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Five Flags Civic Center Fiscal Year 2024 Budget PresentationCopyrighted March 22, 2023 City of Dubuque Special Meeting Public Hearings # 01. IT E M T I T L E:F ive F lags Civic Center Fiscal Year 2024 B udget Presentation S UM M ARY: S UG G E S T E D D I S P O S I T I O N: AT TAC H ME N TS: Description Type Policy Budget Book Supporting Documentation Presentation_Uploaded 3.22.23 Supporting Documentation Five Flags Civic Center -1- This page intentionally left blank. -2- FIVE FLAGS CIVIC CENTER DIVISION Budget Highlights FY 2022 Actual FY 2023 Budget FY 2024 Requested % Change From FY 2023 Budget Expenses Employee Expense 26,414 27,526 28,694 4.2 % Supplies and Services 923,152 1,006,567 1,100,772 9.4 % Machinery and Equipment 58,074 175,000 192,775 10.2 % Total Expenses 1,007,640 1,209,093 1,322,241 9.4 % Debt on Projects paid with Sales Tax Fund (20%) 44,065 41,887 42,748 2.1 % Property Tax Support 1,007,640 1,209,093 1,322,241 113,148 Percent Increase (Decrease) 9.4 % Personnel - Authorized FTE 0.15 0.15 0.15 *Actual Benchmark for FY 2023 is $1,122,960. Significant Line Items Background 1.History: The City has contracted the firm, ASM Global (formerly SMG), after Council approval in April 2004, to privately manage Five Flags Civic Center. ASM Global’s original five year private management agreement began on July 1, 2004 and ended June 30, 2009. The current agreement expired June 30, 2014 and was extended for another five-year period ending June 30, 2019, and the five-year extension as executed for a period ending June 20, 2024. -3- *ASM Global (formerly SMG) took over managing Five Flags on July 1, 2004. Five Flags Property Tax Support 1,315,075 1,209,093 1,007,640 1,053,937 1,336,354 1,045,113828,944 869,086 892,848 853,128 836,510825,314 824,243 783,331 792,493 782,198 758,136763,782 594,899 793,899 645,162705,858 2 4 B u d g e t E s t2 3 B u d g e t A c tu a l2 2 2 1 2 0 1 9 1 8 1 7 1 6 1 5 1 4 1 3 1 2 1 1 1 0 0 9 0 8 0 7 0 6 0 5 *0 4 0 3 $600,000 $675,000 $750,000 $825,000 $900,000 $975,000 $1,050,000 $1,125,000 $1,200,000 $1,275,000 $1,350,000 –FY 2020 included Five Flags Assessment and Study in amount of $82,800, a one-time cost. It also included a $17,565 expense for the shortfall to the benchmark in FY 2019 as well as $200,000 shortfall to benchmark payment during FY 2020 due to the full closure of Five Flags in March of 2020 due to the COVID-19 pandemic. –FY 2021 included the soils study to help inform the Phase 2A Study for $20,000 and $14,890 replacement of speakers damaged by water not covered by insurance. –FY 2022 included $79,700 in replacement equipment purchases, improvement packages approved including AED's and backflow preventer and a $58,000 carryover from FY 2021 for expenditures for Arts Council COVID relief grant. –FY 2023 included $131,500 in replacement equipment purchases. –FY 2024 included $192,775 in replacement equipment purchases. Employee Expense 2.FY 2024 employee expense reflects a 5.00% wage package increase. 