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Home My WebLink About3.c. Community Center Arena UpdateCITY OF ROSE24OUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: June 2, 1992 AGENDA ITEM: Community Center Arena Update AGENDA SBCTIONs Depart. Heads Reports PREPARED BY: Stephan Jilk, City Administrator AGENDA i • � " ATTACHKENTS: Operating Budgets, Lakeville Info AF Consistent with the direction given by council at the last c ncil meeting city staff and consultants have completed several tasks relative to the financial consideration of the proposed multi-purpose arena. We have reviewed other city/organizations' operating data for arenas with. similarities to our proposed facility. We have also drafted our own operating budget for the proposed facility. Our financial consultant has reviewed this information, along with the information provided by Mr. Pederson and his committee members. We have also been provided with information from the City of Lakeville which has been working with the Lakeville School District and a citizens group on a similar concept. Attach6d are documents outlining the draft budget and a copy of the information drafted by the Lakeville group. Mr. O'Neill will provide the debt service information to Council at the June 2, 1992 meeting. The proposed budget established by staff, being myself, Dave Bechtold, Lisa Jost and Rick Cook, reflects our best estimate at these operating expenses and revenues. It also reflects a sizeable net income from operations without consideration for debt service. As debt service is included there would be'a sizeable deficit. We have listed several alternatives for providing the necessary subsidy if it is needed. These alternatives are not recommendations but legal alternatives. It is interesting to note that the Lakeville projections are similar and would also require a similar subsidy along with other financing methods. RECOMMENDED ACTION: None Recommended. Discussion needs to be focused on the desire to move ahead knowing the options on how to create the necessary cash flow. If the council moves ahead the next step would- be to order the completion of plans for the arena. COUNCIL ACTION: Rosemount Arena Income / Loss Statement (Estimated) Income From Operations Ice Time Sales $238,000.00 Ww". 43C'-' Skate Sharpening $3,000.00 (net) High School Games $10,000.00 (net) Concessions $20,000.00 (net) Vending $5,000.00 (net) Pro Shop $1,000.00 (net) Advertising in Arena $10,000.00 Tournaments $6,000.00 (net) (3) Dry Floor Events $15,000.00 (net)(5) Dry Floor Use Other $6,000.00 Summer Ice $5,000.00 (net) Total Income From Operations $319,000.00 Operating & Maintenance Expenses Wages & Benefits Manager $20,000.00 (1/2 facility manager) Assistant Manager $25,000.00 Others $51,920.00 (3 part time ) Insurance $10,000.00 Building R & M $40,000.00 (note 1 below) Equipment R & M $21,860.00 (note 2 below) Gas Electric„ Telephone Water Rubbish $65,000.00 (all utilities combined) Total Operating & Maintenance $233,780.00 General & Office Expense Accounting/Payroll Advertising/Publications Duses and Subscriptions Licenses Office Supplies Travel and Seminars Misc. $10,000.00 (all above gen and office expense) Total Operating, Maint