City Council Worksession

South St. Paul WORKSESSION AGENDA Monday, February 22, 2021 6:00 pm Meet & Greet followed by Worksession Meeting Please be advised that the regular meeting location is the City Hall Training Room, located at 125 3rd Avenue North, South St. Paul. Pursuant to Minn. Stat. 13D021, under the current emergency declaration due to the COVID-19 health pandemic, some or all of the council members may participate in remote locations using WebEx. Any member of the public wishing to monitor the meeting may do so electronically by logging in as follows: WebEx Meeting - Login for the Public: Join by Phone: 1-312-535-8110 Access Code: 133 962 0663 AGENDA: 1. Commission Applicants Meet & Greet – 6:00 p.m. 2. Woog Arena Update 3. Closed Session to Develop Offers for the purchase of real property pursuant to Minnesota Statutes Section 13D.05, Subdivision 3(3) with the property in question identified by Tax Parcel IDs 365360003301, 365360003150, 365360002301, and 365360002290 also known as the Jefferson Site. - No Attachment 4. Council Comments & Questions A COUNCIL WORKSESSION REPORT DATE: FEBRUARY 22, 2021 2 DEPARTMENT: ADMINISTRATION Prepared By: Joel Hanson ADMINISTRATOR: JRH AGENDA ITEM: Woog Arena Update DESIRED MEETING OUTCOMES: REVIEW FINANCIAL PERFORMANCE OF WOOG ARENA AND DISCUSS PLANS FOR ADDITIONAL RENTAL INCOME OVERVIEW: In 2019, we were able to reduce the deficit for the Doug Woog Arena Fund by $199,969. This left the deficit balance at $992,831 at the start of 2020. 2020 started out very promising with increased ice rentals projected over the summer months. On the downside, we were facing a reduction of rental income from the Community Learning Center (CLC) space given that function was moving to 19th & Thompson for the start of the 2020/21 school year in September. That reduction was approximately $30,000 off a $96,000 anticipated income. The catastrophic impact resulted when COVID-19 hit and forced various shutdowns throughout the year. Attached to this memo is a projected income statement for the Arena for 2020. (Please note that the preparation of the Comprehensive Annual Financial Report will likely modify the results shown here.) In reviewing the 2020 report, you will see we finished the year slightly in the black. However, it is important to remember that over $300,000 of levy support was needed to make that possible. If we had not faced the various shutdowns and had essentially the same revenues (less the CLC change) and expenses from 2019 (after allowing for the reduction of interest cost but using 2020 capital expenditures), we would be showing a revenue over expenditures amount of $165,706. While that calculation may be overly simplistic, it is safe to say COVID-19 impacted the finances of the Arena by at least $165,000 in 2020. George Emerson will be present to discuss additional ice sales opportunities he is working on as well as possible tenants for the former CLC space and what these options mean for the bottom line. Please be advised this discussion will be in general terms so as not to jeopardize negotiations with various parties. SOURCE OF FUNDS: N/A  MONTHLY FINANCIAL REPORT DOUG WOOG ARENA Year-to-Date December 2020 December YTD December YTD 2020 VS 2019 Description Actual Actual December 2020 2019 Dollar Change 20243 - DOUG WOOG ARENA OPERATING REVENUES CHARGES FOR SERVICE ICE RENTALS-FALL & WINTER 259,576 463,985 (204,409) ICE RENTALS-SUMMER 134,258 156,305 (22,047) TICKET SALES FOR GAMES - 8,740 (8,740) PUBLIC SKATING - 96 (96) FIGURE SKATING 2,545 6,748 (4,203) SKATE SHARPENING 158 471 (313) CONCESSION SALES 15,587 41,516 (25,929) RENTAL-LEASE 16,170 21,457 (5,287) DRY FLOOR - 2,250 (2,250) SIGN RENTAL 4,314 8,930 (4,616) VENDING - WOOG ARENA 2,428 5,129 (2,701) RENT 63,412 93,035 (29,623) TOTAL CHARGES FOR SERVICE 498,448 808,662 (310,214) MISCELLANEOUS MISCELLANEOUS 1,220 2,578 (1,358) OPERATING REVENUES 499,668 811,240 (311,572) OPERATING EXPENDITURES PERSONAL SERVICES 354,479 405,225 (50,746) MATERIALS & SUPPLIES 48,538 70,527 (21,989) SERVICES AND OTHER CHARGES 304,917 350,005 (45,088) MISCELLANEOUS 759 1,537 (778) INTEREST ON DEFICIT BALANCE 10,231 27,033 (16,802) OPERATING EXPENDITURES 718,924 854,327 (135,403) OPERATING REVENUES OVER (UNDER) OPERATING EXPENDITURES (219,256) (43,087) (176,169) NON OPERATING REVENUES AND EXPENDITURES TAXES 322,954 330,954 (8,000) UNREALIZED GAIN/LOSS ON INV (5,437) (23,972) 18,535 NON OPERATING REVENUES 317,517 306,982 10,535 CAPITAL OUTLAY 95,903 63,926 31,977 NON OPERATING EXPENDITURES 95,903 63,926 31,977 NON OPERATING REVENUES OVER (UNDER) NON OPERATING EXPENDITURES 221,614 243,056 (21,442) REVENUES OVER (UNDER) EXPENDITURES 2,358 199,969 (197,611)