HomeMy WebLinkAboutMinutes.WHLR.20150311.RegularWHEELER
OPERA
HOUSE
MINUTES
OF
THE
MEETING
OF
THE
BOARD
OF
DIRECTORS
DATE:
Wednesday,
March
11,
2015
TIME:
Noon
LOCATION:
Second
Floor
Lobby
PRESENT:
Board
Members:
Brian
O’Neil,
Chairperson
Richard
Cohen,
Vice
Chairperson
Christine
Benedetti,
Secretary
Richard
Stettner
Tom
Kurt
Doug
Clayton
Chip
Fuller
Daniel
Song,
Ex-‐Officio
Absent:
Guests:
Randy
Ready,
Assistant
City
Manager
Adam
Frisch,
City
Council
Member
Jeff
Pendarvis,
Property
Manager
Asset
David
Rosenfeld,
Charles
Cunniffe
Architects
Scott
Smith,
Charles
Cunniffe
Architects
Jon
Busch,
Wheeler
Film
Society
Pam
Cunningham
Staff:
Pete
Strecker,
Interim-‐
Executive
Director
Rose
Bennett,
Sr.
Manager
–
Finance
Amy
Kaiser,
Sr.
Manager
–
Operations
Nick
Reitter,
Building
Manager
RECORDED
BY:
Lauren
Pierce,
Marketing
Coordinator
I.
CALL
TO
ORDER
O’Neil
called
the
meeting
to
order
at
12:04pm.
II.
APPROVAL
OF
THE
JANUARY
14,
2015,
MINUTES
The
Board
reviewed
the
minutes.
Kurt
made
the
motion
to
approve
upon
inclusion
of
Cohen’s
comments
on
the
proposed
Black
Box
Theater;
Cohen
seconded.
The
Board
unanimously
voted
to
accept
them.
III.
FINANCIAL
REPORT
Bennett
presented
the
preliminary
budgets
for
January
and
February
2015.
Finance
has
not
reported
any
capital
expenditures
at
this
time.
Bennett
pointed
out
the
successful
increase
of
the
RETT
in
January
and
February.
IV.
ACTION
ITEMS
None
V.
INFORMATION
AND
DISCUSSION
ITEMS
1. Status
of
Box
Office
and
Lobby
Space
Remodel
Strecker
introduced
the
architecture
team;
Charles
Cunniffe
Architects
(CCA,)
who
presented
the
current
plans
for
the
2nd
Floor
and
Box
Office
Remodel.
The
Board
was
asked
to
review
and
approve
the
current
layout
of
the
project.
Pendarvis
ensured
the
Board
that
CCA
and
the
project
managers
worked
with
staff
to
come
up
with
the
schematic
design.
The
big
change
is
to
relocate
the
men’s
restroom
from
the
same
corridor
as
the
women’s
restroom
to
the
east
side
of
the
building.
The
relocation
and
the
reconfiguring
of
the
bar
will
help
disperse
the
crowds
throughout
the
lobby
space,
evening
out
the
usage
of
the
room.
Pendarvis
presented
two
options
for
the
Box
Office
space;
one
with
an
archway
door
mimicking
the
two
doorways
between
the
box
office
and
the
historic
stairs,
the
second
design
removes
the
wall
completely.
Rosenfeld
presented
the
plans
to
the
Board,
explaining
the
changes
and
options
for
the
second
floor
lobby
and
box
office
space
footprints.
The
Board
had
a
few
questions
that
were
clarified
by
Rosenfeld.
The
Board
had
positive
feedback
on
the
designs.
2. Update
on
Recent
Performances
Kaiser
reported
that
the
2015
season
has
been
successful
so
far;
with
Lewis
Black
selling
out,
ABBA
MANIA
had
380
very
enthusiastic
audience
members
and
Dianne
Reeves
with
350
patrons.
The
Wheeler
had
a
strong
house
for
three
rental
events
in
the
past
two
months,
5Point,
BANFF
and
Comedy
Pet
Theater.
The
Wheeler
introduced
more
family
programming
this
season
and
with
the
good
response
and
ticket
sales,
the
Wheeler
will
continue
to
program
such
events.
Jim
Breuer,
the
headliner
for
opening
night
of
The
Laff
Festival
cancelled
two
days
before
the
event.
Staff
did
a
great
job
rallying
for
a
Plan
B.
Put
on
a
free
show
with
8
of
the
10
comedians
for
the
weekend
each
performing
an
8-‐
10
minute
set.
