VICTORIA FIELD HOUSE
$180,000 BUDGET SHORTFALL IN 2006
"There are some issues," reported Jylan Johnson, Finance Director for the City of Victoria, as she met with city councilmembers in a workshop setting on August 24^th and reviewed revenue short-falls projected at the Victoria Field House that are causing a strain on the entire 2006 [the current] Victoria City Budget.
The city finance director reviewed Field House numbers and made the following projections for year-end 2006:  Concessions are projected to fall short by $6,000.  Ice rental is projected to fall short by $60,000.  Memberships are projected to fall short by $50,000.  Daily passes are projected to fall short by $6,000.  Gym rental is projected to fall short by $10,000.  Advertising revenues are projected to fall short by $6,000.  Daycare receipts are projected to fall short by $4,500.  Program fees are projected to fall short by $15,000. 
Stated Councilmember Mary Thun, "We can't afford a $430,942 transfer to the Field House.  We have to make cuts.  We have to bandage up the bleeding.  We have to shut up concessions.  All expendi-tures have to stop.  No city conferences.  Only life-saving training and utilities.  We [should] bring our own sandwiches to workshops.  We need to take drastic steps."
Mary continued, "We're still short $180,000 even after we deduct the $250,000 we've agreed to give the Field House every year, plus the debt service."
Stated Mayor Jerry Bohn, "We've got to cut $180,000 from the budget ... and I mean the 2006 budget."
Continued Councilmember Thun, "We need to stop spending and cut every solitary thing that we don't need to run this city."
Mary made a motion that was unani-mously approved by all five councilmem-bers.  That motion directed City Adminis-trator Dave Urbia and City Finance Direc-tor Jylan Johnson to "cease all unneces-sary spending and noncritical funding, conferences, and travel for 2006, all discretionary funds, everything, not just at the Field House, with the cutting starting tomorrow, and make recommendations to Council."
In other words, city staff was directed to do whatever it takes in the next four months to relieve the projected $180,000 shortfall in the city's 2006 budget.
City staff was directed to contact people who might help solve the Field House problem.  Those people mentioned included the Carver County HRA person who is an expert on the Town Center Building in Waconia, ice rink people, realtors, school district, and Holy Family Catholic High School. 
City staff was directed to contact con-sultant Jeff King of Ballard King & Asso-ciates to advise the city and "speed ahead with recommendations."  Only a couple weeks ago Council accepted a proposal from Ballard King to explore partnerships - such as the YMCA -- for the operation of the Victoria Field House.  Cost of Ballard King conducting preliminary discussions with potential partners:  $1,500.  Cost of a final report:  $750.
City staff was furthermore directed to look at what is possible since the Field House was paid for with a bonding issue and is located in a park, Diethelm Park.

Some of the conversation at the coun-cil workshop that evening of August 24^th at the City Council Chambers (also known as the Village Hall) on Rose Street fluctuated as follows ...
Mayor Jerry Bohn:  "The city can't sell parkland once it is designated park-land, which is why Three Rivers Park District could trade land with us, not sell it."
Finance Director Jylan Johnson:  "We have been paying interest only on the Field House.  The $345,000 each year is an interest only payment."
Councilmember Terry Bishop:  "Why don't we sell this building [the Hall] and move city offices to the Field House and use the revenue to renovate as needed?"
Councilmember Richard Tieden:  "I'd say go for it -- full staff at the Field House -- or liquidate.  Let's sell it and not agonize over it.  I look at these numbers and they're frightening to me too.  I like Terry's idea."
Councilmember Mary Thun:  "I'd like to give Jeff King a chance to form a partnership.  I don't think we can 'go for it.'"
J. Bohn:  "We'd have the Field House building for a library.  All we need is to provide a building and the county provides the rest.  We'd certainly leave the ice arena open.  It brings in revenue."
T. Bishop:  "We've got a consultant who's going to look into some of these things.  Let's let him earn his money."
Jylan:  "The building has potential."
R. Tieden:  "My idea when I talk about the original feasibility study is the aggregate of the Springsted Study, all the meetings and information from people who said it would work ... We were going to have a full kitchen and the Lions Pan-cake Breakfasts here and a circus and a car show, a rodeo.  We're sitting now where it's a major, major headache."

Click here to continue 2007 Field House Budget.