Operating Budget- Advice Welcomed

[Amanda]

We have just opened an 1100 seat theatre and I need to submit an operating budget to our board for approval. They way I see an operating budget is that it is an allocation of resources in support of the activities of the organization or space. I currently also operate as the TD for the drama department, in addition to space and event management. The funds for the set construction come out of the drama/musical budgets so I've not included those on my budget. What I have seems low, but I feel like that covers all of what I can see for the immediate future. I am trying to be conscious of the large bill that was already spent on the construction of this space, and other unforeseen costs in our first operating year. What am I missing from my list? I can't list any income since we haven't had any outside rentals. Should I also be listing energy consumption from the theatrical lighting? I wouldn't even know where to start with for those numbers. Any help is greatly appreciated.

$2000- for replacement lamps for in-house lighting inventory- 1 case approx. $250 x 8 cases of 12 units
$450- for replacement batteries for wireless mics- $15 for 1 case of 12 units 30 cases
$500- for expendables and replacements such as house gel for lighting to create house plot for general use
$1750- for minimal tool and equipment purchases such as hand tools or paint, replacement parts for saws and other machinery.
$500- for clerical supplies- folders, binders, etc
$500- for large format printing for technical drawings/lighting for productions
$2000- for repairs of equipment or training costs for specialists. This may grow as equipment ages.
$5000- for yearly inspection of counterweight system (this was the estimate given to me from our installer)

 

[Footer]

I spend over 2500 bucks a year on tape alone. The rigging inspection should not cost that much unless that inspection also takes into account anything that needs to be fixed.

Could you give us an idea of what this space looks like? How many dimmer? How big of a PA? How many linesets? How many shows a month? What kind of show? Is rental money important? Will you ever have to be able to fill a rider?

I have some big points for you to think over though. This all comes from managing a 40 year old two venue facility owned by NYS.

-Without knowing what programming is going in the venue it is nearly impossible to know how much money you need to operate. Theaters are like cars, the more you use it the more money you need to put into it to keep it going. You can't run a theatre with a commuter budget if you are going to be driving state to state daily. Operating money really needs to be figured as a percentage of business done, not just a flat yearly rate.

-It is the perfect time for you to start capital plan accounts for replacement of gear. You should be able to swap out your consoles in 5 years. You should be able to swap out lighting fixtures in 10. DMX fixtures should go every 5. PA should be every 10. Soft goods every 10. Now is the time to start thinking about putting money into the kitty for this. Once again, this should be in that percent of use figure. Going back to the car analogy, eventually you can no longer put new tires on and change the oil. Also, as gear ages if filling riders is an issue in your space capital projects become a major thing.

-Screw the large bill. Go big or go home. Running a theatre is expensive. It is the time to lay that out and to ensure you have the support when you need it. You don't want to scrape by your first year then have to double your budget the next year. Think of capital improvements all the time

-Getting a theatre going from the start is expensive. Unless you had a killer consultant odds are you could spend 5-10k on just cases and storage for all the gear you have and will get down the line. You will also find that there is a lot of stuff you don't have or don't have enough of.

This is a great thread and I'm really looking forward to hearing more about it. Oddly enough I don't actually have operating budget that I know about. I spend money when we need to spend it based on usage. However, capital improvements are slow moving.

 

[markviml]

I cannot reiterate strongly enough to start your capital fund now, before you need it. We're a 15 year old facility and the wear is starting to show. Unfortunately, we're just starting to raise the funds now.

Do you need to budget for additional staff to support events?

Are you responsible for cleaning supplies, restroom supplies, filters?

Budget for the plumber, HVAC repair guy, whatever else. The facility may be new, but things happen (you may be under warranty for a while).

Wish I was in your position of setting my own budget early. Best of luck!

 

[Ric]

I agree so much as above have already stated.!!!

