Loading...
Fiscal Year 2020 Detailed Budget for the Five Flags Civic Center Copyrighted April 15, 2019 City of Dubuque Consent Items # 13. ITEM TITLE: Fiscal Year2020 Detailed Budgetforthe Five Flags Civic Center SUMMARY: City Manager recommending approval of the detailed Fiscal Year 2020 Budget for the Five Flags Civic Center submitted by SMG. SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Approve ATTACHMENTS: Description Type FY2020 Detailed Budgetfor Five Flags Civic Center- City Manager Memo MVM Memo Staff Memo Staff Memo Five Flags Center FY20 Budget Supporting Documentation THE CITY OF Dubuque � AIFA�erlwGh UB E '�� III► Masterpiece on the Mississippi Z°°'�w'2 7A13 2017 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Fiscal Year 2020 Detailed Budget for the Five Flags Civic Center DATE: April 8, 2019 Leisure Services Manager Marie Ware recommends City Council approval of the detailed Fiscal Year 2020 Budget for the Five Flags Civic Center submitted by SMG. I concur with the recommendation and respectfully request Mayor and City Council approval. ��JV'vr�"\ �Gtn�r //���{/L�t� Mic ael C. Van Milligen �� � MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Marie L. Ware, Leisure Services Manager THE CTTY OF Dubuque �" ui���eNe�ary DUB E '�I}I��' Masterpiece on the Mississippi �°' Z°'Z 2013 2017 TO: Michael C. Van Milligen, City Manager FROM: Marie L. Ware, Leisure Services Manager SUBJECT: Fiscal Year 2020 Detailed Budget for the Five Flags Civic Center DATE: April 4, 2019 INTRODUCTION The purpose of this memorandum is to request City Council to receive and file the detailed Fiscal Year 2020 Budget for the Five Flags Civic Center. DISCUSSION The contract the City has with SMG to manage the facility states that a detailed budget will be submitted to the City in April prior to the July 1 beginning of the fiscal year. Attached is the detailed budget with the property tax support projected at $918,151. This is a decrease of $2,244 over the previous year's benchmark of$920,395. This budget also reflects a projected 2% CPI-U increase for FY 20. The budget projects a $49,165 increase in revenue and a $44,161 increase in operating expense. General Manager HR Cook has written a memorandum to introduce the budget and shares further details. The work SMG has done this last year and this budget proposal is a result of their dedicated work on bookings, marketing, sponsorships and more. SMG Director of Finance Don Howes and General Manager HR Cook will attend the meeting and be able to answer any questions the City Council might have. RECOMMENDATION I respecffully request the City Council receive and file the detailed FY 2020 Budget for the Five Flags Civic Center submitted by SMG. attachment: Five Flags Center FY 20 Budget cc: HR Cook, General Manager Don Howes, SMG Director of Finance Jenny Larson, Director of Finance and Budget �lf FIVE FLAGS C E N T E R Five Flags Center Dubuque, lowa BUDGET FISCAL YEAR 2020 . � . i � � � � ii � . . Memo To: Honorable Roy Buol, Mayor, City of Dubuque Mike VanMilligen, City Manager, City of Dubuque Marie Ware, Director, Leisure Services, City of Dubuque City Council Members, City of Dubuque Five Flags Commission Members From: HR Cook General Manager Five Flags Center CC: Theirry Gray SMG Regional�ce President Date: 3/30/2019 Re: Fiscal Year 2019-2020 Budget Ladies and Gentlemen: Attached is the proposed FY 2020 operating budget for Five Flags Center. Contractually,the annual increase in