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Fiscal Year 2022 Detailed Budget for the Five Flags Civic CenterCity of Dubuque City Council Meeting Consent Items # 5. Copyrighted November 15, 2021 ITEM TITLE: Fiscal Year2022 Detailed Budget for the Five Flags Civic Center SUMMARY: City Manager transmitting the Fiscal Year 2022 Budget for the Five Flags Civic Center. SUGGESTED Suggested Disposition: Receive and File DISPOSITION: ATTACHMENTS: Description Type Five Flags Civic Center FY2022 Detailed Budget-MVM City Manager Memo Memo Staff memo Staff Memo Five Flags Civic Center FY 22 ASM Proposed Budget Supporting Documentation THE C Dubuque DUjIBQTE WAWca 914 Masterpiece on the Mississippi � pp aoo�•o 13 Z017*20*2Q19 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Fiscal Year 2022 Detailed Budget for the Five Flags Civic Center DATE: October 25, 2021 Leisure Services Manager Marie Ware is transmitting the Fiscal Year 2022 Budget for the Five Flags Civic Center. v Mic ael C. Van Milligen MCVM:jh Attachment CC' Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Marie L. Ware, Leisure Services Manager THE C DUUB-.'&--FE Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Marie L. Ware, Leisure Services Manager SUBJECT: Fiscal Year 2022 Detailed Budget for the Five Flags Civic Center DATE: October 25, 2021 INTRODUCTION Dubuque AI•AMINCI City 2007.2012 2013.2017 The purpose of this memorandum is to request City Council to receive and file the detailed Fiscal Year 2022 Budget for the Five Flags Civic Center. DISCUSSION The contract the City has with ASM Global 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. This requirement deadline date was missed by both ASM Global and myself. Attached is the detailed budget with the benchmark of $984,794. The CPI grew 5% for this fiscal year 2022. This budget reflects an increase in revenue of $78,923 and a $109,880 increase in operating expenses. ASM Global in their budget proposes to be under the benchmark. General Manager HR Cook has written a memorandum to introduce the budget and shares further details. The strong work ASM Global completed last year and this budget proposal is a result of their dedicated work on bookings, marketing, sponsorships and more. RECOMMENDATION I respectfully request the City Council receive and file the detailed FY 2022 Budget for the Five Flags Civic Center submitted by ASM Global. attachment: Five Flags Center FY 22 Budget cc: HR Cook, General Manager Jenny Larson, Director of Finance and Budget rt-�G&OBAL ff FIVE FLAGS C E N T E R Five Flags Center Dubuque, Iowa BUDGET FISCAL YEAR 2022 ff FIVE FLAGS C E N T E R Five Flags Center Dubuque, Iowa BUDGET FISCAL YEAR 2022 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: FIR Cook General Manager Five Flags Center CC: Tony Cima ASM Regional Vice President Date: 8/30/21 Re: Fiscal Year 2021-2022 Budget Ladies and Gentlemen: Attached is the proposed FY 2022 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 which indicates a 5% increase in the CPI-U for FY22. This raises the benchmark to $(984,794). Management this fiscal year, has designed the FY22 budget to reflect a Net Operating Loss of ($968,856). The FY22 budget reflects an increase in event income of $69,224 over FY21's budget 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 continue to pursue local sponsorships and upgrade our concession offerings and pricing. The increase in expenses of $109,880 over FY21 budgeted expenses is driven mostly by an increase in utilities, insurance, and benefits and wages. With COVID-19 numbers and protocols in various degrees of flux, ASM Global will maintain our sanitary measures that have become the industry standard. In addition, we will continue to monitor public confidence in public events and adjust our budget accordingly. We hope to not repeat 2020 but we all must be prepared to again adjust our daily business practices. This budget reflects a standard year with no business disruption. We are prepared to make adjustments and will convey those changes should they be deemed necessary. I feel confident in 2021 and look forward to what promises to be a very successful year of events at Five Flags Center. Five Flags Center / ASM BUDGET - INDEX FYE 06/30/2022 Description PROFIT AND LOSS STATEMENT INCOME STATEMENT ADMINISTRATIVE / FINANCE / MARKETING EXPENSE OPERATIONS / EVENTS / BOX OFFICE EXPENSE OVERHEAD EXPENSE / FOOD & BEVERAGE / PERSONNEL EXPENSE Page FIVE FLAGS CENTER FY 2022 BUDGET Net Income and Expenses FY 2021 Budgeted INCOME: Total Direct Income 208,976 Total Ancillary Income 178,231 Other Event Income 133,113 Other Operating Income 59,500 Total 579,821 EXPENSES Executive 33,500 Finance 23,458 Marketing 40,279 Operations 48,398 Events 16,072 Box Office 12,831 Overhead 411,927 Food & Beverage 11,638 Personnel 919,617 Total 1,517,720 Profit (Loss) * (937,899) Benchmark (902,899) STATISTICAL: Attendance 75,671 Number of Performances 176 Number of Event Days 178 FY 2022 Budgeted INCOME: Total Direct Income Total Ancillary Income Other Event Income Other Operating Income Total EXPENSES: Executive Finance Marketing Operations Events Box Office Overhead Food & Beverage Personnel Total (Loss) :hmark (Est.5%CPI) fISTICAL: itendance umber of Performances umber of Event Days * The FY 2022 budget was estimated with a 5% increase in the CPI-U to total ($968,856). 