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2015-02-09 STMA Ice Arena Board PacketSTMA M:\Public Data\Arena\2015\agendas\2015-02-09\02092015 STMA Agenda.doc STMA ARENA BOARD AGENDA MONDAY, FEBRUARY 9, 2015 ALBERTVILLE CITY HALL 6:00 PM 1. CALL TO ORDER – ROLL CALL 2. PRESENTATION – MASC & YHA Feasibility Presentation (pgs 1-17) 3. ADOPT AGENDA 4. APPROVAL OF THE MINUTES OF JANUARY 12, 2015 (pgs18-19) 5. FINANCE REPORTS a) Updated Budget to Actual 2014 (no action necessary) (pgs 20-23) b) Approve the January list of claims as presented in the amount of $5,041.53 and January report (pg 24) 6. ARENA MANAGER a) Monthly report (pgs 25-26) 7. NEW BUSINESS a) Appoint Chair for 2015 b) Discussion 2015 Preliminary Budget (pgs 27-28) 8. OLD BUSINESS 9. YOUTH HOCKEY ASSOCIATION 10. ADJOURN St. Michael-Albertville Ice Arena Market Demand Study National Sports Center Consulting 2015 STMA Arena Board Mtg 02/09/15 Page 1 TABLE OF CONTENTS SCOPE OF STUDY .................................................................................................. 3 Objectives and Methods ........................................................................................................................ 3 General Limiting Conditions ................................................................................................................ 3 NSC Consulting ...................................................................................................................................... 4 National Sports Center .......................................................................................................................... 5 PROJECT SUMMARY ............................................................................................ 8 Location ................................................................................................................................................... 8 Site ............................................................................................................................................................ 9 Facility Description ................................................................................................................................ 9 Management ......................................................................................................................................... 10 User Group Commitments and Contracts ........................................................................................ 10 St. Michael-Albertville Youth Hockey Association ......................................................................... 10 COMPETITIVE ICE ARENA FACILITIES ........................................................12 Buffalo .................................................................................................................................................... 12 Elk River ................................................................................................................................................ 13 Monticello.............................................................................................................................................. 13 Rogers .................................................................................................................................................... 13 Others..................................................................................................................................................... 13 MARKET DEMAND ............................................................................................13 Market Area Definition ....................................................................................................................... 13 Primary Market Area ........................................................................................................................... 14 Total Market Area ................................................................................................................................ 15 Population Characteristics .................................................................................................................. 16 CONCLUSION ......................................................................................................17 Market Demand ................................................................................................................................... 17 STMA Arena Board Mtg 02/09/15 Page 2 SCOPE OF STUDY Objectives and Methods NSC Consulting agreed to study the market demand for a second sheet of ice at the St. Michael- Albertville Ice Arena pro bono. Research for this project was conducted in 2014. The research included interviews with northwest metro area ice arenas staff, officers of local area youth athletic clubs and other potential facility tenants. Secondary research was conducted for demographic and other relevant information. The market demand consists of: • Determining the boundaries of the Market Area, • Representing the characteristics of the population within the Market Area using both current statistics and future trends, • Describing the local community, and • Evaluating the competition within the Market Area. To determine the boundaries of the Market Area, several factors were taken into consideration, such as the location of the current competition, the geographic area from which competitive facilities draw, traffic patterns of the area, accessibility and visibility of the site location, the location of current club members at the arenas, and any geographic or socio-economic barriers that influence transportation decisions. Demographic