CCP 06-24-1996 - Laserfiche WebLink

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--------.--.-- " I . Comparable Operating Expenses I Operating expense categories for arena operation are fairly straight forward with the largest -I expense category being for personnel to operate and maintain the facility, followed by utilities. Many of the arena expenses are fixed, not variable. Changes in the level of usage while the facility is open will not have a dramatic effect on total expenses incurred. I Schedules of arena revenue and expense statements are contained in Appendix I for six facilities. Appendix I also includes the budget proposed by NSC. The first schedule shows the I 1995 actuals and the proposed NSC budget. The second schedule shows the 1996 budgets for the same arenas and the proposed NSC budget. A final schedule derives averages for the multiple sheet, year-round facilities shown based on number of sheets of ice and compares I them to the NSC budget. Personnel Expense I The personnel expense (salary plus benefits) projected for the facility includes one full time manager ($60,000), one assistant manager (35,000), 2 full time supervisors ($30,000 each), 1 I full time and 2 part time clericals ($43,316), and arena attendants (119 part time hours per week on 3 and 4 person shifts). Additional administrative staff time is provided through the charge for administrative overhead. The rates for services are consistent with area salaries for similar positions. These salaries I can be found in Appendix II. The revenue projections are based on the arena being operated 10,400 hours per year, .- Staffing philosophies vary among managers on how many people should be available per rink. The staffing levels suggested provide for a combined level of management and rink attendants I of 3 FTE's at all times the rinks are open, plus the clerical help. We are also assuming that since no concession revenues are recognized, that any staff needed to manage that portion of the operation would be funded directly by MASC. Staffing at the Bloomington arena provides for 3 employees early in the day and late at night. During a game or other times when the I arena is fully operational, 10 employees are scheduled at the Bloomington rink. The difference between the Bloomington staffing levels and the NSC staffing levels is attributed to the four rink configuration which has one entry point and clear site lines from a central location to all I areas of ice. Other Expenses I Precise comparisons to other facilities is impossible, however, comparing a proration of the costs for the facilities shown suggests that the per sheet expense levels proposed for the NSC I facility are under the per sheet expense levels for the multiple sheet arenas listed. Direct comparisons by line items are difficult due to differences in facilities and the way in which expenses are recorded, In a number of categories, it is not appropnate to use a prorated I expense level. The nature of the facility and its newness should cause initial operating costs to be lower than those of existing facilities. Additionally, start-up costs should be offset by warrantees in place for the first year. An adjusted budget for the facility is contained in Appendix 1-c, the third schedule of Appendix I. Appendix 1-c shows budget and actual I averages for the multiple sheet facilities, a per sheet proration times four, an adjusted budget, and a comparison of the adjusted budget to the proposed NSC budget. No expenses for concessions, pro shop, skate school. officials or instructors have been -I included. These activities will be run by NSC and all expenses and income will go to NSC. DRAFT REPORT 5/30/96 Page 1 I