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Five Flags Civic Center - Fiscal Year 2019 Detailed Budget Copyrighted April 16, 2018 City of Dubuque Consent Items # 13. ITEM TITLE: Five Flags Civic Center- Fiscal Year2019 Detailed Operating Budget Submitted by SMG SUMMARY: City Manager recommending approval of the detailed Fiscal Year 2019 Budget for the Five Flags Civic Center submitted by SMG. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve ATTACHMENTS: Description Type Five Flags Civic Center FY19 Detailed Budget-NNM City Manager Memo Memo FY 19 Five Flags Civic Center Budget Staff inemo Staff Memo FY 19 Five Flags Civic Center Budget submitted by Supporting Documentation SMG THE CITY OF Dubuque � AIFA�erlwGh UB E '�� III► Masterpiece on the Mississippi Z°°'�w'2 7A13 2017 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Fiscal Year 2019 Detailed Budget for the Five Flags Civic Center DATE: April 2, 2018 Leisure Services Manager Marie Ware recommends City Council approval of the detailed Fiscal Year 2019 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 Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Marie L. Ware, Leisure Services Manager HR Cook, SMG Regional Manager THE CTTY OF Dubuque �" ui���eNe�ary DUB E '�I}I��' Masterpiece on the Mississippi �°' Z°'Z 2013 2017 TO: Michael C. Van Milligen, City Manager FROM: Marie L. Ware, Leisure Services Manager SUBJECT: Fiscal Year 2019 Detailed Budget for the Five Flags Civic Center DATE: March 31, 2018 INTRODUCTION The purpose of this memorandum is to request City Council to receive and file the detailed Fiscal Year 2019 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 $874,313. This is a decrease of $21,013 over the previous year's benchmark of $895,326. This budget also reflects a projected 2% CPI-U increase for FY 19. The budget projects a $39,104 increase in revenue and a $42,547 increase in operating expense. SMG Regional Manager HR Cook has written a memorandum to introduce the budget and shares further details. The work SMG has done this last year and this budget proposal is a result of their dedicated work on bookings, marketing, sponsorships and more. 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 respecffully request the City Council receive and file the detailed FY 2019 Budget for the Five Flags Civic Center submitted by SMG. attachment: Five Flags Center FY 19 Budget cc: HR Cook, SMG Regional Manager Don Howes, Director of Finance Jean Nachtman, Finance Director �lf FIVE FLAGS C E N T E R Five Flags Center Dubuque, lowa BUDGET FISCAL YEAR 2019 . � . i � � � � ii � . . 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 General Manager Five Flags Center CC: Lon Rosenberg SMG Regional�ce President Date: 3/30/2018 Re: Fiscal Year 2018-2019 Budget Ladies and Gentlemen: Attached is the proposed FY 2019 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 FY19, using the percent increase the City of Dubuque projected for FY19. Management this fiscal year, has designed the FY19 budget to reflect a Net Operating Loss of($874,313), a decrease of($21,013) over the previous year's benchmark of($895,326). The FY19 budget reflects an increase in revenue ($27,196), over FY18 forecasted revenue, utilizing an aggressive approach to booking concerts, comedians, national touring acts, self-promoted events, and working with returning events to maximize income. Also, we will aggressively pursue local sponsorships and upgrade our concession offerings and pricing. The increase in expenses ($38,098), over FY18 forecasted expenses, reflects a reduction in insurance costs, general& administrative costs, repairs and maintenance, and an increase in benefits and wages for the complete year of the full-time Food and Beverage Manager (FY18 budgeted for a part-time F&B Manager). Five Flags will be entering the fifteenth 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, 60% of total programming was comprised by two categories— "Performing Arts" and"Other" (Film festivals, dog park, weddings, etc.). Forging new relationships with promoters, we are looking forward to increased concerts and family-oriented events. Five Flags Center/ SMG BUDGET - INDEX FYE 06/30/2019 Description Page PROFIT AND LOSS STATEMENT 1 INCOME STATEMENT 2 ADNIINISTRATIVE/FINANCE/MARKETING EXPENSE 3 OPERATIONS/EVENTS/BOX OFFICE EXPENSE 4 OVERHEAD/FOOD&BEVERAGE/PERSONNEL EXPENSE 5 FIVE FLAGS CENTER FY 2019 BUDGET Net Income and Expenses FY 2018 Budgeted FY 2019 eUd9eted WCOME: WCOME: Total Direct Income 195,590 Total Direct Income 194,811 Total Ancillary Income 135,858 Total Ancillary Income 172,767 Other Event Income 90,566 Other Event Income 152,000 OtherOperating Income 18,500 OtherOperating Income 47,500 Total 440,514 Total 567,078 EXPENSES: EXPENSES: Executive 37,034 Executive 38,624 Finance 23,388 Finance 18,691 Marketing 39,479 Marketing 33,865 Operations 34,777 Operations 38,208 Events 5,355 Events 15,927 Box Office 8,352 Box Office 12,680 Overhead 342,348 Overhead 369,966 Food & Beverage 9,657 Food & Beverage 7,718 Personnel 834,937 Personnel 906,074 Total 1,335,327 Total 1,441,753 Profit(Loss) * (894,813) Profit(Loss) (874,675) Benchmark ** (895,326) Benchmark (Est.2.