204,344 235,811 149,389 69,200 658,744 38,752 26,616 38,720 58,634 17,819 13,319 472,745 15,191 945,804 1,627,600 (968,856) (984,794) 89,534 185 180 An ASM Managed Facility 1 FIVE FLAGS CENTER FY 2022 BUDGET Income FY 2021 Budgeted Event: Rental Income Service Income Service Expense Total Ancillary: F&B Concessions F&B Catering Novelty Total Other Event: Other Event Related Ticket Rebates Facility Fee Total Operating: Operating Income Total Total Income 141,295 546,339 (478,667) 208,976 156,563 13,630 8,039 178,231 64,283 68,830 133,113 59,500 59,600 579,821 FY 2022 B Event: Rental Income Service Income Service Expense Total Ancillary: F&B Concessions F&B Catering Novelty Total Other Event: Other Event Related Ticket Rebates Facility Fee Total Operating: Operating Income Total Income 117,912 720,914 (634,482) 204,344 212,495 15,992 7,324 236,811 71,540 77,849 149,389 69,200 69,200 658,744 An ASM Managed Facility 2 FIVE FLAGS CENTER FY 2022 BUDGET Expenses I Adminsitration - Finance - Marketing FY 2021 B Executive: Contracted Services Corporate Travel Meetings / Conventions Telephone Relocation Miscellaneous Total geted FY 2022 Budgeted Executive: 24,000 Contracted Services 25,392 2,400 Corporate Travel 2,400 5,400 Meetings / Conventions 7,900 900 Telephone 900 - Relocation - 800 Miscellaneous 2,160 33,500 Total 38,752 FY 2021 Budgeted FY 2022 Budgeted Finance: Finance: Contracted Services 3,600 Contracted Services Meetings / Conventions 1,200 Meetings / Conventions Payroll Processing 13,700 Payroll Processing 1 Miscellaneous 4,958 Miscellaneous Total 23,458 Total FY 2021 Budgeted Marketing: Contracted Services Meetings / Conventions Advertising PR Activities Promotional Miscellaneous Total 13,417 1,950 13,975 6,577 1,000 3,360 40,279 3,965 1,200 16,100 5,351 26,616 FY 2022 Budgeted Marketing: Contracted Services Meetings / Conventions Advertising PR Activities Promotional Miscellaneous Total 10,975 1,950 15,015 6,990 1,000 2,790 38,720 An ASM Managed Facility 3 FIVE FLAGS CENTER FY 2022 BUDGET Expenses I Operations - Events FY 2021 Budgeted FY 2022 Budgeted Operations: Operations: Meetings / Conventions 3,230 Meetings / Conventions 3,230 Training 1,000 Training 1,000 Supplies 5,885 Supplies 6,385 Repairs / Maintenance 23,006 Repairs / Maintenance 28,106 HVAC 6,000 HVAC 1 9,500 Safety Equipment 1,100 Safety Equipment 1,100 Janitorial 7,800 Janitorial 7,800 Miscellaneous 4,790 Miscellaneous 6,080 Event Allocated Expenses (4,413) Event Allocated Expenses (4,567) Total 48,398 Total 58,634 FY 2021 Budgeted Events: Travel/ Meetings/Conventions - Equipment Maintenance 10,600 Inspections 3,375 Electrical 1,600 Supplies 5,931 Miscellaneous 12,455 Event Allocated Expenses (17,889) Total 16,072 FY 2021 Budgeted YID. �■ Box Office: Credit Card Fees 13,200 Training - Miscellaneous 360 Event Allocated Expenses (729) Total 12,831 FY 2022 Events: Travel/ Meetings/Conventions Equipment Maintenance Inspections Electrical Supplies Miscellaneous Event Allocated Expenses Total 10,600 3,375 1,600 5,931 14,437 (18,124) 17,819 FY 2022 Budgeted Box Office: Credit Card Fees Training Miscellaneous Event Allocated Expenses Total 13,200 360 (241) 13,319 An ASM Managed Facility 4 FIVE FLAGS CENTER FY 2022 BUDGET Expenses 10verhead - F&B - Personnel FY 2021 Budgeted Overhead: Trash Removal Maintenance Agreements Insurance Utilities Miscellaneous FFE Management Fee Total FY 2021 B Food & Beverage: Contracted Services Licenses and Fees Employee Training Repair / Maintenance Kitchen Supplies Miscellaneous Event Allocated Expenses Total FY 2021 Budgeted Personnel 3,000 11,100 50,766 225,202 20,953 100,906 411,927 380 2,500 1,090 1,500 1,400 8,010 (3,242) 11,638 Management Salaries 662,028 Part -Time Wages 205,106 Taxes / Benefits 272,864 Allocated Wages (220,381) Total 919,617 FY 2022 Budgeted Trash Removal Maintenance Agreements Insurance Utilities Miscellaneous FFE Management Fee Total FY 2022 B Food & Beverage: Contracted Services Licenses and Fees Employee Training Repair / Maintenance Kitchen Supplies Miscellaneous Event Allocated Expenses Total FY 2022 Personnel: Management Salaries Part -Time Wages Taxes / Benefits Allocated Wages Total 3,000 14,400 61,840 262,262 25,292 105,951 472,745 380 2,428 2,500 1,500 1,400 10,810 3,827 15,191 678,425 172,780 291,800 197,204 945,801 An ASM Managed Facility 5