YC Arena Stalls, Restrooms Upgraded, Driving Deficit

Young County commissioners approved a $33,512.69 payment on Jan. 28, to cover the county’s share of the Young County Arena’s operating deficit, after hearing a first-quarter financial report and updates on major facility upgrades aimed at boosting rentals and long-term revenue.

Graham City Manager Eric Garretty, appearing before commissioners during the Commissioners Court meeting, presented the arena’s first-quarter fiscal year report covering October through December 2025. Garretty said the arena posted $94,958.60 in revenue against $161,998 in expenses, leaving a $67,025.38 deficit at the end of the quarter.

Under the current lease agreement between Young County and the City of Graham, the deficit is split between the county and the Graham Economic Improvement Corporation. The payment approved on Wednesday represents the county’s share.

Mr. Garretty told commissioners the quarter’s deficit was driven largely by timing and fixed costs rather than a collapse in activity. The arena pays its insurance premium annually, he said, and the full cost hit in the first quarter — an expense that also increased. Paying annually still provides a discount, he added, and the arena board moved funds to absorb the higher premium.

Mr. Garretty said that despite the expected second- quarter deficit tied to the improvement projects, the arena anticipates remaining within budget for the year and expects the county’s total subsidy to stay near the planned $125,000.

Arena revenues fell short of targets due to an equine flu outbreak that forced the cancellation of some events. Still, Mr. Garretty said the facility produced about 19% of expected arena rental revenue for the first quarter, compared with a target closer to 25%.

Even so, Mr. Garretty cautioned commissioners to expect a larger deficit in the second quarter because of capital improvements underway at the arena — particularly an extensive rehabilitation of the horse stalls, which officials described as a key income driver.

“The stalls at the arena, after the arena rental, are a big money maker for us,” Mr. Garretty said, explaining that many of the older stalls were deteriorating to the point they could not be repaired. He said new stalls and stall matting are being installed in phases, with the current round expected to cost between $80,000 and $90,000.

Commissioners Jimmy Wiley and Alan Craig discussed the benefits of the upgrades: previously, horses shifting in the stalls created deep holes in the flooring that required repeated filling — labor and material costs that the new matting largely eliminates. The mats also make cleaning easier and more efficient, allowing the arena to use equipment already purchased for stall maintenance.

Commissioners also heard an update on restroom renovations in the Barkley Room area, a project Mr. Garretty described as addressing a long-standing complaint from users of the space. The renovation included repairs to damaged walls, plumbing fixes, ceiling and lighting upgrades, and electrical work.