Riley Rink at Hunter Park

Community MeetingSeptember 16, 2014

Background & Current StateBusiness Plan HighlightsIntroduction - General Manager Jon LarsonQuestions

Agenda

Background

1997 - 2005 Business Model

Rink & turf operations

High profit concerts underwritten by donors

Active donor group funding capital projects & select operating expenses

Fundraising Letter

An endowment was established for operating expenses & scholarship; The board established an endowment for plant & equipment replacement

2006 - 2011 Business Model

Rink & turf operations

High profit concerts underwritten by donors

Active donor group funding capital projects & select operating expenses

Fundraising Letter

The endowment for operating expenses & scholarship was stable; No longer enough cash to contribute to the plant & equipment fund

Added: tradeshows, events, ice programming, summer ice

2011-2013 Business Model

Rink & Turf Operations

High Profit Concerts underwritten by donors

Active donor group funding capital projects select operating expenses

Fundraising Letter

Tradeshows, events, ice programming, summer ice

The endowment for operating expenses & scholarship was stressed; No longer enough cash to contribute to the plant & equipment fund

Added: Hunter Fairgrounds project to grow revenue Workforce & expense base grew to support strategy

2003 – 2019 Financial Overview

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.20

03-2

004

2004

-200

5

2005

-200

6

2006

-200

7

2007

-200

8

2008

-200

9

2009

-201

0

2010

-201

1

2011

-201

2

2012

-201

3

2013

-201

4

2015

bud

get

Proj

ect P

la...

Proj

ect P

la...

Proj

ect P

la...

Proj

ect P

la...

Proj

ect P

la...

-

100,000.00

200,000.00

300,000.00

400,000.00

500,000.00

600,000.00

700,000.00

800,000.00

900,000.00

Operating RevenueOperating Expenses

2013-2014 Business Model

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

Summer Ice cancelled at last minute due to soft enrollment & other mitigating factors

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

Move to a sustainable break-even operating budget

Document standard operating procedures for arena operations, programming, marketing & technology

Recruit & hire staff & board with skill sets to execute the plan. Set forth specific responsibilities for which staff & board are accountable

Create specific action steps to achieve plan goals

Re-imagine the vision … roadmap for the future

2014-2019 Business Plan Components

① Core operations focus Aggressively seek to break-even by controlling expenses and

growing revenue Grow participants… increased programming / support for youth

skaters② Improve fundraising

Directed giving – floor, cooler, youth focused programs Annual Fund Letter plus

③ Take action on Hunter Fields. Create revenue source from non-performing asset

2014-2019 Business PlanSpecific Action Steps - The Top 3

Service: We will go the extra mile to meet our customers needsResourceful: We will find solutions to customer problemsWell-Being: Our facility will be a wholesome & safe place for our

customersEnvironment: We will be dedicated to sustainable operating practicesIntegrity: We will work as a team & deal fairly and honestly

2014-2019 Business PlanContext to achieve The Top 3

SIMPLE. Simple drives costs down

Incremental, not “all in” – Can’t do everything at once; more importantly, small steps are a lot less expensive and reduce risk

Strategy drives tactics – If an idea does not support the top 3, we do not provide resources

2014-2019 Business PlanOperating Principles to achieve

The Top 3

Email Weekly newsletter – The Hunter Park Hump Day Howler. The hot seat, weekly announcements, around town.

Website Program marketing, calendar, donor opportunities & acknowledgement. Integrate video & photos. Work toward online registration

Social Facebook

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 PlanCommunications to achieve The Top 3

Winter

SpringSummer

Fall

RINK

RINK/ TURF

EVENT / RINK*

EVENT

2014-2019 Business PlanRRHP Seasons to achieve

The Top 3

Ice: Late October to early MarTurf: Early March to late April Outsourced Events: Late April – Early October

Minimize changeovers, leverage seasonal demand

*Summer ice IF fully subscribed

Rink Disciplined planned maintenance program; continuous improvements for

efficiencies, reducing costs & ensuring a quality ice surfaceHousekeeping

Clutter free, organized, clean facility; Everything the customer sees worksGrounds

Maintained on a schedule; No clutter; Everything worksConcession

Outsourced or Rink operated at high value timesPro Shop - Keep it simpleSwap shop - Free used hockey & skating equipment

2014-2019 Business PlanRink Season

Operations & Retail

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

Tournaments & events Partner with customers to develop, market and run hockey tournaments, Bonspiels, & figure skating

competitions

Group customers Create standard operating procedures manual to ensure year to year consistency

Adult hockey Organized & well communicated for participants; Each program has a volunteer coordinator

