City officials seek new revenue for costly Menard Center

WASILLA — Wasilla officials continue to look for new ways to shore up finances at the Curtis D. Memorial Sports Center, which continues to drain the city’s coffers by about a half-million dollars per year.

The most recent figures show the Menard Center’s finances are largely on track to meet budget projections. The center is the most costly of the city’s four enterprise funds, and requires annual infusions of general fund revenues to keep the lights on and the ice chilled. Projections for the 2016 fiscal year show officials anticipated $1.2 million in operating expenditures against $698,700 in operating revenues, for a deficit of about $515,237. By way of comparison, the projected operating deficit for the airport enterprise fund was $115,664. The city’s Water and Sewer each have a net positive cash flow.

Halfway through the 2016 fiscal year at the end of January, the center had earned $332,000 in revenues against $677,000 in expenditures, according to figures provided by finance director Troy Tankersly.

An enterprise fund is a separate fund established within city finances used to manage assets without contributing directly to the operation of the general fund. Enterprise funds bear that name because they’re expected to generate some money, Tankersly said. The Menard Center’s finances run contrary to that design, because apart from depreciation (the building loses value as it ages) and capital investments, the center has always required infusions of general fund money to operate, Tankersly said. Ideally, the center would at least break even, or turn a small profit for city managers, Tankersly added.

“You want (enterprise funds) to increase their revenues, and decrease their expenses,” he said. “The council’s goal, if you will, has always been to do exactly that.”

Nevertheless, city officials have always been realistic about the $15-million center’s prospects for profitability after taxpayers approved a temporary increase in sales tax, Tankersly said.

“They have done that over time, but it’s a sports complex,” Tankersly said. “And sporting facilities typically don’t make money.”

Other facilities, like public libraries, aren’t expected to turn a profit, either, Tankersly said. The difference is that public libraries don’t usually compete with privately owned and operated events centers or even other publicly managed facilities, like the MTA Events Center in Palmer, Tankersly said.

Even given the addition of new events — like a summer carnival and circus held last year, and a planned spring rodeo — likely won’t help much, said mayor Bert Cottle.

The carnival, for example, is set to return again this year, and will bring in about $5,000.

“It’s a couple of drops in the bucket,” he said. “But what’s the alternative? Do nothing. We’re out promoting the Menard Center like it’s never been promoted before.”

In order to help the rodeo, city council members will on Monday consider a $16,000 soil re-grading project to prepare part of the area surrounding the center.

“We won’t know what our take on the rodeo will be until we hold it,” he said.

Users at the Menard Center Friday afternoon for “Turf For Tots” and a scheduled public skate on the Curtis C. Menard Memorial Ice Arena said they the center is well worth its cost to taxpayers.

Dana Hoffman, a 14-year resident of Wasilla, was at the Turf 4 Tots event as part of her work with the nonprofit group Refuge For Women, Inc. She attends as part of the joint Easter services held at the Menard Center, and said the center is part of the city’s identity. She also visits the center about two or three times each week, and said she plans on coming to use the walking track over the ice arena. Her step-son, Cody Rice, participates in the Tuesday Night Fights mixed martial arts events in the arena, and she attends those events when he’s around.

“I think it’s worth it,” she said. “I can’t imagine what they’d do without it with some of the events that they schedule here.”

Contact reporter Brian O’Connor at brian.oconnor@frontiersman.com