Back in May of 2009 I estimated that the Burnsville Performing Arts Center would lose about $825,000 in 2009 alone. This estimate was seen as being high and was heartily refuted by the Burnsville City Council, City Staff, and especially VenuWorks management for months. Following my post and the subsequent front page Pioneer Press article on the same topic, Burnsville’s City Council decided that it wanted to see quarterly updates on the financial status of the PAC. It’s been a long time but Councilmember Charlie Crichton requested that it be added to the agenda for the November 10th, 2009 Burnsville City Council Worksession.
After seeing that Councilmember Crichton wanted the Q3 BPAC update on the agenda, I contacted the Burnsville City Clerk to request any information she had available. Unfortunately she was out of the office and I was unable to receive a copy until today (I swear this shit is on purpose):
From: Craig Ebeling
Sent: Thursday, October 22, 2009 3:12 PM
To: * City Council
Cc: Macheal Brooks; Tammy Omdal; Tom Hansen
Subject: FW: 3rd Qtr BPAC Report – Line Item DetailsDear Council Members,
Please find attached the Third Quarter more-detailed report for the PAC. For your comparison the report that you received in July is also attached. The total estimated net loss for the fund has increased from a 2nd Qtr estimate of $595,000 to a 3rd Quarter estimate of around $834,000. This represents about a $239,000 greater net loss than what was included in the 2nd Quarter report. This increase is a result of the decision to purchase additional capital items in lieu of utilizing the surplus construction funds to write down debt payments. With the exception of the impact of the capital spending approvals that occurred after the July report, the year-end estimated net loss remains fairly consistent with what was estimated at the end of 2nd Quarter.
BPAC
(595,000) Total projected year-end net loss, as projected in July 2009
(221,000) Increase in estimated contribution towards debt service expense
( 35,000) Acquisition of marquee sign
( 20,000) Decline in year-end operating revenue projection
15,000 Increase in sponsorship revenue projection
22,000 Increase in host fee revenue projection
(239,000) Total change in projected year-end net loss
———–
(834,000) Total projected year-end net loss, as projected in October 2009*figures have been rounded
There is a note attached that says that their 2009Q2 report assumed that the council wouldn’t approve the additional and unnecessary additions to the BPAC that VenuWorks requested and would instead use it to pay down debt. Hah! Why the fuck would the City Staff ever assume that the Burnsville City Council would choose NOT to spend money when it had the chance, especially when it was related to its failing baby? Morons.
Well tonight at the meeting, there was a discussion about additional monies “left over for the building” and how the council allocated a maximum to be used for the orchestra shell. Bids came in under and now there is a request for an additional expenditure for a dance floor. Dan Gustafson repeatedly mentioned how it just made good business sense to buy this with the extra funds and both Kealey and The Queen agreed. Crichton and Sherry disagreed and wanted it to go towards paying down debt. Gustafson, didn’t I tell you to step down from any and all discussions related to PAC spending because of your Chameleon Theater Company conflict of interest? Yeah, I sure did. Dan Gustafson is a fucking worthless horse’s ass and he wouldn’t know a good business decision if it fucking slapped him upside his big, fat, fucking head. Why Burnsville residents aren’t at every fucking meeting where he discusses anything related to the PAC demanding that he be removed from the council I’ll never know. You are all a bunch of fucking pussies for letting him continue to waste your tax dollars and run Burnsville into the ground just like he openly admits he did with his own finances.
What do you think about the Burnsville City Staff’s updated Performing Arts Center budget for Q3? Were you expecting that the PAC would do better or worse than this new projection? Are you surprised that I was correct back in May with my $825,000 estimate? Are you disappointed that the Burnsville City Council didn’t have more harsh words and questions for VenuWorks management about why they are continuing to hemorrhage money like it was going out of style? Whatever you have to say about the new BPAC outlook update go ahead and comment on as I’d love to hear what you have to say!