characteristics that were compiled and analyzed include: population, number of households, income, age, education, school attendance, and employment. Community characteristics that were compiled and analyzed include public school enrollment and an inventory of local youth hockey clubs. General Limiting Conditions Every reasonable effort has been made to ensure that the data contained in this study reflect the most accurate and timely information possible and the data are believed to be reliable. In some cases, this study is based on estimates, assumptions and other information reviewed and evaluated by NSC Consulting from its consultations with the client and the client’s representatives and within its general knowledge of the industry. No responsibility is assumed for inaccuracies in reporting by the client, the client’s agent and representatives or any other data source used in preparing or presenting this study. St. Michael-Albertville Ice Arena Market Demand Study 3 STMA Arena Board Mtg 02/09/15 Page 3 This report is based on information that was current as of December 2014 or as noted in the report. NSC Consulting has not undertaken any update of its research effort since this date. No warranty or representation is made by NSC Consulting that any of the projected values or results contained in this study will actually be achieved. Possession of this study does not carry with it the right of publication thereof or to use the name “NSC Consulting” in any manner without first obtaining the prior written consent of NSC Consulting. No abstracting, excerpting or summarization of this study may be made without first obtaining the prior written consent of NSC Consulting. This study is qualified in its entirety by, and should be considered in light of, these limitations, conditions and considerations. NSC Consulting Qualifications NSC Consulting is a national amateur sports facilities consulting firm specializing in: ♦ Feasibility studies ♦ Economic impact analysis ♦ Visitor projections ♦ Management ♦ Operations ♦ Marketing focus ♦ Sponsorships NSC Consulting is the only consulting firm in the amateur sports facilities sector that owns and operates a facility – the National Sports Center (NSC) in Blaine, Minnesota. The NSC is a national and international destination for amateur sports events that was founded in 1990. NSC Consulting will analyze and make recommendations for the market opportunity based on the clients’ resources and operating projections in order to determine the market demand of the St. Michael-Albertville Ice Arena. Once acquired, NSC Consulting can share invaluable expertise with its clients, from staffing and maintenance to programming and revenue enhancement. NSC Consulting also creates projected attendance and spending estimates, giving clients solid economic impact numbers that can be used to garner local political and business support. St. Michael-Albertville Ice Arena Market Demand Study 4 STMA Arena Board Mtg 02/09/15 Page 4 NSC Consulting draws on the combined experience and specific knowledge from over 50 employees of the National Sports Center. The staff of the National Sports Center has experience with ice arenas, indoor turf fieldhouse operations, golf course operations, sports event management, sports tourism promotion, economic impact analysis and visitor projections, sports programming, real estate development, turf management, non-profit financial administration, and strategic partnership development. National Sports Center The National Sports Center is a 657-acre amateur sports complex located north of Minneapolis in Blaine, Minnesota. It operates as a private non-profit. It includes: ♦ 52 outdoor fields, the world’s largest ♦ 8 indoor sheets of ice in one facility, the nation’s largest ♦ 12,000 seat outdoor stadium ♦ 52,000 square foot indoor turf field house ♦ 18-hole PGA-designed golf course ♦ 150 bed residence hall with cafeteria ♦ 35,000 square foot meeting facility ♦ All-wood outdoor velodrome The National Sports Center is welcomed 4.2 million visitors in 2014, making it the most-visited sports facility in Minnesota. St. Michael-Albertville Ice Arena Market Demand Study 5 STMA Arena Board Mtg 02/09/15 Page 5 Schwan Super Rink The Schwan Super Rink is the largest ice arena of its kind in the world. This state-of-the-art facility features eight sheets of ice under one roof. The $21 million project totals over 300,000 square feet. Included in the arena is the room temperature Hat Trick Café that overlooks four of the ice sheets, 32 oversized locker rooms that provide comfortable quarters for all user groups, a pro shop, and extensive dry land training facilities for hockey and figure skating. Stephen L Olson, Principal Stephen Olson is the Chief Operating Officer of the National Sports Center Foundation. In this role he directs the daily operations of the National Sports Center, Schwan Super Rink, and The National Youth Golf Center. Olson has significant experience working within the education and non-profit sectors. He served as Assistant Director of Intercollegiate Athletics and Recreational Sports at the University of Michigan. He served in facility operations, where his prior experience as general manager of local Ann Arbor architectural firm proved invaluable, and information technology, where he devised applications to manage facilities and program scheduling. After twenty years at the University of Michigan, Olson became Executive Director of the Minnesota Youth Soccer Association. During his tenure with MYSA, he served three years on the US Soccer National Board of Directors and gave many presentations to local, regional and national sports