450 85,306 65,400 61,058 57,358 60,005 63,734 Contract Landscaping 4,329 1,250 690 2,000 2,000 2,000 2,040 2,081 2,122 2,165 Schools and Conferences 241 1,966 - 2,000 2,000 2,000 2,040 2,081 2,122 2,165 Business Meetings/Misc. Expenses - - - 200 - - - - - - Dues/Subscriptions/Licenses 5,775 5,574 5,757 5,130 5,791 5,791 5,902 6,016 6,131 6,249 Snow Removal 9,768 14,177 20,319 10,500 13,957 12,400 12,648 12,901 13,159 13,422 Capital Outlay 11,166 2,005 15,229 2,000 - - - - - - Total 227,493 204,387 279,071 227,003 252,535 231,738 231,001 217,448 223,163 230,320 Utilities Electric Service 189,161 213,062 187,768 237,340 200,161 220,177 237,792 249,681 262,165 275,273 Gas Service 43,098 43,017 57,458 52,500 64,054 70,460 76,097 79,901 83,897 88,091 Utility Energy Savings - - - - - - - (63,460) (63,460) (63,460) Total 232,259 256,079 245,226 289,840 264,216 290,637 313,888 266,123 282,602 299,905 Debt Service Payments 88,626 88,626 - - - 16,025 15,965 78,183 76,840 75,396 Sub Total Operating 982,377 1,015,993 997,465 997,728 960,307 1,014,897 1,050,403 1,064,772 1,099,528 1,136,905 Net Operating Income (Loss) 197,415 137,000 191,197 177,338 114,880 124,521 116,470 128,064 125,148 88,044 Capital Reserve Fund 142,000 150,000 130,000 130,000 130,000 135,000 140,000 145,000 158,000 172,000 Net Income (Loss) 55,415 (13,000) 61,197 47,338 (15,120) (10,479) (23,530) (16,936) (32,852) (83,956) Fund Balance Beginning of Year 458,898 514,313 501,313 492,448 562,510 547,391 536,911 513,382 496,446 463,594 Fund Balance End of Year 514,313$ 501,313$ 562,510$ 539,786$ 547,391$ 536,911$ 513,382$ 496,446$ 463,594$ 379,638$ Fund Balance as a % of CY Expenditures 52.4% 49.3% 56.4% 54.1% 57.0% 52.9% 48.9% 46.6% 42.2% 33.4% Summary: Salaries and benefits 388,432 416,333 423,786 426,041 388,787 421,727 433,683 446,035 458,801 471,998 Commodities 45,567 50,568 49,382 54,845 54,770 54,770 55,865 56,983 58,122 59,285 Other Charges and Services 227,493 204,387 279,071 227,003 252,535 231,738 231,001 217,448 223,163 230,320 Utilities 232,259 256,079 245,226 289,840 264,216 290,637 313,888 266,123 282,602 299,905 Debt Service Payments 88,626 88,626 - - - 16,025 15,965 78,183 76,840 75,396 Total Expenses 982,377 1,015,993 997,465 997,728 960,307 1,014,897 1,050,403 1,064,772 1,099,528 1,136,905 Change From Prior Year: Salaries and benefits 2,255 (34,999) 32,941 11,956 12,352 12,766 13,197 Commodities 5,463 5,388 - 1,095 1,117 1,140 1,162 Other Charges and Services (52,068) (26,536) (20,797) (737) (13,553) 5,714 7,158 Utilities 44,614 18,990 26,422 23,251 (47,766) 16,479 17,303 Debt Service Payments - - 16,025 (60) 62,218 (1,343) (1,444) Total Expenses 264 (37,157) 54,590 35,505 14,369 34,757 37,377 Percentage Change From Prior Year: Salaries and benefits -8.3% 8.5% 2.8% 2.8% 2.9% 2.9% Commodities 10.9% 0.0% 2.0% 2.0% 2.0% 2.0% Other Charges and Services -9.5% -8.2% -0.3% -5.9% 2.6% 3.2% Utilities 7.7% 10.0% 8.0% -15.2% 6.2% 6.1% Debt Service Payments N/A N/A -0.4%389.7%-1.7%-1.9% Total Expenses -3.7%5.7%3.5%1.4%3.3%3.4% Page 17 Exhibit B2017 2018 2019 2020 2020 2021LocationRateActualActualActualAdoptedEstimateProposed2022202320242025RevenuesTransfers from Operating Fund 9.0% 142,000 150,000 130,000 130,000 130,000 135,000 140,000 145,000 158,000 172,000 Transfers from Operating Fund - Utility SavingsDebt Issuance - Energy Savings Project - - - 500,000 - - - - - - Debt Issuance - Parking Lot - - - 450,000 - - - - - - Debt Issuance - Future Projects - - - - - - - 575,000 535,000 - Other/Grants 71,000 - 17,641 - - - - - - Interest on investments 0.1% 3,533 