The
free
show
brought
in
400
people
and
really
helped
sell
the
individual
shows
later
in
the
weekend.
Even
with
the
cancellation,
total
revenue
for
2015
was
only
$1000
less
than
2014.
Expenses
were
about
the
same,
so
our
net
was
very
similar
to
last
year.
Had
we
had
the
Jim
Breuer
show
as
planned,
we
would
have
exceeded
paid
attendance
for
2013
and
2014
and
exceeded
total
income
for
2014.
Monday
films
did
very
well
in
January
and
February
bringing
in
between
150-‐250
people
per
screening.
3. Executive
Director
Transition
Update
Ready
reported
to
the
Board
that
out
of
the
81
applicants,
49
met
minimum
qualifications,
and
21
received
extra
attention,
and
13
phone
interviews.
The
City
is
looking
for
a
strong
leader,
minimum
of
a
bachelor
degree
in
theater
management
or
arts
administration,
or
related.
They
are
looking
for
relevant
job
experience
of
a
minimum
of
5
years
in
theater
operations
and
management,
including
facility
management,
presenting,
and
booking.
From
the
13
interviews,
the
City
will
bring
4
candidates
to
town
the
week
of
the
23rd
of
March.
The
candidates
included
Scott
Whisler,
executive
director
of
Mountain
View
Center
for
the
Performing
Arts;
Zoot
Velasco,
executive
director
of
the
Muckenthaler
Cultural
Center
Foundation;
Gena
Buhler,
Theater
Director
at
the
Vilar
Performing
Arts
Center
in
Beaver
Creek;
and
Michael
Bollinger,
executive
artistic
director
at
the
Louisa
Arts
Center.
The
City
will
be
taking
the
candidates
on
tours
of
the
town,
theater
and
opportunities
to
meet
the
staff
as
well
as
the
arts
community.
4. RETT
Analysis
Discussion
Strecker
presented
three
handouts
to
the
Board.
The
documents
are
included
below.
The
Arts
Grants
report
is
to
provide
context
around
the
City
of
Aspen’s
annual
monetary
pledge
from
RETT
and
non-‐RETT
revenues
for
local
non-‐profit
performing
arts
organizations.
The
second
document
is
5
Things
To
Know
About
The
RETT.
This
document
was
given
to
staff
and
volunteers
with
the
intent
of
informing
them
with
basic
factual
knowledge
of
the
RETT
and
to
help
them
address
questions
from
patrons
on
the
topic,
if
asked.
VII.
MEMBERS
COMMENTS
Cohen
explained
to
the
Board
that
the
goal
to
the
endowment,
when
it
was
established,
was
to
build
to
be
self-‐sufficient.
Cohen
shared
that
as
a
realtor,
not
once
since
the
RETT
was
passed
has
anyone
objected
to
this
.5%.
Cohen
does
not
want
the
Wheeler
to
loose
out
on
the
opportunity
for
the
RETT
to
work,
in
the
language
to
the
voters,
with
the
chance
of
loosing
the
RETT
funds
completely.
Cohen
also
proposed
to
begin
discussion
on
conceptual
ideas
for
the
adjacent
parcel
to
expand.
Council
Member
Adam
Frisch
came
to
the
Board
meeting
to
touch
base
on
the
RETT
and
possible
usage
of
the
Wheeler
parcel.
Frisch
reported
to
the
Board
that
the
previous
City
Attorney’s
view
of
the
RETT
and
the
appropriation
of
it,
was
that
if
you
change
the
language
the
entire
RETT
could
be
taken
away.
The
current
City
Attorney
believes
that
while
there
is
some
level
of
risk
in
any
option
(to
renew
or
to
repurpose),
it
is
not
likely
that
the
Court
would
overturn
a
voter
approved
change.
Frisch
presented
the
Councils
view
of
the
RETT,
that
as
long
as
a
portion
of
the
RETT
does
not
effect
the
success
and
operational
needs
of
the
Wheeler,
why
not
allow
some
of
the
funds
to
go
towards
Health
and
Human
Services
or
other
organizations?
Frisch
addressed
the
parcel
between
the
Wheeler
and
the
Motherload,
in
that
it
is
time
to
relook
at
a
humble
expansion
of
an
underground
theater
for
community
use.
City
Council
will
hold
a
discussion
on
the
RETT,
which
will
ultimately
be
a
community
decision
with
a
vote.
