Art Museum Board

Springfield Art Museum Budget and Finance Committee Meeting Meyer Alumni Center 300 S Jefferson Ave. May 8, 2026 9:00 AM Suite 303 Springfield, MO 65806 TENTATIVE AGENDA 1. Call to Order 2. Approval of Minutes 2.1. Meeting Minutes 3. Report from the Museum Director 3.1. Monthly Financial Report 4. Adjournment In accordance with Americans with Disabilities Act (ADA) guidelines, if you need special accommodations when attending any City meeting, please notify the City Clerk’s Office at 417-864-1651 as soon as possible to ensure our ability to accommodate your needs. Page 1 of 11  Springfield Art Museum Budget & Finance Committee Meeting Minutes DATE: April 10, 2026 LOCATION: Meyer Alumni Center, Suite 303 TIME: 9:00 AM Committee Members Present: ☐Nora Cox ☒ Lindsey McDaniel ☒ Misty Tollett ☐ Lindsey Kelsay ☒ Debra Mergen ☐ Mark Wheeler ☐ Mitzi Kirkland-Ives ☐ Amanda Stadler Staff Members Present: Nick Nelson (Museum Director) Others Present: Call to Order: Meeting called to order by Nick Nelson at 9:05 AM Director’s Report: Museum Director, Nick Nelson presented a draft Multi-Year Financial Plan to the committee. He reviewed the sections of the plan and discussed their impact on future Museum operations focusing on the goals of revenue diversification and growth. The Multi-year Financial Plan is included in a larger Capacity Plan that addresses operations in the new facility with a Multi-year Staffing Plan as well as a Facility Maintenance Plan that is forthcoming. The Capacity Plan was presented to the Strategic Plan Committee. Key features of the Multi-year Financial Plan include the need to address future liabilities related to unfunded, mandatory pay plan improvements implemented by the City and the need to address what revenue streams the Museum should pursue including additional public support, admission charges, and facility rentals. The committee was provided with the plan to be reviewed and discussed at the May Budget & Finance Committee meeting. FY2027 Budget Proposal: The committee discussed the proposed FY2027 Budget that was presented at the March meeting and at the March Board Meeting. There were no questions and the committee agreed that the proposed budget should be presented to the full Board for approval at the April 16 meeting. Adjournment: The meeting was adjourned at 10:01 AM Submitted by: Nick Nelson, Museum Director Page 2 of 11  Fund Balance Art Museum Period Apr-26 Analysis Total fund balance for April 2026 was just over $5.1M with a restricted fund balance for capital expenditures and acquisitions dropping to $3.9M. This drop in restricted fund balance is due to capital expenditures from the expansion and renovation project (AMRN). Total available fund balance is $1.1M as property tax collections have been added to the Museum's operating fund (29110). An estimated $1,786,102.61 in property tax has been collected to date with projected collections of $1,813,157.41 for FY2026. Fund balance dropped considerably due to payouts on the Art Museum construction project. Recommendations The Museum should continue monitoring fund balance and manage expenditures and revenue to proactively manage a healthy reserve. With the establishment of FOSAM/Foundation and the hiring of a full-time executive director, the Museum should explore ways to move funds in the Art Museum Endowment (29120) to management by FOSAM/Foundation. These funds currently total $388K, which could serve as a basis for a true operating or programmatic endowment for the Museum. These funds alone could provide over $15K