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Five Flags Center FY 2009 Operating Budget Dubuque THE CITY OF Aa DUB E Masterpiece an the Mississippi 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Fiscal Year 2009 Detailed Operating Budget for the Five Flags Center DATE: April 15, 2008 Leisure Services Manager Gil Spence recommends City Council approval of the Fiscal Year 2009 Five Flags Center proposed operating budget submitted by SMG. The property tax support is projected at $768,155. This budget projects that the proposed ice arena will not be constructed in time for the 2008/2008 ice season. If construction is completed by fall, there will be a revenue shortfall that could reach $100,000, depending on how much usage remains at Five Flags. The Civic Center Advisory Commission will be discussing how much they will compete with the new arena, price wise, once a decision is made on construction. There are fixed costs to have ice in the building, and the loss of any ice user group will not change those fixed costs very much. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Gil D. Spence, Leisure Services Manager THE CITY QF Dubuque -~ DT T~ ~ Al~in~ericaCftY ~,J - Masterpiece on the Mississippi 200 TO: Michael C. Van Milligen, City Manager FROM: Gil D. Spence, Leisure Services Manager SUBJECT: Fiscal Year 2009 Detailed Operating Budget for the Five Flags Center DATE: April 15, 2008 INTRODUCTION The purpose of this memorandum is to request City Council receive and file the detailed Fiscal Year 2009 operating budget. DISCUSSION During the City's Fiscal Year 2009 budget process the Five Flags budget was adopted with a property tax support of $772,878. the contract we have 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 that detailed budget with the property tax support projected at $768,155. General Manager Joyce White has written the attached memorandum to introduce the budget and to serve as the annual plan they are required to submit. This budget projects that the proposed ice arena will not be constructed in time for the 2008/2009 ice season. If construction is completed by fall there will be a revenue shortfall that could reach $100,000, depending on how much usage remains at Five Flags. The Civic Center Advisory Commission will be discussing how much they will compete with the new arena, price wise, once a decision is made on construction. There are fixed costs to have ice in the building and the loss of any ice user group will not change those fixed costs very much. General Manager Joyce White will attend the meeting and be able to answer any questions the City Council might have. ACTION STEP The action step is that the City Council approve the detailed FY 2009 operating budget for the Five Flags Center submitted by SMG. GDS:et attachments Memo To: Honorable Roy Buol, Mayor, City of Dubuque Mike VanMilligen, City Manager, City of Dubuque Gil Spence, Leisure Services Manager, City of Dubuque City Council Members, City of Dubuque Five Flags Commission Members From: Joyce White SMG General Manager Five Flags Center CC: Hank Abate SMG Senior Vice President Joe Romano SMG Regional Vice President Tom Lorenz SMG Senior General Manager Date: 4/2/08 Re: Fiscal Year 2008-2009 Budget and Annual Plan Ladies and Gentlemen: Attached you will find the proposed Fiscal Year 2009 operating budget for the Five Flags Center. The budget projects a Net Operating Loss for the year of ($768,155). Additionally, the agreement between SMG and the City of Dubuque for the management of Five Flags Center calls for the submission of an Annual Plan. This plan is detailed herein. ~ Page 1 FY 2009 OPERATING BUDGET SMG's plan for the upcoming fiscal year is to present a realistic operating budget with an emphasis on maintaining tight control of operating expenses while continuing to pursue creative avenues for event revenue generation. SMG has endeavored to take local market, economic, and industry conditions into consideration in the development of this budget. Competition for the entertainment dollar will be further challenged when Diamond Jo Casino expansion unveils a new 800 seat entertainment theatre and multi-lane bowling alley in the fall of 2008. Additionally, should the non- profit organization known as the Dubuque Communitylce & Recreation Cenferachieve full funding and subsequently come to fruition in late fall 2008, Five Flags would likely experience a significant decline in revenues generated from ice users. However, given the uncertainty of the ice project