and General $243,780.00 Income / Loss From Operations Other Income/Expenses Expenses Debt Service Income Transfers - Banquet Facility Port Authority Contributions Building Dep Income / Loss For Year $75,220.00 $154,000.00 $15,000.00 (profits from operation} $29,780.00 (excess increments) $14,000.00 (capitol cost reduction) $20,000.00 (50% bldg Depreciation) —478,780.00 $0.00 Note 1) Building depreciation is based on $2,000,000. construction cost and,a useful life of 50 years. Note 2) Equipment depreciation is based on a value of $437,000. and a useful life of 20 years. Refrigeration Unit Heat Reclaimer Elevator Skate Tile Dashers Bleachers Zamboni Edger Goals sound system Total Equipment Depreciation Equipment To Depreciate $200,000.00 $20,000.00 $80,000.00 $15,755.00 $65,570.00 $10,000.00 $34,040.00 $750.00 $1,095.00 $10,000.00 $437,210.00 $21,860.50 MEMORANDUM munnum:.........S.SS..SS SSFFF..S.:..'....S...............•.«..... ...SS:•S.......•S .F•S... pm! SSLLS:SSFM .... SSg i:m mSS.S.E:: SESLSSLS SSLES..SLE. TO: Mayor and Council Members FROM: Dennis Feller DATE: January 10, 1992 SUBJ: Ice Arena ICE SNA BACKGROUND The Ice Arena Task Force has met periodically over the last couple of years with the intent of eventually constructing:a facility. The Committee is composed of representatives from the Lakeville Community Corporation (LCC), Lakeville Hockey Association (LRA), Independent School District No. 194 and the City of Lakeville. City representatives include Council members Lynette Mulvihill and Pat Harvey; City Administrator, Robert Erickson and Finance Director, Dennis Feller. A Finance Subcommittee was created in early 1991 for the purpose of preparing realistic and detailed construction, debt service and operating budgets. Regular attendees include Dick Aslesen, Juran and Moody; David Johnston, LHA; Dan Mehleis, Ind. School Dist. 194; Jim Morrow, LCC and Dennis Feller, City of Lakeville. Construction of the building would require the City of Lakeville to approve the issuance of bonds through a lease purchase financing mechanism. The facility would be subleased to and operated by the LCC with the primary revenues coming from ice rental fees generated by the LHA and ISD No. 194. The LCC would pledge revenues to pay for operations and debt service. The LHA would also pledge $70,000 of pull tab revenues to help augment the debt service payments. Construction is anticipated to start in 1994 with completion in August of the same year. SITE PLAN AND BUILDING D ,SIGN COMMI'T'TEE Robert Erickson, City Administrator; Bob Klecker, Polk Architects; and Steve Bourba, Krause Andersen have met on numerous occasions over the past several months to discuss the site plans and building design. The ice arena would be located near the northeast corner of Ipava and Highway 50. The school district has agreed to donate the land to the city for $1.00 and grade the site in conjunction With the athletic field construction project in 1992. The school also has agreed to pay for all the water, sewer and street special assessments associated with the project. A cement floor is included in the budget contingent upon the contribution from the City of Lakeville in the amount of $92,525. FINNUNG