How much equipment do you have already, and what didn't get inlcuded at the last minute due to 'budgetary constraints'?
Where I am 'ran out of money' 1 month prior to opening the doors; We had 3 flylines with electrics bars ( out of 30 possible), no drapes or masking, lights & dimmers but no lighting desk, NO installed sound system. In the first year expenditure was at least $100k to get the place functional, while having to hire in equipment and fix defects.
I didn't consider the Theatre actually finished for it's first 10 years as we continued to try & meet the original spec within the 'basic' operating budget.
In your figures I see no allowance for wages; that's usually a huge amount of your operating budget. Utilities, cleaning, as well.
We have in place a capital upgrade program, desks (Lighting & sound) every 6-7 years ( approx $40k each), lighting equipment is 10-12 years (this last years budget has allocated approx $300k for lighting replacement). In 3 years we're looking at replacing seating (477 seats will be around $200-$300K).

Unfortunately Theatre is usually not a profitable business, hence it's usually funded by a philanthropical organisation, grants, or government arts programs.

Our basic 'minor works & maintenance' budget is $8000, which is a large part of what you've mentioned.

Your list:
$2000- for replacement lamps for in-house lighting inventory- 1 case approx. $250 x 8 cases of 12 units ***Fine for the first time buy, then yearly will be maybe $500
$450- for replacement batteries for wireless mics- $15 for 1 case of 12 units 30 cases- ***will greatly depend on usage; this should always be on charged to your client.
$500- for expendables and replacements such as house gel for lighting to create house plot for general use ***You'll need twice this for the first time buy, then yearly will be maybe $200 depending on use & how many LED fixtures you have.
$1750- for minimal tool and equipment purchases such as hand tools or paint, replacement parts for saws and other machinery. *** Fine for the first time buy, then yearly will be maybe $100
$500- for clerical supplies- folders, binders, etc *** Fine for the first time buy, then yearly will be maybe twice that much. Photocopy/printer paper adds up fast!!!
$500- for large format printing for technical drawings/lighting for productions *** do you really need this? I don't get anything externally printed that size, ever.
$2000- for repairs of equipment or training costs for specialists. This may grow as equipment ages. ***In the first year training should be included with all gear, especially in a NEW facility, with new gear. No repairs shold be needed, but fixing of defects & warranty faliure may make you require hiring replacement gear.
$5000- for yearly inspection of counterweight system (this was the estimate given to me from our installer) *** WOW, this shouldn't cost more than $1500, and the first year should be included to cover any defects.
You need to cover:
Power leads, power boards, desk lights, electrical tape, gaffa tape, mic leads, mic stands, mics, DI's, AV cables, AV adapters ( i.e. Macs !!!), dressing room lights, paper towel, wash/teatowels, brooms, mops, buckets, bins, boxes for storage, haze/fog fluid, sash cord, safety gear/gloves .... and the list goes on.

If you have a basic list of what you are getting as part of the 'New Theatre opening package' then you'll be in a better idea to know what you're really going to need to spend money on!

 

[petercav17]

You need to cover:
Power leads, power boards, desk lights, electrical tape, gaffa tape, mic leads, mic stands, mics, DI's, AV cables, AV adapters ( i.e. Macs !!!), dressing room lights, paper towel, wash/teatowels, brooms, mops, buckets, bins, boxes for storage, haze/fog fluid, sash cord, safety gear/gloves .... and the list goes on.

I think about half of these would qualify as "Expendables" and are already allocated for, although not quite accurately, as Footer pointed out.

 

[Footer]

Our basic 'minor works & maintenance' budget is $8000, which is a large part of what you've mentioned.

Your list:
$2000- for replacement lamps for in-house lighting inventory- 1 case approx. $250 x 8 cases of 12 units ***Fine for the first time buy, then yearly will be maybe $500
$450- for replacement batteries for wireless mics- $15 for 1 case of 12 units 30 cases- ***will greatly depend on usage; this should always be on charged to your client.
$500- for expendables and replacements such as house gel for lighting to create house plot for general use ***You'll need twice this for the first time buy, then yearly will be maybe $200 depending on use & how many LED fixtures you have.
$1750- for minimal tool and equipment purchases such as hand tools or paint, replacement parts for saws and other machinery. *** Fine for the first time buy, then yearly will be maybe $100
$500- for clerical supplies- folders, binders, etc *** Fine for the first time buy, then yearly will be maybe twice that much. Photocopy/printer paper adds up fast!!!
$500- for large format printing for technical drawings/lighting for productions *** do you really need this? I don't get anything externally printed that size, ever.
$2000- for repairs of equipment or training costs for specialists. This may grow as equipment ages. ***In the first year training should be included with all gear, especially in a NEW facility, with new gear. No repairs shold be needed, but fixing of defects & warranty faliure may make you require hiring replacement gear.
$5000- for yearly inspection of counterweight system (this was the estimate given to me from our installer) *** WOW, this shouldn't cost more than $1500, and the first year should be included to cover any defects.