in the upcoming fiscal year, our methodology has embraced an evaluation of prior period operating performance and revenues have been budgeted accordingly. *(Refer to Income Statement on Page 9 for quantitative explanation.) FY 2009 SMG MANAGEMENT PLAN FOR THE MANAGEMENT AND OPERATION OF THE FIVE FLAGS CENTER Management is appreciative of the support demonstrated by the City of Dubuque and continues to evaluate the transition of the existing personnel into the realm of private management. Facility personnel are confident to be entering the fifth year of operation under private management and optimistic that 2009 will present both challenges and opportunities for the center. Overall objectives for the Fiscal Year 2009 include: • Concentrated effort on staff growth, development, and empowerment. • Increased concert and theatre performances. • Continued effort to maximize revenue and reduce overhead operating expenses. • Sustained emphasis on event expense recovery. • Increased revenue generated through concessions sales. • Continued effort to provide a balance of event activities that benefit all facility user groups. SMG will continue to cultivate relationships and work with local, regional and national event promoters to host a broad spectrum of live entertainment event activity at the center including touring attractions, family performances and special event activity. Key to building on these relationships will be the success of the events during Fiscal Year 2009 - specifically, successes achieved through focus and development of grassroots marketing efforts. SMG staff will also continue to work with Thunderbirds staff to explore opportunities for enhancing mutual revenue opportunities throughout the hockey season - as both anchor tenant and facility realized through hosting Hurster Cup play in 2008. Management is pleased with both quantity and quality of event activity in Fiscal Year 2008. Broadway performances returned to the Historic Five Flags Theatre with productions of Neil Berc1's 100 Years of Broadway and Peter Pan -both featured New York casts. The international touring companies of Tony Kenny and His Irish Dancers and Phil Coulter and His Irish Pops Orchestra provided high quality entertainment in the month of March. Additional Theatre performances included a very successful DSO season, and traditional Christmas performances of the Nutcracker • Page 2 Ballet and a spring performance of Swan Lake. In conjunction with the third annual Dubuque Winter Jazz and Blues Festival, SMG partnered with Dubuque Art's Council to sponsor an Evening with Frank and Dean. Comedy returned to the theatre with Laugh Tour and Musical Comedians Comedy Tour. A local promoter will bring Bo Ramsey and Greg Brown to the theatre stage in May. Arena concert performances included classic rockers, ZZ Top, Lonestar.~ A Christmas List, and Bret Michaels Rock of Love Tour. Family shows included four nationally touring shows: Sesame Street, My Little Pony, Arthur Live, and Ringling Bros. & Bamum & Bailey is scheduled for May, 2008. Extreme sporting events included two bouts of Mixed Martial Arts, Monster Trucks, and WWE. Bullriding and Wendy's/American Trust Boys High School Basketball Toumament, Corncob National Wrestling Toumament are annual arena sporting events. In conjunction with the Dubuque Regional Sports Commission, SMG submitted a bid to host the Central States Hockey League playoffs in March, 2008. Dubuque won the bid and Five Flags played host to eight teams from five Midwest states and15 additional hockey games in a five day period. The Hurster Cup playoffs represented the first time Dubuque had hosted post-season play since the mid-eighties. Dubuque Thunderbirds experienced a very successful "first season" as a Junior "A" hockey club by winning both the league championship and successfully defended the HursterCup, to achieve their second consecutive league tournament championship. A winning season has a direct correlation to concession sales and the Food and Beverage Department recognized excellent CAPs for Thunderbird games. SMG expects the Thunderbirds to have 24 home games in 2009 and would consider the possibility of hosting another post-season playoff if deemed feasible. The Public Skate program has grown significantly over the last three years from 12 Public Skate dates offered in 2006 to 23 dates in 2007, and 27 dates in 2008. Correlating income for the three year period from 2006, 2007, 2008 has grown from $6,638 and $9,558, to $13,223, respectively. On a