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Optimistic Projections presented 10 areas of financial responsibilitythat could eliminate the City contribution to the Skating Center and contribute an additiona126% to the Capitalization/ Depreciation target. • Addressing Annual CapitalizationCosts o OVAL has been included in the House recommended State Bonding Bill (outcome pending) o Recommendation has been made to pursue a local sales tax to fund the Skating Center (presently being discussed by Council) o Agreed upon interest of annual interest proceeds from current $700,000 endowment (based on pending recreation agreement) o Sof� Dollar Costs ... Quantifying Value of Non-Revenue Generating Activities $45,000 in annual community related value is provided by the Skating Center in the form of City of Roseville functions. o Public Usage Value ... Quantifying Value of Public Use If assumptions are correct, 40,000 recreation occasions by Roseville Residents take place at the Skating Center annually, which at a$1 per recreation occasion cost equates to a"Public Good" co��ibution of $44,Q00. o Economic Impact Assessment ... Assessing OVAL's Impact to Roseville Merchants OVAL is clearly a positive economic engine within the City. Local experts present $1.648 million of economic impact is produced by non-Roseville residents (spending that would not occur within the City if the OVAL were not in existence) o Mothballing at�dlar removing the OVAL ... Costs Associated if Pursued Mothballingprojected to save up to 50% of the annual operating deficit. ' Demolitionwill incur a one-time cost of $2S�,QQ� The first maj or implementation to take place based on the Task Force recommendation was the result of user fee evaluations. The cost of renting outdoor ice has increased substantially. Financial and operational reviews demonstratedthat the fees being charged for ice rental were not covering the costs of maintaining the ice for the users. Task Force members took this information back to their user groups and discussed the impact of increased rental fees on their individual organization. In the end a compromise was agreed upon between the user groups and Skating Center management. Open Skating fees increased 25% and ice rental fees increased 20% resulting in a projected $25,000 increase annually in user fees. In summary, the Task Force was asked to leave their ice sport loyalties and individual advocacies at the door and take a critical look at the Skating Center operations in hopes of establishing an evaluation of the financial standing of the OVAL. The Task Force was successful in; o Defining the OVAL's financial viability as requiring $ lOQ,0001year to cover the operational shortfall and $150,OOO/year to cover ca�ital�zatiaz�/depreciation_ o Examining a series of revenue-generatingor cost saving themes with the intent of reducing the burden on Roseville �r��,e�tx• taxpayers. �� . _... � � _ �. . �� .�.� � � �-� : �,,..r .,� � �:_,- __.... --�-=-----��_ �_.�.-.__ ._.�._..�.�.. , '.�' - ;--•-' . - Fw. _.�. ..r' � 2006 MRPA Award of Excellence Roseville Skating Center/O�AL Task Force