Five Flags Civic Center - Fiscal Year 2017 Detailed Operating Budget Copyright 2014
City of Dubuque Consent Items # 11.
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
FY17 Fig Flags Operating Budget-MVM Memo City Manager Memo
Five Flags Operating Budget Memo Staff Memo
Five Flags FY17 Operating Budget Supporting Documentation
THE CITY OF Dubuque
UBE I
erica .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 2017 Detailed Operating Budget for the Five Flags Civic
Center
DATE: March 31, 2016
Leisure Services Manager Marie Ware recommends City Council approval of the
detailed Fiscal Year 2017 Operating Budget for the Five Flags Civic Center submitted
by SMG.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Micliael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Marie L. Ware, Leisure Services Manager
THE CITY ODubuque II-A
U Bi
E
;111 I.mericaCi i
Masterpiece on the Mississippi 2007-2012-2013
TO: Michael C. Van Milligen, City Manager
FROM: Marie L. Ware, Leisure Services Manager
SUBJECT: Fiscal Year 2017 Detailed Operating Budget for the Five Flags Civic
Center
DATE: April 1, 2016
INTRODUCTION
The purpose of this memorandum is to request City Council to receive and file the
detailed Fiscal Year 2017 Operating 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 28% increase in
revenue and a 7.7% increase in operating expense. SMG Regional Manager HR Cook
has written a memorandum to introduce the budget.
Director of Finance Don Howes 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 2017 operating budget for
the Five Flags Civic Center submitted by SMG.
MLW:et
attachment: SMG Memo and FY 17 Budget
cc: Don Howes, Director of Finance
Jean Nachtman, Finance Director
1
FIVE FLAGS
CEN°TER
Five Flags Center
Dubuque, Iowa
BUDGET
F 1 SCAL YEAR 2017
Managed By:
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: 3/30/2016
Re: Fiscal Year 2016-2017 Budget
Ladies and Gentlemen:
Attached is the proposed FY 2017 operating budget for Five Flags Center. Contractually,the annual
increase in Five Flags operating budget is tied to the CPW for May of the preceding fiscal year. At
the present time we are projecting a two percent (2%) increase in the CPW for FY17, using the
percent increase the City of Dubuque projected for FY17. Accordingly, management has designed
the FY17 budget to reflect a Net Operating Loss of($886,874), an increase of($16,941) over the
previous year's benchmark of($869,933).
The FY17 budget reflects an increase in revenue ($81,225) 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 ($90,058) is a combination of insurance costs,
general & administrative costs, repairs and maintenance, benefits, and the addition of a full-time
Assistant Technical Production Manager.
Five Flags will be entering the thirteenth year of operation under the management of SMG and is
continuing to redefine and create new business. With local and regional events comprising 95%of
usage, last fiscal year, 70% of total programming was comprised by three categories—"Performing
Arts", "Entertainment', and "Meetings/Conventions".Accordingly, the FY 2017 operating budget
projects a 28% increase in revenue and a 7.7% increase in operating expenses.
Five Flags Center / SMG
BUDGET - INDEX
FYE 06/30/2017
Description Page
LEAD INCOME STATEMENT 1
PROFIT AND LOSS STATEMENT 2
INCOME STATEMENT 3
ADMINISTRATIVE/FINANCE/MARKETING EXPENSE 4