percentage basis, Public Skate opportunities have increased 125% in three years and income has increased 99% in the same three year period. The increase in revenue is directly correlated to the efforts of the staff to create an "event" around Public Skate with lights, music, and theme skates. Staff has also designed private party opportunities and will begin marketing those opportunities prior to next ice season. Other community events hosted during the year included Extreme Dance and Irish Feis. Senior and Hempstead High Schools annually hold graduation ceremonies at Five Flags in additional to other school activity including variety shows, a vocal chorale, and musicals. Regional and state events and conferences held at Five Flags included Iowa Winfer Games, Iowa and Illinois Special Olympics, American Breweriana (June) and the Tri-State Veterans Conference (May). About SMG SMG, the world leader in venue management, marketing and development, was founded in 1977 with the management of our first facility, the Louisiana Superdome. We soon grew to manage convention centers, exhibition halls and trade centers, arenas, stadiums, performing arts centers, theaters, and specific-use venues such as equestrian centers. In late 2007, SMG successfully entered the Asian market with the signing of a convention center in Beijing, China -which represented the 201 facility under SMG's worldwide management umbrella. SMG's clients benefit • Page 3 from the company's depth of resources and its unparalleled expertise, leadership, and creative problem-solving. Our successful growth has been built on the many partnerships, relationships, and resources we have developed with our clients -both municipal and private. This unique combination of resources, relationships, and expertise has allowed SMG to define and refine the industry throughout its history. ANTICIPATED EVENT ACTIVITY Family shows: The Family Show market will continue to be aggressively pursued by SMG. Some of the events projected for the upcoming year include: Sesame Street Live, Children's Theatre, and a family show from Feld Corporation is currently on hold. Concerts, Entertainment Shows, and Comedy: Arena and theatre concerts, shows, and comedy are projected at ten, collectively. Sports events: Professional Bull Riding is expected to return to Five Flags in 2009 as are the Globetrotters. Wendy's/American Trust High School Basketball Classic is presently being restructured and Five Flags management is actively collaborating with the committee to identify ways to strengthen the field of competition and increase attendance and revenues. AMP Live Monster Truck Tour negotiated a three year deal and will retum in 2009. Iowa Winter Games and the Iowa and Illinois Special Olympics are also expected to be held at Five Flags. Hockey: The Dubuque Thunderbirds will begin play in September of 2008 with an expected 24 game home schedule. SMG is projecting an average attendance per game attendance at 1085. DEPARTMENTAL REPORTS Operations: The function of the Operations Department is to maintain building equipment, perform repairs to the facilities, complete necessary set-ups and conversions for events and keep the Five Flags Center clean and well maintained. This year, staff will implement and utilize the specifically designed and proprietary SMG Smart Maintenance software program for the management of facility operations. This customized program includes preventative maintenance functions, work order distribution and record keeping that has made "back of house" operations at the facilities "state-of--the-art." • Page 4 SMG will continue to take the necessary preventative steps to ensure that the long-term maintenance goals of the Operations Department include maximization of the life cycle of its facility assets. Asset maintenance includes but is not limited to: • Test running the emergency generator on a quarterly basis. • Rolling equipment maintenance -check operations, top off fluids, check brakes, check for leaks, check tires, repair as needed. This equipment include: forklift, bobcat, scrubbers, sweepers, and Zamboni. • Maintain all electrical supply panels, wiring and receptacles. • Plumbing maintenance and repair. • Lighting maintenance and repair. • Fire extinguisher upkeep and maintenance -visual inspection, re-charging, recertification and maintenance of fire cabinets. • Janitorial equipment maintenance and repair including: leaf blowers, vacuums, power washers, extractors, etc. • Miscellaneous equipment maintenance including: • Refrigerators • Ice makers • Doors, locks and panic devices • Toilets • Roll-up doors • Elevator Additional maintenance monitoring systems for which the staff has budgeted include upgrading obsolete software by two levels which will allow the purchase and installation of a Remote Notification Option. The software, Insight Advanced Workstation, transforms a personal computer into a powerful APPOGEE workstation and provides a graphical approach to manage and control a building from an easy-to-use interface. SMG staff has created and maintained a Safety Committee to monitor and evaluate potential safety hazards throughout the building as well as developing new ideas aimed at keeping Five Flags Center a safe environment for employees and guests. The Committee is comprised of Senior Managers and the General Manager who meet on a monthly basis to discuss safety issues and to assign the responsibility to rectify the recognized deficiency. The facility's Exposure Control Plan, which addresses safe practices relative to blood borne pathogens, was updated and staff training sessions are slated for the summer. In April, 2008, Zurich Services Corporation will conduct a site assessment to review SMG's accident and injury prevention program. Event Management: To provide a range of services to Five Flags Center's clients and to ensure the successful completion of their events, SMG utilizes atwo-prong system which includes an Event Manager to handle "front- • Page 5 of-house" needs and a Technical Director to handle "back-of-house" needs. In an effort to provide feedback and improve our services, SMG queries promoter reps and show management officials to detail their experiences and suggestions for improvements. Staffing/Security Ushers, Ticket Takers, and Event Security personnel all work in-house directly for SMG. This allows SMG to have better control of the staff, improves customer service standards, and reduces costs. SMG utilizes the services of the City of Dubuque's Fire Department as well as private companies to provide medical services at events. SMG also works with off-duty local law enforcement authorities to provide a safe and secure environment for patrons attending our events. In addition, SMG has in place a comprehensive Emergency Evacuation Plan that has been updated and reviewed by Dubuque's Fire Marshal to better serve the needs of the facility and to implement the most current strategies to ensure the safety of the facility's guests. Training At the beginning of each hockey season, SMG conducts an annual Emergency Evacuation Drill and trains all event personnel on emergency procedures. In October, SMG also conducted a Customer Service Training program for sixty-six full-time and part-time personnel. K'nekt, SMG's customized training program, is utilized in SMG managed facilities around the country and is designed to ensure our staff is performing to the highest quality standards. Staff is apprised of the most up-to-date information available regarding the customer service industry. Training remains ongoing and is included as a budgetary priority. By investing in our employees through continuing education and development, they are better able to maximize the potential of the facility -thereby better serving the city, the community, and the patron. SMG personnel attending and receiving educational programming included: J.R. Richardson completed the third year of a three year program to achieve the designation of Certified Ice Technician; Bob Richardson and J.R. Richardson attended IAAM School of Ice Technology in Columbus, Ohio; Chelsea Ellingson attended Young Professionals Symposium; Peggy Degnan attended the Event and Arena Marketing Conference in Dallas; Don Howes attended SMG Annual Human Resource Conference in Miami; Alyson Tasker attended INTIX Annual Conference in Chicago; and Joyce White attended the SMG Annual General Manager's Regional Meeting in Council Bluffs and the IAAM Annual Conference and Trade Show in Salt Lake City. Sales and Marketing Efforts: SMG has established a $30,000 marketing fund which shall be used by SMG to attract events to Five Flags Center. Also, through trade agreements and promotional relationships with a growing number of media outlets, the Five Flags Center is able to market itself and specific events with minimal expenditure of departmental budget dollars. • Page 6 Having established the various sales opportunities for the Five Flags Center and created the necessary collateral, the department has begun to make