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BPAC Financials Archive
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November 11th, 2009 at 8:02 am
Burnsville PAC Loss Estimate as of Q3: $834,000! http://tinyurl.com/ye5wnzn
This comment was originally posted on Twitter
November 11th, 2009 at 8:10 am
I watched the meeting on TV last night. During the budget discussion, Craig Ebling indicated that the budget did not have $15,000 available for mowing medians. Well, where is the $834,000 going to come from to pay for the PAC operating losses then??
Remember, it can’t come from a tax increase, because we citizens were PROMISED that this project would NOT cause an increase in taxes.
Remember, its not “the economy” because ticket sales at the Zoo concert series this summer were doing just fine. People were perfectly willing to spend money on well-priced acts that had popular appeal.
I await the magical, inevitable, accounting maneuver of a combination of cutting more services and taking out more loans “for the general fund” to pay for this mess, which will be added to our taxes 2 years from now and will be cleansed of any direct association with the PAC, just in time for the Mayor to run for re-election…or hey, lets just “transfer” money from the Storm Water Slush Fund – the PAC has a water feature in front of it, that’s a close enough connection to water to warrant using these funds, isn’t it?
November 11th, 2009 at 12:19 pm
Whit, I am very confused. The City of Burnsville had budgeted for 2009 PAC losses of $265K at the beginning of the year. They have stood by silently and watched the budgeted losses grow to 315% of the initial $265K. Now they are forecasting losses of $834K as of Q3. $569,000 over the initial budget and no one is asking questions on how are we going to pay for this additional $569K in projected losses?? Looks to me that the PAC is over operating budget to the tune of 315% ($834/$265). It was my understanding that the decertification of TIF District 1 in would generate enough additional tax revenues to pay for the PAC Operational losses and repayment of the $16 Million plus in bonds.
Tammy Omdal presented last night that we should expect a Tax Levy increase in 2011 of 8.4%!! She also said that 50% of this 8.4% tax levy would be to pay for the PAC. Dan Kealey asked more questions about this statement and Tammy deferred all questions on this 4.2% Tax Levy increase for 2011 to the next budget meeting on Monday. Appears to me that The Queen is breaking her promise to not raise taxes to pay for the PAC as there is a conflict in this forecasted tax levy is needed to pay for the PAC. Why do you have to increase the Tax Levy by 4.2% to pay for the PAC when TIF District 1 decertification was going to more than cover the bond payments as well as the Operating Losses of the PAC??
November 11th, 2009 at 12:43 pm
From a Star Tribune article back in June 2009:
From Elizabeth Kautz’ own website:
Wow.
November 11th, 2009 at 1:27 pm
someday Bill is going to tell us how he really feels about Dan gustafson.
as a Burnsville resident i am going to keep my powder dry for the aforementioned tax increase and its destination noted above.
Charlie is up for re-election in 2010, does anyone know if he is running again or if there are any candidates already announced?
November 11th, 2009 at 2:41 pm
I’ve wondered who we should/could promote to help steer things in a better direction. Any one here want to run? Is Charlie the only one up?
Yeah, I think Bill should learn to express his opinions and feelings – he really keeps it to himself, doesn’t he?
Seriously, Bill is just striking a balance for all of the jerks currently in politics who wouldn’t recognize truth and common sense if it bit them on the naughty bits.
I say, fire Venuworks, maybe even sue them for breach of contract (Whit – do you think that this can be successfully done?) Then try like hell to book some real acts while at the same time putting the place up for sale. I mean, what else are they going to do (other than extorting the money from us)? This could be a good reason to move away from Burnsville before Kautz comes after the rest of our money.
November 11th, 2009 at 8:35 pm
I watched the meeting last night too. There was mention of the possibility of raising taxes by 8% next year to cover the hemorrhaging PAC (Dead Horse). Why you ask? because the taxes collected from TIF Districts #1 and #2 are going to pay off the PAC bonds and NOT going into the general fund. Talk about Gustafson and Kautz’s business skills………Look at their track record. Kautz’s previous employer skips town without paying for “Art” in the HOC. She gets the Burnsville tax payer to foot $50,000 towards the bill with NO credits. She gives total credit for the”Art” to her previous employer’s “Foundation?” and the Burnsville Foundation. Then we can bring up Gustafson’s adventures in business. By the way noticed that Apple Wood Grill is coming back owned by the Town and Country strip mall owner. They are planning to have music too… don’t know if Gustafson is involved.
