BY CINDY TOOPES COURIER STAFF WRITER
September 04, 2008 12:32 am
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OTTUMWA — If you only look at the bottom line, the Bridge View Center’s numbers can be disappointing.
“The numbers came in at half of what [Centerplate] had expected,” Finance Director Mike Heffernan said Wednesday. “The overall deficit was $100,000 more than anticipated.”
Heffernan said “that extra amount” for the most part comes out of the general fund. The city “did amend the budget” by $50,000 because that was expected. Now another $50,000 must be set aside.
One thing that didn’t help the numbers is that both city and Centerplate staff members prepared a budget before the center ever opened.
“[We] were doing that budget blindly and didn’t have the direct experience to go from,” Heffernan said.
Staffers had to “pull numbers out of the air” as they checked on budgets at other comparable events centers. Bridge View didn’t open until the middle of the fiscal year and that had “some impact” on booking events, Heffernan added.
The finance director’s tally sheet for Bridge View Center shows total revenue and expense. For the 12 months ending June 30, 2008, staffers projected revenue would total $1,070,415; but, the actual revenue was $526,397.
They also projected expenses to total $1,505,943.20, which is comprised of total direct expense, $243,934.40; total labor, $835,323.80; and total indirect expense, $426,685.
That left a projected deficit of $435,528.20.
Actual expense consisted of total direct, $222,330, less than projected; total labor, $511,583, also lower; and total indirect, $329,147, also lower. Actual expense totaled $1,063,060.
Subtract expenses ($1,063,060) from revenue ($526,397) and the net surplus deficit is $536,663.
What leads up to those bottom lines?
Heffernan and Jon Elbaum, Bridge View’s general manager, prepared “Bridge View Center: Annual Report Fiscal 2007-08,” which noted numerous details about the center’s operations and bookings.
Many of those details are positive developments. For example, under “Analysis of Operations,” the report noted a variety of usage patterns: Consumer shows, family entertainment, commercial usage, trade shows, conventions and social events.
Consumer shows like the Home Expo and the shows for knife and gun collectors or recreational vehicle enthusiasts have been “very successful.” The Southeast Iowa Kennel Club has asked for dates through 2012 at Bridge View and the recent inaugural Quilting Show brought in more than 500 people.
“These events generate revenue in several ways — facility rental, equipment rental (pipe, drape, skirting and audio-visual) and concessions sales,” the report noted.
Business is a key area for the center’s economic success. Commercial usage not only generates significant rental and banquet income, but it also generates dollars in the community through hotel rooms and increases in retail sales for multi-day conventions, according to the report.
Other parts of the report note details about the facility and its equipment, food and beverage sales, pricing survey, future programming, sponsors/naming rights, challenges and financial results and budget assumptions.
“We never forecasted the center would in the black,” Elbaum said. “Our five-year projection indicated a declining deficit. The budget was done long before the center was into the operational phase.”
Now Elbaum has more information he can use to build the next budget.
“We’ll be able to have a better idea where the numbers come in now that we have some history behind us,” he said.
Estimating energy costs and labor costs is difficult. Researching other buildings helps some, but “every building is a bit different,” Elbaum added.
Last summer was tough because July and August were slow.
“We weren’t able to be in the center and selling the property early enough, so there’s not a lot on the books,” he said. “But, July and August were great this year — the best months we’ve ever had.”
Elbaum said he and his staff “work as close to the bone as possible” in monitoring controllable expenses. Actual expenses were less than projected and that supports his claim of watching numbers closely.
“Fixed overhead” is difficult to control, he added.
“Our controllable expenses are comparable to those of other facilities and I think we’re meeting our company’s standards concerning percentages,” Elbaum said.
Bridge View’s general manager said he and his staff want to be successful in selling the building and bringing in more business. Those are “keys to reducing the center’s deficit.”
Elbaum believes Bridge View Inc.’s endowment will help pay for the deficit.
“If we can grow the endowment, that will offset the burden on the city,” he said.
Sales have started for the new season and Elbaum is excited. The first show will be “Say Good Night, Gracie,” which is part of a six-show package.
Elbaum said some marketing is done for the center but the staff is “careful with those dollars.”
The center now has a new Web site at the same address (www.bridgeviewcenter.com). Elbaum said the site “has been redesigned, has prettier colors and is more user-friendly.”
The new marquee sign is now in use and Elbaum is confident it will also attract more business to the center.
Cindy Toopes can be reached at (641) 683-5376 or via e-mail at cindy@ottumwacourier.com.
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