3.The Iowa Public Employee Retirement System (IPERS) City contribution of 9.44% is unchanged from FY 2023. The employee contribution of 6.29% is unchanged from FY 2023. Supplies & Services 4.Benchmark Calculation: The benchmark is the amount the City sets for ASM Global of property tax needed to operate the Five Flags Civic Center. The original benchmark and formula for adjustment was established in the 2004 agreement with ASM Global. ASM Global is -4- challenged to spend less than the Benchmark, thereby reducing the amount of property tax support needed. The benchmark is calculated by taking total expense less earned revenue for the Civic Center, to get the property tax support. This calculation was completed in the beginning by taking the average actual property tax support spent in FY 2002, 2003, and 2004 ($682,091) and then increased annually by an inflation factor. This amount includes ASM Global’s projected management fee of $120,937 in FY 2024. The Benchmark fee is set for the purpose of the budget with an estimated CPI and then adjusted by the actual May CPI after the budget is adopted to arrive at the actual Benchmark and management fee. 5.ASM Global's goal is to come in under the benchmark, but if the benchmark is not met, the City of Dubuque must pay any amount over the benchmark. ASM Global's incentive to meet the benchmark gives them $.50 of every dollar under the benchmark. Annual Benchmark Set for ASM Global: In FY 2014 the benchmark was $852,040 (prior year plus the May CPI of 1.4%), in FY 2015 the benchmark was $869,933 (prior year plus the May CPI of 2.1%), in FY 2016 the benchmark was $869,933 (prior year plus the May CPI of 0%), in FY 2017 the benchmark was $878,632 (prior year based on May CPI of 1%), in FY 2018 the benchmark was $895,326 (prior year based on May CPI of 1.9%), in FY 2019 the benchmark was $920,395 (prior year based on May CPI of 2.80%), in FY 2020 the benchmark was $936,962 (prior year based on May CPI of 1.80%), in FY 2021 the benchmark was $937,899 (prior year based on May CPI of 0.10%), in FY 2022 the benchmark was $984,794 (prior year based on May CPI of 5.00%), in FY 2023 the benchmark was $1,069,486 (prior year based on May CPI of 8.60%), and the FY 2024 benchmark is anticipated to be $1,122,960 (prior year and anticipated May CPI of 5.00%). Actual Benchmark: It should be noted that the first year (FY 2005) of management, actual expenses were higher due to the transitioning of the employees. There were additional costs relating to unemployment insurance, vacation payoffs and prior year expenses that did not count against the benchmark. The Five Flags Civic Center was also under renovation soon after SMG (ASM Global) started. It was expected that the first year of management would cost more. Also, the budget was initially set with the management fee ($75,000) added on top of the set benchmark. It was determined that the benchmark should already include ASM Global's management fee, and the actual benchmark was adjusted accordingly with the additional budget going back into General Fund. -5- ASM Global (formerly SMG) Benchmark Payout 70,892 65,446 66,496 (133,689) (17,565) 25,292 3 110 8,937 11,468 10,169 11,220 6,973 6,845 8,238 4,594 50% Benchmark Paid 23 22 21 20 19 18 17 16 15 14 13 12 11 10 09 08 $-150,000 $-125,000 $-100,000 $-75,000 $-50,000 $-25,000 $0 $25,000 $50,000 $75,000 $100,000 This summary of annual results of the benchmark to date reflects ASM Global has met the benchmark since 2006 with the exception of FY 2019 and FY 2020. FY 2019 included a polar vortex weather event affecting utility costs and event financial performance as well as repairs to the facility due to the age and status of the Five Flags building. FY 2020 included the closure of the Five Flags Civic Center due to the COVID-19 pandemic, the Governor's Proclamations in addition to event cancellations and