Riley Rink at Hunter Park Community Meeting September

Riley Rink at Hunter Park Community Meeting September 16, 2014

Agenda üBackground & Current State üBusiness Plan Highlights üIntroduction - General Manager Jon Larson üQuestions

Background

1997 - 2005 Business Model ü Rink & turf operations ü High profit concerts underwritten by donors ü Active donor group funding capital projects & select operating expenses ü Fundraising Letter ü An endowment was established for operating expenses & scholarship; The board established an endowment for plant & equipment replacement

2006 - 2011 Business Model ü Rink & turf operations ü High profit concerts underwritten by donors ü Active donor group funding capital projects & select operating expenses ü Fundraising Letter ü The endowment for operating expenses & scholarship was stable; No longer enough cash to contribute to the plant & equipment fund ü Added: tradeshows, events, ice programming, summer ice

2011 -2013 Business Model ü Rink & Turf Operations ü High Profit Concerts underwritten by donors ü Active donor group funding capital projects select operating expenses ü Fundraising Letter ü Tradeshows, events, ice programming, summer ice ü The endowment for operating expenses & scholarship was stressed; No longer enough cash to contribute to the plant & equipment fund ü Added: Hunter Fairgrounds project to grow revenue § Workforce & expense base grew to support strategy

2003 – 2019 Financial Overview 900, 000. 00 800, 000. 00 700, 000. 00 600, 000. 00 500, 000. 00 400, 000. 00 300, 000. 00 200, 000. 00 100, 000. 00 20 03 20 200 04 4 20 200 05 5 20 200 06 6 20 200 07 7 20 200 08 8 -2 20 00 09 9 -2 20 010 10 -2 20 011 112 20 012 12 -2 20 013 1 20 3 -20 15 1 Pr b 4 oj ud e g Pr ct P et la oj ec n Pr t P +1 oj lan ec Pr t P +2 l oj ec an + t Pr P 3 oj lan ec t P +4 la n +5 - Operating Revenue Operating Expenses But… the revenue did not grow. The yearly operating deficit, funded by annual fund, investment performance, grants & other donations, significantly increased. Endowment earnings were overwhelmed & our line of credit began to swell.

2013 -2014 Business Model ü Reduced expenses § Staff reduced from 5 full time employees to 2 full time employees § Line item cuts – every line trimmed or eliminated § Solar panels came on line to reduce electric expense ü Summer Ice cancelled at last minute due to soft enrollment & other mitigating factors ü Short term revenue measures taken § Attempted to increase ice time usage by decreasing ice price 10% § Added Last Minute ice program § Customers bought same or less ice than previous year § Revenue stream reduced by lower prices, snowy winter & difficult holiday calendar which decreased budgeted public skate revenue by 31%

In 2013 -2014 we were just holding on… All tactics, no direction, no fun In short – could not go forward without a plan

2014 -2019 Business Plan Components ü Move to a sustainable break-even operating budget ü Document standard operating procedures for arena operations, programming, marketing & technology ü Recruit & hire staff & board with skill sets to execute the plan. Set forth specific responsibilities for which staff & board are accountable ü Create specific action steps to achieve plan goals ü Re-imagine the vision … roadmap for the future

2014 -2019 Business Plan Specific Action Steps - The Top 3 ① Core operations focus ü Aggressively seek to break-even by controlling expenses and growing revenue ü Grow participants… increased programming / support for youth skaters ② Improve fundraising ü Directed giving – floor, cooler, youth focused programs ü Annual Fund Letter plus ③ Take action on Hunter Fields. Create revenue source from non-performing asset

2014 -2019 Business Plan Context to achieve The Top 3 ü Service: We will go the extra mile to meet our customers needs ü Resourceful: We will find solutions to customer problems ü Well-Being: Our facility will be a wholesome & safe place for our customers ü Environment: We will be dedicated to sustainable operating practices ü Integrity: We will work as a team & deal fairly and honestly

2014 -2019 Business Plan Operating Principles to achieve The Top 3 ü SIMPLE. Simple drives costs down ü Incremental, not “all in” – Can’t do everything at once; more importantly, small steps are a lot less expensive and reduce risk ü Strategy drives tactics – If an idea does not support the top 3, we do not provide resources

2014 -2019 Business Plan Communications to achieve The Top 3 ü Email § Weekly newsletter – The Hunter Park Hump Day Howler. The hot seat, weekly announcements, around town. ü Website § Program marketing, calendar, donor opportunities & acknowledgement. § Integrate video & photos. § Work toward online registration ü Social § Facebook ü Future…. . mobile App § Investigate low-cost way to talk directly to customers. Push schedule reminders, sign-up opportunities, event marketing, public ice schedules, financial support opportunities, etc.

