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Art Center Update to Hopkins City Council; Lenz Memorandum To: Honorable Mayor and Council Members From: Lynn Anderson, Hopkins Center for the Arts Executive Director Date: October 11, 2016 Subject: Art Center Update to Hopkins City Council STAFF UPDATE In response to Susan Hanna-Bibus retiring in April, and the recommendations of Aurora Consulting the following staffing structure was implemented: Full time staff - o Lynn Anderson, Executive Director o Aaron Wulff, Development Director o Janna Johnson, Rental and Scheduling Coordinator/Office Manager o Mike Martineau, Building Supervisor Part time staff - o Jim Clark, Visual Arts Manager o Kelly Blau, Concert and Events Coordinator o Several Building Supervisors – evenings and weekends Janna Johnson recently resigned her position at HCA to move to WI. We have had a part time assistant through a temp agency filling in and will be posting the position soon to find a replacement. Thankfully, she has continued to work remotely on a temporary basis to help us with the database conversion. This is one of our busiest times as we move into our concert season, rental and tenant activities ramp up and we start planning for the 2017-2018 season with our tenant partners. I hope to have someone in place by mid to late November so that they can be trained and work with me on the scheduling process for the next season. PROGRAMMING UPDATE CONCERTS: Kelly Blau immediately went to work with Sue McLean & Associates to program the concert season. We have reduced artist fee expenses this year. The season subscriptions have been strong and quite comparable to ticket sales last year. We simplified the order form and added the ability to renew or become a member of the Friends on the 2016/17 form. Art Center Update (October 2016) 2 TICKET PRICE INCREASE: In 2015, we reevaluated ticket pricing and increased fees to better cover cost, which accounts for part of the expected revenue increase for 2017. As we evaluated ticketing pricing, we took into account what other venues have charged for the same or similar performers so that we stay competitive in the market. We are also taking every measure to keep expenses down while not sacrificing quality of the season. SEASON SUBSCRIPTIONS: 2015/16: 866 tickets, ticket revenue unknown 2016/17: 800 tickets, subscription revenue: $18,903 Added memberships: 22, total membership revenue: $1,505 CURRENT TICKET SALES: (as of 10/3/16) Tickets sold: 2402 Revenue to date: $57,043 CONCERT TICKET SALES TO DATE: 2016: Nicholas David: 331 Romantic/Erik Koskinen: 213 Asleep at the Wheel: 523 2017: Rogue Valley: 108 DeJohnette, Coltrane, Garrison: 152 Julian Lage and Chris Eldridge: 138 Sierra Hull: 151 Pieta Brown: 91 David Wilcox: 231 Bill