Five Flags Center - Fiscal Year 2016 Detailed Operating Budget Copyright 2014
City of Dubuque Consent Items # 6.
ITEM TITLE: Five Flags Center - Fiscal Year 2016 Detailed Operating Budget
SUMMARY: City Manager recommending approval of the Fiscal Year 2016 Five Flags
Center proposed operating budget submitted by SMG.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
❑ Five Flags FY16 Operating Budget-MVM Memo City Manager Memo
❑ Five Flags FY16 Operating Budget Memo Staff Memo
❑ Five Flags FY16 Detailed Operating Budget Supporting Documentation
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Fiscal Year 2016 Detailed Operating Budget for the Five Flags Center
DATE: April 10, 2015
Leisure Services Manager Marie Ware recommends City Council approval of the
detailed Fiscal Year 2016 Operating Budget for the Five Flags Center submitted by
SMG.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Micliael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Marie L. Ware, Leisure Services Manager
THE CITY ODubuque II-A
U Bi
E
;111 I.mericaCi i
Masterpiece on the Mississippi 2007-2012-2013
TO: Michael C. Van Milligen, City Manager
FROM: Marie L. Ware, Leisure Services Manager
SUBJECT: Fiscal Year 2016 Detailed Operating Budget for the Five Flags Center
DATE: March 25, 2015
INTRODUCTION
The purpose of this memorandum is to request City Council to receive and file the
detailed Fiscal Year 2016 Operating Budget for the Five Flags 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 $878,040.
This budget reflects a 1% CPI-U increase. The budget projects a 14% increase in
revenue and a 7% increase in operating expense. General Manager Joyce White has
written (in the attachment), a memorandum to introduce the budget.
General Manager Joyce White and Director of Finance/HR Don Howes will attend the
meeting and be able to answer any questions the City Council might have.
RECOMMENDATION
I respectfully request City Council approval of the detailed FY 2016 operating budget for
the Five Flags Center submitted by SMG.
MLW:et
attachment: grant application
cc: Joyce White, General Manager
Ken TeKippe, Finance Director
1
FIGS
7VR
Five Flags Center
Dubuque, Iowa
BUDGET
FISCAL YEAR 2016
Managed Bp
Five Flags Civic Center
405 Main Street
Dubuque, ii
(563) 589-4254
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: Joyce White
SMG General Manager
Five Flags Center
CC: Joe Romano
SMG Regional Vice President
HR Cook
SMG Regional General Manager
Date: 3/27/2015
Re: Fiscal Year 2015-2016 Budget
Ladies and Gentlemen:
Attached is the proposed FY 2016 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 the CPI-U for FY16 projects a one (10/6) percent increase—which is conservative in
accordance to the variations in the CPI-U this past year. Accordingly, management has designed the
FY16 budget to reflect a Net Operating Loss of($878,040), an increase of($8,107) over the previous
year's benchmark of($869,933).
Five Flags will be entering the twelfth year of operation under the management of SMG and is
continuing to redefine and create new business. With local and regional events comprising 90%of
usage, last fiscal year, 72% of total programming was comprised by three categories—"Performing
Arts", "Entertainment', and "Meetings/Conventions".Accordingly, the FY 2016 operating budget
projects a 14% increase in revenue and a 7% increase in operating expenses.
Management will continue to seek new programming and explore multiple uses for the Five Flags
Civic Center.