% CPI) (913,233) STATISTICAL: STATISTICAL: Attendance 86,720 Attendance 92,782 Number of Performances 211 Number of Performances 229 Number of Event Days 269 Number of Event Days 283 * The FY 2018 budget was estimated with a 2% increase in the CPI-U to total ($913,233). ** The actual CPI-U increase in May 2017 was 1.9% to total ($895,326). FIVE FLAGS CENTER FY 2019 BUDGET Income FY 2018 Budgeted FY 2019 Budgeted Event: Event: Rentallncome 164,567 Rentallncome 187,868 Service Income 343,546 Service Income 492,768 Service Expense (312,523) Service Expense (485,825) Total 195,590 Total 194,811 Ancillary: Ancillary: F&B Concessions 120,157 F&B Concessions 153,144 F&B Catering 10,659 F&B Catering 9,699 Novelty 5,042 Novelty 9,924 Total 135,858 Total 172,767 Other Event: Other Event: Other Event Related - Other Event Related 24,000 Ticket Rebates 35,809 Ticket Rebates 50,894 Facility Fee 54,757 Facility Fee 77,106 Total 90,566 Total 152,000 Operating: Operating: Operating Income 18,500 Operating Income 47,500 Total 18,500 Total 47,500 Totallncome 440,514 Totallncome 567,078 FIVE FLAGS CENTER FY 2019 BUDGET Expenses I Adminsitration - Finance - Marketing FY 2018 Budgeted FY 2019 Budgeted Executive: Executive: Contracted Services 21,917 Contracted Services 23,664 Corporate Travel - Corporate Travel 1,000 Meetings/Conventions 5,000 Meetings/Conventions 5,400 Telephone 1,200 Telephone 900 Relocation 6,000 Relocation 6,000 Miscellaneous 2,917 Miscellaneous 1,660 Total 37,034 Total 38,624 FY 2018 Budgeted FY 2019 Budgeted Finance: Finance: Contracted Services 2,566 Contracted Services 3,600 Meetings/Conventions 1,200 Meetings/Conventions 1,200 Payroll Processing 14,562 Payroll Processing 8,471 Miscellaneous 5,060 Miscellaneous 5,420 Total 23,388 Total 18,691 FY 2018 Budgeted FY 2019 Budgeted Marketing: Marketing: Contracted Services 10,930 Contracted Services 10,930 Meetings/Conventions 2,000 Meetings/Conventions 1,850 Advertising 23,264 Advertising 17,300 PR Activities 1,000 PR Activities 1,000 Promotional 500 Promotional 500 Miscellaneous 1,785 Miscellaneous 2,285 Total 39,479 Total 33,865 FIVE FLAGS CENTER FY 2019 BUDGET Expenses I Operations - Events FY 2018 Budgeted FY 2019 Budgeted Operations: Operations: Meetings/Conventions 2,500 Meetings/Conventions 3,500 Training 1,000 Training 500 Supplies 5,680 Supplies 8,540 Repairs/ Maintenance 9,580 Repairs/ Maintenance 11,653 HVAC 4,016 HVAC 4,200 Safety Equipment 600 Safety Equipment 840 Janitorial 6,420 Janitorial 7,070 Miscellaneous 8,627 Miscellaneous 6,930 Event Allocated Expenses (3,646) Event Allocated Expenses (5,025) Total 34,777 Total 38,208 FY 2018 Budgeted FY 2019 Budgeted Events: Events: Travel/ Meetings/Conventions Travel/ Meetings/Conventions 1,000 Equipment Maintenance 840 Equipment Maintenance 1,500 I nspections 3,360 I nspections 3,360 Electrical 1,650 Electrical 600 Supplies 5,856 Supplies 5,356 Miscellaneous 5,710 Miscellaneous 8,280 Event Allocated Expenses (12,061) Event Allocated Expenses (4,169) Total 5,355 Total 15,927 FY 2018 Budgeted FY 2019 Budgeted Box Office: Box Office: Credit Card Fees 9,052 Credit Card Fees 13,000 Training 300 Training 150 Miscellaneous 660 Miscellaneous 410 Event Allocated Expenses (1,660) Event Allocated Expenses (880) Total 8,352 Total 12,680 FIVE FLAGS CENTER FY 2019 BUDGET Expenses IOverhead - F&B - Personnel FY 2018 Budgeted FY 2019 Budgeted Overhead: Overhead: Trash Removal 2,000 Trash Removal 2,500 Maintenance Agreements 10,076 Maintenance Agreements 10,784 Insurance 46,888 Insurance 49,238 Utilities 170,238 Utilities 178,473 Miscellaneous 11,455 Miscellaneous 21,400 FFE 5,175 FFE 9,125 Management Fee 96,516 Management Fee 98,446 Total 342,348 Total 369,966 FY 2018 Budgeted FY 2019 Budgeted Food & Beverage: Food & Beverage: Contracted Services - Contracted Services Licenses and Fees 2,332 Licenses and Fees 2,332 Employee Training 2,000 Employee Training 750 Repair/ Maintenance 3,100 Repair/ Maintenance 1,300 Kitchen Supplies 750 Kitchen Supplies 1,000 Miscellaneous 2,840 Miscellaneous 5,291 Event Allocated Expenses (1,365) Event Allocated Expenses (2,955) Total 9,657 Total 7,718 FY 2018 Budgeted FY 2019 Budgeted Personnel: Personnel: Management Salaries 616,188 Management Salaries 655,351 Part-Time Wages 132,131 Part-Time Wages 204,533 Taxes/Benefits 240,016 Taxes/ Benefits 264,584 Allocated Wages (153,398) Allocated Wages (218,394) Total 834,937 Total 906,074