OPERATIONS/EVENTS EXPENSE 5
BOX OFFICE/OVERHEAD EXPENSE 6
FOOD AND BEVERAGE/PERSONNEL EXPENSE 7
Five Flags Center
July 1,2016-June 30,2017
Lead Income Statement
FY 2016
FY 12taludget FY2015
Variance Actual/Forecast Variance
AMMEM
Event Income
Direct Event Income
Rental Income 143,057 113,671 29,386 146,792 (3,735)
Service Income 306,192 147,247 158,945 227,362 78,830
Service Expenses (260,336) (150,486) (109,850) (224,913) (35,423)
Total Direct Event Income 188,913 110,432 78,481 149,241 39,672
Ancillary Income
F&B Concessions 100,284 56,940 43,344 83,989 16,295
F&B Catering 10,251 6,980 3,271 5,417 4,834
Novelty Sales 2,420 4,585 (2,165) 4,462 (2,042)
Other Ancillary - 750 (750) (340) 340
Total Ancillary Income 112,955 69,255 43,700 93,528 19,427
Other Event Income
Other Event Related Income - 0 0 0 0
Ticket Rebates(Per Event) 26,071 20,787 5,284 17,803 8,268
Facility Fees 46,058 34,291 11,767 36,297 9,761
Total Other Event Income 72,129 55,078 17,051 54,100 18,029
Total Event Income 373,998 234,765 139,233 296,869 77,129
Other Operating Income 3,165 1,982 1,183 2,151 1,014
Adjusted Gross Income 377,163 236,747 140,416 299,020 78,143
Operating Expenses
Employee Salaries and Wages 703,979 573,963 130,016 648,844 55,135
Benefits 227,630 154,921 72,709 180,591 47,039
Less: Event Labor Allocations (131,127) (82,878) (48,249) (107,315) (23,812)
Net Employee Wages and Benefits 800,482 646,006 154,476 722,120 78,362
Contracted Services 34,686 29,467 5,219 31,670 3,016
General and Administrative 70,419 59,604 10,815 61,574 8,845
Operations 13,954 10,476 3,478 10,910 3,044
Repair&Maintenance 24,376 18,362 6,014 28,916 (4,540)
Supplies 18,280 13,942 4,338 17,211 1,069
Insurance 46,380 42,248 4,132 42,007 4,373
Utilities 175,708 186,702 (10,994) 182,165 (6,457)
Other - 897 (897) 0 0
SMG Management Fees 95,561 93,687 1,874 93,687 1,874
Less: Expenses Allocated (15,810) (12,584) (3,226) (13,793) (2,017)
Total Operating Expenses 1,264,036 1,088,807 175,229 1,176,467 87,569
Net Income(Loss)From Operations (886,874) (852,060) (34,814) (877,447) (9,427)
Other Income(Expenses) - 0 0 0 0
Net Income After Other Income(Expenses) (886,874) (852,060) (34,814) (877,447) (9,427)
Estimated FY 2017 Benchmark (887,332)
Estimate 2%CPI-All Urban
An SMG managed Facility 1
FIVE FLAGS CENTER FY 2017 BUDGET
Net Income and Expenses
FY 2016 Budgeted FY 2017 Budgeted
INCOME: INCOME:
Total Direct Income 141,395 Total Direct Income 188,913
Total Ancillary Income 93,273 Total Ancillary Income 112,955
Other Event Income 59,155 Other Event Income 72,129
Other Operating Income 2,115 Other Operating Income 3,165
Total 295,938 Total 377,163
EXPENSES: EXPENSES:
Executive 26,505 Executive 27,018
Finance 9,360 Finance 11,895
Marketing 34,432 Marketing 38,795
Operations 22,894 Operations 29,985
Events 4,544 Events 2,015
Box Office 7,357 Box Office 9,364
Overhead 339,816 Overhead 337,234
Food & Beverage 7,322 Food & Beverage 7,249
Personnel 721,748 Personnel 800,482
Total 1,173,978 Total 1,264,037
Profit(Loss) * (878,040) Profit(Loss) (886,874)
Benchmark ** (869,933) Benchmark (Est.2.% CPI) (887,332)
STATISTICAL: STATISTICAL:
Attendance 62,760 Attendance 84,711
Number of Performances 160 Number of Performances 187
Number of Event Days 189 Number of Event Days 254
* The FY 2016 budget was estimated with a 1% increase in the CPI-IJ to total ($873,413).