Frisell: 144 The Pines: 145 Suzy Bogguss: 175 HOW ARE WE SELLING/MARKETING TICKETS:  Subscription mailing Mailed to: 255 households who had subscribed sometime over the past three years Received: 91 subscription orders by the preferred seating date in July  Website  e-newsletter  Season Brochure mailed to 11,145 households/businesses  Press releases  Advertising o TPT commercial: Summer Match program – Purchased 25 15-second spots, Art Center Update (October 2016) 3 o TPT Magazine – monthly ad o KBEM -Jazz88 commercial sponsorship/match o MN Monthly: Fall Arts Guide o Star Tribune: Fall Arts Guide o Tiger Oak Publications: Edina, Maple Grove, St. Louis Pk…. o City Pages o Lavendar Magazine and web ads o MPR/Current radio o Facebook o AM950: 12 radio shows - the Connections - Saturdays from 9am -10am. Kelly Blau and Jim Clark talk about the concert season and visual arts exhibitions happening at the Center. The first show aired on October 1st. The conversation will continue on the following dates: Oct 15, Nov 19, Dec 10, Jan 21, Feb 18, Mar 11, Apr 8, May 6, Jun 3, Aug 5 Artist Fees: 2015/16 concert season artist fees: $113,000 2016/17 concert season artist fees: $88,350 (including fees to SMA) A reduction of $24,650 VISUAL ARTS Jim Clark, our Visual Arts Manager, manages the visual arts season and the ArtStreet Sculpture program. He also played an active role with the Mainstreet Banner program (all of the artists are members of HCA), Art from the Attic - organizing the artist talks, having the ArtStreet sculptors on hand and promoting the donation of art to local artists. The Members' Juried Exhibition saw an increase in entries by 25%. Of the 146 works submitted, 43 pieces were selected to be a part of the show up through October 29. Members of the Friends organization are invited to participate in two member shows per year and can have a one-person show on a first-come, first served basis in the Off the Wall area on second floor. Jim is working on building the exhibition program, adding artist talks - potentially as fundraising events, and building our reputation in the community. He also oversees ArtStreet, other various visual arts events and works closely with Aaron on funding opportunities. COMMUNITY ENGAGEMENT We strive to be a part of the community and reach out in a number of ways.  We participated in the 2016 Summerfest and are planning a more active role in 2017  Artful Book Club  Artist Social Club  Food for the Soul  Old Fashioned Holiday in Hopkins  Empty Bowls Art Center Update (October 2016) 4  Taste of Hopkins FRIENDS BOARD The 13-member board is comprised of local residents, artists, tenant partner representatives and staff. Bonnie Hammel, long-time resident of Hopkins, recently joined the Friends’ Board. The Board is working