Black River Coliseum losses estimated at $1M annually

POPLAR BLUFF, Mo. -- Poplar Bluff city manager Heath Kaplan attempted to address Black River Coliseum losses during a special city council meeting Wednesday.

He estimated the losses at more than $1 million a year, including the cost of utilities, depreciation and the building loan payment.

The coliseum losses have been calculated by the city as the money it costs general revenue to support the facility beyond operating and sales tax revenue. Cash losses at the event center were approximately $145,000 in 2013, according to budget documents released by Kaplan in December. Cash losses were about $112,000 for the pool and fitness center. Figures for 2014 are not available yet.

Kaplan on Wednesday used operating and non-operating expenses. This included costs for utilities, which are charged off by the city utility for all city buildings and are not an expense it has to pay. He also included the cost of the building payment and depreciation, another non-cash expense.

The calculations given by Kaplan used only operating revenue. He did not include between $200,000 and $280,000 in tourism tax revenue received annually. His figures also did not include capital improvement tax money that funds the cost of the building payment.

City ordinance directs that tourism tax money be used for "convention and tourism facilities." The ordinance also states 25 percent of the tax will be used for tourism marketing. The coliseum receives money from the tourism tax in both ways.

After the meeting, Kaplan was asked why his figures did not include the tourism revenue.

An ordinance governing distribution does not specify the tourism money must go to the coliseum, he said. If the city had a second convention center, tourism tax money could be used for it, but Kaplan said he was not advocating for another one.

Kaplan could not answer questions as to why the sales tax revenue used to make the building payment were not included in his figures.

He also could not answer questions as to why the coliseum utilities costs are counted as a loss for the coliseum and the utility.

He referred both questions to the city's auditors.

Governmental accounting requires that depreciation be included in calculations for an enterprise fund such as the coliseum, Kaplan said.

Kaplan said his depreciation figures are needed to offset the cost of building maintenance needs.

Pertinent address:

Poplar Bluff, Mo.