5,747 7,225 110 217 224 170 310 459 619 Total revenues 216,533 155,747 154,866 1,080,110 130,217 135,224 140,170 720,310 693,459 172,619 APEX Project - 2020/2021 (ORIGINAL ESTIMATE)500,000 500,000 4,918,427 2,190,604 7,609,031.00 ExpendituresYearAPEX - current budget items AMES- - - 2020 - Design costs AMES- 2020 - Construction costs AMES- 2021 - Construction costs AMES- 2022 - Construction costs AMES- Lobby Scope Quote AMES- Roof - Sheet 1 AMES 2020571,164 Roof - Sheet 2 AMES 2023Roof - Hasse HASSE 2033Refrigeration Equipment - Ames AMES 2020 500,000 - - - Refrigeration Equipment - Hasse HASSE 2032Refrigeration - underground - rink 1 AMES 2024- Refrigeration - underground - rink 2 AMES 2028- Refrigeration - underground - rink 3 HASSE 2037Dasher Boards - Sheet 1 AMES 2024- Dasher Boards - Sheet 2 AMES 2028- Dasher Boards - Hasse HASSE 2038Dehumidification - Sheet 1 AMES 2021- Dehumidification - Sheet 2 AMES 2029- Dehumidification - Hasse HASSE 2022Electric Ice Edger - Hasse HASSE 2020 9,500 9,500 Electric Ice Edger - Ames *After Grant$ AMES 2017 6,750 Bleacher Radiant Heaters-Ames 1 AMES 2016Bleacher Radiant Heaters-Ames 2 AMES 2020 53,500 53,500 Ames-Comp #1 Replacement AMES 2011 16,083 Ames-Comp #2 Replacement AMES 2017Ames-Comp #3 Replacement AMES 2018 18,328 17,891 Ames-Comp #4 Replacement AMES 2016 16,562 RTU - Ames 1 AMES 2013 11,076 RTU - Ames 1A AMES 2013RTU - Ames 2 AMES 2018 38,248 RTU - Ames HS Room AMES 2019 62,041 MUA #1 - Hasse HASSE 2016Hasse HVAC Unit Controller HASSE 2019 14,347 Unit Heater - Ames 2 Zamboni Garage AMES 2020 11,200 11,200 Unit Heater - Ames 1 Zamboni Garage AMES 202111,300 Water Savings - Ames - Toilets, etc AMES 2020 14,370 14,370 Water Heaters - Ames Resurfacer AMES 2018 29,853 Water Heaters - Ames Rest/Locker rooms AMES 2019 32,528 Boiler System - Ames Ice Plant AMES 2020- Parking lot resurfacing - Ames 5,100 sq yds AMES 2019Parking lot expansion - Ames AMES 2020 47,317 450,000 25,000 Lakeville Arenas Reserve Fund Page 18 Exhibit B2017 2018 2019 2020 2020 2021LocationRateActualActualActualAdoptedEstimateProposed2022202320242025Lakeville Arenas Reserve Fund Parking lot - Hasse HASSE 2048Resurfacer - Rink 1 AMES 2013Resurfacer - Rink 2 AMES 2017 142,294 Resurfacer - Hasse HASSE 2023165,874 Flooring - Hasse HASSE 2023 6,282 198,000 Flooring - Ames AMES 2019 6,959 10,000 10,000 178,000 Flooring Locker rooms - Ames #1 AMES 2018 19,910 Flooring Locker rooms - Ames #2 AMES 2019 19,503 Artificial turf AMES 2023121,007 Ceiling Low E - Rink 1 AMES 2020- Ceiling Low E - Rink 2 AMES 2010Ceiling Low E - Rink 3 HASSE 2020- Panic Bar Replacement/Access System - Ames AMES 2017Scoreboard - Rink 1 AMES 2016Scoreboard - Rink 2 AMES 2016Scoreboard - Hasse HASSE 2033Signage - Hasse HASSE 202348,403 Lighting - Ames AMES 2014- - Lighting - Hasse HASSE 2020- Ames SXW Upgrade AMES 2017 10,450 Ames Building Controls AMES 2020- Hasse Building Controls HASSE 2020- Hasse Ice Plant Controls HASSE 2020- Ames #1 Unit Heaters AMES 2017 9,822 Ames Building Envelope Improvements AMES 2020- Hasse Building Envelope Improvements HASSE 2020- Ames Rooftop # 3 Controls AMES 2,969 Hasse DHU A/C Coil Installation HASSE 2018Hasse Ice Plant Sump Replacement HASSE 2018 17,500 Hasse Freon Detection Replace HASSE 2017 4,590 Hasse RTU 1 Condensor Replace HASSE 2017 107,110 Hasse MUA Repair/Replace HASSE 2016Network Switches/Other Technology OTHER 2017 9,914 Mechanical Room Heater AMES2019 2,201 - - - - - - - - - - Total expenditures240,832 159,286 270,409 1,048,570 123,570 189,300 - 571,164 533,284 - Net increase/(decrease)(24,299) (3,539) (115,543) 