Proposed funding boost tips hat to Rochester Civic Theatre turnaround

Aug. 18—ROCHESTER — A pair of Rochester City Council members are suggesting boosting financial support of Rochester Civic Theatre beyond the group's $75,000 request.

"I think it shows a good commitment from us, that we appreciate what they do, and that they can work with other groups," council member Shaun Palmer said Wednesday of a recommendation to boost 2023 funding to $125,000. "If they can do that, it's a good thing for Rochester."

The recommendation comes after the council reduced financial support to $15,000 this year, following years of financial struggle and changes for the group that operates out of a city-owned building.

The nonprofit was on the cusp of losing its lease in the Mayo Civic Center in 2020, but now reports a brighter financial picture.

"As of the end of fiscal year that just ended two weeks ago, we are under $40,000 left in long term debt with our bank. That's it," said Erich Heneke, the Civic's senior accountant. "Everything else is current, no outstanding accounts payable that's over 30 days."

Additionally, he said the nonprofit has gone from having its liabilities outweigh assets by $170,000 in 2021 to seeing assets outweigh liabilities by $300,000 in the July 31 annual report that's currently being audited.

The group has received federal payroll and operating support amid the COVID pandemic, and Heneke said the financial liabilities related to the funding are being cleared from the nonprofit's books.

It's a drastic shift from when the Rochester City Council put the organization on notice in 2020.

The organization's 2019 fiscal year ended with its cash accounts overdrawn by nearly $60,000, and in 2020 questions about an unsecured $300,000 loan and unpaid debts prompted the city to pull funding.

Since then, several board members were replaced, and the organization's 10 full-time staff members were cut. Misha Johnson also became the theater's full-time managing director, and the organization stopped the practice of hiring professional actors.

Additionally, the Civic has opened its doors to a variety of community organizations, including other theater groups, to provide stage time and resources for events.

Johnson said the new direction has put the community organization on a solid path, with bookings set for the next two years and community groups sharing the space on a daily basis.

"I don't view it as competition," she said. "I view it as adding more art for the citizens."

The City Council has approved various levels of funding for the performing arts organization on an annual basis, hitting a recent high of $280,000 in 2017.

While COVID-related pressures curtailed some local funding in recent years, a change in Mayo Civic Center operations also reduced the city's direct funding to the theater group.

The new operating model shifted maintenance and custodial duties to the Civic Center operators, rather than requiring tenants to cover their own costs. With other services also combined, the city adjusted funding, which resulted in a $15,000 Civic Theatre contribution this year.

Johnson said the Civic Theatre board requested $75,000 to fund staffing needs, largely related to duties tied to other community groups using the space.

Civic Theatre currently has two full-time staff members and eight part-time employees, and Johnson said the goal would be to move at least two positions to full-time.

Any additional funding, she said, would help increase work with community organizations and could be used to bring new performance opportunities to the city.

Council member Mark Bransford, who joined Palmer in recommending a $125,000 contribution for 2023, said the Civic Theatre turnaround has been impressive and he wants to see efforts grow.

The recommendation doesn't guarantee City Council approval, and council member Molly Dennis opposed the move without specific insight to what the funds would provide.

"I am in favor of increasing the budget, if possible,' she said. "I just feel a bit blindsided with not having the data on how it impacts other things."

As one of the three members of the council's Outside Agency Oversight Committee, she also said she worries boosting the recommendation could set a precedent for other groups to expect more funding.

Bransford pointed out the proposed funds would be in line with what other groups operating in city-owned facilities already receive.

City Administrator Alison Zelms said the topic could be discussed with the full council Monday when it reviews her 2023 budget recommendations, but the potential budget mpact of the requested funding boost remains uncertain until more work is done.

The oversight committee, which reviews finances of all nonprofits occupying city buildings or receiving more than $100,000 in city financial contributions, will meet with representatives from RNeighbors and 125 Live at 2 p.m. Wednesday, Aug. 24.