Fiscal Year 2024 Detailed Budget for the Five Flags Civic Center Copyrighted
August 7, 2023
City of Dubuque Consent Items # 013.
City Council Meeting
ITEM TITLE: Fiscal Year2024 Detailed Budgetforthe Five Flags Civic Center
SUM MARY: City Manager recommending City Council receive and file the detailed
FY 2024 Budget for the Five Flags Civic Center submitted by ASM
Global.
SUGGESTED Suggested Disposition: Receive and File
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
ASM Global Memo Supporting Documentation
FY 24 FF Budget Proposal Supporting Documentation
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Fiscal Year 2024 Detailed Budget for the Five Flags Civic Center
DATE: August 1, 2023
Leisure Services Manager Marie Ware is recommending City Council receive and file
the detailed FY 2024 Budget for the Five Flags Civic Center submitted by ASM Global.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Marie Ware, Leisure Services Manager
Aaron Rainey, General Manager— Five Flags Center
Jenny Larson, Chief Financial Officer
Dubuque
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TO: Michael C. Van Milligen, City Manager
FROM: Marie L. Ware, Leisure Services Manager
SUBJECT: Fiscal Year 2024 Detailed Budget for the Five Flags Civic Center
DATE: July 31, 2023
INTRODUCTION
The purpose of this memorandum is to request City Council to receive and file the
detailed Fiscal Year 2024 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-U which is set in May of 2023 was 4.0%.
According to the agreement this CPI is then used by ASM to set the fiscal year 2024
budget. This CPI raises the benchmark to $1,093,256.
The budget that ASM Global is proposing is a net operating loss of $975,467 which is
lower than the $1,093,256 allowed by the agreement. General Manager Aaron Rainey
sees short "weekend warrior" tours becoming more popular as the industry slows down
in long run touring shows across the country. Rainey has written a memorandum
regarding their proposed budget and shares further details.
The excellent work of the ASM Global staff in FY 23 and this budget proposal is a result
of their dedicated work on bookings, marketing, sponsorships, relationships, and more.
In 2023 the average ticket price to attend a show at Five Flags was just over $47, far
below the national average of $108.
RECOMMENDATION
I respectfully request the City Council receive and file the detailed FY 2024 Budget for
the Five Flags Civic Center submitted by ASM Global.
attachment: Five Flags Center FY 24 Budget
cc: Aaron Rainey, General Manager
Jenny Larson, Chief Financial Officer
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FIVE FLAGS
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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: Aaron Rainey
General Manager
Five Flags Center
CC: Dave Jolette,
ASM Regional Vice President
Date: July 28, 2023
Re: Fiscal Year 2023-2024 Budget
Ladies and Gentlemen:
Attached is the proposed FY 2024 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 4% increase in
the CPI-U for FY24. This raises the benchmark to$1,093,256. Management this fiscal year, has designed the FY24
budget to reflect a conservative Net Operating Loss of($975,467).
Following a very successful year in Fiscal Year 23,we are seeing an industry slowdown in long run touring shows in
the country. This has opened the door for short"weekend warrior"tours, which are becoming more popular. We feel
as a smaller venue, this works to our advantage. Despite this industry turn, as our budget reflects, we anticipate
growth revenue and bettering event margins compared to last year. We plan on doing this through continued efforts
on expense management and other revenue opportunities.
We try to keep the cost of attending a show as low as possible for the consumer. In 2023, the average ticket price to
attend a show at Five Flags Center was just over$47 dollars, far below the national average of$108.
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 surrounding area. Should you have
any questions regarding our budget or booking policies, please reach out.