in revenue based on a standard 4% draw with continued growth in principal. Total Fund Balance 12,500,000.00 10,000,000.00 7,500,000.00 5,000,000.00 2,500,000.00 -- 24 4 24 4 24 24 25 25 25 l-2 25 5 6 ar 6 6 6 6 ar l-2 5 -2 Ja -2 -2 -2 -2 -2 n- -2 ay - Ju p- ov - Jan- ar - ay - Ju p- ov n- 2 6 M Ju l Se ov Ja M M Se N M M Se N M ay p N Monthly FInancial Report (Apr-26) Report Generated 05/06/2026 1:31:16 pm Page31 of Page of 911  Available Fund Balance 1,500,000.00 1,000,000.00 500,000.00 -- 24 4 4 4 4 -2 4 -2 5 -2 5 -2 5 -25 5 -2 5 6 -2 6 6 -2 -2 6 Se -2 6 n- -2 -2 l-2 p- 2 p- 2 Ja n- p- Ja ar M ay Ju Se ov Ja n ar M May Ju l Se Nov 2 ar M ay Ju l 26 Nov M N M Fund Balance by Fund 3,000,000.00 2,500,000.00 2,000,000.00 1,500,000.00 1,000,000.00 500,000.00 -- Apr-26 Art Museum Operating (29110) Art Museum Endowment (29120) Art Museum Special Projects (29130) Robert Goodier Fund (29140) Art Museum Grants (29150) Art Museum State Appropriations (29160) Monthly FInancial Report (Apr-26) Report Generated 05/06/2026 1:31:16 pm Page42 of Page of 911  KPI Data Series Apr-26 Total Fund Balance 5,101,488.99 Restricted Fund Balance 3,972,011.78 Available Fund Balance 1,129,477.21 Art Museum Operating (29110) 874,409.52 Art Museum Endowment (29120) 388,578.25 Art Museum Special Projects (29130) 2,888,465.95 Robert Goodier Fund (29140) 25,860.45 Art Museum Grants (29150) 210,860.00 Art Museum State Appropriations (29160) 713,314.82 Why The Art Museum manages a number of funds including those designated for operations, those containing temporarily restricted funds used for specific projects, grants, or other purposes, and those permanently restricted by donors. Fund balances are an important measure of financial health as well as accountability to the public and grantors and donors. The Art Museum must maintain sufficient available fund balance to cover its operational cost while maintaining a 20% reserve. This KPI aligns with the City Council Priority of Operational Excellence as adequate fund balance including operating funds and reserve funds are indicators of financial health and help to ensure the long-term sustainability of the Museum as a city-owned facility and demonstrate proactive maintenance and optimized resource alignment related to the Museum. Limitations and Notes The Art Museum has a number of funds containing permanently restricted funds including the Art Museum Endowment (29120) and the Robert Goodier Memorial Fund (29140). The Art Museum Endowment was established in 1998 per a Declaration of Endowment. Per the Declaration of Endowment this fund is managed like a quasi-endowment rather than an true endowment. The Robert Goodier Memorial Fund was established in 2000 and is permanently restricted. The interest earned from this fund is to be used to fund the Robert Goodier Award given to artists participating in Watercolor USA. Reporting Frequency Unit Collaborators Responsibility Monthly USD Nick Nelson (Art Museum) Monthly FInancial Report (Apr-26) Report Generated 05/06/2026 1:31:16 pm Page53 of Page of 911  Revenue and Expenses Art Museum Period Apr-26 Analysis Operating expenses for the month of April 2026 were $141,942.30. Operating revenue for the month of April 2026 was $43,392.94. This is higher than March, buoyed by Interest Earning from Fund Balance as reported in Other Revenue. The Art Museum continues to see volatility in revenue as the Museum transitions to donations passing through the Springfield Art Museum Foundation and loss in earned revenue from classes and other programs.Monthly operating