contacts in the community to secure sales of venue signage and develop mutually beneficial sponsorship opportunities. While personal sales calls are the main and the most effective points of contact, the sales associate responsible for increasing signage sales recently left the organization and has not been replaced. Management is considering outsourcing this responsibility to an independent contractor for an agreed upon sales commission. Event specific promotion and advertising is typically executed by event promoters for nationally recognized shows. However, management has successfully implemented an effective grassroots marketing system incorporating a-mail blasts and Mail Manager - a supplemental Ticketmaster software program which incorporates and utilizes Mail Manager. Management also designed a group sales program, established a system to deliver show posters locally and regionally, and re-examined broader print media opportunities as related to monthly and weekly tabloids. Most recently, management explored and utilized billboard advertising. A website (www.fiveflagscenter.com) was launched in June of 2005 including an a-mail database and event newsletter for those interested in receiving Five Flags Center event activity via email. The website, built and hosted by Parks Media Group, provides visitors with information on the facility, tickets, events and more. Staff has also created a quarterly events brochure and identified local distribution outlets. The Venue was "Secret Shopped" at a January 12, 2008 hockey game. The results of the research were recently made available to facility management and the building received good marks in all areas. For the deficiencies that were noted, management has designed and implemented an Action Plan. Accounting and Box Office: The Accounting Department is responsible for Human Resources, Payroll, Purchasing, Box Office Operations, Accounts Payables, Accounts Receivables, Financial Reporting, Event Settlements and Budget Administration. In Fiscal Year 2006 SMG added the position of Box Office Manager to the payroll to handle all of Box Office duties as well as to assist the Senior Accounting Manager with assorted accounting responsibilities. In 2007, management assigned payroll and accounts payable responsibilities to the job description of the Box Office Manager, furthering a division of duties. SMG implemented the use of ticket scanners throughout the facility in the summer of 2006. This system expedited the process of checking tickets and processing patrons at the entrances. The Ticket Master Access Manager System that is used in conjunction with the scanners and Ticket Master's Mail Manager software are two very powerful tools that have allowed the Center to generate detailed reports for clients to assist them in their marketing efforts. For the convenience of the Center's guests, management successfully negotiated a lease agreement to provide an ATM machine in late 2006. Cash availability is a standard customer convenience that increases ticket sales and generates stronger concessions revenues. • Page 7 Concessions: Five Flags has just completed its third year of operations with the newly renovated and expanded concessions facilities. Attractive menu signage was not included in the renovation phase and management has requested to include menu signage funding in this budget year. The Center has seen marked improvement in revenue-based performance due to an expanded menu and implementation of tightened internal controls. SMG expects this trend to continue as we look to expand and refine the choices available to our guests. The concessions department provided a variety of catering options for the Thunderbirds to sell in marketing packages to groups. Most notably, at the end of the 2008 hockey season, the Department introduced "The Thunderdog" -afoot long hot dog value meal and drink. The product was successful and will continue to be offered in the product line. Management will continue to work with the Thunderbirds advertising sponsors to create a more successful revenue stream for both parties. Concessions are a major source of revenue for the facility and must operate not only to provide a high quality of products and services to our guests, but must return a substantial margin of profit to the overall bottom line for the complex. ~ Page 8 Five Flags Center Dubuque, Iowa BUDGET FISCAL YEAR 2008 Ma~agea sy SMG /FIVE FLAGS CENTER BUDGET -INDEX FYE 06/30/2009 DESCRIPTION BUDGET NARRATIVE INCOME STATEMENT INDIRECT