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ImOn Ice Center Fiscal Year 2026 Budget Presentation Copyrighted April 9, 2025 City of Dubuque PUBLIC HEARINGS # 4. City Council ITEM TITLE: ImOn Ice Center Fiscal Year 2026 Budget Presentation SUMMARY: SUGGUESTED DISPOSITION: ATTACHMENTS: 1. 26 Policy Book Volume 4 - ImOn Arena Ice Center 2. Presentation - Uploaded 4.9.25 Page 928 of 989 ImOn Arena 81 Page 929 of 989 This page intentionally left blank. 82 Page 930 of 989 IMON ARENA Budget Highlights FY 2024 Actual FY 2025 Budget FY 2026 Requested % Change From FY 2025 Budget Expenses Employee Expense $ (1,523) $ — $ — 0.0 % Supplies and Services $ 402,324 $ 411,929 $ 400,984 -2.7 % Machinery and Equipment $ — $ 16,100 $ 9,700 -39.8 % Total Expenses $ 400,801 $ 428,029 $ 410,684 -4.1 % Debt on Projects paid with Sales Tax Fund (20%)$ 183,849 $ 372,587 $ 470,837 26.4 % Property Tax Support $ 400,801 $ 428,029 $ 410,684 -4.1 % Percent Increase (Decrease) -4.1 % Significant Line Items Background 1.The Dubuque Community Ice Center (now known as ImOn Arena), was designed, developed, and built under a Development Agreement between the Dubuque Community Ice & Recreation, Inc. (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 was 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-to-day basis. The City of Dubuque received notice from DICE on June 17, 2021, of its intent to relinquish its leaseholder rights. DICE agreed to continue operating the Ice Center through September 5, 2021. The Development Agreement outlined the steps to be taken in the event the lease was terminated. These steps ended with the City taking ownership of all assets and commencing with full Ice Center operations on September 6, 2021. This was to continue ice operations to avoid disruption of ice usage for all user groups involved. As the City took over the operations and focused on the short-term needs of running the facility, they continued to consider what would be the 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 Ice Center to the DRA. This led to an interim staffing agreement between the City of Dubuque and the DRA executed on 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 were included in the monthly expenses. Indirect employee costs incurred during the term of the interim staffing agreement was provided by the DRA and not billed to the City. All other costs and operations continued to be the responsibility of the City during the term of that agreement. 83 Page 931 of 989 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 management fee to SID similar to the fee to the management firm for Five Flags and Grand River Center as well as the City’s reimbursement of operating loss. A management agreement with SID was established with a term of January 1, 2024 through December 31, 2033, with a potential renewal of an additional 5 years. The facility was renamed ImOn Arena on August 21, 2023 as part of a naming rights agreement, which provides $100,000 in revenue to go towards SIDs Ice Arena operating budget with the goal of reducing the City's property tax support. Supplies and Services 2.Pay to other Agency decreased from $382,673 in FY 2025 to $355,832 in FY 2026. This line item represents money paid to Schmitt Island Development Corporation (SID) for the fixed annual management fee (FY 2026 is estimated to be $104,545) and the operating loss coverage paid to SID (FY 2026 is estimated to be $251,287). Fixed Annual Management Fee The management agreement with SID establishes that the fixed management fee is $100,000 in the first year (January 1, 2024 through December 31, 2025), and adjusted in each subsequent year according to the Consumer Price Index (CPI). The management agreement outlines the January CPI is used to increase the increase the fixed management fee. This results in both the current fiscal year and proposed budget fiscal year being estimates of the January CPI. Using a January CPI results in estimates that incorporate two different Consumer Price Indexes (CPI) in a fiscal year. •In FY 2024 the fixed management fee was $100,000 •In FY 2025 the fixed