Five Flags Center/ SMG
BUDGET - INDEX
FYE 06/30/2016
Description Page
LEAD INCOME STATEMENT 1
PROFIT AND LOSS STATEMENT 2
INCOME STATEMENT 3
ADMINISTRATIVE/FINANCE/MARKETING EXPENSE 4
OPERATIONS/EVENTS EXPENSE 5
BOX OFFICE/OVERHEAD EXPENSE 6
FOOD AND BEVERAGE/PERSONNEL EXPENSE 7
Five Flags Center
July 1,2015-June 30,2016
Lead Income Statement
FY 2015
FY20Tlo6audget Actual 4 Variance Actual/Forecast ILV2riamce
Event Income
Direct Event Income
Rental Income 127,431 109,115 18,316 114,825 12,606
Service Income 222,114 216,497 5,617 166,329 55,785
Service Expenses (208,149) (209,191) 1,042 (160,132) (48,017)
Total Direct Event Income 141,395 116,421 24,974 121,022 20,373
Ancillary Income
F&B Concessions 79,602 72,399 7,203 63,218 16,384
F&B Catering 9,904 12,917 (3,013) 7,855 2,049
Novelty Sales 3,767 3,698 69 5,325 (1,558)
Other Ancillary - (234) 234 750 (750)
Total Ancillary Income 93,273 88,780 4,493 77,148 16,125
Other Event Income
Other Event Related Income - 0 0 0 0
Ticket Rebates(Per Event) 17,083 16,647 436 20,721 (3,638)
Facility Fees 42,072 33,476 8,596 39,167 2,905
Total Other Event Income 59,155 50,123 9,032 59,888 (733)
Total Event Income 293,823 255,324 38,499 258,058 35,765
Other Operating Income 2,115 1,475 640 1,070 1,045
Adjusted Gross Income 295,938 256,799 39,139 259,128 36,810
Operating Expenses
Employee Salaries and Wages 653,073 576,465 76,608 574,536 78,537
Benefits 182,224 161,124 21,100 157,246 24,978
Less: Event Labor Allocations (113,406) (107,374) (6,032) (88,235) (25,171)
Net Employee Wages and Benefits 721,892 630,215 91,677 643,547 78,345
Contracted Services 32,580 34,015 (1,435) 33,354 (774)
General and Administrative 64,554 57,537 7,017 57,062 7,492
Operations 9,559 14,433 (4,874) 10,343 (784)
Repair&Maintenance 17,656 27,055 (9,399) 24,096 (6,440)
Supplies 18,000 13,767 4,233 18,171 (171)
Insurance 43,201 38,392 4,809 40,747 2,454
Utilities 183,755 184,036 (281) 188,938 (5,183)
Other - 0 0 897 (897)
SMG Management Fees 94,624 93,687 937 93,689 935
Less: Expenses Allocated (11,843) (17,356) 5,513 (11,506) (337)
Total Operating Expenses 1,173,978 1,075,781 98,197 1,099,338 74,640
Net Income(Loss)From Operations (878,040) (818,982) (59,058) (840,210) (37,830)
Other Income(Expenses) - (10,123) 10,123 0 0
Net Income After Other Income(Expenses) (878,040) (829,105) (48,935) (840,210) (37,830)
Estimated FY 2016 Benchmark (878,632)
Estimate 1 %CPI-All Urban
An SMG Managed Facility 1
FIVE FLAGS CENTER FY 2016 BUDGET
Net Income and Expenses
FY 2015 Budgeted FY 2016 Budgeted
INCOME: INCOME:
Total Direct Income 123,402 Total Direct Income 141,395
Total Ancillary Income 72,312 Total Ancillary Income 93,273
Other Event Income 49,273 Other Event Income 59,155
Other Operating Income 912 Other Operating Income 2,115
Total 245,899 Total 295,938
EXPENSES: EXPENSES:
Executive 25,590 Executive 26,505
Finance 9,230 Finance 9,360
Marketing 33,214 Marketing 34,432
Operations 25,106 Operations 22,894
Events 6,931 Events 4,544
Box Office 6,842 Box Office 7,357
Overhead 322,832 Overhead 339,816
Food & Beverage 6,548 Food & Beverage 7,322
Personnel 673,445 Personnel 721,748
Total 1,109,738 Total 1,173,978
Profit(Loss) * (863,839) Profit(Loss) (878,040)
Benchmark ** (869,933) Benchmark (Est.1.%CPI) (878,632)
STATISTICAL: STATISTICAL:
Attendance 62,760 Attendance 68,515
Number of Performances 160 Number of Performances 188
Number of Event Days 189 Number of Event Days 226
* The FY 2015 budget was estimated with a 1.4% increase in the CPI-IJ to total ($863,969).