on strategic development and ways to support visual and musical artists in our community through a grant program while continuing to raise funds in support of the Center. VISITORS TO THE CENTER As I look at the estimated 220,000 visitors to the building each year, I estimate that the numbers break down as such: 163,000: Stages Theatre Company events 13,500: Hopkins Center for the Arts events 11,150: Hopkins School District events 29,000: Rentals BUDGET UPDATE We have attached a budget projection sheet that shows our current budget and our plan going forward. The attachment shows our plan to both eliminate the deficit and to stabilize the Center’s economic position. If the projected plan is implemented, it would stabilize the budget by 2019 and eliminate the current estimated deficit of $1,023,132 (adjusted already for the $300,000 loan forgiveness) by 2029. Paying off deficit would require city contribution, their is flexibility in the timeline which can be adjusted based off contribution. The plan requires an increase in non-levy funds by 71,233 in 2017. Although it may seem high prior period actuals estimate this to only be $46,608 in 2017. We also have not estimated any expenditure decreases to be conservative and allow flexibility in the plan. We do plan to continue to evaluate programming and current expenditures to look for cost cutting opportunities. BUDGET TO DATE:  Revenues are at 73% of Budgeted for 2016, ticket revenues are higher than expected.  Expenditures are at 75% of Budgeted for 2016. CURRENT DEFICIT: Fund balance is currently negative an estimated $1,023,132 (already reduced by the $300,000 from the EDA). EXPLORING ADDITIONAL REVENUE OPTIONS: Grants, Liquor Revenue, Wedding Rates and Fees. Art Center Update (October 2016) 5 FUNDRAISING: Aaron Wulff hit the ground running to get the Business Sponsorship solicitation out and quickly connect with the local businesses. Because of staffing changes and trying to stay on track with the season calendar we had a very short window of opportunity. We doubled our business sponsorship this year and look forward to continuing to build this program. Aaron completed the grant report required by the State Arts Board for our continuing grant and we received notification that we will receive $ 35,595 for the 2016/17 season. He is also researching other grant opportunities for 2017- 2018. Other fundraising efforts: PizzaRev: - Sept 29, Oct 31, and Nov 30. We have partnered with Hopkins Activity Center and The Depot for this campaign. For anyone eating at PizzaRev on these days who mentions one of our organizations, PizzaRev will donate 20% of the proceeds to us. All proceeds will be evenly divided among the 3 organizations. Art from the Attic: Held July 9, 2016, the event took place on Mainstreet