The project proposes the issuance of $1,400,000 of bonds in early 1992 to take advantage of unprecedented low interest rates. The bonds would be parked until the facility is authorized. None of the bond proceeds can be expended for construction until the LCC and LHA raise $400,000 of contributions and $140,000 in additional pull tab revenues from LHA• If construction is not completed within three years, IRS regulations require the bonds to be called. Net proceeds of $1,213,998 from the bond issue will be available for construction. The success of the Operating Budget is contingent upon annual receipt of the $70,000 from LHA pull tab revenues. Operating revenues are based on current market rates for ice rentals and 26 weeks of ice operations.' Operating expenses were based on information assembled by Dick Aslesen from eight ice arenas. FUND RAISING Mike Watters, President of Marquette Bank in Lakeville, has enthusiastically accepted responsibility for chairing the LCC Fund Raising Committee. The primary objective is to identify and solicit contributions from three groups; Corporate, LHA families and Community at Large. Mr. Watters will discuss his game plan with the Council at Tuesday's meeting. MEMORANDUM OF UNDERSTANDING Construction and operation of an ice arena requires the support and cooperation of the LHA, LCC, ISD 194 and the City of Lakeville. Such an endeavor will result in contracts between the four groups in order to insure project success. Over the course of the next several weeks, John Kirby, Bond Attorney from Dorsey Law Firm will prepare a Memorandum of Understanding which details the responsibilities of the groups involved. CONCEPT APPROVAL The City Council is requested to provide a Concept Approval of the ice arena project. EXHIBITS A. Site Study B. Ground Floor Plan C. Construction - Preliminary Estimates D. Debt Issuance and Construction Budget E. Amoritization Schedule F. operating Budget G. Proposed Long -Term Financing Agreement 01 E 3-6 7 8-9 10-15 16 A B C 1 10/1/91 2 KRAUS-ANDERSON CONSTRUCTION -PRELIMINARY ESTIMATE 3 i A1{EV -j-F ICE ARENA, LAKEVILLE, MINNESOTA 4 5 SECTION ITEM TOTAI. 6 1000 GENERAL FIELD CONDITIONS 7 BUILDING PERMIT ALLOWANCE $10,041.00 8 SAC CHARGES ALLOWANCE $8,450.00 9 WAC & SEWER HOOKUP ALLOWANCE $19,890.00 10 SUPERINTENDENT $49,200.00 11 TEMPORARYOFFICE $1,400.00 12 TEMPORARYPHONES $1,312.00 13 TEMPORARYHEAT NOT INCLUDED 14 TEMPORARY TOILETS $700.00 15 EQUIPMENT RENTAL, SAWS $1,500.00 16 CLEAN-UP $3,500.00- 17 DUMPSTER $1,800.00 18 SOIL TESTS $2,500.00- 19 LAY()UT $1,218.00- 1,218.0020 20 SURVEY $2,500.00- 21 BARRICADES & LIGHTS $1,20&00- 1,200.0022 22 2200 EARTHWORK NOT INCLUDED 23 DEWATERING NOT INCLUDED 24 SAND CUSHION NOT INCLUDED 25 2610 PAVING $15,750.00 26 FENCE $2,960.00 27 2800 LAWNS AND PLANTINGS ALLOWANCE $16,900.00- 16,900.0028 28 3300 CONCRETE WORK $107,600.00 29 RINK SLAB & INSULATION $92,525.00 3 0 SITE CONCRETE $25,643.00 31 4420 UNIT MASONRY& BRICK ON 50% OF BUILDING $323,400:00 A 9 C 32 5100 STRUCTURAL STEEL: 33 BEHLEN ROOF $360,304.00 34 BARJOIST AND ROOF DECK AT ENTRANCE $10,395.00 35 MEZZANINE STEEL AND ANGLES NOT INCLUDED 36 5500 MISCELLANEOUS METALS $3,700.00 37 6100 ROUGH CARPENTRY $5,640.00 3 