management fee is estimated to be $101,500 •In FY2026 the fixed management fee is estimated to be $104,545 Amount to Cover the Operating Loss The management agreement with SID establishes that the City will cover the operating loss of ImOn Arena, which is the difference between all revenues and expenses for the ImOn Arena. In FY 2026, the amount to cover the operating loss is expected to be $251,287. This number is projected per a budget provided by SID. •In FY 2025 the operating loss is budgeted at $282,673 •In FY 2026 the operating loss is expected to be $251,287 FY 2024 operating loss is not comparable due to half of the fiscal year being under a management agreement with different terms and conditions. 3.Building Maintenance increased from $0 in FY 2025 to $15,000 in FY 2026. This expense is required by the management agreement and represents building additions, alterations, repairs, or improvements where the cost for the expenditure is greater than $5,000 and the depreciable life of the applicable item is in excess of one year. This expense was not budgeted in prior years as the agreement was not finalized at the time of prior budgets. 84 Page 932 of 989 Machinery & Equipment 4.Equipment replacement items include ($9,700): Ice Center Machinery and Equipment Refrigerator $1,500 Hot Dog Warmer $200 Electric Edger $8,000 Total Equipment $ 9,700 Debt Service 5.FY 2026 Annual debt service is as follows ($470,837): Amount Debt Series Payment Source Purpose Final Payment Call Date $ 374,199 2023A Sales Tax 20%Ice Settling Remediation 2043 $ 96,638 2025B Sales Tax 20%Ice Arena Dehumidification 2045 $ 470,837 Total Ice Center Center Annual Debt Service For ImOn Ice Arena Performance Measures, see Five Flags Civic Center Outline 85 Page 933 of 989 Recommended Operating Revenue Budget - Department Total 28 - ICE CENTER Fund/Account/Account Title FY23 Actual Revenue FY24 Actual Revenue FY25 Adopted Budget FY26 Recomm'd Budget 100 - General 4A - Charges for Services 45021 - Credit Card Tips 0 0 0 0 45032 - Public Skate 0 0 0 0 45033 - Hockey Ice Rent 0 0 0 0 45034 - Ice Rental (25,000) 0 0 0 45037 - Ice Rental (10,693) 0 0 0 45038 - Free Style Ice Rent 0 0 0 0 45039 - Skate Rental 0 0 0 0 45440 - Events 0 0 0 0 45443 - Gift Certificates 0 0 0 0 45450 - Meeting Room Fee 0 0 0 0 45455 - Program Fee 0 0 0 0 45500 - Miscellaneous Chg for Svcs 0 0 0 0 47100 - Reimbursements (15,911) 0 0 0 47500 - Merchandise Sales 0 0 0 0 47510 - Beer 0 0 0 0 47511 - Food 0 0 0 0 47512 - Liquor 0 0 0 0 47513 - Beverage/Ice (647) 0 0 0 47514 - Gift Cards 0 0 0 0 4A - Charges for Services Total (52,252)0 0 0 4O - Eliminated for GW 47115 - Sales Tax Collection 0 0 0 0 4O - Eliminated for GW Total 0 0 0 0 4N - Transfers 49304 - Transfer in Sales Tax 20%0 (183,849)(372,587)(470,836) 4N - Transfers Total 0 (183,849)(372,587)(470,836) ICE CENTER - Total (52,252)(183,849)(372,587)(470,836) 86 Page 934 of 989 6A - Salaries & Wages 100 - General 60100 - Salaries-Regular Full Time 0 0 0 0 60200 - Salaries - Regular Part Time 0 0 0 0 60300 - Hourly Wages - Temp/Seasonal 5,115 (568) 0 0 60400 - Overtime 0 0 0 0 6A - Salaries & Wages Total 5,115 (567)0 0 6B - Employee Benefits 100 - General 61100 - FICA - City Contribution 391 (43) 0 0 61300 - IPERS - City Contribution 0 0 0 0 61510 - Health Insurance 0 0 0 0 61540 - Life Insurance 0 0 0 0 61700 - Unemployment Compensation 912 (912) 0 0 61992 - Physicals 447 0 0 0 6B - Employee Benefits Total 1,750 (955)0 0 6D - Repair/Maint/Util 100 - General 63100 - Building Maintenance 4,683 0 0 15,000 63400 - Equipment Maint/Repair 3,108 0 0 0 63710 - Electricity 45,732 0 0 0 63711 - Natural Gas 2,929 0 0 0 63720 - Refuse 1,632 0 0 0 63730 - Telecommunications 410 0 0 0 63742 - Stormwater 2,349 0 0 0 6D - Repair/Maint/Util Total 60,842 0 0 15,000 6E - Contractual Svcs 100 - General 64020 - Advertising 149 0 0 0 64062 - Refunds 81 0 0 0 64080 - Insurance - Property 0 40,494 29,256 30,152 64083 - Insurance - Other 0 0 0 0 64130 - Payments to Other Agencies 334,693 361,830 382,673 355,832 64150 - Rental - Equipment 387 0 0 0 64180 - Sales Tax Expense (1,611) 0 0 0 64185 - License/Permit/Fees 0 0 0 0 Recommended Operating Expenditure Budget - Department Total 28 - ICE CENTER Fund/Account/Account Title FY23 Actual Expense FY24 Actual Expense FY25 Adopted Budget FY26 Recomm'd Budget 87 Page 935 of 989 64190 - Technology Services 2,835 0 0 0 64195 - Credit Card Charge 0 0 0 0 64900 - Other Professional Service 0 0 0 0 64975 - Equip Maint Cont 4,099 0 0 0 6E - Contractual Svcs Total 340,633 402,324 411,929 385,984 6F - Commodities 100 - General 65025 - Program Materials 20 0 0 0 65033 - Food Products 4 0 0 0 65034 - Beer Products 13,395 0 0 0 65035 - Liquor Products 0 0 0 0 65036 - Beverage/Ice 65 0 0 0 65037 - Pro Shop Mechandise 0 0 0 0 65045 - Technology Equipment 0 0 11,000 0 65050 - Other Equipment 0 0 5,100 9,700 65056 - Traffic Security Cameras 0 0 0 0 65060 - Office Supplies 701 0 0 0 65965 - Janitorial 0 0 0 0 65999 - Cash Over and Short 0 0 0 0 6F - Commodities Total 14,185 0 16,100 9,700 6G - Capital Outlay 100 - General 67230 - Heavy Equipment 0 0 0 0 67250 - Office Equipment 0 0 0 0 6G - Capital Outlay Total 0 0 0 0 6H - Debt Service 200 - Debt Service 68010 - Principal Payment 0 0 151,968 187,429 68020 - Interest Payments 0 183,849 220,619 283,408 6H - Debt Service Total 0 183,849 372,587 470,837 ICE CENTER - TOTAL 422,526 584,650 800,616 881,521 Recommended Operating Expenditure Budget - Department Total 28 - ICE CENTER Fund/Account/Account Title FY23 Actual Expense FY24 Actual Expense FY25 Adopted Budget FY26 Recomm'd Budget 88 Page 936 of 989 Recommended Expenditure Budget Report by Activity & Funding Source 28 - ICE CENTER Fund/Activity FY24 Actual Expense FY25 Adopted Budget FY26 Recomm'd Budget 2801 - Ice Center Admin 100 - General 6A - Salaries & Wages -567 —— 6B - Employee Benefits -955 —— 6C - Staff Development ——— 6D - Repair/Maint/Util ——15,000 6E - Contractual Svcs 402,324 411,929 385,984 6F - Commodities —16,100 9,700 6G - Capital Outlay ——— 2801 - Ice Center Admin Total 400,801 428,029 410,684 2880 - Ice Center Debt Service 200 - Debt Service 6H - Debt Service 183,849 372,587 470,837 2880 - Ice Center Debt Service Total 183,849 372,587 470,837 ICE CENTER TOTAL 584,650 800,616 881,521 89 Page 937 of 989 This page intentionally left blank. 90 Page 938 of 989 ImOn ARENA FISCAL YEAR 2026 BUDGET PRESENTATION Page 939 of 989 ImOn ARENA City of Dubuque Schmitt Island Development (SID) Management contract Day-to-day Operations Building owned by City -Building Insurance Staffing Capital improvement funding Operating loss Management fee Mark Plantery General Manager Page 940 of 989 LITTLE BLACKHAWKS YOUTH HOCKEY - Iowa's Only Beginner level hockey for ages 4-9 introduces new players and their families to the sport of hockey •Run by NHL’s Chicago Blackhawks •Lessons, full gear, learning, and competition •Appearances by Chicago Blackhawks alumni •Ticket to Chicago Blackhawks game •One of six (6) arenas chosen for offering program Learn to Play Initiative -Fall 2024 Page 941 of 989 SKATE FOR ALL Page 942 of 989 100 skaters celebrated with the Easter Bunny! Easter egg hunt, egg & spoon races, pin the nose on the Bunny, crafts, and photos Page 943 of 989 Page 944 of 989 •Men's hockey team tournament to kick-off NCAA Division III hockey season •Women's hockey team tournament •Community events to grow the game, put spotlight on arena and Schmitt Island ◦Sponsored by Island Social KEY CITY COLLEGIATE CLASSIC MISSISSIPPI MATCH-UP Page 945 of 989 ICE USER GROUPS Page 946 of 989 CURRENT & FUTURE INITIATIVES •Concessions improvements completed •Dehumidification project •Continued and increased activation of arena and island Page 947 of 989 IMON ARENA FY 2026 REQUESTED PROPERTY TAX SUPPORT $410,684 $6.43 Net Operating Property Tax Support Average homeowner’s* property tax cost for ImOn Arena (*Avg. home value of $196,508) Page 948 of 989 PUBLIC SAFETY •Cooling Center •Emergency Shelter •Police Department and Sheriff recruiting sessions for training and performance testing •Community Connection: Where neighbors, friends, and families meet improves community connections. Page 949 of 989 HTTPS://IMONARENA.COM Page 950 of 989