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Storms a stressor on orchestra finances

By JOHN FLEMING
Published November 1, 2006

TAMPA — The Florida Orchestra had an operating deficit of $676,615 for its 2006 fiscal year, which ended June 30, the board of directors announced at its annual meeting Tuesday night.

Fallout from last year’s hurricane activity had a part in several items that contributed to the shortfall in the orchestra’s $10,164,224 budget, according to executive director Leonard Stone. One was a U.S. Department of Education grant for $248,000 to fund youth and educational activities that did not come through as it had in previous years.

“We were simply told that as a result of the effects of Katrina relief and the war in Iraq that priorities were changing very quickly in Washington,’’ Stone said.

The heavy demand for construction material that stemmed from hurricanes Katrina and Rita also took its toll. A shortage of window glass delayed by two months the reopening of the Mahaffey Theater, the orchestra’s St. Petersburg venue that was closed for renovation most of last season.

With the orchestra uncertain about when it could return to the city-owned Mahaffey, it had to postpone a fundraising concert by pianist Van Cliburn from the spring until September. The $200,000 raised from the Cliburn concert that had been planned for last fiscal year will be included in this year’s budget.

With the Mahaffey unavailable, the orchestra played at Pasadena Community Church, and attendance plummeted in the inadequate venue.

The loss of ticket revenue and extra costs to set up and tear down a stage in the church had a greater impact than the orchestra had anticipated, even with $175,000 it received from the city to compensate for being shut out of the theater.

“We had budgeted for a shortfall, but at the end of the day, it was $122,000 more than we had thought it would be,’’ Stone said.

A year ago, the orchestra reported a surplus of $323,789 in the 2005 fiscal year. In two of the three years before that, it had deficits.

Despite the operating loss, the orchestra’s total net assets increased in 2006, largely because of a $1-million gift for capital improvements from an anonymous donor.

It will go to fund the orchestra’s portion of construction of its administrative offices at the Mahaffey. Stone expects construction bids to be submitted this month and considered by the City Council in December. “My guess is it would be early January before construction could begin,’’ he said.

In other business at the annual meeting, held at the Center Club in Tampa, James R. Gillespie of St. Petersburg was elected to a one-year term as chairman.

John Fleming can be reached at (727) 893-8716 or fleming@sptimes.com.

[Last modified November 1, 2006, 20:31:14]