Fiscal Year (FY) 2023 Detailed Budget for the Five Flags Civic CenterCity of Dubuque
City Council Meeting
Consent Items # 012.
Copyrighted
August 15, 2022
ITEM TITLE:
Fiscal Year (FY) 2023 Detailed Budget for the Five Flags Civic Center
SUMMARY:
City Manager transmitting information to City Council on the detailed FY
2023 Budget for the Five Flags Civic Center submitted by ASM Global.
SUGGESTED
Suggested Disposition: Receive and File
DISPOSITION:
ATTACHMENTS:
Description
Type
Fiscal Year 2023 Detailed Budget for the Five Flags City Manager Memo
Civic Center-MVM Memo
Staff memo
HR Cook Letter
FY 23 Five Flags Budget
Staff Memo
Supporting Documentation
Supporting Documentation
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Fiscal Year 2023 Detailed Budget for the Five Flags Civic Center
DATE: August 10, 2022
Leisure Services Manager Marie Ware is transmitting information to City Council on the
detailed FY 2023 Budget for the Five Flags Civic Center submitted by ASM Global.
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Mic ael C. Van Milligen
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Attachment
CC' Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Marie Ware, Leisure Services Manager
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TO: Michael C. Van Milligen, City Manager
FROM: Marie L. Ware, Leisure Services Manager
SUBJECT: Fiscal Year 2023 Detailed Budget for the Five Flags Civic Center
DATE: August 4, 2022
INTRODUCTION
Dubuque
AI•AMINCI City
2007.2012
2013.2017
The purpose of this memorandum is to request City Council to receive and file the
detailed Fiscal Year 2023 Budget for the Five Flags Civic Center.
DISCUSSION
The contract the City has with ASM Global to manage the facility requires that a detailed
budget be submitted to the City. The CPI is set in May of 2022 was 8.5% and according
to the agreement is then used by ASM to set the fiscal year 2023 budget. This CPI
raises the benchmark to $1,051,208.
The budget that ASM Global is proposing is a net operating loss of $987,869 which is
lower than the $1,051,208 allowed by the agreement. Their budget is as General
Manager HR Cook described "a more reserved approach" after a very strong financial
finish of FY 22. This approach means they estimate a decrease in income due to the
economy and yet have established aggressive approach in sponsorships, an area
where they have excelled in the last number of years. Cook has written a memorandum
regarding their budget and shares further details.
The excellent work of the ASM Global staff in FY 22 and this budget proposal is a result
of their dedicated work on bookings, marketing, sponsorships, relationships, and more.
RECOMMENDATION
I respectfully request the City Council receive and file the detailed FY 2023 Budget for
the Five Flags Civic Center submitted by ASM Global.
attachment: Five Flags Center FY 23 Budget
cc: HR Cook, General Manager
Jenny Larson, Director of Finance and Budget
Memo
To: Honorable Brad Cavanagh, Mayor, City of Dubuque
Mike Van Milligen, 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: Dave Jolette,
ASM Regional Vice President
Date: July 18, 2022
Re: Fiscal Year 2022-2023 Budget
Ladies and Gentlemen:
Attached is the proposed FY 2023 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 which
indicates an 8.5% increase in the CPI-U for FY23. This raises the benchmark to $1,051,208.
Management this fiscal year, has designed the FY23 budget to reflect a conservative Net Operating
Loss of ($987,869).
Following a very successful year in FY22 we have formed the FY23 budget with a more reserved
approach showing a decreases of income of over $30,000. This decrease is based primarily due to
what is appearing to be a slowdown of the economy and spending by consumers for of discretionary
items such as events and special "experiences". Further complicating the budget has been the
necessity to raise wages for full and part time employees to help in employee retention an hiring in
addition to the rise in expenses that all businesses have been experiencing. We are also forecasting
a slowdown in touring shows in the United States which will result in less shows in Dubuque as acts
may opt to play larger markets with fewer dates on the road. As is our promise, we try to keep the
cost of attending a show as low as possible for the end consumer. In 2022, the average ticket price
for Five Flags Center was just under $31 dollars, far below the national average of $47. We must
strive to balance the need to keep prices low yet be fiscally responsible to the tax payers of Dubuque.
We will continue our aggressive approach in sponsorship sales, with a goal of $90,000 in total sales
for FY23 in addition to pursuing additional sponsorship revenue in naming rights for the complex.
I feel confident we will again be able to keep our net loss well below the benchmark threshold and
hope we have another successful season of entertainment for all citizens of Dubuque and the Tri-
States area. Should you have any questions regarding our budget or booking policies, do not
hesitate to reach out.