8 6622 FINISH CARPENTRY & MILLWORK $3,629.00 39 BENCHES NOT INCLUDED 40 BENCH SUPPORTS NOT INCLUDED 41 7111 WATERPROOFING $3,200.00 42 7500 ROOFING $12,600.00 43 7900 CAULKING AND SEALANTS $1,800.00 44 8110 HOLLOW METAL & FINISH HARDWARE $17,556.00 45 8360 OVERHEAD DOORS $6,420.00 46, 8850 GLASS AND GLAZING $21,745.00 47 9250 GYPSUM DRYWALL NOT INCLUDED 48 9300 CERAMIC TILE WORK $5,720.00 49 9500 ACOUSTICAL CEILING $3,577.00 50 9650 RESILIENT FLOORING NOT INCLUDED 51 9690 RUBBER FLOOR 52 LOBBY $14,076.00 53 LOCKER ROOM NOT INCLUDED 541 9900 PAINTING $27,200.00 55 10100 CHALKBOARDS NOT INCLUDED 56 10150 E UIPMENT: 57 SUBSOIL HEATING $10,500.00 58 LABOR TO INSTALL SUBSOIL HEAT $4,000.00 59 1" POLYETHELENE &c 160 H.P. REFRIGERATION SYSTEM $112,000.00 60 LABOR TO INSTALL 1" TUBING $12,000,00 61 DASHER BOARD & ACRYLIC GLASS $78,000.00 6 2 ADD FOR TEMPERED GLASS $4,000.00 A 8 c- 63 DESICCANT DEHUMIDIFIER $25,000.00 64 LABOR TO INSTALL DEHUMIDIFIER $3,620.00 65 DESIGN BUILD PLANS $5,000.00 66 RESURFACING MACHINE NOT INCLUDED 67 NETS, ICE EDGER, DROP NETTING $8,000.00 68 1018 TOILET COMPARTMENTS $2,271.00 69 1025 FIRE FIGHTING DEVICES $820,00 70 1041 DIRECTORIES NOT INCLUDED 71 1042 SCOREBOARDS & SIGNS NOT INCLUDED 72 1080 TOILET ACCESSORIES $4,000.00 73 1140 FOOD SERVICE EQUIPMENT NOT INCLUDED 74 1270 SEATING NOT INCLUDED 75 BLEACHERS NOT INCLUDED 76 1500 MECHANICAL: 77 INFRA RED HEATERS NUT INCLUDED 78 GAS PIPING $4,000.00 79 PLUMBING $25,525.00 80 EXCAVATION & BACKFILL $2,200.00 81 ENGINEERING $2,500.00 82 SMALL TOOLS & EQUIPMENT $2,270.00 83 VENTILATION $34,000.00 84 PIPE INSULATION $1,200.00 85 OUTSIDE SEWER AND WATER ALLOWANCE $34,000.06- 34,000.0086 861 FIRE PROTECTION NOT INCLUDED 87 INCREASE FOR 1993 CONSTRUCTION $9,115.00 88 1600 ELECTRICAL $98,00.00 89 COMMUNICATION SYSTEM NOT INCLUDED 90 TELEPHONE NOT INCLUDED 91 9 2 93 �` J�' $ Yr.i y"" ARCHITECTS - CIVIL AND STRUCTURAL ENGINEERING �,,} kt; rgL'Ct.3,;�. r v}.•; `$:L .h` `i .Y Y'+u ;i.. .-{ r SUBTOTAL $35,000.00 tit•�Q� a.7' t�j. ��. ,,.,: y.}yY .^)C ht.�p $1,737,572.00 0 A 6 C 94 INSURANCE AND TAX ON LABOR IN LABOR ABOVE 95 SALES TAX -6% $5,211.00 96 SPECIAL INSURANCE & BUILDERS RISK $2,117.00 97 BOND NOT INCLUDED 98 PROFIT AND OVERHEAD $51,536.00 99 GENERAL LIABILITY INSURANCE $8,831.00 100 101 SITE LIGHTING ??.•:• � : �\.'!?;e64�; }.. j. hvv'�•.•::'. t •Sh.%?•:K.Li;.'nl,••�.itr'{ti??ii?:`:%:r::yy:?:::}y 'i,'`.?,..�y`J.,`': .'�„y��•tar, ,•i`i si4�n{ i`nC•:4.Ly:, }+hp,�fi�f {,'.Y+.F T k jn•,..?�.. .�:'�S`r•`YR':.if ��. �{. �.Y.•: .:{•fC�n.J..K:r+:i'.Oki•:iryrf•:\.fi�ti.�.•. %..C..1k>yH }{LS TOTAL NOT INCLUDED y� Y. +$,.Q.Vprf. ��F <Yi h �� `^45j.?•'� ��m"¢3".}��"J}��.. .. NWv.'•iF�}FA}}'P'K�:h'{.•9i'Y:':�•.b4jv:K•4n�•"A•-�{j<' $1,805,267.00 102 103 WE DO NOT INCLUDE THE FOLLOWING: 104 SITE LIGHTING 105 SIGN WIRING 106 SCOREBOARD 107 TELEPHONE WIRING 108 EARTHWORK 109 PARKING LOT 110 LOCKER ROOMS 111 MEZZANINE 112 DRESSING BENCHES 1 1 3 CABINETS 1114 LOCKER ROOM TOILETS 115 RESILIENT FLOORING 116 LOCKER ROOM RUBBER PAD 117 CHALKBOARDS 118 RESURFACING MACHINE 119 DIRECTORIES 120 FOOD SERVICE EQUIPMENT 121 SEATING 122 INFRA RED HEATERS OVER SEATING 123 SPRINKLER SYSTEM 124 CONSULTING ENGINEER FOR ICE MAKING SYSTEM 0 a z 3-z 'Pop&Assvslnc: ', Acvtets Eng,evs -Plan^ers �= , 11, —AKEVILLE ICE ARENAw *1[M z 3-z 'Pop&Assvslnc: ', Acvtets Eng,evs -Plan^ers �= , 11, —AKEVILLE ICE ARENAw *1[M LAkX03 CITY OF LAKSVILLS LAKBVILLS COHWMITY CORP. LAKBVILL6 HMMY ASSOCIATIcN DEBT ISSUANCE BUDGET and CONSTRUCTION SUM" USES OF FUNDS Undsrwritar's Financing Vee DEBT CONST. 