Program marketing – standard, exciting, timely

2014-2019 Business PlanRink Season

Customers & Programming

Simplified pricing

Punch Passes in place of season passes

Skate rental price reduced

Family nights to be added to reduce cost of local public skates

Holding ice sheet & program rates flat (or slight increase) from 2013-2104

2014-2019 Business PlanRink Season

Pricing

Short season with multiple customersDifficult & relatively costly changeoverTactical revenue opportunity

Turf mat needs replacing… 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 PlanTurf Season

Operations plan developed for facility rentals focused on extremely limitedRRHP staff involvement

Indoor Event Rentals Southern Vermont Antique Show ( October) Shiners Bingo (April, June, July, October) Vermont Symphony Orchestra (June) Vermont Brewers Festival c0-sponsored with Mainstreet Hockey (TBD – September) Exhibitions: Consumer Shows & Events (start: 2016)

Outdoor Event Rentals Run & Bike race host site

2014-2019 Business PlanEvent Rental Season

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

The Endowment funds have been sustained

*Fiscal Year End 2014

Making Ends Meet 2014-2015Operating Revenue / Expense

10%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Ice Rink

Proshop

Turf

Indoor Rental

Dasherboard

Concesson

Disc Golf

10%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Payroll & Taxes

Utilites, waste & fees

Equipment Repair, Supplies & Materials

Insurance

Office Administration/Tech-nologyMarketing

Tournament & Con-nections

Operating Revenue $368,080Operating Expense ( $462,839)Operating Income/(Loss) ($ 94,759)

Budgeted Operating Revenue 2014-2015

Budgeted Operating Expense 2014-2015

Making Ends Meet 2014-2015Non - Operating Revenue / Expense

10%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Annual FundInvestment Per-formanceWest PropertyConnections

10%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ScholarshipsFundraisingWest PropertyInterest ExpenseInvestment fees

Non- Operating Revenue $128,800Non- Operating Expense ($ 44,050)Non-Operating Income/(Loss) $ 84,750Add: Operating Income/ (Loss) ($ 94,759)Net Income/ (Loss) Before Depreciation ($ 10,009)

Budgeted Non-Operating Revenue 2014-2015

Budgeted Non-Operating Expense 2014-2015

Human ResourcesCommunity Volunteers

RRHP StaffBoard of Directors

General ManagerJon Larson

Book KeeperPam Badger

Skating DirectorMartina Dvorak-

Grattan

Coaches / Instructors

TBD

Retail

Seasonal Cashiers TBD

Operations

Seasonal Ice Maintenance

Jim Harrison + Others

Seasonal Building & Grounds

TBD

Office ManagerVanessa Beattie

Connections Coordinator

Martha Stearns

Staff 2014-2015

Board of Directors

PresidentAdria

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

MarketingDevelopmentSponsorships

volunteer recruitment

RRHP Business Plan DesignMentoring Staff

GovernanceInvestment Portfolio

Recruit Board MembersFinancial Stewardship

Arena OperationsCustomer Service

Staff Hire & ManagementFinancial Management

Program design & development

Development

Why development matters

Riley Rink at Hunter Park is a private, non-profit Rink & grounds

RRHP does not receive funds from local government

Price to play does not cover operating costs

Financial commitments from the community help to ensure our sustainability

Lobby Kiosk Donor information kiosk; Donation envelopes with fund names; Cash drop; Dedicated

computer with website donation screenWebsite

Provide reason the need to give; Add suggested donation amounts; Scrolling list of supporters

Consistent sign-off End of all ads, press releases; community support to continue operations; Go to website to

donate.Annual Fund Blitz

Last 90 days of the calendar year; Annual fund letter; donor sell card; in-rink poster; press releases; progress

Annual Newsletter Claim victories and tell success stories; list donors

Development Annual Fund for operations gap

General Endowment Fund Help to grow the endowment for sustainability

Facility Fund Critical to ensure that large building and equipment update projects have funding

Warming room floor Cooling tower

Gardens Fund Beautification of our grounds

Turf Season Fund Equipment and improvements for indoor field sports

DevelopmentDirected Giving

Supports the mission, synergistic with the operationEnrolls 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

Roadmap for future…..2020 Idea: Fitness & Hockey Training Center

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.

At the Aspen Ice garden, Increased revenue 18% since arriving in 2008. Generated $70K in dry-floor rentals utilizing Aspen Ice Garden as multi-purpose facility.

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..

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

Designed syllabus & offered first ever Learn to Skate program at the college level at the Ice Haus & Oilers ice center.

Initiated the adult hockey league at the Oilers Ice center. Grew program from 4 to 32 teams.

State coordinator – U.S.A. Hockey. CEP – Coaches Education Program.

Participated in the building and management the Oilers Ice center in Tulsa, it’s first indoor ice rink. C0-founder of Tulsa Youth Hockey Association

5 Star Operator. CIRM certification with the STAR organization.

Jon Larson

Questions & Answers