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40 CITY OF SOUTH BEND I OFFICE OF THE CLERK <br /> Councilmember McBride followed up, With both of them being at a net loss, what is the benefit? <br /> What would be the economic gain? <br /> Mr.Jarnecke replied,The economic gain is largely an accounting measure as it relates to the Palais <br /> side. So,while it's a reduction of expense on that,we were better able to absorb that because of the <br /> increase in revenues and the other efficiencies on the Morris side of it. There is also a position at <br /> 0 <br /> the Morris that is now being shared with the Century Center, as well. Fifty percent (50%) of that <br /> position is being funded by the Morris and fifty percent (50%) of that position is being funded by <br /> the Century Center. Part of the original concept about Venues, Parks & Arts was to realize some <br /> efficiencies. But in the Venues Division we're now able to do that by sharing personnel across <br /> divisions and across buildings. <br /> Councilmember McBride stated, Okay. Thank you. Last year, 2019, what was the net loss or <br /> profit? Or is it this year? Do you have those? <br /> Mr. Jarnecke replied, Last year we ended up,while there's a bit of an accounting issue,in the black <br /> around$177,000. We've budgeted more around$180,000 in terms of the anticipated net operating <br /> loss but from running one-hundred two(102)events through the Morris and last year we were able <br /> to result in$177,000 in the black. <br /> Councilmember McBride stated,Thank you. Lastly, are there any jobs in 2019 completed that are <br /> anticipated to be rolled over or carried over into 2020? <br /> Mr. Jarnecke asked, In terms of construction projects? <br /> Councilmember McBride asked,And does that money stay there or does it go into other line items? <br /> Mr. Jarnecke replied, We do have funds available. We were able to complete those that were <br /> anticipated in 2019 or we will later this year. That includes the precast concrete work that's <br /> underway right now. Sealing some of the joints in the west part of the building where we're seeing <br /> some leaks. That's around a$14,000 expense. And then we're preparing with the City Engineering <br /> Department to go to bid for handrails in the first(1st), second (2°d), and third(3'd)balconies of the <br /> upper area of the theater. We're waiting for those bids to come back. We anticipate that being done <br /> by the end of the year. If we're not able to afford all those projects through our Capital Fund,which <br /> is a non-reverting fund, then we would add that to the 2020 projects as well. <br /> Councilmember McBride stated, Okay. Thank you. <br /> Committee Chair White asked,Are there any other questions? I just have a couple.You mentioned <br /> that part of your strategy moving into 2020 would be to increase revenues, decrease expenses and <br /> have less reliance on the General Fund. You have projected increasing the rental part of the Morris <br /> and also more events. Do you have a plan that you could begin to gauge, say as we look at 2020, <br /> every quarter if you're not meeting those thresholds, how would you respond so that at the end of <br /> the fiscal year you would not necessarily be looking at deficits in these areas? What happens if <br /> you don't meet those thresholds? <br /> Mr. Jarneke replied, The challenge for us as it relates to revenue is the variability of our business. <br /> Since the vast majority of our events are rental events we can't make someone rent the building if <br /> EXCELLENCE ACCOUNTABILITY i INNOVATION INCLUSION EMPOWERMENT <br /> 455 County-City Building 227W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD 574.235.5567 www.southbendin.gov <br /> 5 <br />