Five Flags Civic Center - Fiscal Year 2017 Detailed Operating Budget Copyrighted
April 17, 2017
City of Dubuque Consent Items # 15.
ITEM TITLE: Five Flags Civic Center- Fiscal Year 2017 Detailed
Operating Budget
SUMMARY: City Manager recommending approval of the detailed Fiscal
Year 2017 Operating Budget for the Five Flags Civic
Center submitted by SMG.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
FY18 Detailed Budget for Five Flags Civic Center-MVM City Manager Memo
Memo
Five Flags FY 2018 Budget Staff Memo
Five Flags FY 2018 Budget Supporting Documentation
THE CITY OF Dubuque
DUB E 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 2018 Detailed Budget for the Five Flags Civic Center
DATE: April 11, 2017
Leisure Services Manager Marie Ware recommends City Council approval of the
detailed Fiscal Year 2018 Budget for the Five Flags Civic Center submitted by SMG.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Marie L. Ware, Leisure Services Manager
THE CITY ODubuque
UBi&E
IIIefica .
Masterpiece on the Mississippi 2007-2012-2013
TO: Michael C. Van Milligen, City Manager
FROM: Marie L. Ware, Leisure Services Manager
SUBJECT: Fiscal Year 2018 Detailed Budget for the Five Flags Civic Center
DATE: April 7, 2017
INTRODUCTION
The purpose of this memorandum is to request City Council to receive and file the
detailed Fiscal Year 2018 Budget for the Five Flags Civic 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 $886,874.
This budget reflects a 2% CPI-U increase. The budget projects a 17% increase in
revenue and a 6% increase in operating expense. SMG Regional Manager HR Cook
has written a memorandum to introduce the budget.
Director of Finance Don Howes and Regional Manager HR Cook 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 2018 Budget for the Five
Flags Civic Center submitted by SMG.
MLW:et
attachment: Five Flags Center FY 18 Budget
cc: HR Cook, SMG Regional Manager
Don Howes, Director of Finance
Jean Nachtman, Finance Director
1
(M
FIVE FLAGS
C E N T E R
Five Flags Center
Dubuque, Iowa
BUDGET
FISCAL YEAR 2018
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: HR Cook
SMG Regional General Manager
Five Flags Center
CC: Leonard Bonacci
SMG Regional Vice President
Date: 3/30/2017
Re: Fiscal Year 2017-2018 Budget
Ladies and Gentlemen:
Attached is the proposed FY 2018 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, we are projecting a two percent (2%) increase in the CPI-U for FY18, using the
percent increase the City of Dubuque projected for FY18. Accordingly, management has designed
the FY18 budget to reflect a Net Operating Loss of($895,876), an increase of($17,244) over the
previous year's benchmark of($878,632).
The FY18 budget reflects an increase in revenue ($62,351) utilizing an aggressive approach to
booking concerts, comedians, national touring acts, self-promoted events, and working with returning
events to maximize income. The increase in expenses ($66,180) is a combination of insurance costs,
general & administrative costs, repairs and maintenance, benefits, and the addition of the complete
year of the full-time Assistant Technical Production Manager.
Five Flags will be entering the fourteenth year of operation under the management of SMG and is
continuing to redefine and create new business. With local and regional events comprising the
majority of usage, last fiscal year, 61% of total programming was comprised by two categories—
"Performing Arts" and"Meetings/Conventions". Forging new relationships with promoters we are
looking forward to increased concerts and family oriented events. Accordingly, the FY 2018 operating
budget projects a 17% increase in revenue and a 6% increase in operating expenses.