in front of HCA. In addition to the art sale:  Economic Development participated by providing a poetry wagon. People were invited share why they like Hopkins and a poet created a poem for them  Artist talks were scheduled throughout the day  Art Cars participated and parked along Mainstreet,  Self-guided ArtStreet tours,  Musical entertainment In its second year, Art from the Attic received great response from donors and buyers alike. 460 pieces of art were donated to HCA for resale at Art from the Attic. 200+ pieces were sold for a net profit of $4000+ (nearly doubling last year's total.) Mark your calendar for the third annual Art from the Attic - Saturday June 17, 2017. We are working on a spring event and again looking at partnering with Hopkins Activity Center and The Depot - more information will be available soon. Database: Using a small portion of the Albert Pike donation, we have purchased a new database management system called SALSA. Much needed, it will allow us to manage membership and patron information with more accuracy, track giving history and be more focused in our giving campaigns. We have seen an increase in individual memberships and look forward to building on this with our new software. We are in the midst of a conversion right now and should have it running in the next month. In addition to our ongoing membership campaign, we are planning to participate in GIVEMN in November and a Year-end giving campaign. Ho p k i n s A r t C e n t e r P r o j e c t e d B u d g e t 10 / 6 / 2 0 1 6 Fu n d B a l a n c e 2 0 1 5 2 0 1 6 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Ac t u a l A c t u a l B u d g e t e d P r o p o s e d P r o j e c t e d P r o j e c t e d P r o j e c t e d P r o j e c t e d P r o j e c t e d P r o j e c t e d P r o j e c t e d P r o j e c t e d De f i c i t B e g i n n i n g o f t h e y e a r (1 , 1 8 2 , 9 5 6 ) $ ( 1 , 1 9 4 , 0 1 0 ) $ ( 1 , 1 9 4 , 0 1 0 ) $ ( 1 , 0 5 4 , 8 2 0 ) $ ( 1 , 3 2 2 , 1 8 8 ) $ ( 1 , 2 8 1 , 2 1 6 ) $ ( 1 , 1 6 8 , 2 4 4 ) $ ( 1 , 0 4 8 , 2 7 2 ) $ ( 2 7 6 , 4 4 0 ) $ (147,468)$ (5,416)$ 36,636 $ Ci t y L e v y f o r d e f i c i t - $ - $ - $ 5 0 , 0 0 0 $ 1 0 0 , 0 0 0 $ 1 0 0 , 0 0 0 $ 1 0 0 , 0 0 0 $ 1 0 0 , 0 0 0 $ 100,000 $ -$ -$ Lo a n F o r g i v e n e s s ( E D A ) 3 0 0 , 0 0 0 $ 3 0 0 , 0 0 0 $ Ne w D e f i c i t (1 1 , 0 5 4 ) $ ( 1 2 9 , 1 2 2 ) $ ( 1 6 0 , 8 1 0 ) $ ( 2 6 7 , 3 6 8 ) $ ( 9 , 0 2 8 ) $ 12 , 9 7 2 $ 1 9 , 9 7 2 $ 2 6 , 9 7 2 $ 2 8 , 9 7 2 $ 42,052 $ 42,052 $ 42,052 $ De f i c i t B a l a n c e a t E n d o f Y e a r (1 , 1 9 4 , 0 1 0 ) $ ( 1 , 0 2 3 , 1 3 2 ) $ ( 1 , 0 5 4 , 8 2 0 ) $ ( 1 , 3 2 2 , 1 8 8 ) $ ( 1 , 2 8 1 , 2 1 6 ) $ ( 1 , 1 6 8 , 2 4 4 ) $ ( 1 , 0 4 8 , 2 7 2 ) $ ( 9 2 1 , 3 0 0 ) $ ( 1 4 7 , 4 6 8 ) $ (5,416)$ 36,636 $ 