rescheduling into FY 2021. This affected the Five Flags budget from March 2020 to the end of the fiscal year. FY 2020 was on track to be at benchmark prior to the beginning of the pandemic. -6- Fiscal YearProperty Tax Support Compared to Benchmark for Five Flags ASM Global/SMG Benchmark Property Tax Support 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 09 08 07 06 05 $600,000$675,000$750,000$825,000$900,000$975,000$1,050,000$1,125,000$1,200,000$1,275,000$1,350,000When comparing the annual property tax support spent to the benchmark each year the following should be noted. Property tax support includes items not included in the benchmark such as •Replacement equipment such as items like lifts, commercial floor machines, sound systems, chairs. The list is extensive and replaced on a replacement schedule. •Improvement packages that add the Five Flags such as the addition of security cameras. •Shortfall payments for not meeting the benchmark in FY 19 and FY20. •Studies or specific operating expenses for example the studies and assessments in FY20 and FY21. •Initial cost of transitioning city employees to SMG in FY05. -7- Machinery and Equipment 6.The total equipment requested for FY 2024 is $192,775: Super Trouper Spotlights (6)$ 67,500 Clear Com Base $ 7,000 Clear Com Headset $ 7,200 Clear Com Belt Packs $ 7,800 Arena Theatrical Lighting $ 15,000 Hearing Assist Systems $ 3,500 Arena Dimmers $ 12,000 Red Stackable Chairs $ 30,000 Metal Trash/Recycle Containers $ 9,875 Break Room Refrigerator $ 1,000 FFC Triangle Trussing $ 10,000 25" TV $ 400 Fire Extinguishers $ 4,500 Cooler $ 6,500 2-Way Radios (29)$ 7,000 Small Sound Console $ 3,500 Total Equipment $ 192,775 Debt Service 7.FY 2024 Annual debt service is as follows ($42,748): Amount Debt Series Payment Source Purpose Final Payment Call Date $ 34,247 2019C G.O.Sales Tax 20%Civic Center Improvements 2030 2026 $ 8,501 2019B G.O.Sales Tax 20%Chair Platform Section 3 2039 2039 $ 42,748 Total Civic Center Annual Debt Service -8- LEISURE SERVICES FACILITY DIVISION The Facility Division provides for the effective and efficient maintenance of buildings and equipment and administration of management contracts for Five Flags Civic Center and Grand River Center and Dubuque Ice Arena, ensuring facilities and programs that provide an increased QUALITY OF LIFE and creates opportunities for both citizens and visitors. SUCCESS IS ABOUT PLANNING, PARTNERSHIPS AND PEOPLE LEADING TO OUTCOMES -9- LEISURE SERVICES FACILITY DIVISION FY 2022 FY 2023 FY 2024 Full-Time Equivalent 0.15 0.15 0.15 Property Tax Support $1,372,601.88 $1,954,905 $2,436,287 FY 2022 FY 2023 FY 2024 Property Tax Support $0 $1,000,000 $2,000,000 $3,000,000 The Leisure Services Facilities Division is supported by 0.15 full-time equivalent employees. Supplies and services accounts for 84.19% of the department expense as seen below. Overall, the department's expenses are expected to increase by 24.92% in FY 2024 compared to FY 2023. Expenditure by Category by Fiscal Year $26,414 $1,285,516 $60,672 $27,526 $1,564,173 $335,680 $28,694 $2,051,124 $327,775 FY 2022 FY 2023 FY 2024 Employee Expense Supplies and Services Machinery and Equipment $0$500,000$1,000,000$1,500,000$2,000,000$2,500,000-10- LEISURE SERVICES FACILITY DIVISION Mission & Services The Facility Management Division of the Leisure Services Department strives to provide venues for community and civic activities, entertainment, recreational, and cultural