Once again, all of these number are meaningless without how much you are operating the room, what kind of shows you are doing, and what kind of inventory/capabilites you have. @Ric, could you answer that for us to give a frame of reference?

 

[Amanda]

Wow! Thanks for all the immediate input. We are a school facility, so I won't be directly responsible for some of the cleaning materials like dressing room lamps, soap, paper towels, etc, but I can include that on my list. I fully agree about putting money aside now for major repairs/replacements in the future as equipment begins to age and show wear and tear, just wasn't sure how to put a dollar figure on it. I've been left to my own devices to come up with budget, even though our district created this beautiful space and my position.

Right now during the school year we put on 2 large theatrical productions November and May, 2 smaller mime theatrical productions September and March, music concerts for our music departments in October, December, March and May, plus other speaking events, small performances, etc throughout the year. During the summer is when we will be heavily rented out by the community and I've gotten the rental fee schedule figured out to help compensate for wear and tear on equipment, batteries, gel, etc. We don't start renting to the community until July 1 of this year, so I don't have accurate numbers of what performance numbers during the summer will look like.

I've copied directly a lot of the information from our technical packet that I've created from our inventory lists:

Dimmers/lighting- about 275 dimmers. We have an Ion console, 4 portable ETCNet Nodes, 16 LED par units, 14 LED cyc units, 2 rosco Icue mirrors, 2 DMX iris units, 90 source four ellipsoidal units, and 36 source four par units. 2 Canto 700 follow spots. Various stagepin cables and multi-pin cables/connectors

Lighting Control
1 ETC Ion 2 panel/ 40 sliders
1 Smartfade 1248- Drama studio
1 Express 48/96 (out of commission as of spring 2015)- from old auditorium
1 Portable Unison Paradigm Touchscreen Station- House/Work/Orchestra lighting control
1 Stationary Unison Paradigm Touchscreen Station- DSR at SM console- House/Work/Orchestra lighting control

Projection
24’ x 30’ screen on rollup frame- front projection only- not moveable
Milky white cyclorama 67’ x 30’ (cyc line set)
Mounted LX1200 Christie Projector
DVD/Blu Ray Player
Mounted Sony PTZ Video Camera

Digital patching via Audia Flex software locations: CM left, CM right, CM mono, CM Sub, CA mix 1-12, DSL 1-6, DSR 1-6, USL 1-4, USR 1-4, Pit 1-4, SL rail 1-4,
SR rail 1-4, Cat 1-4

CobraNet locations- USL 1-2, DSL 1-8, USR 1-2, DSR 1-8, Pit 1-2, CTRL 1-4, Audio 1-4, Spot 1-4, SWPOE 21-24

Digital Equipment
MOTU
(2) Mounted Crestron Series 2 System Controller- Touch Screen
(3) Crestron Digital Media 8G+ Transmitter 201
- One mounted in control booth
- One mounted on podium
- One portable unit
- Soundcraft Compact Stage Box

Mixing Consoles-
Soundcraft SI Expression 3 32 Ch. Digital Mixing Console
Yamaha Digital Mixing Console

Amplifiers-
(4) Renkus-Heinz IC Live Fixed Install Dual 15-inch band pass Subwoofer
(2) Renkus-Heinz IC Live Triple Stack Configuration

Speakers-
(2) KRK Monitor Speakers- Control Booth
(10) Renkus Heinz Non-powered 500 W PGN @ 4 ohms
(8) Renkus Heinz Self-powered, Includes PF 1-500 Amp Module
(4) Renkus Heinz Self-powered, Includes PF 1-200 Amp Module

Media-
(2) Tascam Solid State CD Recorder
(2) Single Rack CD Player
(1) Multimedia Computer- Mac Pro