Frisch
would
like
the
Board
to
prepare
for
such.
In
discussion,
the
Board
asked
two
questions,
which
required
follow
up:
1)
Was
the
1.0%
Housing
RETT
ever
contemplated
to
be
shared
to
support
childcare?
The
language
below
for
both
the
housing
RETT
and
the
0.45%
city
sales
tax.
The
information
below
identifies
that
the
voter
approved
0.45%
City
sales
tax
is
the
shared
revenue
source
for
childcare,
not
the
housing
RETT.
Sales
Tax
Sales
tax
receipts
derived
from
the
forty-‐five
one
hundredths
of
one
percent
(0.45%)
additional
sales
tax
levied
pursuant
to
Ordinance
No.
81,
Series
of
1990,
shall
be
set
aside
in
a
separate
fund
designated
as
the
"Affordable
Housing
Fund
and
the
Day
Care
Fund".
The
City
Council
will
allocate
the
.45%
sales
tax
between
the
funds
as
it
shall
from
time
to
time
designate.
The
sales
tax
from
the
.45%
sales
tax
shall
be
expended
by
the
City
Council
for
the
purpose
of
creating
public
or
private
affordable
housing
and
day
care
opportunities
within
the
city
and
county,
including
but
not
by
way
of
limitation,
capital
improvements
and
capital
expenditures
therefor,
land
acquisition,
payment
of
indebtedness
incurred
in
connection
with
any
affordable
housing
or
day
care
expenditures,
reserves
and
for
expenditures
necessary
to
protect
any
such
property
acquired
or
capital
improvements
constructed
or
purchased
from
any
and
all
threatened
or
actual
damages,
loss,
destruction
or
impairment
from
any
such
cause
or
occurrences.
Housing
RETT
Whereas,
the
City
of
Aspen,
with
input
from
the
community
and
professional
consultants,
has
determined
that
in
order
to
address
the
issue
of
the
current
housing
shortage
that
vacant
land
and
existing
buildings
must
be
purchased
and
renovated
and
construction
of
new
housing
must
be
commenced
immediately;
and
Whereas,
the
City
Council
desires
to
impose
a
graduated
real
estate
transfer
tax
on
every
document
whereby
title
to
real
property
situated
in
the
City
of
Aspen
is
transferred
to
alleviate
the
chronic
short-‐term
shortage
of
housing
for
community
members
and
to
replace
monies
in
the
Land
Fund
for
open
space
acquisitions
converted
to
employee
housing
uses;
and
Whereas,
such
a
tax
must
be
ratified
and
approved
by
the
electorate
prior
to
its
enforcement
all
as
required
by
Section
12.1
of
the
Charter
of
the
City
of
Aspen…
2)
When
did
the
concept
of
the
Wheeler
endowment
fund
come
to
fruition?
The
endowment
concept
was
a
concept
adopted
by
a
sitting
City
Council,
and
formalized
through
a
City
ordinance
in
2002.
An
endowment
was
never
brought
to
a
vote
with
the
public.
As
outlined
by
the
language
from
the
ordinance
(shown
below),
the
goal
was
benchmarked
at
$40M
by
2019.
Given
that
a
sitting
Council’s
decision
cannot
bind
a
future
Council’s
decision,
and
that
a
future
public
vote
would
override
the
prior
Council
action,
the
endowment
concept
should
not
be
considered
a
limiting
factor.
Ordinance
#46
(2002)
Whereas
it
is
the
goal
and
intention
of
the
City
Council
to
have
no
less
than
40
million
dollars
($40,000,000)
in
principal
in
the
Wheeler
Endowment
Fund
as
an
endowment
to
secure
the
long-‐term
financing
of
the
Wheeler
Opera
House
operations,
capital
improvements
and
grants
to
local
non-‐profit
arts
organizations
(at
current
levels
plus
estimated
inflation)
upon
the
date
that
the
real
estate
transfer
tax
is
currently
anticipated
to
expire
in
the
year
2019.
VIII.
CITIZEN
COMMENTS
Pam
Cunningham
echoed
Cohen’s
position
of
the
endowment
and
how
critical
it
was
for
the
Wheeler.
IX.
ADJOURNMENT
O’Neil
called
for
a
motion
to
adjourn;
Kurt
made
the
motion;
Cohen
seconded.
The
meeting
was
adjourned
at
1:45pm.