events and activities. The division promotes events and activities that bring tourists and generate spending in the community and ensure the centers are well-maintained and professionally managed to ensure attendees have a positive experience. Five Flags Civic Center is a City owned building managed day-to-day by ASM Global located in the heart of downtown. It is a multipurpose facility which hosts sporting events, theatrical performances, concerts, meetings and conventions, sporting events and much more. Five Flags Civic Center features an arena, historic theater, meeting rooms and intimate performance stage called the Bijou Room. The Grand River Center is a City owned building managed by Platinum Hospitality. Dubuque’s iconic convention and education center is located in the Port of Dubuque overlooking the Mississippi River and Riverwalk. The conference center has meeting rooms, a ballroom and exhibit hall allowing a variety of uses of the space for large and small events. The Dubuque Ice Arena is city round building managed by Schmitt Island Development Corporation. The facility has one United States Hockey League size sheet of ice with seating for 3,200. The arena hosts ice sports events tournament and games. Leisure Services initiates capital improvement projects for these facilities ensuring the long-term viability and functionality of these buildings. Five Flags Civic Center Funding Summary FY 2022 Actual FY 2023 Budget FY 2024 Recomm'd Expenditures $1,007,640 $1,209,093 $1,322,241 Resources $44,065 $41,887 $42,748 Five Flags Civic Center Position Summary FY 2024 Leisure Services Manager 0.15 Total FT Equivalent Employees 0.15 Grand River Center Funding Summary FY 2022 Actual FY 2023 Budget FY 2024 Recomm'd Expenditures $394,809 $774,822 $1,143,515 Resources $29,847 $29,010 $29,469 -11- Grand River Center Position Summary FY 2024 Leisure Services Manager 0.15 Total FT Equivalent Employees 0.15 Dubuque Ice Arena Funding Summary FY 2022 Actual FY 2023 Budget FY 2024 Recomm'd Expenditures $957,826 $200,000 $373,255 Resources $ 667,900.77 $ — $ — Performance Measures City Council Goal: Partnerships for a Better Dubuque Performance Measure (KPI)Target FY 2021 Actual FY 2022 Actual FY 2023 Estimated Performance Indicator 1 Activity Objective: Become a regional hub for arts and culture by partnering with arts & culture organizations and providing Arts and Culture events and programming. % change from prior year in performing arts programming held at Five Flags +.5%+11%+2%+.5 2 Activity Objective: Host community events and activities that support families and children. # of unique performances and events (both centers combined)80 51 94 85 # of events that supported fundraisers benefiting families & children (both)15 17 94 9 3 Activity Objective: Maintain infrastructure and amenities to support economic development and growth. # of attendees at Annual Growing Sustainable Communities Conference (number of states represented) 500/30 0/0 (actual) * 0/0 (actual) * 380/18 + Canada (actual) *Note - In October of 2020 (FY21) and 2021 (FY22) the Growing Sustainable Communities Conference was cancelled due to the ongoing pandemic and health concerns. -12- Recommended Operating Revenue Budget - Department Total 32 - CIVIC CENTER Fund/Account/Account Title FY21 Actual Revenue FY22 Actual Revenue FY23 Adopted Budget FY24 Recomm'd Budget 100 - General 4B - Grants/Contrib 44000 - Federal Grants 0 (362,080) 0 0 44400 - State