78,688 $ Re v e n u e s 20 1 5 2 0 1 6 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Ac t u a l A c t u a l B u d g e t e d P r o p o s e d P r o j e c t e d P r o j e c t e d P r o j e c t e d P r o j e c t e d P r o j e c t e d P r o j e c t e d P r o j e c t e d P r o j e c t e d Le v y 8 3 , 9 0 5 $ 7 0 , 9 5 0 $ 1 4 0 , 0 0 0 $ 2 5 0 , 0 0 0 $ 2 5 0 , 0 0 0 $ 2 5 0 , 0 0 0 $ 2 5 0 , 0 0 0 $ 2 5 0 , 0 0 0 $ 2 5 0 , 0 0 0 $ 300,000 $ 300,000 $ 300,000 $ Re n t s , L e a s e s , F a c i l i t y F e e 3 8 1 , 9 2 2 $ 2 9 1 , 6 3 0 $ 4 0 4 , 0 1 7 $ 4 0 4 , 0 1 7 $ 4 0 4 , 0 1 7 $ 4 0 4 , 0 1 7 $ 4 0 4 , 0 1 7 $ 4 0 4 , 0 1 7 $ 4 0 4 , 0 1 7 $ 404,017 $ 404,017 $ 404,017 $ Co m m u n i c a t i o n s F u n d 8 6 , 9 2 0 $ 8 6 , 9 2 0 $ 8 6 , 9 2 0 $ 8 6 , 9 2 0 $ 8 6 , 9 2 0 $ 8 6 , 9 2 0 $ 8 6 , 9 2 0 $ 8 6 , 9 2 0 $ 8 6 , 9 2 0 $ 50,000 $ 50,000 $ 50,000 $ Gr a n t s 3 7 , 3 3 7 $ 2 2 , 5 4 6 $ 3 5 , 9 6 7 $ 4 0 , 0 0 0 $ 4 0 , 0 0 0 $ 5 0 , 0 0 0 $ 5 0 , 0 0 0 $ 5 0 , 0 0 0 $ 5 0 , 0 0 0 $ 50,000 $ 50,000 $ 50,000 $ Me m b e r s h i p s I n d i v i d u a l 8 , 0 0 0 $ 2 , 5 0 6 $ 8 , 0 0 0 $ 1 0 , 0 0 0 $ 1 1 , 0 0 0 $ 1 2 , 0 0 0 $ 1 3 , 0 0 0 $ 1 4 , 0 0 0 $ 1 5 , 0 0 0 $ 15,000 $ 15,000 $ 15,000 $ Me m b e r s h i p / S p o n s o r s h i p C o r p o r a t e 4 0 , 2 2 3 $ 3 , 1 1 4 $ 8 , 0 0 0 $ 1 5 , 0 0 0 $ 1 5 , 0 0 0 $ 2 0 , 0 0 0 $ 2 0 , 0 0 0 $ 2 0 , 0 0 0 $ 2 0 , 0 0 0 $ 20,000 $ 20,000 $ 20,000 $ Ar t S a l e s 1 1 , 0 5 1 $ 5 , 3 2 8 $ 5 , 0 0 0 $ 1 0 , 0 0 0 $ 1 1 , 0 0 0 $ 1 2 , 0 0 0 $ 1 3 , 0 0 0 $ 1 4 , 0 0 0 $ 1 5 , 0 0 0 $ 15,000 $ 15,000 $ 15,000 $ Ti c k e t S a l e s 1 2 2 , 8 7 5 $ 8 7 , 1 7 9 $ 8 5 , 0 0 0 $ 1 3 0 , 0 0 0 $ 1 3 5 , 0 0 0 $ 1 4 0 , 0 0 0 $ 1 4 5 , 0 0 0 $ 1 5 0 , 0 0 0 $ 1 5 0 , 0 0 0 $ 150,000 $ 150,000 $ 150,000 $ Li q u o r R e v e n u e ( W e d d i n g s & C o n c e r t s ) - $ - $ - $ 5 , 0 0 0 $ 5 , 0 0 0 $ 5 , 0 0 0 $ 5 , 0 0 0 $ 5 , 0 0 0 $ 5 , 0 0 0 $ 5,000 $ 5,000 $ 5,000 $ Fu n d r a i s i n g & D o n a t i o n s 7 , 0 8 1 $ 5 , 9 0 9 $ 1 1 , 0 0 0 $ 1 5 , 0 0 0 $ 1 5 , 0 0 0 $ 1 5 , 0 0 0 $ 1 5 , 0 0 0 $ 1 5 , 0 0 0 $ 1 5 , 0 0 0 $ 15,000 $ 15,000 $ 15,000 $ Me r c h a n d i s i n g 1 , 3 9 4 $ 9 0 2 $ 2 , 0 0 0 $ 1 , 2 0 0 $ 1 , 2 0 0 $ 1 , 2 0 0 $ 1 , 2 0 0 $ 1 , 2 0 0 $ 1 , 2 0 0 $ 1,200 $ 1,200 $ 1,200 $ To t a l R e v e n u e 7 8 0 , 7 0 8 $ 5 7 6 , 9 8 4 $ 7 8 5 , 9 0 4 $ 9 6 7 , 1 3 7 $ 9 7 4 , 1 3 7 $ 9 9 6 , 1 3 7 $ 1 , 0 0 3 , 1 3 7 $ 1 , 0 1 0 , 1 3 7 $ 1 , 0 1 2 , 1 3 7 $ 1,025,217 $ 1,025,217 $ 1,025,217 $ Ex p e n d i t u r e s 20 1 5 2 0 1 6 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 Ac t u a l A c t u a l B u d g e t e d P r o p o s e d P r o j e c t e d P r o j e c t e d P r o j e c t e d P r o j e c t e d P r o j e c t e d P r o j e c t e d P r o j e c t e