By: Diane Benjamin
The City of Bloomington has posted the 2nd Quarter financial statement for the Coliseum as prepared by Central Illinois Arena Management (CIAM): http://www.cityblm.org/Modules/ShowDocument.aspx?documentid=7613
By the time the auditors get done correcting all the errors, the statements will look even worse, but they only do that once a year. Citizens are expected to believe whatever is issued. Many of the problems I’ve previously discussed have been corrected, like reporting items as income that aren’t income.
Total Revenues were $400,646, the budget was $825,940. (Less than half!)
Previously CIAM took the Revenue number times 4% and reported it has their management fee. For this quarter that would be $16,026. The statement says the management fee is $16,657. Earning less than half of budgeted revenue must have qualified CIAM for a bonus, I wonder if David Hales noticed.
One good point, salaries were less than budgeted. They paid a total of $283,018, budget was $374,312. Since August ONLY had a Cross-fit competition and September/October only had ISU and Thunder Hockey, it’s a mystery what the payroll was for. See the event calendar yourself: http://www.uscellularcoliseum.com/calendar-of-events/?month=8&year=2014&m=#markerdown
Here’s the bottom line:
Net Income/(Loss) After NonOperating Expense -232,545
From April – October the total loss is -372,212
The budget was income of $90,800
There are companies who professionally manage arenas. CIAM has no incentives built into their contract to perform. Concessions are a complete secret, even though the City bought the equipment to track sales. It’s way past time to hire a professional company, not 2 guys who have broken the contract over and over and produced massive losses for taxpayers. Last year the audited report showed a loss if $1.6 MILLION.
The CIAM contract will be up for renegotiation soon. If the Council doesn’t stand up for citizens, CIAM will be given an extension.
It is time for the Coliseum to be an asset to the community, not an entity who claims they generate economic activity while sucking taxpayer dollars.