31,540 6,647 (54,076) 140,170 149,146 160,175 172,619 Balance January 1360,341 336,042 332,503 110,225 216,960 223,607 169,531 309,700 458,846 619,021 Balance December 31336,042 332,503 216,960 141,765 223,607 169,531 309,700 458,846 619,021 791,640 TOTAL CAPITAL - AMES AMES 226,328 135,504 148,952 1,039,070 114,070 189,300 - 571,164 121,007 - TOTAL CAPITAL - HASSE HASSE 4,590 23,782 121,457 9,500 9,500 - - - 412,277 - TOTAL CAPITAL - OTHEROTHER9,914 - - - - - - - - - TOTAL CAPITAL EXPENDITURES 240,832 159,286 270,409 1,048,570 123,570 189,300 - 571,164 533,284 - - - - - - - - - - - Page 19 Exhibit CNOTE: The 2020 Debt is a city fund. How the future debt will be issued has not been determined .2021Proposed202220232024202520262027202820292030RevenuesLHA Contribution 2020-2030-$70,000/yr 2020A Bonds - 61,250 61,250 65,625 65,625 65,625 65,625 70,000 70,000 74,375 HFSC Contribution 2019-2029-$10,000/yr 2020A Bonds - 8,750 8,750 9,375 9,375 9,375 9,375 10,000 10,000 10,625 Arena Contribution to Parking Lot 2020A Bonds 16,025 15,965 14,723 13,380 11,936 10,436 8,861 7,155 5,295 3,273 Energy rebates 2020B Bonds 29,604 - - - - - - - - - Transfers from Operating Fund - Utility Savings 2020B Bonds - - 63,460 63,460 63,460 63,460 63,460 63,460 63,460 63,460 City Property Tax Levies 2020B Bonds 256,176 270,378 238,178 239,995 239,131 238,044 239,228 237,621 238,181 238,431 ISD Property Tax Levies 2020B Bonds 256,176 270,378 238,178 239,995 239,131 238,044 239,228 237,621 238,181 238,431 - - - - - - - - - - City Property Tax Levies Future Bonds - - - 36,875 74,125 71,750 97,000 98,750 120,125 123,375 ISD Property Tax Levies Future Bonds - - - 36,875 74,125 71,750 97,000 98,750 120,125 123,375 Interest on investments - - - - - - - - - - Total revenues 557,982 626,720 624,538 705,580 776,909 768,484 819,776 823,358 865,368 875,345 Note: current year levies pay for the August debt payment (CY) and February debt payment (NY)Expenditures2020A Debt Service (2020 Projects) Ames ParkingCity anticipates issuing tax abatement bonds for the parking lot project. LHA & HFSC contributions are pledged for the repayment of principal. Lakeville Arenas approved a resolution to pay the interest and any shortfall in principal dPrincipal - 70,000 70,000 75,000 75,000 75,000 75,000 80,000 80,000 85,000 Interest 16,025 15,965 14,723 13,380 11,936 10,436 8,861 7,155 5,295 3,273 AMOUNTS ARE BASED ON PRELIMINARY 2020A BOND ISSUANCE INFORMATION PRESENTED TO THE CITY COUNCIL ON 4/27/2020 WORKSESSION2020B Debt Service (2020 Projects)Principal - 255,000 330,000 335,000 345,000 350,000 355,000 365,000 370,000 380,000 Interest 179,348 212,986 207,785 201,633 195,086 188,135 180,731 172,809 164,263 155,073 AMOUNTS ARE BASED ON PRELIMINARY 2020B BOND ISSUANCE INFORMATION PRESENTED TO THE CITY COUNCIL ON 4/27/2020 WORKSESSIONDebt Service (2023 Projects)Principal - - - 45,000 50,000 50,000 55,000 55,000 55,000 60,000 Interest - - - 28,750 26,500 24,000 21,500 18,750 16,000 13,250 Debt Service (2024-2029 Projects)Principal - - - - 45,000 45,000 75,000 85,000 115,000 125,000 Interest - - - - 26,750 24,500 42,500 38,750 54,250 48,500 - - - - - - - - - - Total expenditures195,373 553,951 622,508 698,763 775,273 767,071 813,593 822,464 859,808 870,095 Net increase/(decrease)362,609 72,769 2,030 6,818 1,636 1,413 6,184 894 5,560 5,250 Balance January 1- 362,609 435,378 437,408 444,225 445,861 447,274 453,458 454,351 459,911 Balance December 31362,609 435,378 437,408 444,225 445,861 447,274 453,458 454,351 459,911 465,161 Lakeville Arenas Debt ServicePage 20