Budget Meeting Minutes 05/11/05 - Laserfiche WebLink

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Mr. Hankins stated that most of the Center's revenue was generated by commercial productions. He noted that the Hult Center for the Performing Arts (HCPA) had nine resident companies. He outlined the division's funding sources and underscored that the. majority of the General Fund (main subfund) money, five percent of the total Cultural Services budget, was dedicated to major maintenance. He said the primary focus of the presentation, however, was on the Cultural Services subfund, comprised of the revenue without the General Fund contribution. He pointed to the earned revenue, 66 percent of the total, and stressed that this fmancial performance was as good as any performing arts center in the United States could do. Mr. Hankins focused on the Transient Room Tax (TRT), which comprised the rest of the revenue in the sub-fund. He said every dollar of TRT generated, on average, another five dollars from the box office, from technical services, from rentals, from concessions, from parking,, and from the patron user fee (PUF). He noted that this was the average over five years, with a high of seven. dollars per one dollar of TRT. Mr. Hankins outlined the expenses in relation to the revenue. He indicated with a graph the disparity between the two numbers, and said that expenditures were predicted to grow and exhaust the reserves by FY08. He stated that in FY08, not only would the reserve fund be exhausted, but it would be in the red by $217,122. He shared the observation of a former colleague that the "12-year bubble" for blockbuster Broadway shows and commercial events had burst either on September 11, 2001, or in 2002. He underscored that the market now was radically different. He reviewed annual ticket sales, the total of which for 2004 was approximately $5.2 million. Mr. Hankins stressed that the mission of the Cultural Services Division and the financial forecast were in conflict. He highlighted the cost-saving measures that had been taken. He pointed out that the Cultural Services Division did more than manage the two facilities under its direction; it helped provide technical assistance to local arts groups and partnered in grant-making. He shared that the division also provided learning opportunities, such as master classes, and diversity education. Continuing, Mr. Hankins underscored the benefits that the performing arts center provided the City and the downtown area, both economically and in terms of the quality of life of our community. He said when the arts,worked in Eugene, hotels were full, restaurants were busy, there were more jobs, and tourism was on the rise. He called arts "the glue" that brought communities together. Mr. Hankins averred that a new comprehensive plan was needed for the Cultural Services Division to take the division into the future. He asked for the committee's support for such a plan. He underscored the benefits of developing such a plan; that it should assist in the development of the economy of Eugene as well its quality of life and that it would help develop a "vision of thriving cultural and recreational opportunities available and accessible to all of its citizens." Mr. Peters noted that the Hult Center had been featured in an article in Sunset Magazine. Mr. Hankins showed the article, entitled Eugene: Awash in the Arts. Mr. Peters called it affirming for the City and for the Cultural Services Division. He lauded the work of Oregon Festival of American Music (OFAM) creators, Ginevra and Jim Ralph, at the Shedd Auditorium. He felt the many places that people could witness art enlivened the downtown area. He commended Mr. Hankins for his work, stating that he had a rot to do with making it possible. Mr. Hankins commented that the real joy of coming to the City of Eugene lay in the cornucopia of performing and visual arts available to its residents. MINUTES-Eugene Budget Committee February 22, 2005 Page 10