organizations on the role of non-profit sports organizations in regard to the Amateur Sports Act. He was also instrumental in the success of the Mighty Kicks Grant Program, which delivered approximately $3 million in state funds for the construction of sports fields in Minnesota. Olson is an accomplished soccer official, serving as one of only seven FIFA Assistant Referees from the US from 1992 to 1997. He appeared over 50 times in international soccer competitions including the qualifying games of the 1994 and 1998 World Cup and the 1996 Olympics. He was made a life member of US Soccer in 2000 for his accomplishments. Olson is a graduate of the University of Michigan, School of Law and the Gerald R Ford School of Public Policy Studies. St. Michael-Albertville Ice Arena Market Demand Study 6 STMA Arena Board Mtg 02/09/15 Page 6 Mark Erickson, Research Analyst Mark Erickson is a Research Analyst for NSC Consulting. He creates the attendance and economic impact reports for the National Sports Center and other facilities developed by the Minnesota Amateur Sports Commission. He is the grant administrator for the Mighty Ducks Ice Arena statewide grant program that resumed in 2014 and the Hennepin Youth Sports Program, which has awarded over $15 million since 2009 to Hennepin County communities for sports facilities and equipment. Erickson also analyses and writes reports on many aspects of the operation the National Sports Center. He is very active in Minnesota’s boys’ lacrosse community. Completed Projects NSC Consulting has written feasibility studies for or has consulted with the following youth athletic facility organizations: ♦ Central Minnesota Event Center, St. Cloud, Minnesota ♦ Copper Igloo Ice Arena, Tucson, Arizona ♦ Herb Brooks Training Center, Blaine, Minnesota ♦ Minneapolis Sports Center, Minneapolis, Minnesota ♦ National Youth Golf Center, Blaine, Minnesota ♦ Northfield Ice Arena, Northfield, Minnesota ♦ St. Paul Inner-City Tennis Center, St. Paul, Minnesota ♦ Schwan Super Rink, Blaine, Minnesota ♦ Schwan Center, Blaine, Minnesota St. Michael-Albertville Ice Arena Market Demand Study 7 STMA Arena Board Mtg 02/09/15 Page 7 PROJECT SUMMARY Location St. Michael-Albertville Arena is located at 5898 Lachman Ave NE, Albertville, Minnesota 55301. The arena is a few blocks south of the Interstate 94 and Highway 19 interchange, providing easy access to the freeway. Albertville is 30 miles northwest of downtown Minneapolis and 35 miles southeast of St. Cloud. The I-94 corridor between Minneapolis and St. Cloud has experienced rapid population growth over the past 10 years and is expected to keep growing over the next 10. St. Michael-Albertville Ice Arena Market Demand Study 8 STMA Arena Board Mtg 02/09/15 Page 8 Site Facility Description The current arena was built in 1998. It has seating for approximately 250 people, 7 locker rooms, a rink manager’s office and a concessions stand. Four compressors are original, one additional compressor was added in 2005. The refrigeration is indirect R-22. The parking lot has 130 stalls. A new dehumidification system was added in 2014. At that time other major repairs were completed. St. Michael-Albertville Ice Arena Market Demand Study 9 STMA Arena Board Mtg 02/09/15 Page 9 Management The current arena is governed by a six person board appointed by the three local government units. ISD 885 (St. Michael-Albertville School District) and the cities of St. Michael and Albertville each appoint two members to the Arena Board. There is a Joint Powers Agreement between the three entities that governs the operation of the arena. The finances are run through the city of Albertville, where the arena is located. The arena board hires and supervises the arena manager and all additional staff. There is one full-time rink manager and approximately two additional FTE’s for Zamboni drivers and concessions workers. User Group Commitments and Contracts Hours Use 2012-2013 2013-2014 STMAYHA 948.8 936.8 Open Hockey / Skate 241.2 152.5 STMA HS Boys 149.3 128.8 STMA HS other 152.5 122.7 Rentals 132.5 73.2 STMA HS Girls 42.0 42.5 Men's Hockey League 32.0 32.0 Learn to Skate 38.5 14.0 1,736.8 1,502.5 Hours rented are from September 1 to August 31 of the following year. 2013-2014 hours were lower because the ice was taken out of the rink for two months during the summer to install a new dehumidification system. Prime time hours are defined as 6 pm to 10 pm each weekday and 8 am to 10 pm each weekend. This totals 48 prime time hours per week. There are 30 weeks from September through March that are in-season. This results in 1,440 prime time in-season hours per year. Based on the current rental pattern, all prime time in-season hours are currently being used. St. Michael-Albertville Youth Hockey Association The St. Michael-Albertville Youth Hockey Association (STMAYHA) is currently the largest purchaser of ice hours at the STMA Ice Arena and would remain the largest after the addition of a second ice sheet. Currently STMAYHA has demand for more prime-time hours than are available at their home arena. It has regularly rented hours of ice at Moose Sherritt Arena in St. Michael-Albertville Ice Arena Market Demand Study 10 STMA Arena Board Mtg 02/09/15 Page 10 Monticello, Buffalo Ice Arena, Schwan Super Rink in Blaine, and Rogers Ice Arena. Below is a chart showing rental hours at these arenas and others from September 2013 to March 2014. Facility Hours Monticello 200 Buffalo 60 Schwan Super Rink 47 St. Cloud area 21 Sartell 20 Fogerty 14 Rogers 12 Litchfield 11 Anoka 10 Sauk Rapids 10 Princeton 9 Wilmer 9 New Hope 8 Elk River 7 Centennial 5 443 Several of these rentals were for special events