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ATTACHMENT 4 Review of the Oval's Financial Performance Final Comments From 1993-2003 the Oval, and eventually the Skating Center, experienced operating losses (cash-flow only) of approximately $1.5 million. From 1993-1999, the City relied upon other recreation-type revenues and Recreation Fund reserves to cover the losses. Since 2000, the City has also relied upon property taxes to support operations. The Oval's long-term iinancial viability is heavily dependent on four factors. They include: 1) Participant levels 2) Participant fee amounts 3) Personnel operating costs 4) Utility operating costs 7�ce rental, which is derived from items #1 and #2, provides 60% of the Skating Center's revenues. No other revenue source provides more than 5%. On the expenditure side, personnel and utility costs account for 75% of the Skating Center's costs. No other cost category exceeds 5%. If the Oval is to remain viable for the foreseeable future, it is imperative that the City stabilize these four factors. To summarize; to remain viable and sustainable the Oval (Skating Center) needs to have a cash infusion, above and beyond current revenues generated by the facility itself, of $250,000 annuall . Of this amount, approximately $150,000 is needed to support current operations, and $100,000 is needed for future repairslrenovations. In addition, if the City intends on replacinglrenovating the Skating Center and its components near the end of its useful life (i.e. prior to mechanical or structural failures), a one-time infusion of cash of approximately $500,000 willlikely be needed in the next 5-7 years. This is in addition to any monies that are needed to repairireplace the existing refrigeration unit that is currently failing.