** The actual CPI-IJ increase in May 2014 was 2.1% to total ($869,933).
An SMG Managed Facility 2
FIVE FLAGS CENTER FY 2016 BUDGET
Income
FY 2015 Budgeted FY 2016 Budgeted
Event: Event:
Rental Income 108,884 Rental Income 127,431
Service Income 156,492 Service Income 222,114
Service Expense (141,974) Service Expense (208,149)
Total 123,402 Total 141,395
Ancillary: Ancillary:
F&B Concessions 62,119 F&B Concessions 79,602
F&B Catering 5,928 F&B Catering 9,904
Novelty 4,265 Novelty 3,767
Total 72,312 Total 93,273
Other Event: Other Event:
Other Event Related - Other Event Related
Ticket Rebates 11,858 Ticket Rebates 17,083
Facility Fee 37,415 Facility Fee 42,072
Total 49,273 Total 59,155
Operating: Operating:
Operating Income 912 Operating Income 2,115
Total 912 Total 2,115
Total Income 245,899 Total Income 295,938
An SMG Managed Facility 3
FIVE FLAGS CENTER FY 2016 BUDGET
Expenses I Adminsitration - Marketing
FY 2015 Budgeted FY 2016 Budgeted
Executive: Executive:
Contracted Services 20,000 Contracted Services 20,000
Corporate Travel 521 Corporate Travel 2,000
Meetings/Conventions 2,232 Meetings/Conventions 2,232
Telephone 1,200 Telephone 600
Miscellaneous 1,637 Miscellaneous 1,673
Total 25,590 Total 26,505
FY 2015 Budgeted FY 2016 Budgeted
r
nance: F
Contracted Services 2,070 cted Services 1,300
Meetings/Conventions - gs/Conventions 1,200
Payroll Processing 3,700 Processing 3,700
Miscellaneous 3,460 aneous 3,160
Total 9,230 9,360
FY 2015 Budgeted FY 2016 Budgeted
Fken : Fken :
cted Services 15,430 cted Services 10,930
gs/Conventions 50 gs/Conventions 1,490
ising 13,468 ising 17,546
Research - Research -
ivities 1,000 ivities 900
tional 600 tional 600
laneous 2,666 laneous 2,966
33,214 34,432
me 33,214 me 34,432
An SMG Managed Facility 4
FIVE FLAGS CENTER FY 2015 BUDGET
Expenses I Operations - Events
FY 2015 Budgeted FY 2016 Budgeted
Operations: Operations:
Meetings/Conventions Meetings/Conventions 3,000
Training 670 Training 500
Supplies 4,100 Supplies 4,624
Exterminating Exterminating
Repairs/ Maintenance 1,700 Repairs/ Maintenance 3,831
HVAC 7,500 HVAC 3,500
Safety Equipment 500 Safety Equipment 300
Janitorial 6,900 Janitorial 5,700
Miscellaneous 5,830 Miscellaneous 3,680
Event Allocated Expenses (2,094) Event Allocated Expenses (2,241)
Total 25,106 Total 22,894
Total Income 25,106 Totallncome 22,894
FY 2015 Budgeted FY 2016 Budgeted
F
Events:
ent Maintenance 500 Equipment Maintenance 500
tions 3,560 Inspections 2,660
al 850 Electrical 850
s 4,400 Supplies 3,400
aneous 3,282 Miscellaneous 3,470
llocated Expenses (5,661) Event Allocated Expenses (6,336)
6,931 Total 4,544
e 6,931 Total Income 4,544
An SMG Managed Facility 5
FIVE FLAGS CENTER FY 2016 BUDGET
Expenses IBox Office - overhead
FY 2015 Budgeted FY 2016 Budgeted
Box Office: Box Office:
Meetings/Conventions - Meetings/Conventions 1,000
Credit Card Terminal 485 Credit Card Terminal -
Credit Card Fees 6,700 Credit Card Fees 6,700
Training 140 Training 140
Miscellaneous 973 Miscellaneous 973
Event Allocated Expenses (1,456) Event Allocated Expenses (1,456)
Total 6,842 Total 7,357
Total 6,842 Totallncome 7,357
FY 2015 Budgeted FY 2016 Budgeted
Overhead: Overhead:
Trash Removal 1,200 Trash Removal 1,500
Maintenance Agreements 10,646 Maintenance Agreements 9,346
Insurance 40,137 Insurance 43,201
Utilities 169,442 Utilities 179,915
Miscellaneous 7,720 Miscellaneous 11,230
FFE - FFE -
Management Fee 93,687 Management Fee 94,624
Total 322,832 Total 339,816
Total Income 322,832 Totallncome 339,816
An SMG Managed Facility 6
FIVE FLAGS CENTER FY 2016 BUDGET
Expenses (Food & Beverage - Personnel
FY 2015 Budgeted FY 2016 Budgeted
Food & Beverage: rdBeeverage:
Contracted Services - acted Services -
Licensesand Fees 2,332 es and Fees 2,332
Wireless Terminal Leasing 800 ss Terminal Leasing -
Employee Training 750 yee Training 750
Repair/ Maintenance 1,000 r/ Maintenance 1,100
Kitchen Supplies 900 n Supplies 900
Miscellaneous 2,390 llaneous 3,906
Event Allocated Expenses (1,624) Allocated Expenses (1,666)
Total 6,548 7,322
Totallncome 6,548 me 7,322
FY 2015 Budgeted FY 2016 Budgeted
FPersonnel: FAllocated
ent Salaries 458,532 ent Salaries 544,778
Wages 105,248 Wages 108,296
nefits 206,629 nefits 182,080
Wages (96,964) ages (113,406)
673,445 721,748
673,445 721,748
An SMG Managed Facility 7