or practices around tournaments. However, it shows the level of demand for practice time from the STMAYHA. STMAYHA ice rental purchase was $176,000 from their May 2013 to April of 2014 fiscal year. The operating revenue of the association was $544,000, operating expenses were $547,000, and operating net income was -$3,000. However, over the previous three years, operating net incomes were $54,000 in 2012-13, $37,000 in 2011-12, and $32,000 in 2010-11. STMAYHA has approximately 410 boys and 80 girls in its programs. St. Michael-Albertville Ice Arena Market Demand Study 11 STMA Arena Board Mtg 02/09/15 Page 11 COMPETITIVE ICE ARENA FACILI T IES Rings are at 5 and 10 mile radius. Buffalo The Buffalo Civic Center has two NHL-sized rinks. The original rink was built in 1977 and the additional rink opened in 2001. The ice is taken out at the older rink in the summer and rented for various uses. There is a weight room and a dryland training area. Prime-time rate is $195 and off-peak is $139. St. Michael-Albertville Ice Arena Market Demand Study 12 STMA Arena Board Mtg 02/09/15 Page 12 Elk River Elk River Arena also has two rinks, the first built in 1972 and the second in 1997. However, they are different sizes. The older rink is close to NHL-size and seats around 400 people. The ice is taken out in the summer and rented for various purposes. The newer rink is 200 by 100 feet and seats 1,200 people. Regular rate is $190. Monticello Moose Sherritt Arena is an older single sheet facility that removes the ice in the late summer. The rate is $190 per hour for almost all available hours mid-September through mid-March. Off- season rates are $150 per hour. Rogers The Rogers Activity Center opened in 2007. The single NHL-sized rink is open year-round. Prime- time rates are $190 per hour and $155 in the non-prime hours. Others Other nearby arenas are found in Champlin, Maple Grove, Anoka, Princeton and Plymouth. The rates range from $200 closer to Minneapolis to $180 in Anoka. MARKET DEMAND Market Area Definition The Total Market Area is defined as everything within an approximately 15-minute drive from the arena. Within this area, the Primary Market Area is the borders of the St. Michael-Albertville School District. This market will provide most of the demand for ice rink rentals, especially for prime-time hours. The Total Market Area extends further, from the borders of the school district out to the 15-minute drive limit. The Total Market Area is used for demographic and demand information. St. Michael-Albertville Ice Arena Market Demand Study 13 STMA Arena Board Mtg 02/09/15 Page 13 Primary Market Area The St. Michael-Albertville School district had a 2012-2013 enrollment of 5,747 students. Enrollment in 1999-2000 was 2,564 students. Enrollment has grown, on average, 245 students each year. Projections for the coming years expect enrollment to increase over 100 students each year. Students in the district are 92% white, not of Hispanic origin, and 13% qualify for Free/Reduced Priced Lunch. Statewide averages for the se categories are 72% and 39%, respectively. St. Michael-Albertville Ice Arena Market Demand Study 14 STMA Arena Board Mtg 02/09/15 Page 14 Total Market Area The Total Market Area is defined as the area within a 15-minute drive. This area is represented in the diagram above. However, for precise statistical analysis, the secondary market consists of Zip Codes: 55301, 55311, 55341, 55357, 55362, 55374 and 55376. St. Michael-Albertville Ice Arena Market Demand Study 15 STMA Arena Board Mtg 02/09/15 Page 15 Population Characteristics The information below is based on the Market Areas described above. The data is from the 2008- 2012 American Community Survey. The Metropolitan Statistical Area (MSA) is Minneapolis-St. Paul-Bloomington, MN-WI Metro Area. Population Primary MA % Total MA % MSA % Population 23,094 96,407 3,290,811 Households 7,577 33,727 1,279,694 HH with children 6,336 84% 15,044 45% 404,751 32% 0-19 year olds 8,384 36% 31,962 33% 680,237 20% 20-34 year olds 3,865 17% 17,602 18% 694,748 21% Income Total MA MSA US HHs above $50,000 77% 63% 53% Median HH Income $91,740 $66,751 $53,046 Current Unemployment 6.1% 7.3% 9.3% Education Total MA MSA US Completed HS or higher 97% 93% 86% BA or higher 41% 38% 29% St. Michael-Albertville Ice Arena Market Demand Study 16 STMA Arena Board Mtg 02/09/15 Page 16 CONCLUSION Market Demand Current usage of the ice arena by the youth hockey association and local school district fills the available hours of prime-time ice during the regular hockey season. The youth hockey association uses non-prime hours at the ice arena and other arenas in the area. It also uses outdoor rinks for its youngest age divisions. With the expected growth in population, the youth hockey association would be able to purchase a significant amount of prime-time in-season hours if a second sheet of ice was added to the arena. There is also excess demand for prime-time in-season hours from several of the surrounding ice rinks. It is expected that a second sheet of ice would operate close to capacity for prime-time in- season hours. The overall success, meaning operating revenue is higher than operating expenses, of an ice arena depends on the “shoulder” times and seasons, after 10 pm during the season and the months outside the traditional hockey season. There are several indications that there is rental demand for these hours and months in the area. Another avenue for getting revenue from these hours is running ice arena programming, such as a figure skating program, adult hockey league, or youth tournaments. NSC Consulting is willing to help the St. Michael-Albertville Ice Arena