Five Flags Center/ SMG
BUDGET - INDEX
FYE 06/30/2018
Description Page
PROFIT AND LOSS STATEMENT 1
INCOME STATEMENT 2
ADMINISTRATIVE/FINANCE/MARKETING EXPENSE 3
OPERATIONS/EVENTS EXPENSE 4
BOX OFFICE/OVERHEAD EXPENSE 5
FOOD AND BEVERAGE/PERSONNEL EXPENSE 6
NOTES 7
FIVE FLAGS CENTER FY 2018 BUDGET
Net Income and Expenses
FY 2017 Budgeted FY 2018 Budgeted
INCOME: INCOME:
Total Direct Income 188,913 Total Direct Income 195,590
Total Ancillary Income 112,955 Total Ancillary Income 135,858
Other Event Income 72,129 Other Event Income 90,566
Other Operating Income 3,166 Other Operating Income 18,500
Total 377,163 Total 440,514
EXPENSES: EXPENSES:
Executive 27,018 Executive 37,034
Finance 11,895 Finance 23,388
Marketing 38,795 Marketing 39,479
Operations 29,985 Operations 34,777
Events 2,015 Events 5,355
Box Office 9,364 Box Office 8,352
Overhead 337,234 Overhead 342,348
Food & Beverage 7,249 Food & Beverage 9,657
Personnel 800,482 Personnel 834,937
Total 1,264,037 Total 1,335,327
Profit(Loss) * (886,874) Profit(Loss) (894,813)
Benchmark ** (878,632) Benchmark (Est.2.% CPI) (896,205)
STATISTICAL: STATISTICAL:
Attendance 84,711 Attendance 86,720
Number of Performances 187 Number of Performances 211
Number of Event Days 254 Number of Event Days 269
* The FY 2017 budget was estimated with a 2% increase in the CPI-IJ to total ($887,332).
** The actual CPI-IJ increase in May 2016 was 1%to total ($878,632).
3/27/2017 at 11:43 AM An SMG Managed Facility 1
FIVE FLAGS CENTER FY 2018 BUDGET
Income
FY 2017 Budgeted FY 2018 Budgeted
Event: Event:
Rental Income 143,057 Rental Income 164,566
Service Income 306,192 Service Income 343,546
Service Expense (260,336) Service Expense (312,523)
Total 188,913 Total 195,590
Ancillary: Ancillary:
F&B Concessions 100,284 F&B Concessions 120,157
F&B Catering 10,251 F&B Catering 10,659
Novelty 2,420 Novelty 5,042
Total 112,955 Total 135,858
Other Event: Other Event:
Other Event Related - Other Event Related
Ticket Rebates 26,071 Ticket Rebates 35,809
Facility Fee 46,058 Facility Fee 54,757
Total 72,129 Total 90,566
Operating: Operating:
Operating Income 3,166 Operating Income 18,500
Total 3,166 Total 18,500
Total Income 377,163 Total Income 440,514
3/27/2017 at 11:43 AM An SMG Managed Facility 2
FIVE FLAGS CENTER FY 2018 BUDGET
Expenses I Administration - Marketing
FY 2017 Budgeted FY 2018 Budgeted
Executive: Executive:
Contracted Services 21,621 Contracted Services 21,917
Meetings/Conventions 2,500 Meetings/Conventions 5,000
Telephone 1,200 Telephone 1,200
Miscellaneous 1,697 Miscellaneous 8,917
Total 27,018 Total 37,034
FY 2017 Budgeted FY 2018 Budgeted
r
nance: Finance:
Contracted Services 1,785 Contracted Services 2,566
Meetings/Conventions 1,200 Meetings/Conventions 1,200
Payroll Processing 4,860 Payroll Processing 14,562
Miscellaneous 4,050 Miscellaneous 5,060
Total 11,895 Total 23,388
FY 2017 Budgeted FY 2018 Budgeted
Marketing: Fken :
Contracted Services 10,930 ted Services 10,930
Meetings/Conventions 1,725 s/Conventions 2,000
Advertising 20,774 sing 23,264
PR Activities 900 ivities 1,000
Promotional 500 ional 500
Miscellaneous 3,966 aneous 1,785
Total 38,795 39,479
Totallncome 38,795 e 39,479
3/27/2017 at 11:43 AM An SMG Managed Facility 3
FIVE FLAGS CENTER FY 2018 BUDGET
Expenses I Operations - Events
FY 2017 Budgeted FY 2018 Budgeted
Operations: Operations:
Meetings/Conventions 3,600 Meetings/Conventions 2,500
Training 1,000 Training 1,000
Supplies 4,949 Supplies 5,680
Repairs/ Maintenance 7,400 Repairs/ Maintenance 9,580