Other potential news from Burnsville……The desecration of cemetery land ( Pleasant View Memorial Gardens) at Highway 13 at Portland Ave., by the apparent illegal sale of platted, subdivided CEMETERY land (Reference Mn Statute #306.01 to begin with and other pertinent statute subdivisions including Mn Statute #307.06). The Burnsville City Hall response was, ” They (Minnesota Cemeteries Corporation) qualified under our statutes and ordinances”. Sorry Burnsville, but you didn’t do any back ground checks on this one only an apparent wink and nod. Minnesota statues supersede any city statue in this particular case.
November 11th, 2009 at 8:36 pm
I’m not defending venuworks, but let us all keep in mind that the PAC isn’t the only venue in the area. And just sticking a performance center in the middle of burnsville is going to suddenly make it “the” venue destination for popular acts.
The problem here is that it doesn’t seem that Venuworks is doing anything. We don’t hear about their failed attempts. the bidding battles they have had. Instead we just hear how things aren’t really all that bad. We’re just going to be short nearly 1 million dollars this year. that’s not bad at all…
November 11th, 2009 at 9:04 pm
We seem to have a track record of donors such as Mayor Kautz’s former employer, The Friends of the Burnsville Performing Arts Center, Frontier Communications making commitments to fund art, projects, orchestra shells, marque signs etc. Then after the facility is built, sign is installed (32K of which we only see $7500 annually from Frontier), and amenities gone without, the tax payers are left holding the bag for these expenses due to those donors did not meet their commitment. I think an ordinance needs to be put in place that no feature or amenity will be built or procured until the entire cost of such item has been received from the donor as we are now being taxed for these items which would have never been bought or built. No more spending or approvals to spend donations until the entire amount required to buy the item and maintain it going forward is received in full!!
November 12th, 2009 at 8:37 am
Star Trib and Pioneer Press have articulated the budget woes Burnsville is looking at for 2011 and the tax increases of 8.4% in 2011 to maintain current services and pay for the PAC bonds and projected operational losses of $823K.
http://www.startribune.com/local/south/69818847.html?elr=KArks:DCiUocOaL_nDaycUiD3aPc:_Yyc:aULPQL7PQLanchO7DiUr
The plan projects a tax increase of 8.4 percent for 2011. Half of that increase would come from debt that will begin to be paid down on the $20 million publicly financed Burnsville Performing Arts Center.
http://www.twincities.com/dakota/ci_13767981
City Manager Craig Ebeling said 2011 is different because the city begins to pay for the debt on its controversial $20 million performing arts center out of the general fund that year. But, he added, a tax-increment-financing district is decertified at the same time, which should balance out the impact of that debt.
“We have this major shift in the way we are handling the debt for the performing arts center, and that’s by design,” Ebeling said.
Balance out the impact of that debt?? It appears to me that a 4.2% tax increase is necessary in 2011 to pay for the PAC operating debt/Bond Debt and that TIF 1 and 2, and land fill tipping fees will not be sufficient to cover your white elephant Mayor Kautz!!
Madam Mayor Kautz and Dan Gustafson, if you need assistance drafting your resignation letters please reach out to the reader base here at lazylightning.org and we would be happy to assist!!
November 12th, 2009 at 11:45 am
These people (our mayor and city council) are criminals.
November 12th, 2009 at 12:07 pm
The mayor and Gustafson are definitely criminals. Sherry is way too fucking stupid to be a criminal in public office and Charlie, well, he’s just Charlie. I don’t have much of an opinion about Kealey but I’d guess he’s at least partway on the good side of the fence.
I am really waiting for the mayor to take down her website statements about not raising taxes to pay for the PAC, being that she’s out and out lying. But no worries folks, I have a screenshot of it immortalized here for all time: http://www.flickr.com/photos/bill_roehl/4098818608/sizes/o/
November 12th, 2009 at 1:57 pm
More from Thisweek: http://www.thisweeklive.com/index.php?option=com_content&task=view&id=13327&Itemid=2
I wonder when that webpage of the Queen’s will come down.