develop, market, and create operating plans for these options if a second sheet of ice is added. St. Michael-Albertville Ice Arena Market Demand Study 17 STMA Arena Board Mtg 02/09/15 Page 17 ST. MICHAEL-ALBERTVILLE ICE ARENA BOARD MINUTES January 12, 2015 6:00 p.m. Present: Chairman Jeff Lindquist, Members Gayle Weber, Walter Hudson, John Vetsch and Nadine Schoen. Member Chris Schumm was absent. Also present: STMA Ice Arena Manager Grant Fitch, City Administrator Adam Nafstad, City Finance Director Tina Lannes and Youth Hockey Association President Josh Opiola. The meeting was called to order at 6:04 p.m. by Chairman Lindquist. Set Agenda Chairman Lindquist reminded the Board that the meetings in November and December were cancelled. Member Vetsch inquired on why there were not monthly meetings. Lindquist and Lannes explained that there usually are monthly meetings, but due to unforeseen circumstances, the last two meetings were cancelled, but regular meetings are scheduled. In addition, they added that in the summer, especially if ice is out, a meeting or two in the summer may be cancelled. Members Weber\Schoen moved to set the agenda as amended. All voted aye. Approval of Minutes Members Weber\Lindquist moved to approve the minutes of the October 13, 2014 Board Meeting as presented. All voted aye. Members Vetsch and Hudson abstained. Finance Reports Members Weber\Schoen moved to approve the October, November, and December list of claims totaling $73, 530.23 and the October, November, and December Financial Report as presented. All voted aye. Lannes reported that back in October, the Youth Hockey Association requested to use the STMA Ice Arena again for their “Knight to Remember” event in March. The Board directed staff to review the actual expenses to operate the Arena for this event. In the past, the Board has charged the Association $450 for this event, but the actual estimated cost (not including Grant’s time) is $623. Staff recommended the charge to be $623 and the Youth Hockey Association is aware and in agreement with this charge to use the venue. Member Vetsch questioned why the Board is charging for the use of the Arena for the event. The Board and staff had a discussion on when and why the charge was started for the use of the Arena for the event. Arena Manager’s Report Fitch reported Arena rental hours for October-December and noting that we are at our peak ice time. Chairman Lindquist asked Josh Opiola how many hours per month is Youth Hockey using at other facilities. Opiola stated over 100 hours a month. Members Hudson\Schoen moved to approve the Arena Manager’s report as presented. All voted aye. STMA Arena Board Mtg 02/09/15 Page 18 STMA Ice Arena January 12, 2015 Minutes Page 2 “Knight to Remember” Event Nafstad presented the Board with the request to approve liquor sales for the event. Members Schoen\Hudson moved to allow the Millside Tavern to provide the one-day liquor sales at the STMA Ice Arena for the “Knight to Remember” event in 2015. All voted aye. Tort Liability Limits Lannes requested the Board, as they have in the past, to waive the monetary limits on municipal tort liability coverage of $500,000 per person and $1,500,000 per occurrence. This doesn’t mean that the STMA Ice Arena waives coverage, it waives the limited coverage established by Minnesota Statute, Section 466.04 and increases the coverage up to the limits of the liability coverage that the STMA Ice Arena obtains from the League of Minnesota Cities Insurance Trust. Waiving this limit provides more coverage to the claimant under our insurance policy which has a limit of $2,000,000 per person and $2,000,000 per occurrence. Members Hudson\Vetsch moved to waive the monetary limits on municipal tort liability established by Minnesota Statutes, Section 466.04 to the extent of the limits of the liability coverage obtained from LMCIT subject to Chairman Lindquist’s final review of the document. All voted aye. Old Business Nafstad mentioned that the first preliminary 2015 budget would be presented at the next meeting. Member Weber asked if it would make sense to change the year from calendar year to school year. Lannes explained that for setting rates that would make sense, but since the City of Albertville took over the Arena and all the STMA Arena transactions run through the City of Albertville Financial System, it needs to stay calendar year. Youth Hockey Association Josh Opiola updated the Board that they are at their largest year in registered skaters of 451, not including the high school teams. They are also looking forward to the “Knight to Remember” event with Kat Perkins from the Voice performing. Next month the members from the MASC should be coming with the feasibility report. Adjourn Members Hudson\Schoen moved to adjourn at approximately 6:53 p.m. All voted aye. Attest: __________________________________ Tina Lannes, City Finance Director STMA Arena Board Mtg 02/09/15 Page 19 STMA STMA Preliminary Budget to Actual December 2014 (Cash Basis unaudited) 2014 Budget December 2014 Actual 2014 Actual YTD 12/31/14 % Annual Income Ice Rental (currently includes Dec Acct. Rec.Collected $243,450.00 $40,735.00 $254,317.68 104.46% Concessions $33,000.00 $10,586.25 $31,441.60 95.28% Other Revenues (Advertising/LMC/ins claims) $12,000.00 $1,058.70 $29,352.65 244.61% Vending $1,100.00 $259.25 $962.43 87.49% Open Skate/Hockey, etc $6,000.00 $2,412.00 $7,085.00 118.08% Interest $500.00 $0.00 $0.00 0.00% Misc Revenue $500.00 $1,001.00 $2,375.90 Total Income $296,550.00 $56,052.20 $325,535.26 109.77% Expenses Salaries, wages, taxes & Benefits $109,024.90 $16,875.77 $112,483.40 103.17% Supplies (Office, misc) $1,500.00 $744.49 $2,385.82 159.05% Supplies (Concession) $12,150.00 $3,612.74 $13,409.10 110.36% Fuel, Misc $2,400.00 $487.96 $1,829.04 76.21% Professional Services $15,000.00 $508.51 $16,528.86 110.19% Sales Tax $3,200.00 $1,142.33 $2,695.70 84.24% Telephone $1,000.00 $71.28 $884.46 88.45% Electric $65,000.00 $12,227.61 $65,111.47 100.17% Gas $8,000.00 $6,506.18 $17,098.66 213.73% Water $17,500.00 $3,087.11 $17,758.46 101.48% Refuse $1,300.00 $248.50 $1,371.94 105.53% Insurance $9,000.00 $0.00 $8,690.00 96.56% Administration $11,686.87 $973.90 $11,686.87 100.00% Misc. $525.00 $496.88 $706.88 134.64% Repair Maintenance – Machinery $10,000.00 $3,259.06 $4,325.54 43.26% Repair Maintenance – Building $27,500.00 $3,025.99 $31,275.19 113.73% Total Operating Expenses $294,786.77 $53,268.31 $308,241.39 104.56% Net Income/Loss $1,763.23 $2,783.89 $17,293.87 STMA Arena Board Mtg 02/09/15 Page 20 STMA CASH BALANCES AND RECEIVABLES Unaudited December 31, 2014 Cash Balance Operations Cash Balance 1/1/14 $ 98,405 Add Revenues (collected in 2014) $325,535 Add Receivable (2013 collected 2014) $ 21,918 Less Dehumidification funds used $ 47,000 Less Expenses $308,241 Cash Balance 12/31/14 $ 90,617 Cash for operations $90,617 Total Cash Balance 12/31/14 $90,617 Accounts Receivable December 31, 2014 - $54,773.62 Cash Balance Dedicated Capital Improvement Fund Arena Owner Dedicated Cap. Imp. Fund Beginning Balance 1/1/14 $50,000 2013 contribution re. by STMA schools $10,000 2014 contribution rec. by St. Michael $15,000 2014 contribution rec. by Albertville $15,000 2014 contribution rec. by STMA Schools $15,000 Donations via Albertville Water Bills $353 2014 Capital Expenditures (dehumidification) ($220,446) 2014 Albertville dehumidification reimbursement $41,164 2014 At. Michael dehumidification reimbursement $41,164 2014 STMA Schools dehumidification reimbursement $41,164 Balance 12/31/14 $8,398 STMA Arena Board Mtg 02/09/15 Page 21 STMA STMA Preliminary Budget to Actual January 2015 (Cash Basis) 2015 Proposed Budget (draft) January 2015 Actual 2015 Actual YTD 1/31/15 % Annual Income Ice Rental (currently includes Dec Acct. Rec.Collected $260,000.00 $41,315.00 $41,315.00 15.89% Concessions $32,000.00 $8,413.37 $8,413.37 26.29% Other Revenues (Advertising/LMC/ins claims) $14,500.00 $0.00 $0.00 0.00% Vending $1,000.00 $0.00 $0.00 0.00% Open Skate/Hockey, etc $6,500.00 $515.00 $515.00 7.92% Interest $500.00 $0.00 $0.00 0.00% Misc Revenue $2,000.00 $620.00 $620.00 Total Income $316,500.00 $50,863.37 $50,863.37 16.07% Expenses Salaries, wages, taxes & Benefits $117,002.67 $12,188.42 $12,188.42 10.42% Supplies (Office, misc) $1,500.00 $0.00 $0.00 0.00% Supplies (Concession) $13,250.00 $1,085.83 $1,085.83 8.19% Fuel, Misc $1,800.00 $0.00 $0.00 0.00% Professional Services $15,000.00 $0.00 $0.00 0.00% Sales Tax $2,700.00 $0.00 $0.00 0.00% Telephone $900.00 $71.40 $71.40 7.93% Electric $70,000.00 $27.95 $27.95 0.04% Gas $24,000.00 $0.00 $0.00 0.00% Water $17,800.00 $0.00 $0.00 0.00% Refuse $1,400.00 $275.35 $275.35 19.67% Insurance $9,000.00 $2,154.00 $2,154.00 23.93% Administration $11,920.61 $0.00 $0.00 0.00% Misc. $725.00 $45.34 $45.34 6.25% Repair Maintenance – Machinery $10,000.00 $0.00 $0.00 0.00% Repair Maintenance – Building $27,500.00 $674.25 $674.25 2.45% Total Operating Expenses $324,498.28 $16,522.54 $16,522.54 5.09% Net Income/Loss ($7,998.28) $34,340.83 $34,340.83 STMA Arena Board Mtg 02/09/15 Page 22 STMA CASH BALANCES AND RECEIVABLES January 31, 2015 Cash Balance Operations Cash Balance 1/1/15 (Estimated) $ 90,617 Add Revenues (collected in 2015) $ 50,863 Less Expenses $ 16,523 Cash Balance 1/31/15 $124,958 Cash for operations $124,958 Total Cash Balance 1/31/15 $124,958 Accounts Receivable January 31, 2015 - $45,300.00 Cash Balance Dedicated Capital Improvement Fund Arena Owner Dedicated Cap. Imp. Fund Beginning Balance 1/1/15 $8,398 2015 contribution rec. by St. Michael $0 2015 contribution rec. by Albertville $0 2015 contribution rec. by STMA Schools $0 Balance 1/31/15 $8,398 STMA Arena Board Mtg 02/09/15 Page 23 STMA Vendor Check Detail Register CITY OF ALBERTVILLE 02/02/15 4:02 PM Page 1 *Check Detail Register© January 2015 Check Amt Invoice Comment 10100 Premier Bank Paid Chk# 003297E 1/5/2015 RANDYS ENVIRONMENTAL SERVICES E 810-00000-384 Refuse/Garbage Disposal $275.35 STMAJan15 STMA Arena Garbage Paid Chk# 003331E 1/20/2015 WATSON COMPANY E 810-00000-252 Food/Consessions For Resale $454.63 847170 STMA Arena Concessions E 810-00000-252 Food/Consessions For Resale $364.32 847420 STMA Arena Concessions Paid Chk# 003332E 1/20/2015 WRIGHT-HENNEPIN COOP ELECTRIC E 810-00000-381 Electric Utilities $27.95 STMA FEB15 STMA Arena 5898 Lachman Ave Paid Chk# 033946 1/5/2015 LEAGUE OF MN CITIES INS TRUST E 810-00000-361 General Liability Ins $2,154.00 28699 STMA Arena Work Comp Ins 2015 Paid Chk# 033949 1/5/2015 SCR, INC - ST. CLOUD E 810-00000-405 Repair/Maint - Buildings $660.00 292494 STMA Arena Maint Contract Refrig Equip Paid Chk# 033979 1/20/2015 BCBS OF MINNESOTA E 810-00000-130 Employer Paid Ins (GENERAL) $752.75 CI261100FEB15 Emp Health Ins Paid Chk# 033982 1/20/2015 CHARTER COMMUNICATIONS E 810-00000-321 Telephone $71.40 STMA JAN15 STMA Arena Phone Paid Chk# 033983 1/20/2015 COCA COLA ENTERPRISES BOTTLING E 810-00000-254 Soft Drinks/Mix For Resale $266.88 168193510 STMA Arena Concessions Fund Summary 810 STMA ARENA $5,041.53 STMA Arena Board Mtg 02/09/15 Page 24 STMA MANAGER’ GENERAL UPDATE Date: February 9, 2015 To: STMA Arena Board From: Grant Fitch, STMA Arena Manager ARENA RENTAL HOURS – JANUARY Name Prime-time Off-peak Youth Hockey 161.75 hours Adult Hockey 8 hours High School Boys/Girls 69.75 hours Public Skating/OH 14 hours Private rentals 2.25 hours Learn to Skate 0 hours __________________________________________________________________________ Total hours 255.75 hours Operations: No major repairs at this time. Minnesota Hockey PWB Regional Tournament: The STMA Youth Hockey Association will be hosting this tournament February 27 to March 1, 2015 at STMA. Ice Rates for the 2015-16 Season: For your information a rate study is attached. Ice Out: March 10 to May 30, 2015 JV/Varsity Boys Game vs Buffalo: Thursday 02/12/15. Game times J/V 5:15 and Varsity 7:00pm. We are expecting a good crowd and are using 2 sets of portable bleachers from the High School to help with seating. STMA Arena Board Mtg 02/09/15 Page 25 20 1 5  MI A M A  Ra t e  Su r v e y as o f J a n . 