MEMORANDUM
TO: Mayor and City Council
FROM: Pete Strecker, Assistant Finance Director
THRU: Randy Ready, Assistant City Manager
MEETING DATE: April 20, 2015
RE: 0.5% Wheeler Real Estate Transfer Tax Discussion
REQUEST OF COUNCIL: To help guide discussions around a future ballot question to voters
on the extension and/or expanded use of the 0.5% Wheeler Real Estate Transfer Tax (WRETT),
the focus of this memo, attachments and pending discussion is to receive:
• feedback from Council on what additional information may be desired with regards to the
historical revenues and uses of the 0.5% Wheeler Real Estate Transfer Tax;
• feedback from Council on what forward-looking scenarios it may like to see, to help
guide decisions about the amount of funding that needs to be dedicated to the Wheeler
and the amount that may be available for other purposes; and
• direction on the topics and questions for community feedback related to the WRETT
renewal and possible repurposing.
BACKGROUND: The current 0.5% Wheeler Real Estate Transfer Tax is scheduled to sunset
December 31, 2019, and is approaching the end of the second of two twenty-year terms that were
adopted by Aspen voters. Given that no future real estate transfer taxes can be created in
Colorado under the Tax Payer Bill of Rights (TABOR), it will be necessary to go back to the
voters to ask whether the tax should be extended. Coupled with this WRETT extension question,
Council has recently discussed the prospect of asking voters to repurpose a portion of the tax
proceeds. The information accompanying this memo is intended to further the process of these
two efforts.
The three attachments to this cover memorandum include: (1) a historical summary of the
revenues and uses of the WRETT during the current twenty year term; (2) a one-page summary
of facts pertaining to the WRETT; and (3) two hypothetical models of future WRETT revenues
and projected Wheeler expenditures to help frame possible scenarios to consider. Future
scenarios can be generated based on Council direction; the two provided today are not intended
to be an exhaustive set.
Wheeler RETT Tax Discussion - Page 1
CURRENT ISSUES AND NEXT STEPS: The only direction that staff is requesting from
Council at this April 20 work session is response to the three questions outlined above. Further
direction on the following issues will be requested at future work sessions leading up to WRETT
renewal and possible repurposing ballot questions:
• Determination of the portion of the WRETT proceeds to be dedicated to the Wheeler and
the portion that may be available for repurposing
• Specific use(s) to be proposed for any repurposed funds
• The term of renewal for the WRETT
• The term for any proposed repurposing
• The logistics of funding any new uses (i.e., should the amount of repurposed funds be
determined prospectively or retroactively each year once the actual amount of available
funding is known?)
• Scheduling of the ballot questions in advance of the current December 2019 WRETT
term expiration
Wheeler RETT Tax Discussion - Page 2
MEMORANDUM
TO: City Council
FROM: Pete Strecker
THRU: Randy Ready
MEETING DATE: April 20, 2015
RE: 0.5% Real Estate Transfer Tax
Background
Aspen’s 0.5% Real Estate Transfer Tax (RETT) is one of two RETTs applied on the sale of property within City limits, and
was first adopted in 1979 for the purpose of “renovation, reconstruction and maintenance of the Wheeler Opera House
… and for the purpose of supporting the visual and performing arts”. This initial voter-approved tax, scheduled to sunset
twenty years after its initial adoption date, was extended for a second twenty-year term by voters, commencing January
1, 2000 and ending December 31, 2019.
Aspen is one of twelve communities that have real estate transfer taxes applied to the sale of property. Due to the
passage of the Tax Payer Bill of Rights (TABOR) in 1992, no new real estate transfer taxes can be adopted into law in
Colorado. While no new taxes can be created, there has been some precedent for expanding purposes.
Community RETT Rate
Breckenridge 1.0%
Frisco 1.0%
Gypsum 1.0%
Minturn 1.0%
Snowmass Village 1.0%
Vail 1.0%
Winter Park 1.0%
Aspen 0.5% and 1.0%
Avon 2.0%
Crested Butte 3.0%
Telluride 3.0%
Ophir 4.0%
Volatility in Collections
Highlighted by the recent collapse of the real estate market during the Great Recession, the inherent unpredictability of
real estate transfer tax collections often results in communities applying RETT resources to non-recurring expenditures
such as land acquisitions for parks and open space, transportation fleet purchases, or other capital outlay needs. It is
less typical for this type of tax revenue to be relied upon for general operating expenses, as it has been for the Wheeler
Opera House. Looking at Aspen’s experience specifically, despite average annual increases in collections for the past
Wheeler RETT Tax Discussion - Page 3
fifteen-year period being roughly $71,000, yearly changes in Aspen’s 0.5% RETT collections are wildly sporadic – as great
as 53% increases and as low as 42% declines. Given this swing in annual variances, caution needs to be exercised when
dividing out resources, if such a decision is made.