/
Five Flags Center
July l,2023-June 30,2024
Lead Income Statement
FY 2024 Budget FY 2023 FY 2023 FY 2022 FY 2021
Total 12 months Actual Variance Bud et Variance Actual Variance Actual Variance
Event Income
Direct Event Income
Rentallncome 196,151 216,575 (20,424) 117,912 78,239 236,236 (40,085) 94,115 102,036
Servicelncome 683,624 689,342 (5,718) 720,914 (37,290) 973,308 (289,684) 303,800 379,824
ServiceExpenses (816,767) (889,035) 72,268 (634,482) Q82,285) Q,150,710) 333,943 (274,548) (542,219)
Total Direct Event Income 63,008 16,882 46,126 204,344 (141,336) 58,834 4,174 123,367 (60,359)
Ancillary Income
F&B Concessions 335,166 364,141 (28,975) 212,495 122,671 383,673 (48,507) 79,192 255,974
F&B Catering 24,667 (2,366) 27,027 15,992 8,670 15,055 9,606 5,209 19,452
Novelty Sales 14,824 15,209 (386) 7,324 7,500 19,663 (4,840) 5,170 9,654
Parking:Self Parking 9,513 11,507 (1,994) 0 9,513 16,085 (6,572) 0 9,513
Other Ancillary F&B Dircet Expense 0 0 0 0 Q,505) 1,505 (2,853) 2,853
Total Ancillary Income 384,164 388,497 (4,328) 235,811 148,353 432,971 (48,808) 86,718 297,446
Other 8vent Income
Other Event Related Income - 0 0 0 0 725 (725) 2,806 (2,806)
Event Advertising Income - 0 0 0 0 625 (625) 0 0
Ticket Rebates(Per Event) 359,511 317,999 41,512 71,540 287,971 31,938 327,573 47,317 312,194
Facility Fees 146,232 128,257 17,987 77,849 68,383 115,086 31.146 26223 12Q009
Total Other Eve�tIncome 505,743 446,250 59,493 149,389 356,354 148,374 357,369 76,346 429,397
Total EventIncome 952,915 851,623 101,292 589,544 363,370 640,179 312,736 286,431 666,484
Other Operating Income 100 1,347 (1,247) 2,500 (2,400) 11,959 (11,859) 18,317 (18,217)
Advetisinglncome-Signage 43,000 44,985 (1,985) 66,700 (23,700) 51,423 (8,423) 60.738 (77,738)
Total Operati�gIncome 43,100 46,332 (3,232) 69,200 (26,100) 63,382 (20,282) 79,055 (35,955)
Adjusted GrossIncome 996,015 897,955 98,060 658,744 337,270 703,561 292,454 365,486 630,529
Operating Expenses
Employee Salariesand Wages 1,016,909 81Q707 206,202 851,204 165,705 873,018 143,891 565,289 451,620
Benefits 326,924 214,702 112,222 291,801 35,123 212,588 114,336 184,271 142,653
Less: EventLabor Allocations (297,953) (192,154) (105,799) (197,201) (100,751) (219,234) (78,719) (70,956) (226,997)
NetEmployee Wagesand Benefits 1,045,880 833,255 212,625 945,804 100,076 866,372 179,508 678,604 367,276
Contracted Services 46,515 41,333 5,182 44,897 1,618 42,266 4,249 40,805 5,710
Generaland Administrative 228,535 220,226 8,309 109,437 119,098 155,749 72,786 60,176 168,359
Operations 47,430 46,310 1,120 21,554 25,876 31,763 15,667 8,540 38,890
Repair&Maintenance 129,226 125,507 3,719 62,723 66,503 36,274 92,952 31,431 97,795
Supplies 68,705 102,721 (34,016) 35,541 33,164 49,520 19,185 13,968 54,737
Insurance 79,640 79,624 16 61,840 17,800 62,748 16,892 49,825 29,815
Utilities 24Q440 235,908 4,532 266,612 (26,172) 226,629 13,811 173,577 66,863
Other - 12,078 (12,078) 0 0 7,025 (7,025) 23,206 (23,206)
SMG ManagementFees 120,753 116,109 4,644 105,951 14,802 105,950 14,803 1OQ906 19,847
Less:Expenses Allocated (35,643) (40,056) 4,413 (26,759) (8,884) (37,725) 2,082 (10,644) (24,999)
Total Operating Expenses 1,971,481 1,773,015 198,466 1,627,600 343,881 1,546,571 424,910 1,170,394 801,087
NetIncome(Loss)From Operations (975,467) (875,060) (100,406) (968,855) (6,611) (843,010) (132,456) (804,908) (170,558)
Other Income(Expenses) 0 0 0 0 0 0 0 0
NetIncome Afrer OtherIncome(Expenses) (975,467) (875,060) (100,406) (968,855) (6,611) (843,010) (132,456) (804,908) (170,559)
FY 2024 Benchmark (1,093,256)
4%CPI-All Urban
PeachtreeV2BudgetMasterFile FY2024-1 2023.0728 Lead Income Statement 1