Five Flags Center
July 1, 2022 - June 30, 2023
Lead Income Statement
FY 2023 Budget FY 2022 FY 2022 FY 2021 FY 2020
Total
11 monthsActual
Variance
Budget
Variance
Actual
Variance 11
Actual
Variance
Event Income
Direct Event Income
Rental Income
143,110
171,475
(28,366)
117,912
25,197
94,115
48,995
73,815
69,295
Service Income
529,660
827,172
(297,512)
720,914
(191,254)
303,800
225,860
622,545
(92,885)
Service Expenses
(463,462)
(920,917)
457,455
(634,482)
171,020
(274,548)
(188,914)
(646,946)
183,484
Total Direct Event Income
209,308
77,730
131,578
204,344
4,964
123,367
85,941
49,414
159,894
Ancillary Income
F & B Concessions
160,959
339,659
(178,700)
212,495
(51,537)
79,192
81,767
82,211
78,748
F & B Catering
15,038
13,837
1,201
15,992
(954)
5,209
9,829
8,158
6,880
Novelty Sales
11,523
19,288
(7,765)
7,324
4,199
5,170
6,353
6,046
5,477
Parking: Self Parking
-
13,354
(13,354)
0
0
0
0
0
0
Other Ancillary F&B Direct Expense
(1,505)
1,505
0
0
(2,853)
2,853
871
(871)
Total Ancillary Income
187,519
384,633
(197,114)
235,811
(48,292)
86,718
100,801
97,286
90,233
Other Event Income
Other Event Related Income
-
725
(725)
0
0
2,806
(2,806)
1,050
(1,050)
Event Advertising Income
-
625
(625)
0
0
0
0
0
0
Ticket Rebates (Per Event)
95,442
158,400
(62,958)
71,540
23,901
47,317
48,125
68,917
26,525
Facility Fees
91,285
84,923
6,362
77,849
13,436
26,223
65,062
67,441
23,844
Total Other Event Income
186,727
244,673
(57,946)
149,389
37,337
76,346
110,381
137,408
49,319
Total Event Income
583,554
707,036
(123,482)
589,544
(5,991)
286,431
297,123
284,108
299,446
Other Operating Income
115,414
47,166
68,248
2,500
112,914
18,317
97,097
18,800
96,614
Advetising Income - Signage
67,000
11,945
55,055
66,700
300
60,738
6,262
7,120
59,880
Total Operating Income
182,414
59,111
123,303
69,200
113,214
79,055
103,359
25,920
156,494
Adjusted Gross Income
765,968
766,147
(179)
658,744
107,223
365,486
400,482
310,028
455,940
Operating Expenses
Employee Salaries and Wages
1,021,273
798,856
222,417
851,204
170,068
565,289
455,984
833,306
187,967
Benefits
316,035
207,437
108,598
291,801
24,234
184,271
131,764
236,378
79,657
Less: Event Labor Allocations
(282,106)
(201,772)
(80,334)
(197,201)
(84,905)
(70,956)
(211,150)
(167,971)
(114,135)
Net Employee Wages and Benefits
1,055,202
804,521
250,681
945,804
109,398
678,604
376,598
901,713
153,489
Contracted Services
55,325
38,893
16,432
44,897
10,428
40,805
14,520
51,350
3,975
General and Administrative
128,707
109,646
19,061
109,437
19,270
60,176
68,531
84,928
43,779
Operations
21,763
38,565
(16,802)
21,554
209
8,540
13,223
15,741
6,022
Repair & Maintenance
48,898
33,132
15,766
62,723
(13,825)
31,431
17,467
40,591
8,307
Supplies
30,286
43,585
(13,299)
35,541
(5,255)
13,968
16,318
27,314
2,972
Insurance
65,120
57,558
7,562
61,840
3,280
49,825
15,295
51,887
13,233
Utilities
262,990
200,382
62,608
266,612
(3,622)
173,577
89,413
230,952
32,038
Other
-
4,354
(4,354)
0
0
23,206
(23,206)
6,459
(6,459)
SMG Management Fees
114,957
97,121
17,836
105,951
9,006
100,906
14,051
100,906
14,051
Less: Expenses Allocated
(29,385)
(34,204)
4,819
(26,759)
(2,626)
(10,644)
(18,741)
(25,241)
(4,144)
Total Operating Expenses
1,753,863
1,393,553
360,310
1,627,600
126,263
1,170,394
583,469
1,486,600
267,263
Net Income (Loss) From Operations
(987,896)
(627,406)
(360,489)
(968,855)
(19,040)
(804,908)
(182,987)
(1,176,572)
188,677
Other Income (Expenses)
0
0
0
0
0
0
0
0
Net Income After Other Income (Expenses)
(987,896)
(627,406)
(360,489)
(968,855)
(19,040)
(804,908)
(182,987)
(1,176,572)
188,676
Estimated FY 2023 Benchmark
(1,051,208)
Estimate 8.5 % CPI -All Urban
PeachtreeV213udgetMasterFile FY2023.xls Lead Income Statement