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