revenues are more difficult to average due to the Museum receiving the bulk of its revenue in Property Tax in a lump sum over the months of December, January, and February. Property Tax is not recorded until the end of the Fiscal Year in June. Over $1.7M in property taxes have been collected to date, however, this revenue isn't posted to the Art Museum's accounts until the end of the fiscal year in June. Total property tax revenue is projected to exceed $1.8M in FY2026. The Museum expects lower than budgeted expenses in the second half of FY2026 due to changes in staffing and the termination of leases. Recommendations The Museum should: 1. Continue to forecast and monitor expenses considering significant changes to staffing and leases. 2. Continue to develop capacity for cash flow management. 3. Continue to work to diversify revenue streams. Revenue vs Expenses (Total) $ 6,000,000.00 $ 4,000,000.00 $ 2,000,000.00 $ 0.00 $ -2,000,000.00 24 24 24 24 4 4 4 24 24 4 4 4 25 25 25 25 5 5 5 25 ct 25 -2 5 ay -2 -2 -2 -2 -2 b- ar r- -2 -2 -2 g- N D p- ov ec -2 5 n- b- ar - Ap r- -2 Ju Ju l g- p- ct ov ec Jan- - Ap ay Ju Ju l Ja Fe n--2 265 Ja Fe M M n Au Se O N D Fe M M n Au Se M Aparb- O r- 26 -2 266 Total Revenue Total Expenses Monthly FInancial Report (Apr-26) Report Generated 05/06/2026 1:31:16 pm Page64 of Page of 911  (10,000.00) 10,000.00 20,000.00 30,000.00 -- (500,000.00) 500,000.00 1,000,000.00 1,500,000.00 2,000,000.00 -- (2,000,000.00) Ja 2,000,000.00 4,000,000.00 6,000,000.00 n -- Ja -2 Ja n 4 -2 Fe n- 24 4 Earned Revenue b- 24 Fe M M b- 24 ar ar -2 -2 M 4 4 ar Ap -2 r- 4 M 24 Ap ay r- -2 M 24 4 ay -2 M 4 Monthly FInancial Report (Apr-26) Report ay Ju -2 Ju 4 Revenue vs Expenses (Capital) n- l-2 24 Ju 4 n- Revenue vs Expenses (Operating ) Ju 24 l-2 Se 4 Ju p- l-2 24 Au 4 g- Au 24 g- Se 24 N ov p- Se -2 24 p- 4 O 24 ct O -2 Ja 4 ct -2 n N 4 -2 5 ov -2 N ov 4 -2 D 4 M ec -2 D ar -2 ec 5 4 -2 Ja 4 n- 25 Ja M n- ay Fe 25 -2 b- Fe 5 25 b- M 25 ar M Ju -2 ar l -2 5 -2 5 Ap 5 r- Ap 25 r- Se M 25 p- ay M 25 -2 ay 5 -2 Ju 5 N n- Ju ov 25 n- -2 25 5 Ju Ju l-2 5 l-2 5 Ja Au n- g- Au 2 6 25 g- 25 Se Se M p- p- ar 25 25 -2 O 6 ct O -2 ct 5 -2 M N 5 ay ov N -2 ov 6 Bequests & Capital -2 -2 5 5 Operating Revenue D D ec ec -2 -2 Ju 5 5 l -2 Ja Ja 6 n- n- 26 26 Se Fe Fe p- b- b- 26 26 26 M M ar -2 ar -2 N 6 ov 6 -2 Ap Ap 6 r- r- Earned Revenue 26 26 Capital Improvements Operating Expenses Generated 05/06/2026 1:31:16 pm Page Page75 of of 911  KPI Data Series Apr-26 Operating Revenue 43,392.94 Total Revenue 225,267.94 Property Tax 1,449.95 Gifts & Donations 1,000.00 Earned Revenue -- Other Revenue 40,942.99 Transfers & Reimbursements -- Bequests & Capital 181,875.00 Operating Expenses 141,942.30 Total Expenses 1,039,246.37 Salaries & Benefits 108,864.34 Supplies & Services 33,077.96 Acquisitions -- Capital Improvements 897,304.07 Transfers -- Other Expenses -- Why This KPI provides a Monthly Report on Revenue and Expenses. This KPI aligns with the City Council Priority of Operational Excellence as careful management of revenue and expenses ensures the long-term sustainability of the Museum as a city-owned facility and demonstrate proactive maintenance and optimized resource alignment related to the Museum. Limitations and Notes Monthly operating revenues are more difficult to average due to the Museum receiving the bulk of its revenue in Property Tax in a lump sum over the months of December, January, and February. Property Tax is not recorded until the end of the Fiscal Year in June. Unit Reporting Frequency Responsibility Collaborators