Grants (58,000) 0 0 0 4B - Grants/Contrib Total (58,000) (362,080) 0 0 200 - Debt Service 4N - Transfers 49304 - Transfer in Sales Tax 20% (43,929) (44,065) (41,887) (42,748) 4N - Transfers Total (43,929) (44,065) (41,887) (42,748) 4O - Eliminated for GW 48200 - Proceeds from GO Debt 0 0 0 0 48205 - Bond Discount/Premium 0 0 0 0 4O - Eliminated for GW Total 0 0 0 0 CIVIC CENTER - Total (101,929)(406,145)(41,887)(42,748) -13- 6A - Salaries & Wages 100 - General 60100 - Salaries-Regular Full Time 19,277 20,892 21,746 22,746 6A - Salaries & Wages Total 19,277 20,892 21,746 22,746 6B - Employee Benefits 100 - General 61100 - FICA - City Contribution 1,417 1,549 1,664 1,740 61300 - IPERS - City Contribution 1,820 1,972 2,053 2,147 61510 - Health Insurance 1,844 1,955 2,014 2,013 61540 - Life Insurance 11 8 7 7 61600 - Workers' Compensation 46 37 42 41 6B - Employee Benefits Total 5,138 5,522 5,780 5,948 6D - Repair/Maint/Util 100 - General 63730 - Telecommunications 41 41 45 42 6D - Repair/Maint/Util Total 41 41 45 42 6E - Contractual Svcs 100 - General 64070 - Engineering - Outsourced 20,000 932 0 0 64080 - Insurance - Property 28,082 30,460 33,340 40,293 64081 - Insurance - Liability 64 81 81 72 64110 - Legal 0 0 0 0 64130 - Payments to Other Agencies 960,886 880,913 968,065 1,047,967 64140 - Printing 0 0 348 348 64145 - Copying 984 2,954 1,744 2,950 64850 - Consulting Engineers 0 0 0 0 64900 - Other Professional Service 0 0 0 0 64975 - Equip Maint Cont 4,143 6,365 2,512 7,300 64980 - Technology Equip Maint Cont 432 1,407 432 1,800 200 - Debt Service 64110 - Legal 0 0 0 0 64900 - Other Professional Service 0 0 0 0 6E - Contractual Svcs Total 1,014,591 923,111 1,006,522 1,100,730 6F - Commodities 100 - General 65045 - Technology Equipment 14,890 0 126,500 32,900 65050 - Other Equipment 0 0 42,000 125,375 65054 - Safety Equipment 0 0 3,200 4,500 65060 - Office Supplies 0 0 0 0 65110 - Signage 0 0 2,700 0 6F - Commodities Total 14,890 0 174,400 162,775 6G - Capital Outlay 100 - General 67100 - Vehicles 0 0 0 0 67210 - Furniture/Fixtures 0 0 0 30,000 67270 - Other Capital Equipment 0 58,074 600 0 Recommended Operating Expenditure Budget - Department Total 32 - CIVIC CENTER Fund/Account/Account Title FY21 Actual Expense FY22 Actual Expense FY23 Adopted Budget FY 24 Recomm'd Budget -14- 6G - Capital Outlay Total 0 58,074 600 30,000 6H - Debt Service 200 - Debt Service 68010 - Principal Payment 33,463 34,603 33,463 35,328 68020 - Interest Payments 10,466 9,462 8,424 7,420 68990 - Paying Agent Fees 0 0 0 0 6H - Debt Service Total 43,929 44,065 41,887 42,748 CIVIC CENTER - TOTAL 1,097,866 1,051,705 1,250,980 1,364,989 Recommended Operating Expenditure Budget - Department Total 32 - CIVIC CENTER Fund/Account/Account Title FY21 Actual Expense FY22 Actual Expense FY23 Adopted Budget FY 24 Recomm'd Budget -15- Recommended Expenditure Budget Report by Activity & Funding Source 32 - CIVIC CENTER Fund/Activity FY22 Actual Expense FY23 Adopted Budget FY24 Recomm'd Budget 3201 - Administration 100 - General 6A - Salaries & Wages 20,892 21,746 22,746 6B - Employee Benefits 5,522 5,780 5,948 6D - Repari/Maint/Util 41 45 42 6E - Contractual Svcs 923,111 1,006,522 1,100,730 6F - Commodities —174,400 162,775 6G - Capital Outlay 58,074 600 30,000 3201 - Administration Total 1,007,640 1,209,093 1,322,241 3280 - Debt Service 200 - Debt Service 6E - Contractual Svcs ——— 6H - Debt Service 44,065 41,887 42,748 3280 - Debt Service Total 44,065 