EXPENSE SUMMARY EVENT SUMMARY MONTHLY EVENT SUMMARY PART-TIME WAGE SUMMARY FULL-TIME SALARY SUMMARY PAGE 9 10 11 15 16 17 Five Flags Center INCOME STATEMENT For The Year Ending June 30, 2009 Description It of Events Attendance Event Income Ticket Income ' Rental Income Reimbursed Exp Event Expenses Talent Fees Reimbursed Exp Direct Event Income Ancillary Income Suite Ticket Sales Club Seat Ticket Sales Suite/Club Rentals Concessions/Catering Novelties Ticket Rebates Facility Fee Other Event Revenue Other Ancillary Income Parking Total Ancillary Total Event Income Other Operating Income Advertising Interest Ice Rentals Other Income Total Other Income Adjusted Gross Income Indirect Expenses Executive Finance Marketing Operations Box Office Events Concessions Overhead Total Indirect Expenses Net Operating Income/(Loss) Other Expenses Management Fee Total Other Expenses Net Income/(Loss) Total Actual Actual vs. Budget Budget Budget Estimate 12 Mos Ended Variance 2009 2008 6/30/2008 6/30/2007 Fav/(Unfav) 126 123 142 178 (3) 99,862 87,595 85,646 ]06,744 (12,267) 123,508 54,197 108,415 55,780 (69,311) 218,685 220,360 242,868 215,206 1,675 202,116 214,991 242,366 245,976 12,875 (426,652) (329,120) (436,59]) (309,084) 97,532 - 0 (224,536) (114,129) (194,225) (63 108) 16] 428 117,657 160,428 157,058 207,878 42,771 0 0 0 249,666 241,391 265,343 149,798 (8,275) 25,898 15,081 24,336 16,566 (10,817) 6,744 6,211 8,366 ]0,663 (533) 69,151 59,550 73,250 50,231 (9,601) 0 - 0 - 0 351,459 322,233 371,295 227,258 (29,226) 469,117 482,661 528,353 435,136 13,544 27,050 27,050 17,250 12,605 0 - 0 - 0 0 100 100 100 68 U - 35,586 0 2,500 2,500 2,650 7,380 0 0 29,650 29,650 20,000 55,639 0 498,767 512,311 548,353 490,775 13,544 173,051 ]97,758 197,758 209,429 24,707 66,257 68,683 68,683 68,623 2,426 62,336 12,513 18,993 13,620 (49,823) 228,799 236,364 236,364 253,070 7,565 69,093 75,657 75,657 70,86] 6,564 155,554 169,059 169,059 124,566 13,505 67,671 62,787 65,787 41,111 (4,884) 359,915 355,276 356 436 344 288 (4 639) 1,182,675 1,178,097 1,188,737 1,125,568 (4,578) [683,908) (665,786) (640,384) (634,793) 8,967 84,247 82,272 82 272 80 255 (1 975) 84,247 82,272 82,272 80,255 (1,975) ($768,155) ($748,058) ($722,656) ($715,048) 10,942 If second ice sheet comes to fruition, impact on Five Flags would be $67,800 loss of revenue for December, January, February and 1/2 of Mazch for FY09. If second ice sheet comes to fruition, impact on Five Flags would be $110,175 loss of revenue for following years. SMG FIVE FLAGS CENTER BUDGET-FYE 8/30/2009 INDIRECT EXPENSE SUMMARY Salaries - Arlministralive (addendum A) Part 'time -Administrative Wages -Trade (addendum ft) Wages - Comracted Taxes & Benefits Net labor Grsts Contracted Cleaning Other Contracted Services Comraaed lawn Service -travel Meetings & Canferenccs Employee 'Training Dues & Subscriptions Misc Expense Computer Expenses I'mfecsinnat Ices I'rinling & I'hokrgraphy Marketing & Advertising Box (Alice 1'xpense Rcsoume Materials Small eyuipmcnt Vehicle Maintenance Architect Design Pees "Crash Removal Landscaping Snow Removal I;xtcrminating Cleaning Safety liyuipmenl Repairs & Maintenance Uniforms Supplies Bad Debt Expense O[fice Supplies & Postage Telephone/Lang Distance Parking I?xpsx[sc Parking I?xpcrose Food & Beverage Overhead Community Relations Insurance Licenses & Pecs Utilities Ilyuipmcnt Rcmal Audio Visual Bulbs & (amps Bank Service Charges PF&1; I?xpcnsc lahor Nlocation Management Pee Relocation Pxpense Net Materials & Services Total Indirect Expenses 13ox Other 2008 2(107 Executive Finance Mkt O[fice F&13 F;vents O s Overhead Lx enses "Totals Bud et Difference Actuals Difference 126,708 8,840 $0,648 27,825 30,W0 27,293 29,500 35,338 114,342 47,018 131,955 77,309 - - - 510,977 S,R4tl 186,998 487,932 249,775 23,045 8,840 (62,817) 444,851 251,687 66,126 8,840 (64,729) 31,125 13,029 18,811 12,831 13,377 28,171 98,180 - 175,524 174,317 1 207 177,824 (2,300) 166,672 63,677 46,636 70,124 78,216 189,531 267 444 882,299 912,024 29,725 874,362 7,937 5,4411 9,496 5,249 23,948 44,133 52,499 (8,366) 25,250 18,883 _ - _ - - 1,500 1,500 1,2(1(1 300 5,674 (4,174) 3,5110 1,200 3,(100 2,1011 1,_SW 4,980 - 16,280 7.230 9,0513 3,680 12,600 1,00(1 2411 950 2,190 3,440 (1,25(7) 8,879 16,6891 475 2U0 - 100 - - 775 1,554 (779) 2,418 (1,6431 SSU SUIT 1,02(1 7,278 9,648 7,768 1,880 11,472 (1,8241 - - - 179 - 7,024 7,203 8,454 (1,251) 5,704 1,499 4130 - - - - 1,000 1,400 2,230 (8301 1,400 _ - - - 2,900 - 2,90(1 2,900 4011 1,163 1,737 - - 11,850 - 200 - 12,05(1 