42,000 L axwor' n Fee BUt)Ci1dT BUDXT ----w-•w-- TOTAL SOURCES OF FUNDS w---r----- 42,013 LCC & LHA Cash (7/91) 94,513 45,487 140,000 Lassa Financing On 2-1-92 •1,400,000 11400,000 Pull Tab Rwvwrn" (2-1-92 to 2-1-94) 1,213,990 140,000 140,000 City of Lakeville • Conereta Bicor 140,000 92,525 92,525 Net Proceed* From Lemma Financing 1,213,999 1,213,998 OTHER LCC/LM Funding By 2-1-94 400,000 400,000 TOTALsoURms w---w-ww-. 1, 494, 513 ---------- 1,892r010 ---------w 3,396,623 TOTAL USES asslsassfa aaza-s_oss :aaassssss USES OF FUNDS Undsrwritar's Financing Vee 42,000 42,000 L axwor' n Fee 10,500 10,500 Various Insuence Coats 42,013 42,013 Subtotal wwww- -wr-r 94,513 Capitalized Interest /1 46,002 46,002 Transfer To Construction 2-1-94 /2 1,213,990 1,213,999 Debt Service Reserve 140,000 140,000 Net Interest Expense /3 •37,010 37,010 Operating Reserve 50,000 50,000 Construction Cost 1,805,000 11805,000 TOTAL USES 1,494,513 1,892,Oi0 3,386,523 ssasaasaas amaaa_aecs sa assess /i To Pay Interest Due On 8-1-94. Interest Paymenta Due 8-1-92, 2-1-93, 9-1-93, and 2-1-94 To Be Funded From Interest Rarned On The $1,400,000 Balance In The Debt Account. See Also Footnote 3. /2 It Is Assumed That Construction Will Commence 2-1-94 And Be Fully Complete On 8-1-94. A NET Debt Service Payment Of AbmA 965,000 Due On 2-1-98 Must Be Funded From Operations a Pull Tabs. /3 Interest Expense For 24 Months, 2-1-94 thru 2-1-94 $184,010 In;Vest,$1,400,000 For 24 Months 0 5,250 - Interest Burned 147,000 NET INTEREST EXPENSE Mm 337,010 19-Dec-gi - Prepared By Juran 6 Moody, Inc. / - LAKEOl $1,400,000 : pA]R AMOUNT CITY OF LAKBVILLB, MINNESOTA ICB 5PIM PROJECT LOAN 18 YEAR DRBT AMORTIZATION SCFwUjjt 20 YEAR LSABB LOAN INTEREST RATES ILLUS'1'RATBD ARE AS C RBFLBCTIVS OF MARKST �Di1�DI�S OF THIS QA1'R. THE RATES AM S08JBCT TO Q1MB. PYMT 2 YEAR DATE ---- ---------- 08/01/92 02/01/93 08/01/93 02/01/94 08/01/94 1 02/01/95 08/01/95 2 02/ol/9S 09/01/96 3 02/01/97 08/01/97 4 02/01/98 08/01/98 s 02/01/99 08/01/99 6 02/01/2000 08/01/2000 7 02/01/2001 08/01/2001 8 02/01/2002 08/01/2002 9 02/01/2003 08/01/2003 10 02/01/2004 08/01/2004 1L 02/01/2006 08/01/2003 12 02/01/2006 08/01/2006 13 02/01/2007 08/01/2007 14 02/01/2008 08/01/2008 15 02/01/2009 08/01/2009 16 02/01/2010 08/01/2010 M. COUPON PRINCIPAL RATB 20,000 bolo 20,000 6.10 25,000 9.30 25,000 3.30 25,000 5.60 25,000 5.60 25,000 5.75 25,000 5.75 25,000 5.90 30,000 5.90 30,000 6.10 30,000 6.10 30,000 6.30 30,000 6.30 30,000 6.40 35,000 6.40 35,000 6.50 35,000 6.50 35,000 6.60 40,000 6.60 40,000 6.70 40,000 6.70 40,000 6.90 45,000 6.80 45,000 6.85 50,000 6.86 50,000 6.90 50,000 6.90 50,000 6.95 55,000 6.95 55,000 7.00 55,000 7.00 INTEREST ---- -------- 46,002.30 46,002.60 46,002.50 46,002.50 46,002.50 46,002.50 45,492.80 44,982.50 44,320.00 43,657.50 42,957.50 42,257.50 41,538.75 40,920.00 40,092.50 39,197.50 38,282.60 37,367.50 36,422.50 35,477.50 34,517.60 33,397.50 3a,260.0o 31,122.50 29,967.50 28,647.50 27,307.!30 26,967.50 74,607.50 23,077.50 21,526.25 19,823.75 18,098.75 16,373.76 14,636.25 12,725.00 10,800.00 SgMI ANNUAL PAYMENT r.