HomeMy WebLinkAboutMemo - Mail Packet - 12/21/2021 - Memorandum From Jim Mcdonald Re: Shuttered Venues Operators Grant - Explanation Of The Use Of Funds
MEMORANDUM
DATE: December 13, 2021
TO: Mayor and Members of City Council
THROUGH: Kelly DiMartino, Interim City Manager
Kyle Stannert, Deputy City Manager
Seve Ghose, Community Services Director
FROM: Jim McDonald, Director of Cultural Services
RE: Shuttered Venues Operators Grant - Explanation of the use of Funds
At First Reading of Ordinance No. 163, 2021 on December 7, 2021 regarding the appropriation of
Shuttered Venues Operators Grant (SVOG) revenue for The Lincoln Center, a Councilmember
asked for clarification on the use of the grant funds.
Background
The SVOG was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and
provides support to live venue operators and other related sector businesses, including entities
owned by state or local governments. The grant application required a proposed budget based on
T previous actual expenditures that directly relate to earned revenue and not
General Fund. The funds are specifically designed as revenue replacement for the loss of earned
revenue. annual operating budget is approximately 70% earned revenue and
30% General Fund (T 2022 operating budget is $3,926,570).
Summary
In accordance with the SBA approved grant budget allocations, nearly 50% of The Lincoln Center s
SVOG funds are directed to support artists and/or artistic production. That is followed by 25%
supporting hourly employees, and the remainder supporting marketing, and related equipment and
expenses.
The COVID pandemic continues to impact revenue generation. Ticket and subscription sales are not
at pre-COVID levels and theater rentals are at 50% of normal. For 2021, the initial year-end budget
and $500,000, which would have needed to be covered by the Cultural Services Reserve Fund. This
deficit will now be covered by the SVOG grant. For 2022, we are projecting continued impact with
lower tickets sales and rentals. The remaining grant funds will be utilized in 2022 to again support
expenses in the same cost areas. The grant funds allow The Lincoln Center to continue to deliver
world class programming and facilities to our community despite the impacts of COVID-19.
cc: Jack Rogers, Director, The Lincoln Center
Cultural Services Department
215 N. Mason St.
Fort Collins, CO 80522
fcgov.com/culturalservices