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Home My WebLink AboutM-98-0170TO: The Honorable Mayor and Members of the City of Miami Coun i As i on FROM: Clark Cook Executive Director Miami Parking Systera 35 DATE: February 3, 1998 SUBJECT: Agenda Item for Commission Meeting on February 10th Please reseve a space on the February 10, 1998 City Commission agenda for the following item. Report on the funding ata►tus for ousman 1097/1998 year If you have any questions, please call me at 373-6789, ext. 226. CC:gtc cc: Jose Garcia -Pedrosa TO: Honorable Mayor and Members of the City of Miami Commission FROM: Clark Cook Executive Director Miami Parking System DATE: February 9, 1998 SUBJECT: GUSHAN This information is provided in order to reflect the existing funding situation at Gusman during the 1996/1997 and 1997/1998 years. The information also reflects what we have done to seek funding from not only the City but other agencies of the City. During budget approval time for the 1996/1997 year, the City of Miami approved an expenditure of $67,000 for Gusman. The management team responsible for Gusman assumed that the money was available based on Commission action. When we requested those funds from the City manager, we were advised that although the Commission approved those funds, they were not actually placed into the budget. Our total deficit for the 1996/1997 year was $151,372. It should be understood that Miami Parking System cannot utilize its funding to pay this debt due to our bonding requirements. We have spoken to our Board about this shortfall and will negotiate with the City to see what we can do concerning this matter at a later date. However, this is not the issue at hand today, and our management team presented the City with a budget for the 1997/1998 year which included a $190,000 deficit. The increase in the deficit is caused by several items. First, there is a reduction in revenues due to a decrease in the number of perfor3nances booked at the theater and secondly, an increase in competition from other cultural venues. In September, 1997 at a Commission meeting, we were advised that no funds would be available for Gusman. Since that time, we have been attempting to find some other resources to fund this facility and have also made as many cuts as humanly possible. With the resignation of the managing director of Gusman whom we have not replaced due to our present situation, the request for funds may not be as great. Attached is Exhibit A which reflects the accumulated deficit which will occur at Gusman through June, 1998, and we have taken into consideration some reductions. I truly believe that it is absolutely necessary that a minimum of $150,000 be allocated for this year's expenditures for Gusman. Listed below are various areas which we have sought for additional funds. 1) DDA - We are scheduled to appear in front of the executive committee on Friday, February 13th, to request funding. Based on preliminary conversations, we don't believe that funding will be available this year, but they may able to provide funds during the 1998/1999 year. 2) Miami Police Department - Chief Warshaw and I have discussed the possibility of the Police Department funding a special show on crime prevention for the inner-city kids. This show could possibly provide us with a $20,000 - $30,000 benefit. 3) Sports and Exhibition Authority - Mr. Calleja, Executive Director, and I have discussed the possibility of support from this agency. He advised that he would meet with his organization on Monday of next week to discuss some type of support. 4) Friends of Gusman - Their ability to raise funds is limited due to Gusman's relationship with the public sector. However, it should be noted at this time that we have found no one willing to provide the $150,000 funding. There is another expenditure which we did not budget and had not anticipated which may occur at Gusman this year. That expenditure is in the amount of $30,000-$40,000 and is being reviewed by the City of Miami Public Works Department as well as other departments. The possibility of this expense having to be borne before October 1, 1998 is very strong. In order to comprehend the total picture of Gusman, I believe it is important that we understand two very important issues. First, the Performing Arts Center Trust, Inc. has allocated $3.8 million to Gusman for capital improvements once the bonds to build the Performing Arts Center are sold. It is estimated that these bonds will be sold during the 1998/1999 year, and these funds should be used for capital improvements. However, we believe based on conversations with the Performing Arts Center Trust, Inc. that some of these funds could be put into an escrow account to be used for funding operating expenses. This funding, obviously, would be available in the future but does not exist today. Secondly, two grants received from the State of Florida for approximately $1 million were used to place new air conditioning equipment in the Gusman facility. The matching fund for these two grants is the $3.8 million that we are receiving from the County. 08- 170 The City manager has requested that we develop a report which reflects how the $3.8 million was used and give some ideas of what we think the funding requirement will be for Gusman in the future. We are in the process of doing this and with the help of some people from the Performing Arts Center Trust, Inc., we should be able to complete the report in the very near future. However, none of this eliminates the fact that during the existing year we are looking at a $150,000 deficit and no funding has been identified. CC:gtc cc: Jose Garcia -Pedrosa Walter Foeman DOSP Board of Directors R- 170 G 6 0 ENTERPRISES -Theater Deficit Analysis ACTUAL/ANNUAL BUDGET-FY 97/98 - FISCAL YEAR 1997-1998. OPERATINGREVENUES - Olympia Building -Rental Gusman Center -Theater income Gusman Theater- Concessions Season - Grants Season- Contributions TOTAL OPERATING REVENUES OPERATING EXPENSES ------------------ bor Costs .intenance Costs Security Telephone Light i Power Water Insurance Audpit FeesRental• Consultants Advertising i Promotions Other Expenses Productions Costs -Shows TOTAL OPERATING EXPENSES OPERATING INCOME (DEFICIT) CUMULATIVE OPERATING INCVAZ(DEFICIT) EXHIBIT A i� 1ST QUARTER JANUARY FE19RUU89 ARY MARCH APRIL N A Y JUNE TOTAL i ACTUAL 1998 1998 1998 1998(y) ---------------------------------------------------- -------------- 31,250 93,750 83,378 3,5000 10,670 1,0000 36,000 5,000 20,000 3,0000 14,000 2,0000 20,000 3,000 10,000 125,000 194,048 1,000 0 0 0- 0 1,000 10,000 • 18,500 11,000 - - _ _ 0 -------- 0 0 0 ,000 119 128 ----�---- -105-420 -- 41,000 --------- 23,000 --------- --------- 16,000 --------- --------- 23,000 --------- -------- 21,000 --------- ---_-____ 348,548 --------- 66,632 12,913 0 974 17,649 11,650 21,058 1,493 3,490 5,000 584 7,161 23,602 6,248 166 833 5,416 4,333 6,166 583 1,340 1,666 2,750 315 0 21,352 6,249 167 833 5,417 4,333 6,167 583 1,330 1,667 2,750 317 0 19,102 6,249 167 833 5,417 4,333 6,167 583 1,330 1,667 2,750 317 0 --48,915- -(25,915) (13,556) s xaa=sss= Facts and Assumptions: First Quarter results are actual. Revenue for last 6 months based on actual and expected shows. `ssumption made that Olympia rental income is collected for the whole year. .abor costs reduced by P. Thempeon's salary and benefits. Other expenses reduced net of $2,000 per month, based on lot quarter results. No allowances have been included for closing costs or post closing continuing File:abudgo98 20-Jan-98 10:52:42 148,606 (29,478) (29,478) sa=sa�ssa 53,418 --52,002 22,524 axas=as=a --51,165- -(10,165) 12,359 sssa=ssss 19,102 6:249 19,102 6:249 19,102 6,253 187,994 50,410 167 833 167 833 167 834 1,001 5,973 4,333 417 ,333 4417 ,334 37,649 6,167 583 6,167 6,167 58,059 1,330 1,667 1,330 1,667 1,330 1,667 11,480 15,001 2,750 317 2,750 317 2,750 318 17,084 9,062 -------0- 0 --------- 10,000 20,002 _-48,915- 48,915 --------- 58,923 -------- 458,857 -(32,915) -- -(25,915) - -(37,923) (110,309) (46,471) (72,386) ----- (120,309) -------- =amass=== =sass==a= sass===== costs.