Edmond Town Hall Faces Financial Struggle

By Kendra Bobowick

Calling the change both “astronomical” and “massive,” Edmond Town Hall’s Board of Managers members cited the increase in utility bills as just one of the primary reasons they would need more money from the town this budget season.

“We need to be reasonable about what we ask for and need to talk about our utility costs,” said board member Jane Sharpe.

Last year the board members received $125,000 from the town for the operating budget, which is $40,000 less than they had requested. This year’s request is higher. Board Chairman Jay Gill and others agreed to seek $225,000 of town funds for operating costs.

Also straining for financial attention is the price of upkeep.

“Our problem is building expenses,” said Ms Sharpe.

Board member Sandra Motyka believes the historic building’s upkeep — which falls outside the scope of bonded projects such as the new elevator and other improvements — relies on budget funding, but is suffering.

“Our day-to-day maintenance is slipping,” she said. Ms Motyka also mentioned that in the past, “as poor as we were,” the annual upkeep included a paint schedule for some interior portion of town hall.

Fueling the point, Ms Sharpe said, “We are stretching in every direction. We pay the bills when we get the money — it’s that tight.” This month shows the town hall finances are in the red, she said.

“We’re running at a loss right now,” Ms Sharpe said. With more enthusiasm following Mr Gill’s proposal to ask for $225,000, she commented, “That should keep us running.”

Despite the incomes generated from the Mary Hawley Trust Fund, which was established by the town hall’s benefactor herself, and the money generated from room rentals and the Edmond Town Hall Theatre, member Sandra Motyka fears the public may not realize that the trust fund and other income do not yield enough to thickly pad the town hall’s wallet. Approximately $45,000 came from the trust fund for the 2005-06 year.

This year’s income from movie ticket sales from January through the first of October is approximately $140,000 and concession stand sales for the same time period are roughly the same.

Theater Manager Tom Mahoney warns that the dollar amounts are then divided in several directions.

“You have to consider that we’re paying the film companies and we are paying for goods and merchandise.” Any profits go back into supporting the town hall’s functions, including salaries and maintenance, grounds work, or anything else that may arise, he said.

Utilities, for example, present a large monthly expense, especially in the past year, which saw increases in both fuel and electricity costs. For the months of January, February, and March of 2006, heating oil cost $7,800, $7,600, and $6,600 respectively. Electricity for January through March of 2006 cost $2,300, $2,700, and $2,800 respectively, according to Mr Mahoney’s records.

Although a source of finances, the trust fund also presents frustrations for board members.

Ms Sharpe notes that the trust’s return was smaller than the previous year, causing her to worry.

Unfortunately, the board is not able to alter the trust’s conditions to their monetary benefit.

“It’s a trust and we have no say in what [the handlers] do,” Ms Motyka said.

Ms Sharpe asked, “But don’t they follow our guidance?”

“No,” said Ms Motyka

Ms Sharpe was hoping at least for a bank representative to review the portfolio with them. Considering such a meeting with the bank, Ms Motyka said, “We can’t dictate to them, but we can be petitioners.” Mr Gill explained that the trust had been established in a certain way under Ms Hawley’s direction to benefit the town hall.

Alternate sources of income may be misleading to the public, however. Ms Motyka stressed, “There is some misconception and [the public] says, ‘You have the trust fund…’ They must think it’s hundreds of thousands. In fact, the trust account yielded roughly $45,000 in the past year, and will deliver a similar amount for the 2007-08 year.

“You have the movies, the candy, and they think we have all this money but we’re just status quo,” she continued.

She made the point that despite the facility’s ability to generate some of its own income, the town hall’s finances are still strained. “We can’t get past the point of treading water,” Ms Motyka stressed.

Summarizing the board’s situation, she said, “Part of our message is that we’re not as rich as people think we are.”

In The Kitchen

Mr Gill had also proposed making a request for some seed money and to begin the task of assessing the kitchen renovations for the commercial facility adjoining the Alexandria Room on the town hall’s third floor, which can accommodate banquets.

Too few cooks are in the kitchen at Edmond Town Hall, literally, which the Board of Managers hopes to remedy as part of its capital plan of improvements, Mr Gill indicated. With the kitchen renovated and brought up to code, he explained, “It gives people a place to go that’s a nice facility…you can have a caterer and a caterer can cook on the premises.” He stressed that, “We have a lot to offer.”

Civic groups and private parties would be able to again use the room and kitchen combined for banquets, he said. “There used to be a lot of weddings there,” Mr Gill said.

The board pondered how best to approach the kitchen situation, and while Mr Gill will seek an estimate for his list of needed appliances such as a stove and refrigerators, a floor, the board also hopes to have the facility assessed.

Ms Sharpe said, “I know a couple of restaurant owners, and I will ask who they used for kitchen design.”

Member James Juliano suggested acquiring a rough mechanical design before they sought any estimates for the renovation and improvement work.

“We would need a rough plan, and then take it from there,” he said. Already he sees one area that keeps the cost of kitchen renovations lower than the board had anticipated. They had initially believed that no ductwork or ventilation was in place to accommodate an oven hood. On the contrary, the ducts exist.

“That was going to be a big stumbling block,” Ms Motyka said.

Regarding the overall project, Ms Motyka also wants to proceed with as much caution as possible with the future capital project. She suggested using a project manager for the job, or someone who oversees progress and who reports to the Board of Managers.

Doubling the kitchen’s importance are two incidents that will increase the cooking facility’s appeal. With the recent Fireside Inn sale, the town hall could again become the banquet hall, wedding reception facility, and home to civic events that it had been in the past. Secondly is its critical role in helping generate income in a building where the current municipal offices will empty once the new town hall draws city business to the Fairfield Hills location.