d P r o j e c t e d Ad m i n i s t r a t i o n Pe r s o n n e l ( 2 5 5 , 7 9 9 ) $ ( 2 2 5 , 8 4 3 ) $ ( 2 7 3 , 4 6 7 ) $ ( 2 7 5 , 3 4 2 ) $ ( 2 7 5 , 3 1 2 ) $ ( 2 7 5 , 3 1 2 ) $ ( 2 7 5 , 3 1 2 ) $ ( 2 7 5 , 3 1 2 ) $ ( 2 7 5 , 3 1 2 ) $ (275,312)$ (275,312)$ (275,312)$ Co m m o d i t i e s ( 2 7 , 8 8 9 ) $ ( 1 1 , 3 8 3 ) $ ( 1 9 , 7 0 0 ) $ ( 1 9 , 7 0 0 ) $ ( 4 6 , 0 0 0 ) $ ( 4 6 , 0 0 0 ) $ ( 4 6 , 0 0 0 ) $ ( 4 6 , 0 0 0 ) $ ( 4 6 , 0 0 0 ) $ (46,000)$ (46,000)$ (46,000)$ Co n t r a c t s ( 1 0 6 , 6 0 7 ) $ ( 8 1 , 7 7 3 ) $ ( 1 2 3 , 8 6 3 ) $ ( 1 2 6 , 3 7 5 ) $ ( 5 3 , 2 7 5 ) $ ( 5 3 , 2 7 5 ) $ ( 5 3 , 2 7 5 ) $ ( 5 3 , 2 7 5 ) $ ( 5 3 , 2 7 5 ) $ (53,275)$ (53,275)$ (53,275)$ Ca p i t a l ( 5 , 8 1 4 ) $ ( 1 2 3 , 8 4 0 ) $ ( 1 0 6 , 8 0 0 ) $ ( 3 9 8 , 2 0 0 ) $ ( 2 1 1 , 0 0 0 ) $ ( 2 1 1 , 0 0 0 ) $ ( 2 1 1 , 0 0 0 ) $ ( 2 1 1 , 0 0 0 ) $ ( 2 1 1 , 0 0 0 ) $ (211,000)$ (211,000)$ (211,000)$ Ad m i n i s t r a t i o n E x p e n d i t u r e T o t a l ( 3 9 6 , 1 0 9 ) $ ( 4 4 2 , 8 3 9 ) $ ( 5 2 3 , 8 3 0 ) $ ( 8 1 9 , 6 1 7 ) $ ( 5 8 5 , 5 8 7 ) $ ( 5 8 5 , 5 8 7 ) $ ( 5 8 5 , 5 8 7 ) $ ( 5 8 5 , 5 8 7 ) $ ( 5 8 5 , 5 8 7 ) $ (585,587)$ (585,587)$ (585,587)$ Pr o g r a m m i n g Pe r s o n n e l ( 1 4 9 , 9 5 6 ) $ ( 6 2 , 1 9 9 ) $ ( 1 5 6 , 5 9 0 ) $ ( 1 4 5 , 4 1 8 ) $ ( 1 2 8 , 1 0 8 ) $ ( 1 2 8 , 1 0 8 ) $ ( 1 2 8 , 1 0 8 ) $ ( 1 2 8 , 1 0 8 ) $ ( 1 2 8 , 1 0 8 ) $ (128,108)$ (128,108)$ (128,108)$ Co m m o d i t i e s ( 1 7 , 9 5 1 ) $ ( 8 , 5 8 5 ) $ ( 2 0 , 0 8 3 ) $ ( 1 9 , 9 0 0 ) $ ( 1 9 , 9 0 0 ) $ ( 1 9 , 9 0 0 ) $ ( 1 9 , 9 0 0 ) $ ( 1 9 , 9 0 0 ) $ ( 1 9 , 9 0 0 ) $ (19,900)$ (19,900)$ (19,900)$ Co n t r a c t s ( 2 2 7 , 7 4 6 ) $ ( 1 9 2 , 4 8 3 ) $ ( 2 4 6 , 2 1 1 ) $ ( 2 4 9 , 5 7 0 ) $ ( 2 4 9 , 5 7 0 ) $ ( 2 4 9 , 5 7 0 ) $ ( 2 4 9 , 5 7 0 ) $ ( 2 4 9 , 5 7 0 ) $ ( 2 4 9 , 5 7 0 ) $ (249,570)$ (249,570)$ (249,570)$ Ca p i t a l - $ - $ - $ - $ - $ - $ - $ - $ - $ -$ -$ -$ Pr o g r a m m i n g E x p e n d i t u r e T o t a l ( 3 9 5 , 6 5 3 ) $ ( 2 6 3 , 2 6 7 ) $ ( 4 2 2 , 8 8 4 ) $ ( 4 1 4 , 8 8 8 ) $ ( 3 9 7 , 5 7 8 ) $ ( 3 9 7 , 5 7 8 ) $ ( 3 9 7 , 5 7 8 ) $ ( 3 9 7 , 5 7 8 ) $ ( 3 9 7 , 5 7 8 ) $ (397,578)$ (397,578)$ (397,578)$ To t a l E x p e n d i t u r e s ( 7 9 1 , 7 6 2 ) $ ( 7 0 6 , 1 0 6 ) $ ( 9 4 6 , 7 1 4 ) $ ( 1 , 2 3 4 , 5 0 5 ) $ ( 9 8 3 , 1 6 5 ) $ ( 9 8 3 , 1 6 5 ) $ ( 9 8 3 , 1 6 5 ) $ ( 9 8 3 , 1 6 5 ) $ ( 9 8 3 , 1 6 5 ) $ (983,165)$ (983,165)$ (983,165)$ Ne t I n c o m e ( L o s s ) (1 1 , 0 5 4 ) $ ( 1 2 9 , 1 2 2 ) $ ( 1 6 0 , 8 1 0 ) $ ( 2 6 7 , 3 6 8 ) $ ( 9 , 0 2 8 ) $ 12 , 9 7 2 $ 1 9 , 9 7 2 $ 2 6 , 9 7 2 $ 2 8 , 9 7 2 $ 42,052 $ 42,052 $ 42,052 $ *T h i s i s a p r o j e c t i o n , i t d o e s n o t i n c l u d e i n f l a t i o n a n d i s s u b j e c t t o c h a n g e .