8,420 3,630 13,48(1 (1,4301 3,100 3,1(30 3,300 (2130) 1x,483 (11,3831 2(1(1 200 600 (400) 200 _ - - - - 249 12491 - - 2,000 (2,000) - - _ _ _ 5,289 - 5,289 - 5,289 4,593 696 348 348 350 (2) 348 - Soo 100 600 1,000 (400) s,ox9 12,4891 - - - - 2,475 1,(1(30 21,425 - 24,9110 17,469 7,431 27,401 12,5011 200 1,485 8(IU SUU 2,985 2,893 92 1,122 1,863 - - - - 19,115 ]9,115 28,203 (9,088) 31,307 (12,192) 720 - - - 265 - 7,600 8,585 9,619 (1,034) 1(1,518 (1,933) 840 - - - 13,659 14,499 13,094 1,405 14,499 qqq - 444 420 24 1,655 (1,211) - - - - - 40,592 4(1,592 32,224 S,36R 35,287 5,305 2,230 1,000 3,230 1,20(3 2,03(1 1,416 1,814 - _ _ _ - 255,5 14 255,514 252,69(1 2,818 248,079 7,435 - - - - 1,(3(10 - - ],000 1,5130 (5(3(1) 2,835 (1,835) 850 2,304 - - - - - 600 6(10 1,2013 (600) 662 1621 180 - 14,RDU 1,820 21,520 - 38,320 28,9511 9,370 40,083 (1,763) (6,531) (39,480) (52,94fi) (121,221) (2211,178) (233,30(3) ]3,122 (271,714) 51,536 - - - - - 84,247 84,247 82,272 1,)75 SU,255 3,992 7,360 7,360 - 6,379 2,580 15,7(10 1,031 ]0,545 33 977 38,645 359,915 84,247 381,469 348,345 33,124 309,388 72,(381 173,051 66,257 ##### 89,093 67,871 155,554 228,799 ###### 84,247 1,283,768 1,260,369 3,399 ####### 80,018 Benchmark FY08 $750,367 Est. CPI 2.40% Est. FV09 Benchmark $768,375.81 Employee Development Was listed under Utilities Remote Emergency Notification Contract Installation and use of recycled products. Anticipated increase of insurances Expected purchases Co-Pro events that par down reimbursed labor OM relocation allocated in FY07. 30 Five Flags Center Addendum C :IVT SUMMARY Public Lipiuaner Jim City Prudential Family City Concert "A" Concert "B" Disne Ice Stallions McDonou h Meetin s Meetin Shows Events Number of Events 1 1 1 24 1 1 23 1 1 2 Attendance 1,548 2,317 9,100 3,000 1,025 600 - 500 3,725 - TICKETING Gross Ticket Sales 52,400 72,050 163,800 9,750 23,063 13,000 - - 64,600 - Sales Tax (3,428) (4,714) (10,716) (638) (1,509) (850) - - (4,226) - Tenant Receipts (44,564) (61,276) (137,776) - (21,554) (12,150) - - (42,262) - DIRECT EVENT INCOME Rental Income Reimbursed Expenses Actual Expenses Total Direct Event Income ANCILLARY INCOME Suite Ticket Sales Club Seat Ticket Sales Concessions/Catering Novelties Ticket Rebates Facility Fee Premium Seating Upcharge Parking TOTAL ANCILLARY TOTAL EVENT INCOME - - - - 2,200 550 - 550 - - 7,150 12,100 30,400 - 4,200 2,300 - 876 - 5,200 (12 433) (12,150) (33,200) (5,760) (5,700) (1,950) (690) (646) (22,500) (3,600) (876) 6,010 12,508 3,352 700 900 (690) 780 (4,388) 1,600 9,538 10,677 5,275 3,000 2,306 300 2,530 - 6,146 1,550 2,322 2,375 - - 64 60 - - 2,421 - 308 424 1,092 - 169 31 - - 684 - 1,600 2,200 9,100 - 1,025 650 - - 3,800 - 13,768 15,675 15,467 3,000 3,564 1,041 2,530 - 13,052 1,550 12,892 21,685 27,975 6,352 4,264 1,941 1,840 780 8,664 3,150 NET INCOME (Per Event) 12,892 21,685 27,975 265 4,264 1,941 80 780 8,664 1,575 11 H.S. Thunderbird Misc. Special Iowa Irish Baskeball Rodeo Graduation WWE Hockey Ice' Olympics Games MMA Feis DSO Ballet 1 1 2 1 24 7 2 1 2 1 6 1 1,875 2,550 8,000 3,750 23,000 488 200 3,500 2,000 1,800 6,000 1,250 8,438 64,800 - 133,000 72,000 - - - 46,800 - 210,000 28,050 (552) (4,239) - (8,701) - - - - (3,062) - - - (7,886) (60,561) - (124,299) (72,000) - - - (46,800) - (210,000) - 2,100 2,550 2,750 8,500 24,000 131,625 1,200 3,600 4,000 2,450 10,200 - 6,700 8,000 4,350 4,000 15,840 - 2,000 4,000 7,200 3,725 18,900 - (6 300) (14 200) (4 300) (12 155) (79,200) (21,450) (3,362) (8,400) (15,200) (7,700) (15,360) (13,325) 2 500 (3 650) 2 800 345 (39,360) 110,175 (162) (800) (7,062) (1,525) 13,740 14,725 5,063 11,730 - 15,450 102,000 - 220 4,000 18,700 7,035 750 125 - - - 6,750 - - - - 700 - - 50 - 324 - 424 - - - - 216 - 510 102 1,875 2,700 - 3,800 12,000 - - - 1,800 - 6,000 1,275 6,938 14,754 - 26,424 114,000 - 220 4,000 21,416 7,035 7,260 1,552 9,438 11,104 2,800 26,769 74,640 110,175 58 3,200 14,354 5,510 21,000 16,277 9,438 11,104 1,400 26,769 3,110 16,950 29 3,200 7,177 5,510 3,500 16,277 * Miscellaneous Ice consists of Adult, Fossils, Over 30, Youth, High School, University of Wisconsin and Loras College Hockey leagues. 