1 3 , 2 0 1 5  (p r o p o s e d ) RI N K N A M E 20 1 5 P R I M E R A T E 20 1 5 N O N P R I M E R A T E 20 1 5 S U M M E R 20 1 6 P R I M E MA N A G E R E M A I L Ma r i u c c i  Ar e n a 24 0 $                                         24 0 $                                                               24 0 $                               25 0 $                      fl o r x 0 0 3 @ u m n . e d u Ri d d e r  Ar e n a 24 0 $                                         24 0 $                                                               24 0 $                               25 0 $                      fl o r x 0 0 3 @ u m n . e d u Bu r n s v i l l e  Ic e  Ce n t e r 22 0 $                                         19 5 $                                                               19 5 $                               tb d de a n . m u l s o @ c i . b u r n s v i l l e . m n . u s Da k o t a h  Sp o r t s  an d  Fi t n e s s 22 0 $                                         22 0 $                                                               22 0 $                               tb d St .  Th o m a s  Ac a d e m y 22 0 $                                         14 0 $                                                               15 0 $                               22 0 $                      Ap p l e  Va l l e y 21 5 $                                         21 5 $                                                               21 5 $                               tb d La k e v i l l e  Ic e  Ar e n a 21 5 $                                         21 5 $                                                               16 0 $                               tb d Fa r m i n g t o n  Ic e  Ar e n a 21 0 $                                         21 0 $                                                               21 0 $                               tb d Ho p k i n s  Pa v i l l i o n 20 5 $                                         14 5 $                                                               NA 20 5 $                      do l s o n @ h o p k i n s m n . c o m Ea g a n  Ci v i c  Ce n t e r 20 5 $                                         14 0 $                                                               14 0 $                               21 0 $                      mv a u g h a n @ c i t y o f e a g a n . c o m Bl a i n e  Su p e r  Ri n k 20 5 $                                         20 5 $                                                               20 5 $                               tb d Mi n n e t o n k a  Ic e  Ar e n a   20 0 $                                         20 0 $                                                               20 0 $                               20 0 $                      jhe c k m a n n @ e m i n n e t o n k a . c o m Pl y m o u t h  Ic e  Ce n t e r 20 0 $                                         11 5 $                                                               17 5 $                               20 0 $                      ba b e l @ p l y m o u t h m n . g o v Ri c h f i e l d  Ic e  Ar e n a 20 0 $                                         17 0 $                                                               tb d De l a n o  Ic e  Ar e n a 20 0 $                                         20 0 $                                                               20 0 $                               tb d Ch a m p l i n  Ar e n a 20 0 $                                         20 0 $                                                               15 7 $                               20 0 $                      np o w e l l @ c i . c h a m p l i n . m n . u s Ro s e m o u n t  Co m m u n i t y  Ce n t e r 19 5 $                                         12 5 $                                                               12 5 $                               20 5 $                      jon . b a l v a n c e @ c i . r o s e m o 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a 19 0 $                                         15 5 $                                                               15 5 $                               tb d fw e b e r @ m a p l e g r o v e m n . g o v Mo o s e  Sh e r r i t ,  Mo n t i c e l l o 19 0 $                                         14 0 $                                                               15 0 $                               tb d Sc o t t . F r e d r i c k s o n @ m o n t i c e l l o . k 1 2 . m n . u s Bl o o m i n g t o n  Ic e  Ga r d e n s 19 0 $                                         15 0 $                                                               15 0 $                               20 0 $                      Bu f f a l o  Ci v i c  Ce n t e r 18 7 $                                         14 2 $                                                               15 5 $                               19 2 $                      le e . r y a n @ c i . b u f f a l o . m n . u s Ru