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ATTACHMENT 15 Task Force Meetin� Minutes historically levied for capital improvements. Government is starting to realize the limitations of the levy system, the city has been incorporating depreciation into the budget for its "rolling stock" (fire engines, police cars, etc) and sa��e infrastructure but has not incorporated depreciation into its budget for facilities. It is looking at including facility depreciation into budgets but it is an "issue by issue" process with the "needy" facilities trying to get addressed first without putting too much pressure on property taxes in the city. Questions were asked about charitable gambling proceeds and how they factor in to the city budget. It was noted that 10% of charitable gambling proceeds that the hockey association (RAYHA} and speedskaters (GMSA) collect have to go to the city of Roseville. These monies then go to the North Suburban Youth Foundation and Roseville Caini�unity Fund which in turn provide funds to other nonprofit groups through grant procedures. There is an endowment set at 50% for these groups to offset potential loss of charitable gambling in the future. It was suggested that some o�the charitable gambling proceeds could go directly to an endowment to cover Skating Center depreciation but this would require City Council action. Chris also noted that charitable gambling proceeds appear to have "an�xed out" in the late t 980s and that they have been adversely affected by the state lottery, bingo and pull-tab profits have decreased in the past few years. Quick calculations determined that in order to maintain an annual endowment of $250,000 an initial investment of 5 million dollars is needed. A question was asked about the Coke sponsorship. Jill responded that the Skating Center has a 5 year contract with Coke which brings in 15,000 in dollars or product each year, Coke is advertised on the scoreboard and has exclusive rights to have their products for sale, and a commission on the revenue. Barclay Kruse form the MASC noted that this is one of the most generous contracts with Coke in the area. Coke offers us such a contract based on the fact that annually 175,000-200,000 people visit the Skating Center. A series of questions followed concerning "visitor impact". Leslie noted that the economic impact from the World Junior Speedskating Championship is derived by calculating the number of people using lodging in Roseville and multiplying by a standard amount of money spent and the number of days spent in the community. The Roseville Visitors Association can track these numbers when certain events bring in the RVA for help with planning. There is a 3% lodging tax in Roseville which supports the RVA. It was noted that Rosedale alone draws in visitors from all over the 5 state area. The figures for economic impact from weddings and receptions held at the Skating Center are somewhat hard to obtain, generally families have not worked with RVA for wedding planning but book groups of rooms with individual hotels. The possibility of a hospitality tax was raised. Dean Maschka noted that these taxes are somewhat limited in their usage. The major urban centers have a%z% sales tax increase for support just because they are "regional draws" Roseville could possibly generate 1-2 million dollars with a 1% sales tax increase. It was suggested that we explore the economic impact of"out of city" users. BarcEay noted that the MASC does an out of state impact and it would be possible for the task force to explore this. Another question was asked about corporate sponsorship —basically what does a corporation look at in deciding to provide sponsorship to a facility? The consensus is that corporations will look at attendance — they want to reach the most people possible. ATTACHMENT 15 Task Force Me�ting Minutes