12 Harlem School Dog IA Ayershire Corn Cob DSO DSO Youth DSO School Chorale Dance Globetrotters Musicals FBN Show Show Wrestling Arena Pops Arts Trek Festival Theater 1 1 2 3 1 1 1 1 1 1 1 2 563 3,160 4,000 900 850 500 286 850 187 1, 500 1,100 1,000 3,850 48,000 40,000 14,850 - - 2,145 33,750 7,013 - - 24,200 (252) (3,140) (2,617) (971) - - (140) (2,208) (459) - - (1,583) (3,598) (48,000) (37,383) (13,879) - - (2,005) (31,542) (6,554) - - (22,617) 800 2,200 5,260 - 3,800 2,600 1,200 1,650 650 650 1,400 1,100 1,400 7,800 7,650 3,375 8,325 3,235 1,725 5,000 875 915 1,100 2,500 (1 168) (8 800) (7 260) (2 199) (9,500) (4,000) (3,325) (5,794) (1,000) (1,150) (1,325) (2,000) 1 032 (1 940) 5 650 1,176 2,625 1, 835 (400) 856 525 415 1,175 1,600 - 8,216 2,800 2,250 5,350 300 787 2,683 - - - 1,250 - 2,022 - - - - 343 - - - - 250 - 320 320 54 850 - 17 68 - - - 132 550 3,200 4,000 1,350 - - - 850 - - 1,100 2,000 550 13,758 7,120 3,654 6,200 300 1,147 3,600 - - 1,100 3,632 1,582 11,818 12,770 4,830 8,825 2,135 747 4,456 525 415 2,275 5,232 1,582 11,818 6,385 1,610 8,825 2,135 747 4,456 525 415 2,275 2,616 13 AMP Monster Arena BUDGET Truck Concert C Comedy Theater Comedy 6130!2009 1 1 1 2 126 4,000 1,250 2,600 888 99,862 68,000 34,000 87,400 12,000 1,336,958 (4,449) (2,224) (5,718) (785) (67,181) (31,776) (22,243) (74,331) (11,215) (1,146,268) - - - 1,100 218,685 7,000 7,000 5,275 2,000 202,116 (54,500) (11,600) (10,600) (2,850) (426,652) (15,724) 4,933 2,026 - 117,657 6,000 5,438 4,825 3,374 249,666 7,000 500 1,040 - 25,898 320 100 230 50 6,744 4,000 1,250 1,250 1,776 69,151 17,320 7,288 7,345 5,200 351,459 1,596 12,220 9,371 5,450 469,117 1,596 12,220 9,371 2,725 14 Five Flags Center ~HLY SUMMARY BUDGET Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 6/30/2009 Number of Events 1 3 12 10 14 21 17 14 12 10 8 4 126 Attendance - - 8,363 7,319 10,910 10,085 18,250 6,675 14,800 9,394 12,980 1,086 99,862 TICKETING - - - - - _ _ _ _ _ _ _ Gross Ticket Sales - 3,000 70,563 57,950 172,231 121,163 241,581 54,469 265,406 199,850 143,650 7,095 1,336,958 Sales Tax - - (3,831) (716) (8,193) (5,048) (15,412) (685) (14,485) (8,950) (9,398) (464) (67,181) Tenant Receipts - (3,000) (68,262) (57,234) (140,380) (115,458) (208,963) (51,886) (218,766) (157,030) (118,659) (6,631) (1,146,268) DIRECT EVENT INCOME - - - - - _ _ _ _ _ _ _ Rentallncome - 1,000 21,325 27,150 26,600 28,800 29,000 27,650 39,880 8,280 5,200 3,800 218,685 Reimbursed Expenses - 660 15,415 8,830 13,815 17,356 45,845 12,830 28,280 23,150 29,850 6,085 202,116 Actual Expenses (30) (3,360) (36,940) (22,398) (55,773) (30,616) (69,434) (25,001) (95,845) (44,095) (35,072) (8,088) (426,652) Total Direct Event Income (30) (1,700) (1,731) 13,582 8,301 16,197 22,618 17,377 4,470 21,206 15,571 1,797 117,657 ANCILLARY INCOME - - - - _ _ _ _ _ _ _ _ Suite Ticket Sales - - - - _ _ _ _ _ _ _ _ _ Club Seat Ticket Sales - - - - _ _ _ _ _ _ _ _ _ Food & Beverage 110 4,470 36,646 19,672 33,404 23,486 31,430 18,893 41,420 19,172 19,017 1,947 249,666 Novelties - - 539 - 4,743 2,207 - - 13,750 1,440 2,875 343 25,898 Ticketmaster Rebate - - 343 128 1,077 502 1,434 85 989 710 591 35 5,894 Gross Facility Fee - 500 4,925 4,338 8,400 7,350 13,250 4,375 13,150 8,413 4,850 450 70,001 Premium Seating Upcharge - - - - - - _ _ _ _ _ _ _ Parking - _ _ _ _ _ _ _ _ _ _ _ _ TOTAL ANCILLARY 110 4,970 42,453 24,138 47,625 33,546 46,114 23,353 69,309 29,735 27332 2,775 351,459 TOTAL EVENT INCOME 80 3,270 40,723 37,720 55,925 49,742 68,732 40,730 73,779 50,941 42,903 4,572 469,117 15 Five Flags Center Addendum A FYE 6/30/2008 Administrative Salaries 8c Benefit Bud et Summ De t Title Salary Benefits Taxes 401K Auto Bonus Total Executive General Manager 88,449 18,548 7,117 3,689 5,050 19,459 142,313 Administrative Asst - - - - - Receptionist - - - - - Subtotal Executive 88,449 18,548 7,117 3,689 5,050 19,459 142,313 Finance Director of Finance - - - - - Accounting Manager 50,648 6,892 4,111 2,026 - 63,677 Subtotal Finance 50,648 6,892 4,111 2,026 - - 63,677 Marketing Director of Marketing - - - - - - Marketing/Events Coordinator 27,825 15,851 2,362 598 - - 46,636 Director of Sales - - - - - - Sales Manager - - Subtotal Marketing 27,825 15,851 2,362 598 - - 46,636 Operations Operations Manager 58,476 15,129 4,708 78,312 Operations Supervisor 42,056 16,447 ~ 3,452 1,682 63,636 HousekeeepingJSet-Up Svsr 31,424 6,464 2,638 1,257 41,783 Subtotal Operations 131,955 38,040 10,798 2,939 - - 183,731 Event Services 61,952 7,136 4,973 2,478 76,538 Technical Director 58,476 16,784 4,708 2,339 82,306 Concessions Manager 29,500 6,531 2,491 1,180 39,703 Subtotal Event Services 149,928 30,451 12,172 5,997 - - 198,548 Box Office Box Office Manager 30,900 6,556 2,598 1,236 41,290 Ticket Sellers (FT) - - - Ticket Sellers (PT) - - - - - Subtotal Boxoffice 30,900 6,556 2,598 1,236 41,290 Total All Departments 479,704 116,337 39,158 16,486 5,050 19,459 676,195 17