2014 -2019 Business Plan RRHP Seasons to achieve The Top 3 RINK Ice: Late October to early Mar Turf: Early March to late April Outsourced Events: Late April – Early October Fall Winter Summer Spring EVENT *Summer ice IF fully subscribed EVENT / RINK* RINK/ TURF Minimize changeovers, leverage seasonal demand

2014 -2019 Business Plan Rink Season Operations & Retail ü Rink § Disciplined planned maintenance program; continuous improvements for efficiencies, reducing costs & ensuring a quality ice surface ü Housekeeping § Clutter free, organized, clean facility; Everything the customer sees works ü Grounds § Maintained on a schedule; No clutter; Everything works ü Concession § Outsourced or Rink operated at high value times ü Pro Shop - Keep it simple ü Swap shop - Free used hockey & skating equipment

2014 -2019 Business Plan Rink Season Customers & Programming ü Youth Skaters § Revitalize programs for youth skaters. Create, market and run new entry programs & camps § Middle school ice dances & fun events, Improved school skate programming & coaching § Partner with NHA to propel graduates to high school hockey ü Tournaments & events § Partner with customers to develop, market and run hockey tournaments, Bonspiels, & figure skating competitions ü Group customers § Create standard operating procedures manual to ensure year to year consistency ü Adult hockey § Organized & well communicated for participants; Each program has a volunteer coordinator ü Program marketing – standard, exciting, timely

2014 -2019 Business Plan Rink Season Pricing ü Simplified pricing ü Punch Passes in place of season passes ü Skate rental price reduced ü Family nights to be added to reduce cost of local public skates ü Holding ice sheet & program rates flat (or slight increase) from 2013 -2104

2014 -2019 Business Plan Turf Season ü Short season with multiple customers ü Difficult & relatively costly changeover ü Tactical revenue opportunity § Turf mat needs replacing… ü Feasibility analysis to be conducted § ROI on new turf investment will never break-even – opportunity for directed donation. § May not be able to continue Turf Season without new mat after 2016

2014 -2019 Business Plan Event Rental Season ü Operations plan developed for facility rentals focused on extremely limited. RRHP staff involvement ü Indoor Event Rentals § Southern Vermont Antique Show ( October) § Shiners Bingo (April, June, July, October) § Vermont Symphony Orchestra (June) § Vermont Brewers Festival c 0 -sponsored with Mainstreet Hockey (TBD – September) § Exhibitions: Consumer Shows & Events (start: 2016) ü Outdoor Event Rentals § Run & Bike race host site

The Endowment funds have been sustained Year Operations Endowment Scholarship Endowment PP&E Endowment Hunter Park Capital Campaign 1997 800, 000 200, 000 0 0 2014* 836, 826 379, 674 173, 431 312, 580 *Fiscal Year End 2014

Making Ends Meet 2014 -2015 Operating Revenue / Expense Budgeted Operating Revenue 20142015 120% Budgeted Operating Expense 20142015 100% Ice Rink 100% Proshop 80% Turf Indoor Rental 60% Dasherboard 40% 20% Payroll & Taxes 90% Utilites, waste & fees 80% 70% 60% Equipment Repair, Supplies & Materials 50% Insurance 40% Concesson 30% Disc Golf 20% Office Administration/Technology Marketing 10% 0% Tournament & Connections 0% 1 1 Operating Revenue Operating Expense Operating Income/(Loss) $368, 080 ( $462, 839) ($ 94, 759)

Making Ends Meet 2014 -2015 Non - Operating Revenue / Expense Budgeted Non-Operating Revenue 2014 -2015 100% Budgeted Non-Operating Expense 2014 -2015 100% 90% 80% 70% 60% Annual Fund 60% 50% Investment Performance 50% 40% West Property 40% 30% Connections 30% Scholarships Fundraising West Property Interest Expense Investment fees 20% 10% 0% 0% 1 Non- Operating Revenue Non- Operating Expense Non-Operating Income/(Loss) Add: Operating Income/ (Loss) Net Income/ (Loss) Before Depreciation 1 $128, 800 ($ 44, 050) $ 84, 750 ($ 94, 759) ($ 10, 009)

