Loading...
Dubuque Ice Arena Fiscal Year 2024 Budget PresentationCopyrighted March 22, 2023 City of Dubuque Special Meeting Public Hearings # 03. IT E M T I T L E:Dubuque I ce A rena Fiscal Year 2024 B udget Presentation S UM M ARY: S UG G E S T E D D I S P O S I T I O N: AT TAC H ME N TS: Description Type Policy Budget Book Supporting Documentation Presentation_Uploaded 3.22.23 Supporting Documentation Dubuque Ice Arena -35- This page intentionally left blank. -36- DUBUQUE ICE ARENA Budget Highlights FY 2022 Actual FY 2023 Budget FY 2024 Requested % Change From FY 2023 Budget Expenses Employee Expense 87,984 — — 0.0 % Supplies and Services 825,030 200,000 373,255 86.6 % Total Expenses 913,014 200,000 373,255 86.6 % Debt on Projects paid with Sales Tax Fund (20%)0 0 350,341 0.0 % Resources Operating Revenue 667,901 — — — % Total 667,901 — — — % Property Tax Support 245,113 200,000 373,255 86.6 % Percent Increase (Decrease) 86.6 % Significant Line Items Background 1.The City of Dubuque received notice from Dubuque Community Ice & Recreation, Inc. (DICE) on June 17, 2021, of its intent to relinquish its leaseholder rights. DICE agreed to continue operating the Ice Center through July 31, 2021. The Dubuque Ice Arena was designed, developed, and built under a Development Agreement between and amount DICE, the City, the Dubuque Racing Association (DRA), and Battlefield Dubuque, LLC commencing October 30, 2009. Opened September 18, 2010, the building is owned by the City and had been leased in a 25-year lease agreement to DICE. DICE, a 501(c)(3) non-profit organization, raised all funds to build the Ice Center. DICE managed and operated the Ice Center on a day-today basis. The Development Agreement outlined the steps to be taken in the event the lease was terminated. The City provided written notice to the DRA and Northern Lights Hockey, LLC that the lease had been terminated and offered the DRA the right to enter into a new lease on the same terms and conditions as the current lease held by DICE, for the remainder of the term. The DRA declined. The City then provided written notice to Northern Lights Hockey, LLC who had the right to enter into a new lease on the same terms as the current lease for the remainder of the term. Northern Lights Hockey, LLC had 30 days to accept the offer and enter into a new lease with the City. Northern Lights Hockey, LLC was not able to commit at the end of the 30-day period. DICE agreed to continue operations under an interim management agreement until September 5, 2021 and at the end of the agreement the assets were transferred to the City. The City of Dubuque took over full Ice Center operations on September 6, 2021 to continue ice operations to avoid disruption of ice usage for all user groups involved. This included transferring the ice center staffing to become City employees, obtaining all permits and insurance necessary for ice center operations, transferring all operational accounts to the City, marketing the ice center and its events and activities, setting up systems for expenses and revenue, and all the day-to-day operations of the ice center. As the City took over the operations, City staff committed to continue to consider the best operational model for the future of the Dubuque Ice Arena. -37- The City has focused on the short-term need of running the facility while continuing to consider what is best management model for the ice center in the long term. The City and the DRA discussed the opportunity to move the day-to-day operations of the Dubuque Ice Arena to the DRA. This led to an Interim Staffing Agreement between the City of Dubuque and Dubuque Racing Association executed January 1, 2022 in which the DRA would provide interim staffing to operate the facility. All operating expenses were charged to the City. Only the direct employee expenses are included in the monthly expenses. Indirect costs incurred during the term of the interim