►rrr..�..r-r-r 46,002.50 46,002.50 46,002.50 46,002.!50 46,002.60 66,002.60 65,492.50 69,982.50 69,320.00 68,657.50 67,957.50 67,257.50 66,538.75 65,820.00 70,082.50 69,197.50 68,282.50 67,367.50 66,422.50 65,477.50 69,517.50 68,397.50 67,260.00 66,122.50 69,967,50 68,647,50 67p307.80 65,967.60 69,607.50 68,077.$0 71,536.25 69,823.75 68,098.75 66,373.75 69,636.26 67„725.00 65,800.00 19 -Dec -91 - PREPARED BV JURAN & MOODy f INC. CALBNOAR YEAR WTAL. ------------ 46,002.50 92,005.00 92,005.Q0 131,495.00 139,302.50 .136,615.00 133,796.25 135,902.S0 137,480.00 133,790.00 134,995.00 135,667.50 136,090.00 1351959.00 135,675.00 134,613.75 137,922.50 136,010.00 133,525.00 � -8 LAKEpi CITY OF LAKEVILLE, MIMESOTA ICE ARENA PROVECT LOAN 18 YEAR DEBT AMORTIZATION BULB ZO YEAR LEASE LOAN 61,400,000 PAR AMUNT INTEREST RATES ILLUSTRATED ARE REFLECTIVE OF MARXRT G1ONDIT0NS AS OF TNIB DATE. THE RATER ARB SUBJECT TO OMM. PYNT Z EST. COUPON BENI CALMAR YEAR .... DATE .......... PRINCIPAL RATE INTBRB$T ANNUAL YSAR PAYMENT 17 03/01/2011 .•-•.••-..... ..----- 60.000 7.10 ----8,875.• . TOTAL ............ -------- .. -- r----• 18 08/01/2011 08/01/2011 60,000 7.10 8.875.00 6,745.00 68,875.00 02/01/2012 08/01/2012 65,000 7.10 4,615.00 66,748.00 136,620.00 69,615.00 65,000 7.10 ---- ---- 2,307.60 67,307.50 136,922.60 TOTAL 1,400,000 -==aaaaxsas=x •-•r-r�.�.rrr 1,276,280.00 .. r -r r -r ----r ----------•- -,676,280.00 2,676,280.00 ataasst:as:este. .. saacsassx:acmmm =ss:=assn: ss 02/01/92 02/01/97 a Dated Data = Est. Closing b1,a00,000 00 = � FINANCED 08/01/92 = 1st Int Data 94 013. • 00 (42,000.00) s Cash Frm LHA and LCC Underwriter** 6.76990 = xvM INTEREST RATS (10,500.00; = Fes A 3,t Leaeor•a Fee (140, 000.00 = Reserve Ace t 6.99261 _ Nat Effect. Rate (42,013.00) (46,002.50) = set. issuance 6xpane�ese /1 = 6 Months Cap. Intereft 13.4662 =Awe Lite (Yrs) 61,213,997.60 = Available For 140,000.00 Conetrwtion r Reserve Acct Cash 46,002.60 ------------ - Cap rnterest Cosh $1,400,000.0o = AMOUNT FiNANCBD xaaaa=aaaaaa $135,904 m AVERMM ANNUAL DEBT SRRVICL (9,800) . Reserve Arch Interest # 7.0( -----."- 6126,104 = NBT AVER ANWjAL KWIRT SSRVrCm •smms=:a /1 To Fund Cartificate Printing, Escrow and Local Legal Agent Pees, and the fee of Bond Counsel Couns6l for the preparation Of all transaction documents. /Z It In assumed the $140,000 Reserve Amount will be invested in a U.S. Treasur Notes to mature February'2000. Per the 12-19-91 "Wall street Journal", the closing Yield 12-18-91 wee 7.074. It is • the Lsa8Q will be 8 years from the date of pectedce.at the earliest Call date jux 19-Dec-91 - PRSPARM BY JURAN & MOODY, I I C E A R E N A ESTIMATED OPERATING BUDGET 01/03/92 PAGE 1 1991-92 REVENUES ------------- _-_______ Pull tabs 70,000 Ice Rental 155,788 Tournament admissions 3.000 Skate sharpening 2,500 Sales and concessions, net 10,000 'Advertising 10,000 Interest income 2,250 Total revenues 253,538 EXPENDITURES ------------ Personnel 59,210 Commodities 10,200 Utilities 37,624 Other contractual 