HVAC 3,896 HVAC 4,016
Safety Equipment 500 Safety Equipment 600
Janitorial 5,900 Janitorial 6,420
Miscellaneous 5,692 Miscellaneous 8,627
Event Allocated Expenses (2,952) Event Allocated Expenses (3,646)
Total 29,985 Total 34,777
Total Income 29,985 Totallncome 34,777
FY 2017 Budgeted FY 2018 Budgeted
F
Events:
ent Maintenance 500 Equipment Maintenance 840
tions 3,000 Inspections 3,360
al 1,000 Electrical 1,650
s 2,760 Supplies 5,856
aneous 4,970 Miscellaneous 5,710
llocated Expenses (10,215) Event Allocated Expenses (12,061)
2,015 Total 5,355
e 2,015 Total Income 5,355
3/27/2017 at 11:43 AM An SMG Managed Facility 4
FIVE FLAGS CENTER FY 2018 BUDGET
Expenses IBox Office - Overhead
FY 2017 Budgeted FY 2018 Budgeted
Box Office: FBee:
Meetings/Conventions 1,200 gs/Conventions
Credit Card Terminal - ard Terminal -
Credit Card Fees 7,824 Card Fees 9,052
Training 1,068 g 300
Miscellaneous 823 aneous 660
Event Allocated Expenses (1,551) llocated Expenses (1,660)
Total 9,364 8,352
Totallncome 9,364 me 8,352
FY 2017 Budgeted FY 2018 Budgeted
Fhead: Fhead:
Removal 2,606 Removal 2,000
nance Agreements 9,346 nance Agreements 10,076
ce 46,380 ce 46,888
171,268 170,238
laneous 12,073 laneous 11,455
- 5,175
ement Fee 95,561 ement Fee 96,516
337,234 342,348
me 337,234 me 342,348
3/27/2017 at 11:43 AM An SMG Managed Facility 5
FIVE FLAGS CENTER FY 2018 BUDGET
Expenses (Food & Beverage - Personnel
FY 2017 Budgeted FY 2018 Budgeted
FdBeverage: FFoodBeeverage:
cted Services cted Services
es and Fees 2,332 es and Fees 2,332
ee Training 1,000 ee Training 2,000
/ Maintenance 1,250 / Maintenance 3,100
n Supplies 750 n Supplies 750
laneous 3,140 laneous 2,840
Allocated Expenses (1,223) Allocated Expenses (1,365)
7,249 9,657
me 7,249 me 9,657
FY 2017 Budgeted FY 2018 Budgeted
Personnel: Personnel:
Management Salaries 591,060 Management Salaries 616,188
Part-Time Wages 112,919 Part-Time Wages 132,131
Taxes/Benefits 227,630 Taxes/Benefits 240,016
Allocated Wages (131,127) Allocated Wages (153,398)
Total 800,482 Total 834,937
Total 800,482 Totallncome 834,937
3/27/2017 at 11:43 AM An SMG Managed Facility 6
Five Flags Center / SMG
BUDGET - NOTES
FYE 06/30/2018
Benchmark Calculation
The Benchmark is set according to section 4.2 (i) of the Management Agreement with the City of
Dubuque and is calculated using the CPI-U of May 31 during the prior fiscal year.
We estimated the CPI-All Urban Index to increase 2%, increasing the benchmark for FY18 from
$878,632 to $896,205.
Income
Building relationships with new promoters we are able to bring into the Five Flags Center concerts,
comedians, and various family events.
Other Operating Income includes partner sponsorships with American Trust&Savings Bank, Atlantic
Bottling Company, and other businesses.
Expenses
Salary increases are held at an average of 3% overall. Hourly wage increase is 1% overall.
Contracted services increase includes 2.5% City Administrator wage increase for the portion that
Five Flags pays.
Operations expense is higher with the increase in events and the ever present costs associated
with an aging building.
Supplies are up from FY2017 with increased prices for bulbs and ballasts for our promenade and
Bijou Room. Plumbing and paint increases with the wear and tear on the building.
Furniture, Fixtures and Equipment was added this year to replace the brush for the Skid Steer Loader,
a laptop computer, new com radios, and a grill for concessions.
3/27/2017 at 11:43 AM An SMG Managed Facility 7