Human Resources Community Volunteers RRHP Staff Board of Directors

Staff 2014 -2015 General Manager Jon Larson Connections Coordinator Martha Stearns Office Manager Vanessa Beattie Operations Seasonal Ice Maintenance Jim Harrison + Others Seasonal Building & Grounds TBD Retail Seasonal Cashiers TBD Skating Director Martina Dvorak-Grattan Coaches / Instructors TBD Book Keeper Pam Badger

Board of Directors President Adria Schozer Secretary Bruce Welsh Marketing Board Position (1 Open) Committee Member (2 Open) Treasurer Bob Thompson Board Position (1 Open) Committee Member Bill Hadden Governance Barry Brown Board Position (1 Open) Development Chair Pat Zilkha Board Position (1 open) Committee Members (2 Open) Facilities Chair Paul Tegen Board Members Jim Hand Bruce Welsh Vice President Field Project Andy King

Board / Staff Team Work RRHP Business Plan Design Mentoring Staff Governance Investment Portfolio Recruit Board Members Financial Stewardship Marketing Development Sponsorships volunteer recruitment Arena Operations Customer Service Staff Hire & Management Financial Management Program design & development

Development

Why development matters ü Riley Rink at Hunter Park is a private, non-profit Rink & grounds ü RRHP does not receive funds from local government ü Price to play does not cover operating costs ü Financial commitments from the community help to ensure our sustainability

Development Annual Fund for operations gap ü Lobby Kiosk § Donor information kiosk; Donation envelopes with fund names; Cash drop; Dedicated computer with website donation screen ü Website § Provide reason the need to give; Add suggested donation amounts; Scrolling list of supporters ü Consistent sign-off § End of all ads, press releases; community support to continue operations; Go to website to donate. ü Annual Fund Blitz § Last 90 days of the calendar year; Annual fund letter; donor sell card; in-rink poster; press releases; progress ü Annual Newsletter § Claim victories and tell success stories; list donors

Development Directed Giving ü General Endowment Fund § Help to grow the endowment for sustainability ü Facility Fund § Critical to ensure that large building and equipment update projects have funding § Warming room floor § Cooling tower ü Gardens Fund § Beautification of our grounds ü Turf Season Fund § Equipment and improvements for indoor field sports

Roadmap for future…. . 2020 Idea: Fitness & Hockey Training Center ü Supports the mission, synergistic with the operation ü Enrolls more people to the cause; increases involvement, more participants § Brings more people and attention to facility; Year-round traffic. § Gives parents an activity during practices; games (especially if window to rink) § Advances athletic performance of players; which makes it more fun and aspirational

Jon Larson ü Extensive knowledge of rink operations – refrigeration, ice maintenance, Zamboni, skate sharpening, employee scheduling, pro shop, public relations, marketing, advertising, fund raising, dasher board ad sales, group sales, budget & cost management. ü At the Aspen Ice garden, Increased revenue 18% since arriving in 2008. Generated $70 K in dry-floor rentals utilizing Aspen Ice Garden as multipurpose facility. ü At the Greely Colorado Ice Haus , Designed and implemented first ever Rec Hockey program. Founded the Greeley Youth Hockey Association & developed & implemented the first In-house Adult Hockey league. . ü First on-ice instructor at Oilers Ice center in Tulsa, Oklahoma and Ice Haus in Greeley, Colorado. Professional power skating instructor. Guest instructor for several pro hockey camps ü Designed syllabus & offered first ever Learn to Skate program at the college level at the Ice Haus & Oilers ice center. ü Initiated the adult hockey league at the Oilers Ice center. Grew program from 4 to 32 teams. ü State coordinator – U. S. A. Hockey. CEP – Coaches Education Program. ü Participated in the building and management the Oilers Ice center in Tulsa, it’s first indoor ice rink. C 0 -founder of Tulsa Youth Hockey Association ü 5 Star Operator. CIRM certification with the STAR organization.

Questions & Answers