The York City Ice Arena is making more money each year, but it's still not enough to cover its debt, officials said.

When the city took over the ice arena in 2003, it inherited the rink's $7 million debt, too.

The ice arena generates enough money to cover its expenses but not all of its debt payment, said Michael O'Rourke, the city's business administrator. So the city has to subsidize the payment, usually kicking in between $300,000 and $400,000 a year.

The rink has amassed a deficit of about $1 million since 2002, because revenue hasn't matched the cost of operating and the debt, he said.

Jim Gross, the city's public works director, said that, each year, the ice arena makes about $200,000 more than is needed for operating expenses.

The amount gets a little bigger each year, he said.

But the annual debt payment is more than $600,000.

"There's a big gap there yet," he said. "You're never going to get there from the standard operation of the facility."

O'Rourke said there are no easy solutions to the problem of the city's having to subsidize the debt.

There were offers from potential buyers, he said. But the price wouldn't have been enough to cover the debt. Since the arena sits in Veterans Memorial Park, there are other issues, too, such as whether the city could sell the arena and keep the land or whether the land could be subdivided.

"That being said, we're always open to listen to anybody who has a good idea that gives us money and takes that burden off of the taxpayers," O'Rourke said.

There were plans early on to sell advertising and naming rights and to add a restaurant in the facility. But they never materialized, and now might not be the best time for some of them, he said.

"The difficulty in selling the naming rights has resulted from the fact that they didn't catch the crest of the wave when it was really at its apex," he said.

Thomas Hillgrove, president of Rink Management Services Corp., which manages the ice rink, said his company is working to generate more money.

"Not only are we trying, we actually are," he said.

Youth hockey programs and skating lessons are growing, he said. The upstairs community room, though "not a huge revenue generator," is packed for bingo nights and is used for other events such as wedding receptions.

The company is working to reach out to city residents, but York "is just not historically an ice-skating community," he said. An attempt to start a hockey program with William Penn Senior High School fizzled.

Tough economic times and transportation issues make it hard as well, he said. In the meantime, they're watching costs closely and have hired a grant writer to look for opportunities, he said.

O'Rourke said new residential developments, such as the planned Northwest Triangle housing, could bring people who might have an interest in the ice arena.

The city's participation in an energy-savings program will help cut costs at the arena in the future, Gross said.

"You just keep doing as much as you can," he said. "There's no magic bullet."

amason@ydr.com; 771-2048

ICE ARENA TIMELINE

2001: The York City Council agreed to back a $7 million bond for the York City Recreation Corp. to build an ice arena.

2003: The city became responsible for the debt when the York City Recreation Corp. couldn't make the payments.

2004: The city hired Rink Management Services to handle operations at the arena.

2005: The management company's contract was renewed for three years.

2008: The York City Council extended the Rink Management Services contract until 2010. Officials say the rink is making more money, just not enough for the debt.

BY THE DOLLARS

$1 million: The resulting deficit because the York City Ice Arena has not been able to generate enough money to cover its costs plus its debt.

$626,000: The amount of the annual debt payment

$200,000: The amount the ice arena usually makes annually once operating expenses are met

$300,000 to $400,000: The amount the city typically has to chip in