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•CITY OF SOUTH BEND OFFICE OF THE CLERK they don't want to. So, we're continuing to question and strengthen those relationships with the promoters that we have in area. We lean heavily on our relationship with Broadway Theater League,which will have four(4)events over their calendar year, so four(4) during a true calendar year and fiscal year for us where we realize the majority of our revenue. Revenues always make us a bit anxious with those because of the lack of predictability that's associated with it. But as we look at the trends we feel reasonably confident that we would attract those numbers. Mr. Jarnecke continued, On the expense side though, there is a fair amount of variability that is associated with that if we don't have the events we can minimize expenses in part-time labor that comes in to clean the building, part-time box office labor. So, if we don't have the same number of events and we're not selling as many tickets,then we need less labor to do those.There is a way for us to control expenses associated with that are directly correlated to the events that we're bringing in. Committee Chair White stated, You said the first six (6) months you'll be in a position because I know a lot is relying on The Lion King. That probably will be a very positive experience for the City and for our citizens.At that point after that I would recommend that again, you probably have already given thought to this,just to look at where you're at financially and to where you need to move in the last six (6)months of 2020. Mr. Jarnecke replied, Without question. I believe the first (1St) quarter will be front loaded for us in a very,very meaningful way.Then typically our June,July,and August are some thinner months for us based on the additional competition that we see from county fairs, from outdoor venues,and other things that aren't in existence. Then, we are into the winter months. Committee Chair White stated, Okay. Thank you. Councilmember Jake Teshka stated,I apologize that I was a little tardy so if you've already covered this, forgive me. Is raising the surcharge an option? Mr. Jarnecke replied, It is an option. We're cognizant, because of the relationships that we have with promoters,that we're in a price sensitive market. We look at it and the promoters are looking for rebates on top of that. With our deal and our ticket provider there are other fees that are baked into it. So certainly, it is an option to increase the fees that are associated with it. It just becomes that balance of what the tipping point is and where that consumer will no longer purchase the tickets to go to that show. Councilmember Teshka followed up, Sure. I totally get that. It just seems like we're right there. Right?You're not talking losses in the multiple hundreds of thousands, right?We're talking about something that I think might be a little bit of expenses here and then maybe raising the surcharge. We could get to that break-even point. I don't know, but you guys know much more than we do about the market and all of that, but it seems like one dollar ($1), dollar fifty ($1.50), something like that might go a long way on that surcharge. Mr. Jarnecke stated, I think that's certainly one (1) strategy, Councilmember Teshka, as we look at that, that we will employ when we're able to. Some of that wiggle room could be with certain shows. The other area where we're challenging, I'm challenging the team and we're pleased to add a full-time marketing manager that's from the Experience Division that's joining us now and EXCELLENCE ACCOUNTABILITY INNOVATION I INCLUSION EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 1574.235.9173 TTD574.235.5567 www.southbendin.gov 6