Five Flags operating budget is tied to the CPI-U for May of the preceding fiscal year. At the present time, we are projecting a two percent (2%) increase in the CPI-U for FY20. Management this fiscal year, has designed the FY20 budget to reflect a Net Operating Loss of($918,151), a decrease of($2,244) over the fiscal year 2019's benchmark of($920,395). The FY20 budget reflects an increase in revenue ($49,165), over FY19 forecasted revenue, utilizing an aggressive approach to booking concerts, comedians, national touring acts, self-promoted events, and working with returning events to maximize income. Also, we will aggressively pursue local sponsorships and upgrade our concession offerings and pricing. The increase in expenses ($44,161), over FY19 forecasted expenses, reflects a reduction in Repair and Maintenance costs, and an increase in benefits and wages. Five Flags will be entering the sixteenth year of operation under the management of SMG and is continuing to redefine and create new business. With local and regional events comprising the majority of usage, last fiscal year, 56% of total programming was comprised by two categories— "Performing Arts" and"Other" (Film festivals, dog park, weddings, etc.). Forging new relationships with promoters, we are looking forward to increased concerts and family-oriented events. Five Flags Center/ SMG BUDGET - INDEX FYE 06/30/2020 Description Page PROFIT AND LOSS STATEMENT 1 INCOME STATEMENT 2 ADNIINISTRATIVE/FINANCE/MARKETING EXPENSE 3 OPERATIONS/EVENTS/BOX OFFICE EXPENSE 4 OVERHEAD EXPENSE/FOOD&BEVERAGE/PERSONNEL EXPENSE 5 FIVE FLAGS CENTER FY 2020 BUDGET Net Income and Expenses FY 2019 eUd9eted FY ZOZO Budgeted WCOME: WCOME: Total Direct Income 205,269 Total Direct Income 183,897 Total Ancillary Income 172,767 Total Ancillary Income 195,209 Other Event Income 152,000 Other Event Income 169,494 OtherOperating Income 47,500 OtherOperating Income 59,500 Total 577,536 Total 608,100 EXPENSES: EXPENSES: Executive 38,624 Executive 31,659 Finance 18,691 Finance 18,945 Marketing 33,865 Marketing 47,266 Operations 38,208 Operations 35,712 Events 15,927 Events 14,425 Box Office 12,680 Box Office 15,228 Overhead 369,966 Overhead 399,681 Food & Beverage 7,718 Food & Beverage 9,847 Personnel 916,170 Personnel 954,888 Total 1,451,849 Total 1,527,651 Profit(Loss) * (874,313) Profit(Loss) (919,551) Benchmark ** (920,395) Benchmark (Est.2.% CPI) (938,803) STATISTICAL: STATISTICAL: Attendance 92,782 Attendance 98,285 Number of Performances 229 Number of Performances 239 Number of Event Days 269 Number of Event Days 296 * The FY 2020 budget was estimated with a 2% increase in the CPI-U to total ($938,803). ** The actual CPI-U increase in May 2018 was 2.8% to total ($920,395). An SMG Managed Facility 1 FIVE FLAGS CENTER FY 2020 BUDGET Income FY 2019 Budgeted FY 2020 Budgeted Event: Event: Rentallncome 198,320 Rentallncome 203,742 Service Income 492,774 Service Income 521,305 Service Expense (485,825) Service Expense (541,150) Total 205,269 Total 183,897 Ancillary: Ancillary: F&B Concessions 153,144 F&B Concessions 174,207 F&B Catering 9,699 F&B Catering 12,769 Novelty 9,924 Novelty 8,234 Total 172,767 Total 195,209 Other Event: Other Event: Other Event Related 24,000 Other Event Related 16,000 Ticket Rebates 50,894 Ticket Rebates 67,190 Facility Fee 77,106 Facility Fee 86,304 Total 152,000 Total 169,494 Operating: Operating: Operating Income 47,500 Operating Income 59,500 Total 47,500 Total 59,500 Totallncome 