Minutes - 1999/11/22 (2) - Laserfiche WebLink

Home Browse Search

Mounds View City Council November 22, 1999 Public Hearing Meeting Page 7 estimated that the minimum amount they will pay in 2000 is $40,000. He indicated Community Education is anticipated to generate approximately $52,000, and the Banquet Center, factoring in the revenues from catering, liquor, and the rental of the facility, will generate approximately $90,000. Finance Director Kessel stated the City anticipates approximately $17,000 per year in revenues from the area within the gymnasium that is managed by the YMCA. He indicated the facility periodically holds "open gyms," and charges a dollar to participate, which represents $3,500. He added that the commission on the vending machines in the facility is estimated to generate $4,500, and additionally, miscellaneous revenues of approximately $3,500 are expected. He pointed out that the facility will pay approximately $1,500 in sales tax on some of the rentals, however, with the $50,000 transfer from the City, the total revenues of the Community Center will be $261,000. Finance Director Kessel stated on the electricity, water, sewer and janitorial service costs are some of the larger expenses of the Community Center. He advised that the City has a contract for management of the Banquet Center that is commission based, and the higher the revenue, the higher the percentage will be. He indicated this would be approximately $30,000 next year. He stated that through the YMCA agreement, the City sets aside $20,000 a year for equipment • replacement. He pointed out that the current budget information indicates a fund balance, however, some of this is actually Equipment Reserve, and represents approximately $9,000 of income. He noted this information would be included in the next budget presentation. He indicated that further refining is necessary, however, the Community Center appears to be fairly successful. Mayor Coughlin indicated from a business standpoint, if you can break even in the first three years of operation, you are doing well. He stated the Community Center is coming very close to that within its first year of operation, when for months they were simply attempting to iron out procedures and policies. He remarked that this is incredible. He added that this is a testament to the management skills of Finance Director Kessel, who had conducted much of the oversight on this project. He commended Finance Director Kessel for a job well done. City Administrator Whiting noted the previous discussion pertaining to possible changes in the street light utility rate, to reflect the slower activity in this area. Mayor Coughlin inquired regarding staff's earlier recommendation on this matter. Finance Director Kessel stated staff has proposed a possible 20 percent reduction in the street lighting fee. Mayor Coughlin stated there was some consensus among the Council Members in this regard, and inquired if this would be reflected in the final budget.