By: Diane Benjamin
The Coliseum was NEVER going to cost citizens a dime, at least that’s what citizens were told.
Consultants predicted Revenues of more than $7,000,000 and large attendance at events. Income was projected to be $2,319,000 a year. See predictions here: Consultant: Hyman Review
NOTHING predicted has come close to being true.
Last night John Butler and Bart Rogers blamed everybody but themselves for loses during their presentation to the Bloomington City Council. John Butler mis-led the Council at least once when he stated he had nothing to do with the original contract. The City sure didn’t write it John! Remember Bloomington Partners John? Remember the lawsuit when you and Mike Nelson took over and cut them out? Remember winning that lawsuit John?
Butler claims he invested almost $1 million in concession equipment. He didn’t have to. He could have hired Aramark or another company to run concessions, the City would still have purchased the point-of-sale equipment, and thus the City could have verified commissions paid. Instead, Butler bought the equipment and the City has failed ever since to demand an audit of payments. Funny how that never came up last night. Does the Council really not understand Butler may be failing to pay the City according to the contract? Butler mis-led the Council about the original contract, the new scoreboards the council authorized were not competitively bid, but the Council thinks the City is getting paid correctly? Really? I’ve got a bridge in Florida . .. .call me.
Coliseum reports on the City website only go back to 2012. Since the Coliseum has been open close to 10 years, I wonder why.
I’ve got reports back to 2008. It’s fun to compare Actual and Budget numbers from 2008 with Actual and Budget numbers from 2015. The plan for the Coliseum seems to be: If Revenue numbers are falling, just lower the budget!
2008: Budgeted Revenue $3,580,500
2015: Budgeted Revenue $2,563,918 DOWN $1,016,582
2008: Actual Revenue $3,251,651
2015: Actual Revenue $2,082,971 DOWN $1,168,680
Wages paid have only gone down a little! Revenue is way down, why aren’t paychecks?
2008: Actual Wages $1,352,351
2015: Actual Wages $1,268,424
Who is getting paid? Shhh It’s a secret.
None of this came up last night. Most of the Council questions didn’t confront Butler and Rogers. The subject of non-audited concessions wasn’t even raised. Unless citizens demand new management, you will get Butler and Rogers back next year.
The John Butler and Bart Rogers presentation starts at 10:15
The following was sent to the Mayor and all Council members prior to last night’s meeting as part of a lengthy email “dissecting” CIAM’s 93-page report.
6. The Coliseum is an Enterprise Fund. Here is the most recent City of Bloomington Comprehensive Annual Financial Report — Year Ended April 30, 2014.
(Sikich is the Independent Auditor of the USCC for the City of Bloomington)
http://www.cityblm.org/Modules/ShowDocument.aspx?documentid=7479
It is also lengthy but the following is in the report:
“ACTIVITY WITH THE OTHER CITY OF BLOOMINGTON FUNDS —
— As of April 30, 2013, the Coliseum owed various other funds of the City $2,400,000. Management expects to repay the inter-fund payable using the future profits of the Coliseum.
— The purposes of inter-fund transfers are as follows:
• routine budget transfers of $2,646,000 to the U.S. Cellular Coliseum for capital projects. The transfers will not be repaid.
• $1,665,044 transferred to the Debt service fund for debt service payments. The transfer will not be repaid.
Expenses for the US Cellular Coliseum increased 25.0% or $1.1 million with the majority of the increase in the area of promoter expenses and repairs and maintenance.
The US Cellular Coliseum Fund saw increased revenue of 8.5 %, but also experienced increased costs resulting in a larger net operating loss.
In fiscal year 2014, the City transferred $2.6 million to the US Cellular Coliseum Fund from the General Fund.”
By presenting a summary of historical data, hopefully an accurate overview of the financial state of the USCC will be more apparent.