Cloquet City Council members approved a financial plan Tuesday that will provide $65,000 in immediate relief to the Cloquet Amateur Hockey Association (CAHA) for the 2008 year.
With CAHA currently $174,000 in arrears with the city of Cloquet and owing an additional $80,000 annual payment for the next 10 years, the association approached City Administrator Brian Fritsinger in May in an attempt to refinance.
"They want to refinance the outstanding amount over the next 20 years," Fritsinger said.
Although Fritsinger met with members of the association's finance committee to hammer out a plan, they had not yet completed annual audit requirements, which would provide a more complete financial picture of the organization.
"Without this information ... staff does not believe that long-term refinancing is appropriate," Fritsinger said.
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In another twist, after this year CAHA was scheduled to lose additional financial assistance from the city generated from rent on the antenna tower which totaled up to $25,000 per year.
Currently, the Association's main goal is figuring out how to reduce registration fees for the mini-mite, mite and U-10 age levels so more kids can participate and assure long-term growth and success of the program.
"The current rate structure has caused a significant decrease of participation at this level," Fritsinger said.
Freeing up some of the money currently owed to the city would also allow CAHA to put more money into maintaining the rinks, which are used by the entire community and reflect on the city when visitors attend games or other events.
"The strength of Cloquet hockey is known throughout the region ... this is something the city needs to be proud of and help protect," CAHA members wrote in a letter to Fritsinger in May.
Fritsinger proposed continuing to funnel antenna rental revenues to CAHA for the 2008 budget year and to reduce one-half of the 2008 payment, from $80,000 to $40,000. The remaining $40,000 would be due in 2019.
"This would provide them with some flexibility while protecting the city," Fritsinger said. "And [we would] sit down again in [early] 2008 to analyze additional steps for the long term."
"If this allows them to reduce fees, then good," said Herb Johnson, council member. "I've heard a lot of complaints about the high fees."
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"I support this but [CAHA] has to understand we can't do this every year," said Tom Proulx, councilor at large.
"This benefit of our action is for the kids," added Bjerkness.