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
Annual 0.5% Real Estate Transfer Tax Revenue
23%
-3% -5%
11%
43%
53%
19%
-16%
-42%
4% 5%
-16%
24%
-10%
44%
-60%
-40%
-20%
0%
20%
40%
60%
Annual Change in 0.5% RETT Revenue
Wheeler RETT Tax Discussion - Page 4
Wheeler Use of the 0.5% RETT
Excluding capital outlay, the Wheeler Opera House has required an operational subsidy of roughly two-thirds 1 its total
annual operating budget since the 0.5% RETT was extended by voters; the remaining operating need was provided for
by production revenue and leased space rental income.
During this same fifteen year period, the 0.5% RETT has generated roughly $53 million in annual income, or $28.9 million
more than annual operational needs.
1 For comparison purposes, a 2014 report by the National Center for Arts Research (NCAR Report Volume 2) found that small and medium sized
performing arts centers throughout the country tend to cover an average of 41-43% of their operating expenses with earned income. The remainder of
the operating expenses and nearly all capital expenses are funded by philanthropic contributions and direct government subsidies.
61%63%63%64%
67%68%64%67%
71%73%73%
76%
69%70%67%
40%
45%
50%
55%
60%
65%
70%
75%
80%
Operating Subsidy Need from 0.5% RETT
Subsidy Needed from RETT Annual Average
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
0.5% RETT Revenue (Line) and Operational Subsidy Provided by RETT (Bars)
($1,000's)
Wheeler RETT Tax Discussion - Page 5
In addition to the operating subsidy, RETT resources have provided for $10.2 million in capital improvements for the
building and other equipment needs. Beyond scheduled replacement of equipment and other more “routine” building
improvement expenses, there have been (or are imminently scheduled to occur) three significant remodel efforts that
were/are supported by RETT funding, including: the basement remodel (2011), the balcony and A/V booth remodel
(2013) and box office, lobby, back of house and roof renovations (2015).
Finally, an additional $1.5 million in grants to local non-profit art organizations has occurred during the last fifteen years,
as well as $17.2 million deposited into the Wheeler Opera House Fund balance.
Wheeler RETT Tax Discussion - Page 6
FIVE THINGS TO KNOW ABOUT THE 0.5% WHEELER
OPERA HOUSE REAL ESTATE TRANSFER TAX (RETT):
1. A RETT IS NOT AN ANNUAL TAX. A real estate transfer tax is not a
recurring tax that is payable by Aspen residents or visitors. Rather, it is an
amount paid to the City, only if an individual or entity purchases property
within the Aspen city limits. The tax is paid at the time of purchase.
2. THE 0.5% WHEELER RETT IS APPROVED THROUGH 2019.
Aspen City Council first adopted the 0.5% RETT dedicated to the Wheeler
(Ordinance 20 - Series 1979) for a twenty-year term. Voters approved an
extension in May 1997, and adopted a second twenty-year term, commencing
January 1, 2000 and ending December 31, 2019. (The City does have an
affordable housing RETT but that was approved separately.)
3. NO NEW RETTS CAN BE ADOPTED IN COLORADO. There are
eleven other communities in Colorado that impose a real estate transfer tax,
most are resort communities. Given voter adoption of the Taxpayers Bill of
Rights (TABOR) in 1992, it is unlawful to create or pass any new real estate
transfer taxes. It is possible for a RETT to expire, extend and/or expand. If
an existing RETT expires, a community cannot bring it back at a later date.
4. WHEELER OPERATIONS CURRENTLY DEPEND ON THE RETT.
The purpose of the 0.5% Wheeler RETT has been, and continues to be, “to
provide for the maintenance of the Wheeler Opera House; and, subordinate
thereto, to provide for the support of the visual and performing arts…” Over
the first fifteen years of the current twenty-year term (1999-present), all
capital improvements to the building, equipment purchases and nearly two-
thirds of operational funding for the Wheeler Opera House has been funded
from RETT resources.