41,887 42,748 CIVIC CENTER TOTAL 1,051,705 1,250,980 1,364,989 -16- C I T Y O F D U B U Q U E , I O W A DEPARTMENT DETAIL - PERSONNEL COMPLEMENT 32 CIVIC CENTER DIVISION FY 2022 FY 2023 FY 2024 FD JC WP-GR JOB CLASS FTE BUDGET FTE BUDGET FTE BUDGET 61010 Full Time Employee Expense 100 3375 GE-44 LEISURE SERVICES MANAGER 0.15 $ 20,932 0.15 $ 21,746 0.15 $ 22,746 TOTAL FULL TIME EMPLOYEES 0.15 $ 20,932 0.15 $ 21,746 0.15 $ 22,746 TOTAL CIVIC CENTER DIVISION 0.15 $ 20,932 0.15 $ 21,746 0.15 $ 22,746 -17- Civic Center Administration 10032100 61010 100 3375 GE-41 LEISURE SERVICES MANAGER 0.15 $ 20,932 0.15 $ 21,746 0.15 $ 22,746 Total 0.15 $ 20,932 0.15 $ 21,746 0.15 $ 22,746 TOTAL CIVIC CENTER DIVISION 0.15 $ 20,932 0.15 $ 21,746 0.15 $ 22,746 CITY OF DUBUQUE, IOWA ACTIVITY PERSONNEL COMPLEMENT SUMMARY FY 2022 FY 2023 FY 2024 ACCT FD JC WP-GR POSITION CLASS FTE BUDGET FTE BUDGET FTE BUDGET -18- Capital Improvement Projects by Department/Division CIVIC CENTER DIVISION Project Number Capital Improvement Project Title Department Fund Account FY 24 Recomm'd Budget 3249900001 Five Flags Building Impr Civic Center 305 64004 50,000 3249900001 Five Flags Building Impr Civic Center 305 67500 2,750,000 CIVIC CENTER DIVISION TOTAL 2,800,000 PROGRAM /DEPT PROJECT DESCRIPTION FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 TOTAL PAGE CIVIC CENTER DIVISION Culture and Recreation Five Flags Building Improvements $ 2,800,000 $ 3,094,678 $ 8,587,322 $ 8,922,000 $ — $ 23,404,000 51 TOTAL $ 2,800,000 $ 3,094,678 $ 8,587,322 $ 8,922,000 $ — $ 23,404,000 -19- This page intentionally left blank. -20- Leisure Services Department FISCAL YEAR 2024 BUDGET PRESENTATION Five Flags Civic Center Grand River Center Dubuque Ice Arena FIVE FLAGS CIVIC CENTER FISCAL YEAR 2024 BUDGET PRESENTATION Rod Bakke, Chairperson Bryce Parks, Vice Chairperson McKenzie Blau Jesse Gavin Brenda Christner CIVIC CENTER COMMISSION FIVE FLAGS CIVIC CENTER MANAGEMENT (0.15 Full-Time Equivalents) City of Dubuque ASM Global -Management Agreement Operations oversight Day-to-day operations Building owned by City Benchmark: general repairs + maintenance Capital improvements funding Provide operating costs through benchmark set by agreement Aaron Rainey, General Manager CREATING AN EQUITABLE COMMUNITY OF CHOICE PRIOR YEAR HIGHLIGHTS HIGHLIGHTS HIGHLIGHTS ASM BENCHMARK PERFORMANCE ASM BEATS THE BENCHMARK PARTNERSHIPS FOR A BETTER DUBUQUE HISTORICAL PROPERTY TAX SUPPORT FY2024 REQUESTED OPERATING BUDGET SUMMARY $1,322,241 $19.13 Net Operating Budget Request Average homeowner’s* property tax cost for Five Flags (*Avg. home value of $159,503) 2022-2024 CITY COUNCIL HIGH PRIORITY $24,166,000 FUNDING SOURCE: DOWNTOWN URBAN RENEWAL BONDING FUTURE INITIATIVES NEXT STEPS FY 23-24 -RFP Process for Architectural Services FY 24-25 -Design, Bidding, Initial Construction FY 25-26 -Construction Construction potentially phased to keep one portion of Five Flags operational during construction in other areas –to be decided during design CIVIC CENTER FY 24 CAPITAL IMPROVEMENT PROJECTS Project FY Total Project Cost Building Improvements 23 $712,000 24 $2,800,000 25 $3,094,678 26 $8,587,322 27 $ 8,922,000 TOTAL $24,166,000 PERFORMANCE MEASURE BECOME A REGIONAL HUB FOR ARTS AND CULTURE BY PARTNERING WITH ARTS AND CULTURE ORGANIZATIONS AND PROVIDING ARTS AND CULTURE EVENTS AND PROGRAMMING. INCREASE OF 2% IN FY 22 PERFORMING ARTS PROGRAMMING HELD AT FIVE FLAGS www.fiveflagscenter.com THANK YOU