November 12th, 2009 at 3:36 pm
Thats a pretty forgiving article from ThisWeek.
November 12th, 2009 at 4:24 pm
I love the “blame the state” game regarding the Market Value Homestead Credit — what Kautz describes as an “unfunded mandate,” has “hurt the city’s bottom line”, per the PIPress quote. First, this is only $1M/yr for two years (I know $1M is still a lot, but this $1M is the least of our problems); Second, this is the same credit she hyped up at a recent council meeting to show that citizens property taxes are going down by $25/yr, as if it were her doing; Third, a city should NEVER count on state funds such as LGA, and should be able to operate/balance its books without depending on these state funds; Fourth, the PAC debt and its operating losses are going to result in increased property taxes, and continuing to say it wont will not make her wish come true. Mayor Kautz, please just admit it already, get your head out of the sand, stop spinning the story, and figure out what you are going to DO about it.
P.S. Denial and inaction have not worked, so please try something else.
November 13th, 2009 at 9:48 am
Bill,
What is with this cemetery thing that Will brought up? Perhaps LL needs to do a little more investigative reporting? We can not have cemeteries being sold off illegally. It’s a seperate issue than the usually Burnsville bs but one worth looking into.
November 13th, 2009 at 10:03 am
TDevils, Will:
Yes, it would appear that Will is correct. If the cemetery in question is selling its land off to that stupid doggie day care, it would be in violation of Minnesota State statue 307.06.
That said, it’s not up to the Burnsville City Council to enforce those statutes but they should have immediately notified the county and State Attorney General’s office of this land issue: https://www.revisor.mn.gov/statutes/?id=307.082&year=2009
So, go for it. Report them now that you know that it’s not right but to me, it should be up to the landowners involved with the cemetery to make those decisions *shrug*.
November 13th, 2009 at 11:30 am
Didnt the city already change zoning and/or sell off land along the east side of the cemetary to allow some sort of a storage facility?
November 13th, 2009 at 3:27 pm
During the meeting they were presenting a PowerPoint presentation of the 2010 budget work. It was extremely difficult to see (blurry) using the web stream so I searched online for it and couldn’t locate it. Thankfully Burnsville’s City Clerk was able to procure a PDF copy for me which you can now view here: http://www.lazylightning.org/documents/bv2010budgetppt.pdf
In my opinion the most interesting slides are on page 9 (where taxpayer’s dollars go) and on page 16 (what’s driving need for future, higher, taxes)
—-
From page 9:
6% to special districts (Mosquito Control District, Met Council, Transit District , Dakota County CDA, Burnsville EDA, and for some property a Watershed District tax.)
22% to the school district (which in fact should be partly covered by your city taxes since they use the same facilities to hide some of the taxation)
30% to the county (why is the Dakota County CDA not included there?)
42% to Burnsville
—-
From page 16:
1. Replacement of the refrigeration system at the Ice Center Acquisition of equipment, vehicles, and improvements to facilities (e.g., Fire Station I, City Hall roof)
2. Basic annual capital improvements at city parks (to maintain what we already have)
3. Economic development initiatives (temporary funding source is EDA fund balance – permanent funding source is needed)
4. Performing Arts Center operations and debt
—-
It’s actually a very well done presentation and one that all Burnsville residents should pay close attention to.
November 13th, 2009 at 3:35 pm
1. Satay2Go gift cert still up for grabs: http://tinyurl.com/ygc7m4m. 2. Check out Burnsville’s 2010 Budget PPT: http://tinyurl.com/ycjlhu8
This comment was originally posted on Twitter
January 23rd, 2010 at 9:09 am
[...] As you can see from the video clip from the event, Mayor Kautz claims that she is so proud of the Burnsville Performing Arts Center which has brought so much value to her city. You know, to the tune of at least -$834,000. [...]
February 12th, 2010 at 10:32 am
[...] it would begin to turn itself around and end up not losing money year after year–you know, like the ~$835,000 they actually did lose in 2009 alone: The goal is to operate the center so that operating revenue is sufficient to cover [...]