577,536 Totallncome 608,100 An SMG Managed Facility 2 FIVE FLAGS CENTER FY 2020 BUDGET Expenses I Adminsitration - Finance - Marketing FY 2019 Budgeted FY 2020 Budgeted Executive: Executive: Contracted Services 23,664 Contracted Services 23,959 Corporate Travel 1,000 Corporate Travel 1,000 Meetings/Conventions 5,400 Meetings/Conventions 5,400 Telephone 900 Telephone 360 Relocation 6,000 Relocation - Miscellaneous 1,660 Miscellaneous 940 Total 38,624 Total 31,659 FY 2019 Budgeted FY 2020 Budgeted Finance: Finance: Contracted Services 3,600 Contracted Services 3,600 Meetings/Conventions 1,200 Meetings/Conventions 1,200 Payroll Processing 8,471 Payroll Processing 7,865 Miscellaneous 5,420 Miscellaneous 6,280 Total 18,691 Total 18,945 FY 2019 Budgeted FY 2020 Budgeted Marketing: Marketing: Contracted Services 10,930 Contracted Services 13,950 Meetings/Conventions 1,850 Meetings/Conventions 2,050 Advertising 17,300 Advertising 26,500 PR Activities 1,000 PR Activities 1,050 Promotional 500 Promotional 1,250 Miscellaneous 2,285 Miscellaneous 2,466 Total 33,865 Total 47,266 An SMG Managed Facility 3 FIVE FLAGS CENTER FY 2020 BUDGET Expenses I Operations - Events FY 2019 Budgeted FY 2020 Budgeted Operations: Operations: Meetings/Conventions 3,500 Meetings/Conventions 2,500 Training 500 Training 200 Supplies 8,540 Supplies 5,675 Repairs/ Maintenance 11,653 Repairs/ Maintenance 11,150 HVAC 4,200 HVAC 5,000 Safety Equipment 840 Safety Equipment 250 Janitorial 7,070 Janitorial 10,000 Miscellaneous 6,930 Miscellaneous 6,740 Event Allocated Expenses (5,025) Event Allocated Expenses (5,803) Total 38,208 Total 35,712 FY 2019 Budgeted FY 2020 Budgeted Events: Events: Travel/ Meetings/Conventions 1,000 Travel/ Meetings/Conventions - Equipment Maintenance 1,500 Equipment Maintenance 10,600 I nspections 3,360 I nspections 3,375 Electrical 600 Electrical 1,650 Supplies 5,356 Supplies 10,849 Miscellaneous 8,280 Miscellaneous 6,855 Event Allocated Expenses (4,169) Event Allocated Expenses (18,904) Total 15,927 Total 14,425 FY 2019 Budgeted FY 2020 Budgeted Box Office: Box Office: Credit Card Fees 13,000 Credit Card Fees 15,775 Training 150 Training - Miscellaneous 410 Miscellaneous 360 Event Allocated Expenses (880) Event Allocated Expenses (907) Total 12,680 Total 15,228 An SMG Managed Facility 4 FIVE FLAGS CENTER FY 2020 BUDGET Expenses IOverhead - F&B - Personnel FY 2019 Budgeted FY 2020 Budgeted Overhead: Overhead: Trash Removal 2,500 Trash Removal 3,000 Maintenance Agreements 10,784 Maintenance Agreements 10,784 Insurance 49,238 Insurance 57,306 Utilities 178,473 Utilities 189,253 Miscellaneous 21,400 Miscellaneous 29,134 FFE 9,125 FFE 9,100 Management Fee 98,446 Management Fee 101,104 Total 369,966 Total 399,681 FY 2019 Budgeted FY 2020 Budgeted Food & Beverage: Food & Beverage: Contracted Services - Contracted Services Licenses and Fees 2,332 Licenses and Fees 2,332 Employee Training 750 Employee Training 750 Repair/ Maintenance 1,300 Repair/ Maintenance 1,300 Kitchen Supplies 1,000 Kitchen Supplies 1,000 Miscellaneous 5,291 Miscellaneous 7,679 Event Allocated Expenses (2,955) Event Allocated Expenses (3,214) Total 7,718 Total 9,847 FY 2019 Budgeted FY 2020 Budgeted Personnel: Personnel: Management Salaries 655,351 Management Salaries 675,667 Part-Time Wages 204,533 Part-Time Wages 221,615 Taxes/Benefits 274,680 Taxes/ Benefits 296,382 Allocated Wages (218,394) Allocated Wages (238,776) Total 916,170 Total 954,888 An SMG Managed Facility 5