Communication-
(10) Clear Com Single Ch. Wired Communication Belt Packs
(3) Single ear lightweight
(2) Single ear standard
(6) Double ear standard
Comm. stations available throughout the theatre and several support rooms
13

Microphone and Accessories Inventory
(12) Handheld wireless mics
12 LAV attachments and bodypacks
12 Isomax Countryman headsets
(6) Beta 58A- Vocal
(6) C535EB AKG- Vocal
(1) Beta 52A- Kick Drum
(4) Beta 98AMP/C- Drum
(2) Beta 57A- Instrumental
(2) C 451B- Instrumental
(6) SM 57LC- Instrumental
(4) SM 81LC- Instrumental
(4) MD Sennheiser 421- Production
(2) Shure KSM44A SL- Studio
(1) VP88- Video Production
(2) C414 XLS- Reference Recording
(4) PCC 160- Floor Mics
(1) GN15 M- Gooseneck
(6) U853A- Hanging Mic
(1) UA 221- Passive Antenna Splitter
(2) Multimedia DI Box
(4) Passive DI Box
(4) Countryman Direct Box
(36) Sennheiser Assisted Audio Devices
(24) Boom Tripod Mic Stand
(10) Low Profile Boom Tripod
(10) Heavy Duty Mic Base
Assorted XLR Cables/ XLR Snakes

Linesets- 28 linesets- 5 of which are motorized electrics, and 3 motorized acoustical ceiling panels

Staff- I've got staff fees on our rental prices, but those are student techs. Perhaps having money allocated for outside professionals should the time come, but mostly we are self-sufficient during the year since we are mostly catering to our school district. Student Staff is not paid to run district events since they don't pay to use the space.

I think that answers most of the questions asked here. Right now I know that I need to allocate funds for- future equipment replacements, find out if I am responsible for setting aside funds for HVAC inspection repairs (but I think that's a building cost), tapes and tie line, and specific cleaning outside of my normal duties as well as our custodial staff.

Thanks all! Let me know what else I can answer.

 

[Footer]

Ignore the HVAC and power stuff. Concentrate on what is within the walls of the theatre. Only look at the other stuff if the building staff does not keep up with it. I assume the school district will take care of that stuff anyway.

You have a pretty amazing space handed to you. You now have the "state of the art" stuff. Cases for everything is a must. Organization and storage is a must.

You have automated linesets... those can be real time bombs. That 5000 dollar figure you got from the installer is about right. Those need TLC yearly to keep going.

Assume a new projector lamp yearly. If you don't have one in inventory now, buy one. Assume you will need to replace at least 5% of your mic inventory a year. Assume you will need to replace one complete wireless system a year. Assume you will need to replace half of your lav mics a year. Odds are most will be able to be repaired, but be ready for anything. Sound gear can take a real beating. Same thing goes for mic stands and clearcom.

You also have an entire PA built around cobra net. That is great for now, but Cobranet is already on its way out. That is going to make PA upkeep a real pain down the line, be ready for that.

I would also budget 5% of lighting inventory value in upkeep for your fixtures. Lamp sockets burn out, reflectors die.... all that kind of stuff.

Shop tools in the hands of HS students can be a real issue. When I taught HS I bought 10 screw guns at the beginning of the year... by the end of the year they were all dead or MIA. Blades break more often. Chop saw blades hit screws.... and PPE disappears. Assume you will replace all blades twice and a 1/4 of the hand power tools.

I would really look at things in terms of percentages going forward. I'm sure you won't have much gear break this year... but going forward things will start going in large clumps because they are all the same age. Do your initial lamp buy and do it big. Have a few spare 57s and 58s sitting in a drawer ready to go when you lose one. Buy spare sockets for your S4's. Most likely 20-25k will cover you end to end as long as you don't get dinged with a big ticket item. My space was all well and good until I lost our 90k FOH console... then I had to get emergency funds to replace it. Not an easy thing to do. Ensure you are on the capital plan list. Keep yourself on it. Always have an "improvement project" list going. Most importantly keep yourself current in the industry so when you need to flip the switch for new gear you know what you should be purchasing. I have a feeling that you are going to outgrow your audio gear first. You have a lot of legs in lighting and rigging. However, they really did cheapen you out on the PA.