08-27-02 Personnel & Finance - Laserfiche WebLink

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_y Personnel and Finance Committee August 27, 2002 Page 7 for their presentations and information. Morris Performing Arts Center 2002 Expenditures $687,871 (General Fund # 101-0404) 2003 Expenditures $800,443 2002 Revenues $320,727 2003 Revenues $373,372 Executive Director Dennis Andres, Linda Doshi and Marika Hegedus joined the Committee meeting for the presentation. Mr. Andres noted that in 2001 the event goal was 110. In 2002, the event goal was 120, and to date they have had 134 events. They should be close to$400,00 in revenues by the end of this year. He then provided handouts to the Committee. Increases in the 2003 are for liability coverage,cleaning and telephone. In response to a question from Council Member White, Mr. Andres noted that much of the maintenance cost is passed on, however with the increase number of events there are additional expenses incurred. In response to a question from Council Member King, Mr. Andres noted that when tickets are purchased by telephone there is a $2.00 surcharge added to the each ticket, and that 50% of the tickets sold are by telephone. There is a charge 3.6% on credit card sales which cost 2.6% with the extra 1% going to the city. For co-promoted events there are not reduced rates. For internet orders there is a $3.00 charge, all of which goes to the Morris. The Broadway Theatre League does not receive any of this charge for internet sales. These are all examples of new money for the Morris. Mr. Andres added that despite being innovative and creative, the Morris will never break even. Dr. Varner suggested that a $1.00 ticket tax per seat be again considered in an effort toward reaching a break-even point. Mr. Andres stated that he attended the International Association of Managers Conference which had over 3,000 people in attendance. Promoters are resisting putting too much on the ticket price. Erie, PA has a facility which seats 2,700 compared to the Morris which seats 2,500. Mr. Andres suggested that we be very careful before added additional costs noting that the threshold in South Bend. He also noted that state law prohibits that city funds cannot be used for promotion in this area. Dr. Varner proposed that creative ways be considered in the future. Mr. Andres noted that once the Palais Royale is up and running for at least a year, that the climate would be better to look into other methods. Council Member King requested that Mr. Andres track numbers with regard to co-promotions, etc.so that there would be a basis of discussion next year in this area to which Mr. Andres agreed. Tom Skarbek stated that a new fund would have to be created if the City would ever co-promote such events, similar to an enterprise fund. Palais Royale Ballroom 2002 Expenditures $ 257,649 General Fund # 101-0405 2003 Expenditures $ 279,284 2002 Revenues $ 80, 392 2003 Revenues $271,743 Mr. Andres noted that there is no history in which to project true financial figures, however he is