staffing agreement will be provided by the DRA and not billed to the City. All other costs and operations will continue to be the responsibility of the City during the term of the agreement. The facility was renamed Dubuque Ice Arena in October of 2022. A Management Agreement was adopted between Schmitt Island Development Corporation (SID) and the City on October 20, 2022. The agreement provides for a $100,000 management fee to SID similar to the fee to the management firm for Five Flags. Some items of the agreement are not fully developed in the agreement at this writing, but the agreement is planned to be fully developed later in FY 2023. Supplies and Services 2.Pay to other Agency unchanged from $200,000 in FY 2023 to $350,000 in FY 2024. This line item represents the $100,000 management fee per the approved agreement with SID and $250,000 operating loss coverage to SID. This number is projected per a budget provided by SID. Debt Service 3.FY 2024 Annual debt service is as follows ($350,341): Amount Debt Series Payment Source Purpose Final Payment Call Date $ 350,341 2023 Planned G.O.Sales Tax 20%Ice Settling Remediation 2043 $ 350,341 Total Ice Center Center Annual Debt Service Dubuque Ice Arena Performance Measures will be developed in FY 24 and included in the future in the Five Flags Civic Center Outline once the full management and operations are completed. -38- Recommended Operating Revenue Budget - Department Total 28 - ICE CENTER Fund/Account/Account Title FY21 Actual Revenue FY22 Actual Revenue FY23 Adopted Budget FY24 Recomm'd Budget 100 - General 4A - Charges for Services 45021 - Credit Card Tips 0 (16,704) 0 0 45032 - Public Skate 0 (25,052) 0 0 45033 - Hockey Ice Rent 0 (4,761)0 0 45034 - Ice Rental 0 0 0 0 45037 - Ice Rental 0 (238,853)0 0 45038 - Free Style Ice Rent 0 (3,421)0 0 45039 - Skate Rental 0 (9,508)0 0 45440 - Events 0 (350)0 0 45443 - Gift Certificates 0 2,692 0 0 45450 - Meeting Room Fee 0 (958)0 0 45455 - Program Fee 0 (3,817)0 0 45500 - Miscellaneous Chg for Svcs 0 (1,689)0 0 47100 - Reimbursements 0 (9,223)0 0 47500 - Merchandise Sales 0 (1,003)0 0 47510 - Beer 0 (119,062)0 0 47511 - Food 0 (107,537)0 0 47512 - Liquor 0 (43,282)0 0 47513 - Beverage/Ice 0 (78,280)0 0 47514 - Gift Cards 0 (4,507)0 0 4A - Charges for Services Total 0 (665,315)0 0 4O - Eliminated for GW 47115 - Sales Tax Collection 0 (2,586)0 0 4O - Eliminated for GW Total 0 (2,586)0 0 ICE CENTER - Total 0 (667,901)0 0 -39- 6A - Salaries & Wages 100 - General 60100 - Salaries-Regular Full Time 0 435 0 0 60300 - Hourly Wages - Temp/Seasonal 0 69,196 0 0 60400 - Overtime 0 9,491 0 0 6A - Salaries & Wages Total 0 79,121 0 0 6B - Employee Benefits 100 - General 61100 - FICA - City Contribution 0 6,053 0 0 61300 - IPERS - City Contribution 0 841 0 0 61510 - Health Insurance 0 406 0 0 61540 - Life Insurance 0 1 0 0 61992 - Physicals 0 1,562 0 0 6B - Employee Benefits Total 0 8,863 0 0 6C - Staff Development 100 - General 62325 - Mileage 0 77 0 0 62500 - Education Reimbursement 0 986 0 0 6C - Staff Development Total 0 1,063 0 0 6D - Repari/Maint/Util 100 - General 63100 - Building Maintenance 0 21,172 0 0 63400 - Equipment Maint/Repair 0 6,878 0 0 63710 - Electricity 0 96,043 0 0 63711 - Natural Gas 0 11,881 0 0 63720 - Refuse 0 3,564 0 0 63730 - Telecommunications 0 730 0 0 63742 - Stormwater 0 1,996 0 0 6D - Repari/Maint/Util Total 0 142,264 0 0 6E - Contractual Svcs 100 - General 64020 - Advertising 0 225 0 0 64080 - Insurance - Property 0 2,317 0 20,213 64083 - Insurance - Other 0 2,600 0 3,042 64130 - Payments to Other Agencies 0 502,299 200,000 350,000 64150 - Rental - Equipment 0 4,560 0 0 64180 - Sales Tax Expense 0 20,556 0 0 64185 - License/Permit/Fees 0 2,479 0 0 64190 - Technology Services 0 9,644 0 0 64195 - Credit Card Charge 0 (43) 0 0 64900 - Other Professional Service 0 750 0 0 64975 - Equip Maint Cont 0 468 0 0 6E - Contractual Svcs Total 0 545,855 200,000 373,255 6F - Commodities 100 - General 65025 - Program Materials 0 3,484 0 0 Recommended Operating Expenditure Budget - Department Total 28 - ICE CENTER Fund/Account/Account Title FY21 Actual Expense FY22 Actual Expense FY23 Adopted Budget FY 24 Recomm'd Budget -40- 65033 - Food Products 0 39,710 0 0 65034 - Beer Products 0 38,024 0 0 65035 - Liquor Products 0 5,293 0 0 65036 - Beverage/Ice 0 26,322 0 0 65037 - Pro Shop Mechandise 0 500 0 0 65050 - Other Equipment 0 12,253 0 0 65056 - Traffic Security Cameras 0 3,361 0 0 65060 - Office Supplies 0 3,070 0 0 65965 - Janitorial 0 19,559 0 0 65999 - Cash Over and Short 0 (114)0 0 6F - Commodities Total 0 151,463 0 0 6G - Capital Outlay 100 - General 67230 - Heavy Equipment 0 17,500 0 0 67250 - Office Equipment 0 11,697 0 0 6G - Capital Outlay Total 0 29,197 0 0 ICE CENTER - TOTAL 0 957,826 200,000 373,255 Recommended Operating Expenditure Budget - Department Total 28 - ICE CENTER Fund/Account/Account Title FY21 Actual Expense FY22 Actual Expense FY23 Adopted Budget FY 24 Recomm'd Budget -41- Recommended Expenditure Budget Report by Activity & Funding Source 28 - ICE CENTER Fund/Activity FY22 Actual Expense FY23 Adopted Budget FY24 Recomm'd Budget 2801 - Ice Center Admin 100 - General 6A - Salaries & Wages 79,121 —— 6B - Employee Benefits 8,863 —— 6C - Staff Development 1,063 —— 6D - Repari/Maint/Util 142,264 —— 6E - Contractual Svcs 545,855 200,000 373,255 6F - Commodities 151,463 —— 6G - Capital Outlay 29,197 —— 2801 - Ice Center Admin Total 957,826 200,000 373,255 ICE CENTER TOTAL 957,826 200,000 373,255 -42- Capital Improvement Projects by Department/Division DUBUQUE ICE ARENA Project Number Capital Improvement Project Title Department Fund Account FY 24 Recomm'd Budget 2849900001 Ice Arena - Emergency Light and Ven Ice Center 304 64004 5,000 2849900001 Ice Arena - Emergency Light and Ven Ice Center 304 67500 69,000 ICE ARENA TOTAL 74,000 PROGRAM/ DEPT PROJECT DESCRIPTION FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 TOTAL PAGE DUBUQUE ICE ARENA Culture and Recreation Ice Center Emergency Light and Ventilation $ 74,000 $ — $ — $ — $ — $ 74,000 70 TOTAL $ 74,000 $ — $ — $ — $ — $ 74,000 -43- This page intentionally left blank. -44- DUBUQUE ICE ARENA FISCAL YEAR 2024 BUDGET PRESENTATION DUBUQUE ICE ARENA City of Dubuque Schmitt Island Development Corporation Operations Oversight Staffing Building owned by City Day-to-day Operations Capital Improvement Funding Provide Operational Funding Mark Plantery, General Manager CREATING AN EQUITABLE COMMUNITY OF CHOICE June 17, 2021 -Dubuque Community Ice & Recreation, Inc. (DICE) notice to relinquish leaseholder rights June-August 2021 -Offered to DRA and Northern Lights Hockey under same agreements -DICE Interim Management Agreement through September 5, 2021 September 6, 2021 -City took over operations January 1, 2022 -Interim Staffing Agreement -Dubuque Racing Association -City transitioned Ice Center employees to DRA BACKGROUND Settlement Remediation June 1 -October 31, 2022 Open House November 2, 2022 HIGHLIGHTS October 2022 -The facility renamed to Dubuque Ice Arena October 20, 2022 -The Schmitt Island Management Agreement was adopted between Schmitt Island Development Corporation (SID) and the City. -The agreement provides for a $100,000 management fee to SID HIGHLIGHTS AREA COLLEGE HOCKEY CLUBS The University of Wisconsin –Platteville Loras College ICE USER GROUPS OPEN SKATE & SKATE WITH SANTA FUTURE INITIATIVES COMPLETION OF THE SCHMITT ISLAND MANAGEMENT AGREEMENT FY 2023 CAPITAL PROJECTS DEHUMIDIFCATION SYSTEM REPLACEMENT AND ADDITION OF GENERATOR DUBUQUE ICE ARENA FY 2024 REQUESTED PROPERTY TAX SUPPORT $373,255 $5.36 Net Operating Property Tax Support Average homeowner’s* property tax cost for Dubuque Ice Arena (*Avg. home value of $159,503) Project FY 24 Cost Emergency Lighting & Ventilation $74,000 2024 CAPITAL IMPROVEMENT PROJECT DUBUQUE ICE ARENA https://schmittisland.com/ice-arena