20,400 Debt service 126,104 Total expenditures 253,538 Net income/(loss) 0 01/03/92 PAGE 1 I C E A R E N A ESTIMATED OPERATING BUDGET REVENUES ,GAMBLING OPERATIONS 70,000 ICE RENTAL. Ice rental estimates based on an assumed 26 weeks of operation as shown in figure 4 of Juran and Moody report of August 10, 1989 with a $1058 adjustment. TOTAL ICE RENTALS 155,788 Tournament admissions From 1989 budget Skate sharpening From 1989 budget Sales and concessions Advertising From 1989 budget Interest income (cash reserves) 01/05/`2 PAGE 2 3,000 Units 5,000 Rate $0.54 2;500 Sales 25,000 60% Cost of good 15,000 10,000 Units 40 Rate $250 10,000 Avg balance 50,000 Rate 4.5% 2,250 I C E A R E N A ESTIMATED OPERATING BUDGET EXPENDITURES ------------ Personnel Salaries Full time Salaries Part time FICA Hospitalization + Life Ins. Unemployment insurance Workmans Comp Total personnel costs Commodities Small tools and equipment Motor fuels/oils Chemicals Equipment parts Supplies Total commodities Utilities Electric Gas Water and sewer Telephone Total utilities Other contractual Consultant services Printing and Publishing Repairs - equipment Repairs - building Schools and conferences Cleaning service/garbage removal Rental expense Insurance - Liab/prop .Dues and subscriptions Uniform/Clothing allowance Total other charges Debt service Total expenditures 011/03/92 PAGE 3 32,500 17,010 3,788 1,800 894 .3,218 59,210 250 1,750 3,000 2,000 3,200 10,200 24,516 12,000 508 600 37,624 1,000 200 2,000 2,000 200 1,250 0 13,200 400 ISO 20,400 126,104 253,538 I C E A R E N A ESTIMATED OPERATING BUDGET EXPENDITURES ------------ The following budget was based on the assumption that the LCC would be responsible for operating the facility. Personnel Salaries - Full time - Manager 32,500 based on ice arena manager survey Salaries - Full time — assistant 0 32,500 Salaries - Part time Weeks Hours Rate Commodities Small tools and equipment Motor fuels/oils Zamboni propane fuel Chemicals Freon for compressor, if needed Equipment parts various, including zamboni 30 95 6.00 17,010 250 250 1,750 1,750 3,000 3,000 2,000 2,000 Supplies Cleaning supplies, first aid trash liners, maint. materials etc 3,200 3,200 01 0 PAGE 4 I C E A R E N A ESTIMATED OPERATING BUDGET Electric 1989 est of $22,700 Add 8% 24,516 24,516 Gas. 1989 est of $11,200 12,000 12,000 Water and sewer Number gallons - water 200.000 Cost $154 Number gallons - sewer 200,000 Cost $354 508 Telephone One Centrix line at $50 per month 600 600 Consultant services Attorney 0 Auditor 1,000 1,000 Printing and publishing Tickets, news/want ads 200 • 200 Repairs - equipment Zamboni repairs Scoreboards maintenance agreements 2,000 2,000 Repairs - building HVAC system Hockey board repairs Garage doors Etc 2,000 2,000 01/03/q2 PAGE 5 PHGE 6 I C E A R E N A ESTIMATED OPERATING BUDGET Schools acrid conferences 200 200 Cleaning service/garbage removal Garbage pickup 1,250 1,250 Rental expense Forklift to remove hockey boards provided by volunteers O Insurance - Liab/prop Property insurance 3,200 Liability 10,000 13,200 Dues and subscriptions Minn 1 ce Managers Asso ISIA Membership ASCAP Miscellaneous 400 400 Uniform/Clothing allowance Employee ID jackets 150 150 PHGE 6