** The actual CPI-IJ increase in May 2015 was 0%to total ($869,933).
An SMG Managed Facility 2
FIVE FLAGS CENTER FY 2017 BUDGET
Income
FY 2016 Budgeted FY 2017 Budgeted
Event: Event:
Rental Income 127,430 Rental Income 143,057
Service Income 222,114 Service Income 306,192
Service Expense (208,149) Service Expense (260,336)
Total 141,395 Total 188,913
Ancillary: Ancillary:
F&B Concessions 79,602 F&B Concessions 100,284
F&B Catering 9,904 F&B Catering 10,251
Novelty 3,767 Novelty 2,420
Total 93,273 Total 112,955
Other Event: Other Event:
Other Event Related - Other Event Related
Ticket Rebates 17,083 Ticket Rebates 26,071
Facility Fee 42,072 Facility Fee 46,058
Total 59,155 Total 72,129
Operating: Operating:
Operating Income 2,115 Operating Income 3,165
Total 2,115 Total 3,165
Total Income 295,938 Total Income 377,163
An SMG Managed Facility 3
FIVE FLAGS CENTER FY 2017 BUDGET
Expenses I Adminsitration - Marketing
FY 2016 Budgeted FY 2017 Budgeted
Executive: Executive:
Contracted Services 20,000 Contracted Services 21,621
Corporate Travel 2,000 Corporate Travel -
Meetings/Conventions 2,232 Meetings/Conventions 2,500
Telephone 600 Telephone 1,200
Miscellaneous 1,673 Miscellaneous 1,697
Total 26,505 Total 27,018
FY 2016 Budgeted FY 2017 Budgeted
Finance: Finance:
Contracted Services 1,300 Contracted Services 1,785
Meetings/Conventions 1,200 Meetings/Conventions 1,200
Payroll Processing 3,700 Payroll Processing 4,860
Miscellaneous 3,160 Miscellaneous 4,050
Total 9,360 Total 11,895
FY 2016 Budgeted FY 2017 Budgeted
Marketing: Fken :
Contracted Services 10,930 cted Services 10,930
Meetings/Conventions 1,490 gs/Conventions 1,725
Advertising 17,546 ising 20,774
Market Research - Research -
PR Activities 900 ivities 900
Promotional 600 tional 500
Miscellaneous 2,966 laneous 3,966
Total 34,432 38,795
Totallncome 34,432 me 38,795
An SMG Managed Facility 4
FIVE FLAGS CENTER FY 2017 BUDGET
Expenses I Operations - Events
FY 2016 Budgeted FY 2017 Budgeted
Operations: Operations:
Meetings/Conventions 3,000 Meetings/Conventions 3,600
Training 500 Training 1,000
Supplies 4,624 Supplies 4,949
Repairs/ Maintenance 3,831 Repairs/ Maintenance 7,400
HVAC 3,500 HVAC 3,896
Safety Equipment 300 Safety Equipment 500
Janitorial 5,700 Janitorial 5,900
Miscellaneous 3,680 Miscellaneous 5,692
Event Allocated Expenses (2,241) Event Allocated Expenses (2,952)
Total 22,894 Total 29,985
Total Income 22,894 Totallncome 29,985
FY 2016 Budgeted FY 2017 Budgeted
F
Events:
ent Maintenance 500 Equipment Maintenance 500
tions 2,660 Inspections 3,000
al 850 Electrical 1,000
s 3,400 Supplies 2,760
aneous 3,470 Miscellaneous 4,970
llocated Expenses (6,336) Event Allocated Expenses (10,215)
4,544 Total 2,015
e 4,544 Total Income 2,015
An SMG Managed Facility 5
FIVE FLAGS CENTER FY 2017 BUDGET
Expenses IBox Office - Overhead
FY 2016 Budgeted FY 2017 Budgeted
Box Office: FBee:
Meetings/Conventions 1,000 gs/Conventions 1,200
Credit Card Terminal - ard Terminal -
Credit Card Fees 6,700 Card Fees 7,824
Training 140 g 1,068
Miscellaneous 973 aneous 823
Event Allocated Expenses (1,456) llocated Expenses (1,551)
Total 7,357 9,364
Totallncome 7,357 me 9,364
FY 2016 Budgeted FY 2017 Budgeted
Fhead: Fhead:
Removal 1,500 Removal 2,606
nance Agreements 9,346 nance Agreements 9,346
ce 43,201 ce 46,380
179,915 171,268
laneous 11,230 laneous 12,073
- -
ement Fee 94,624 ement Fee 95,561
339,816 337,234
me 339,816 me 337,234
An SMG Managed Facility 6
FIVE FLAGS CENTER FY 2017 BUDGET
Expenses (Food & Beverage - Personnel
FY 2016 Budgeted FY 2017 Budgeted
FdBeverage: FFoodBeeverage:
cted Services cted Services
es and Fees 2,332 es and Fees 2,332
ee Training 750 ee Training 1,000
/ Maintenance 1,100 / Maintenance 1,250
n Supplies 900 n Supplies 750
laneous 3,906 laneous 3,140
Allocated Expenses (1,666) Allocated Expenses (1,223)
7,322 7,249
me 7,322 me 7,249
FY 2016 Budgeted FY 2017 Budgeted
Personnel: Personnel:
Management Salaries 544,778 Management Salaries 591,060
Part-Time Wages 108,296 Part-Time Wages 112,919
Taxes/Benefits 182,080 Taxes/Benefits 227,630
Allocated Wages (113,406) Allocated Wages (131,127)
Total 721,748 Total 800,482
Total 721,748 Totallncome 800,482
An SMG Managed Facility 7