USD Monthly Nick Nelson (Art Museum) Monthly FInancial Report (Apr-26) Report Generated 05/06/2026 1:31:16 pm Page86 of Page of 911  Monthly Financial Report Art Museum Period Apr-26 Analysis The Museum realized $255,267.94 in revenue in April 2026. Expenses for April 2026 were $1,039,246.37. Increases to revenue and expenses are due to capital revenue and expenses related to the expansion and renovation project (AMRN). Of the $255K in revenue, $181K was from a State Appropriation for the AMRN project. The Museum had $897K in capital expenditures for the AMRN project in April 2026. Month-to-Date and Year-to-Date expenses remain lower than expected, which is a trend that should continue with changes to staffing and the cancellation of leases. As more donated revenue is passed through the Springfield Art Museum Foundation, changes in cashflows are expected. Recommendations The Museum should: 1. Continue monitoring monthly revenue and expenses, 2. Create a detailed plan for the coming budget year considering the cancellation of the lease and changes in staffing, 3. Continue engaging in long-term budget development to better track and forecast monthly revenue and expenses. Why Comparing revenue to expenses on both a month-to-date (MTD) and year-to-date (YTD) provides a snapshot of financial health indicating success generating revenue and managing expenses. Comparisons of budgeted and actual revenue and expenses provides insights into the Art Museum's ability to track and predict cost and allocate resources to the proper areas. This KPI aligns with the City Council Priority of Operational Excellence as careful management of revenue and expenses ensure the long-term sustainability of the Museum as a city-owned facility and demonstrate proactive maintenance and optimized resource alignment related to the Museum. Limitations and Notes Variance in MTD budget and MTD actuals is due in part to challenges with monthly budget tracking. With new tools for tracking and forecasting revenue and expenses, there should be less variance in the future. Monthly FInancial Report (Apr-26) Report Generated 05/06/2026 1:31:16 pm Page97 of Page of 911  MTD Revenue vs Expenses YTD Revenue vs Expenses 1,250,000.00 10,000,000.00 1,000,000.00 7,500,000.00 750,000.00 5,000,000.00 500,000.00 2,500,000.00 250,000.00 -- -- Apr-26 Apr-26 MTD Revenue (Actual) MTD Expenses (Actual) YTD Revenue (Actual) YTD Expenses (Actual) MTD Revenue (Budget vs Actual) YTD Revenue (Budget vs Actual) 300,000.00 1,250,000.00 1,000,000.00 200,000.00 750,000.00 500,000.00 100,000.00 250,000.00 -- -- Apr-26 Apr-26 MTD Revenue (Budget) MTD Revenue (Actual) YTD Revenue (Budget) YTD Revenue (Actual) MTD Expenses (Budget vs Actual) YTD Expenses (Budget vs Actual) 1,250,000.00 10,000,000.00 1,000,000.00 7,500,000.00 750,000.00 5,000,000.00 500,000.00 2,500,000.00 250,000.00 -- -- Apr-26 Apr-26 MTD Expenses (Budget) MTD Expenses (Actual) YTD Expenses (Budget) YTD Expenses (Actual) Monthly FInancial Report (Apr-26) Report Generated 05/06/2026 1:31:16 pm PagePage 108 of of 911  KPI Data Series Apr-26 MTD Revenue (Budget) 26,669.47 MTD Revenue (Actual) 255,267.94 MTD Expenses (Budget) 166,704.89 MTD Expenses (Actual) 1,039,246.37 YTD Revenue (Budget) 198,661.07 YTD Revenue (Actual) 1,027,534.99 YTD Expenses (Budget) 1,709,061.80 YTD Expenses (Actual) 8,593,349.96 % of Fiscal Year Completed 83.00% Reporting Frequency Responsibility Monthly Nick Nelson (Art Museum) Unit Collaborators Monthly FInancial Report (Apr-26) Report Generated 05/06/2026 1:31:16 pm PagePage 119 of of 911