5. THE WHEELER WOULD NEED TO MAKE CHANGES ABSENT
THE RETT. In 2014, the 0.5% RETT provided for roughly $2.25 million
in subsidized productions, capital improvement and operational costs, and
community arts grants. Because of this subsidy, ticket prices have remained
relatively inexpensive for the Wheeler’s diverse programming which caters
to a wide variety of ages and income levels. Assuming no renewal of the
0.5% RETT for Wheeler purposes, without changes to current operations, the
existing balance in the Wheeler Opera House Fund would be exhausted
roughly twelve years.
Wheeler RETT Tax Discussion - Page 7
The following scenarios are intended to generate discussion around the 0.5% WRETT revenue that voters may
potentially want to consider for expanded purposes beyond the Wheeler Opera House. The initial scenarios shown are
not intended to be an exhaustive list of options, but rather a starting point, and are in no way reflective of staff’s
recommendation.
Hypothetical Models
Currently, the an annual operational subsidy need for the Wheeler Opera House from the 0.5% RETT is roughly two-
thirds of total operational cost; any excess revenue above and beyond the operational subsidy has either provided for
capital outlay and improvement projects, or has accumulated in fund balance. The current balance in the Wheeler
Opera House Fund as of the end of 2014 is $29.4 million.
There will ultimately be a number of options to consider when looking forward to the level of RETT resources needed for
the Wheeler Opera House. How those options look will be determined in the coming months, and will require input
from multiple parties with various perspectives. But to provide some context for future discussions, the following
graphical information outlines a hypothetical view to the current two-thirds subsidy level into the future, and how that
may relate to 0.5% RETT revenue.
Scenario 1: Under this hypothetical scenario – assuming continuation of the two-thirds operating subsidy need,
continuation of the $100,000 in arts grants, and a linear annual increase in RETT revenue of $71,000, the amount of
additional RETT revenue for re-purposing would be roughly $2.0 million in 2017, increasing to $2.5M by 2039.
Given that capital outlay is excluded in the previous chart, adding a perspective on the Wheeler Opera House fund
balance into the future seemed necessary. Assuming regular annual capital expenditures of $150,000 (inflated at 3%
annually) and interest earnings (1.5% return beginning 2017), plus one large future remodel of $10,000,000 in 2031, it
appears that the fund balance would remain positive during the next twenty years.
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
Straightline Average Revenue Growth ($71K/Yr)
$2M Operating Subsidy in 2015 + 2% Escalator
$100K RETT Grants
Current Operations Grants Excess / Capital RETT Revenue
Wheeler RETT Tax Discussion - Page 8
Scenario 2: Under this hypothetical scenario – assuming continuation of the two-thirds operating subsidy need,
continuation of the $100,000 in arts grants, and a linear annual increase in RETT revenue of $71,000, plus expanded
programming subsidy needs by 10% beginning in 2020 (in conjunction with construction of a new venue), the amount of
additional RETT revenue for re-purposing would be roughly $2.1 million, fluctuating slightly over the forecast period.
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
Capital Expenditures $150,000/yr + 2% Escalator
Interest Earnings of 0.5% in 2015, 1% in 2016, 1.5% Thereafter
$10M Remodel In 2031 (20 years)
fund balance
$0.00
$1,000,000.00
$2,000,000.00
$3,000,000.00
$4,000,000.00
$5,000,000.00
$6,000,000.00
$7,000,000.00
Straightline Average Revenue Growth ($71K/Yr)
$2M Operating Subsidy in 2015 + 2% Escalator
10% Operating Increase in 2020 (New Facility)+ 2% Escalator
$100K RETT Grants
Current Operations Grants Excess / Capital Future Operations RETT Revenue
Wheeler RETT Tax Discussion - Page 9
In tandem with the additional subsidy need and expanded programming starting in 2020, consideration for constructing
a new space has been considered for the balance in the Wheeler Opera House Fund in the following table. An additional
10% load on the $150,000 annual maintenance need was incorporated starting in 2020, to address the additional
space. Under this hypothetical scenario, the solvency of the Fund does not appear valid unless a greater return on
investment is achieved (closer to 2.5% beginning in 2017).
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Capital Expenditures $150,000/yr + 2% Escalator (10% Incr. in 2020)
Interest Earnings of 0.5% in 2015, 1% in 2016, 1.5% Thereafter
$15M Construction in 2020; $10M Remodel In 2031 (20 years)
fund balance
Wheeler RETT Tax Discussion - Page 10