n e s t o n e  Ar e n a ,  Al e x a n d r i a 17 1 $                                         15 6 $                                                               na tb d ar c c @ r e a ‐al p . c o m Mu n i c i p a l  At h l e t i c  Co m p l e x 16 5 $                                         12 5 $                                                               16 5 $                               16 5 $                      to d d . b i s s e t t @ c i . s t c l o u d . m n . u s Be r n i c k s  Ar e n a ,  Sa r t e l l 16 5 $                                         16 5 $                                                               16 5 $                               tb d Sp o r t s  Ar e n a  Ea s t ,  Sa u k  Ra p i d s 16 5 $                                         13 0 $                                                               95 $                                     17 0 $                      sp o r t s a r e n a e a s t @ y a h o o . c o m Na t i o n a l  Ho c k e y  Ce n t e r 16 0 $                                         14 5 $                                                               16 0 $                               tb d jme i e r h o f e r @ s t c l o u d s t a t e . e d u Li t c h f i e l d  Ic e  Ar e n a 15 5 $                                         12 0 $                                                               na 1 6 0 $                      ch a d d . b e n s o n @ c i . l i t c h f i e l d . m n . u s Sh a k o p e e  Ic e  Ar e n a 14 5 $                                         14 5 $                                                               14 5 $                               20 0 $                      Au s t i n  Ic e  Ar e n a 14 3 $                                         12 0 $                                                               na tb d Wi l l m a r  Ci v i c  Ce n t e r 14 0 $                                         14 0 $                                                               14 0 $                               14 5 $                      tc i e r n i a @ w i l l m a r m n . g o v ST M A Ar e n a Board Mtg 02/09/15 Page 26 STMA 2015 Proposed Budget Date: February 2, 2015 To: STMA Arena Board From: Tina Lannes, Finance Director Your packet includes the 1st draft of the 2015 Arena budget. This preliminary budget includes the projected costs to run the new dehumidification system, which is approximately three times the amount budgeted in previous years. The proposed Draft 2015 Budget does not include a rate increase for ice time. If rates for 2015 are changed, they would go into effect in September. Given the projected net loss, the Board will need to discuss funding options as this trend will continue into the future if not addressed. Options may include, but are not limited to, rate increases, increased revenues via another source, or have the three governmental entities include a contribution to operations. The three governmental entities are contributing annually for capital costs. The Board will need to approve a final budget for 2015 and 2015 rates no later than the meeting in April. STMA Arena Board Mtg 02/09/15 Page 27 ST M A A R E N A 2 0 1 5 1 s t d r a f t 0 2 / 0 2 / 1 5 No I c e A p r i l - J u l y No I c e A p r i l - M a y 20 1 4 B u d g e t 20 1 4 A c t u a l 12 / 3 1 / 1 4 Y T D 20 1 5 Pr o p o s e d Bu d g e t n o ra t e i n c r e a s e In c o m e Ic e R e n t a l $2 4 3 , 4 5 0 . 0 0 $ 2 5 4 , 3 1 7 . 6 8 $ 2 6 0 , 0 0 0 . 0 0 Co n c e s s i o n s $3 3 , 0 0 0 . 0 0 $ 3 1 , 4 4 1 . 6 0 $ 3 2 , 0 0 0 . 0 0 Ot h e r R e v e n u e s ( A d v e r t i s i n g / L M C / i n s c l a i m s ) $1 2 , 0 0 0 . 0 0 $ 2 9 , 3 5 2 . 6 5 $ 1 4 , 5 0 0 . 0 0 Ve n d i n g $1 , 1 0 0 . 0 0 $9 6 2 . 4 3 $ 1 , 0 0 0 . 0 0 Op e n S k a t e / H o c k e y , e t c $6 , 0 0 0 . 0 0 $7 , 0 8 5 . 0 0 $ 6 , 5 0 0 . 0 0 In t e r e s t $5 0 0 . 0 0 $0 . 0 0 $5 0 0 . 0 0 Mi s c R e v e n u e $5 0 0 . 0 0 $2 , 3 7 5 . 9 0 $ 2 , 0 0 0 . 0 0 To t a l I n c o m e $2 9 6 , 5 5 0 . 0 0 $ 3 2 5 , 5 3 5 . 2 6 $ 3 1 6 , 5 0 0 . 0 0 Ex p e n s e s Sa l a r i e s , w a g e s , t a x e s & B e n e f i t s $1 0 9 , 0 2 4 . 9 0 $ 1 1 2 , 4 8 3 . 4 0 $ 1 1 7 , 0 0 2 . 6 7 Su p p l i e s ( O f f i c e , m i s c ) $1 , 5 0 0 . 0 0 $2 , 3 8 5 . 8 2 $ 1 , 5 0 0 . 0 0 Su p p l i e s ( C o n c e s s i o n ) $1 3 , 2 5 0 . 0 0 $ 1 3 , 4 0 9 . 1 0 $ 1 3 , 2 5 0 . 0 0 Fu e l , M i s c $2 , 4 0 0 . 0 0 $1 , 8 2 9 . 0 4 $ 1 , 8 0 0 . 0 0 Pr o f e s s i o n a l S e r v i c e s $1 5 , 0 0 0 . 0 0 $ 1 6 , 5 2 8 . 8 6 $ 1 5 , 0 0 0 . 0 0 Sa l e s T a x $3 , 2 0 0 . 0 0 $2 , 6 9 5 . 7 0 $ 2 , 7 0 0 . 0 0 Te l e p h o n e $1 , 0 0 0 . 0 0 $8 8 4 . 4 6 $9 0 0 . 0 0 El e c t r i c $6 5 , 0 0 0 . 0 0 $ 6 5 , 1 1 1 . 4 7 $ 7 0 , 0 0 0 . 0 0 Ga s $8 , 0 0 0 . 0 0 $ 1 7 , 0 9 8 . 6 6 $ 2 4 , 0 0 0 . 0 0 Wa t e r $1 7 , 5 0 0 . 0 0 $ 1 7 , 7 5 8 . 4 6 $ 1 7 , 8 0 0 . 0 0 Re f u s e $1 , 3 0 0 . 0 0 $1 , 3 7 1 . 9 4 $ 1 , 4 0 0 . 0 0 In s u r a n c e $9 , 0 0 0 . 0 0 $8 , 6 9 0 . 0 0 $ 9 , 0 0 0 . 0 0 Ad m i n i s t r a t i o n $1 1 , 6 8 6 . 8 7 $ 1 1 , 6 8 6 . 8 7 $ 1 1 , 9 2 0 . 6 1 Mi s c . $5 2 5 . 0 0 $7 0 6 . 8 8 $7 2 5 . 0 0 Re p a i r M a i n t e n a n c e – M a c h i n e r y $1 0 , 0 0 0 . 0 0 $4 , 3 2 5 . 5 4 $ 1 0 , 0 0 0 . 0 0 Re p a i r M a i n t e n a n c e – B u i l d i n g $2 7 , 5 0 0 . 0 0 $ 3 1 , 2 7 5 . 1 9 $ 2 7 , 5 0 0 . 0 0 To t a l O p e r a t i n g E x p e n s e s $2 9 5 , 8 8 6 . 7 7 $ 3 0 8 , 2 4 1 . 3 9 $ 3 2 4 , 4 9 8 . 2 8 Ne t I n c o m e / L o s s $6 6 3 . 2 3 $ 1 7 , 2 9 3 . 8 7 ($ 7 , 9 9 8 . 2 8 ) da t a $ / P u b l i c D a t a / F i n a n c e / B u d g e t / a r e n a b u d g e t 2 0 1 5 0 2 0 2 . x l s ST M A Ar e n a Board Mtg 02/09/15 Page 28