JOLIET – The Rialto Square Theatre board on Wednesday approved a budget that recalculates questionable projections made just a week ago.
The Rialto also appears headed to a new property management agreement at a drastically reduced price after John Olivieri agreed to provide reduced services for $25,000 instead of the $80,000 proposal that had become an issue of concern at the cash-strapped theater.
The budget, like the one reviewed last week, shows a slight surplus but with some big changes in expected revenues.
The board voted, 5-1, for the budget that shows a $1,114 surplus that depends on a $500,000 subsidy from the city of Joliet. The Rialto fiscal year begins July 1.
The Rialto now expects $670,000 in rental income from office property it owns instead of $535,000 based on what was described as "a more accurate projection" in notes attached to the updated budget.
Instead of projecting that the Rialto Square Theatre Foundation will raise $300,000, the updated budget now projects $165,000 in fundraising.
A projection of $80,000 from co-promotional shows in which the Rialto can find a sponsoring partner was reduced to $50,000 and described as "much more realistic and achievable."
The net loss in Rialto operations is now budgeted at $488,000 instead of $636,000.
Joe Carlasare was the lone no vote against the budget, questioning whether certain projections were made "simply because we needed a balanced budget."
Carlasare after the meeting described the budget as "like a game of Whack-a-Mole. You hit one number on the revenue side and move something on the expense side."
Finance Director Dale Evans said the previous rental projections assumed a number of tenants would leave. The updated budget now assumes that they stay.
The Rialto has turned to Olivieri to provide property management expertise but last week questioned the $80,000 price tag that came with his services.
"Since you don't have the money, we reduced it," Olivieri told the board.
He also has reduced his services, Olivieri said, but will be responsible for tenant relations and attracting new tenants.
The Olivieri agreement is still pending legal review before it is approved.