BLOOMINGTON - As the city's fiscal year continues, so does the operating deficit for the downtown U.S. Cellular Coliseum.

But unlike last month, the now roughly $2.1 million deficit does not have Bloomington's aldermen too rattled.

The financial report issued Wednesday by Central Illinois Arena Management for March shows the Coliseum lost $298,000, adding to the nearly $1.8 million tallied during the first 10 months of the city's 2006-07 fiscal year.

One more month, April, remains to be accounted for in the fiscal year, and that report will be due May 25.

"From the council perspective, I don't think it was unexpected that the deficit grew," Alderman John Hanson said.

The council reacted strongly when it received the February report in March and learned the operations had reached more than a seven-figure loss.

The council had not received several of the recent monthly reports while city staff attempted to help the Coliseum's finance staff convert its reports into a format more acceptable to government accounting standards.

Alderman Jim Finnegan said the loss is still a concern and will be addressed by the council.

"Of course, we are concerned this is happening," Finnegan said. "It's a problem, and we need to do something about it, but I don't think anyone's surprised by this."

Earlier this week, City Manager Tom Hamilton said the city's staff would meet with management firm owners Mike Nelson and John Butler to discuss the reports and the loss. A work session with the council will be scheduled, likely in May.

Hamilton said they will discuss the problem with the council as soon as possible.

"We need to get more events, and if we get our attendance numbers up closer to the 400,000 we projected, that starts making up some of that debt," Hamilton said.

Paying off bonds

Hamilton added that most of the deficit accrued last month comes from debt service on the bonds issued to pay for construction of the $35.8 million building and from depreciation. For March alone, the money to pay on the bonds and depreciation is $190,000. The total for the first 11 months was about $1.9 million.

In the first 10 months, the Coliseum's attendance was 306,000 for 103 events. In March, the Coliseum had 21 events and another 42,000 in attendance.

Alderman Allen Gibson said there is not much the council can do about the issue until that work session is scheduled.

In a memo to the City Council that was issued along with the financial report, the Coliseum managers said about $500,000 of the debt has been in first-year expenses.

Nelson and Butler also pointed out in their memo that the Coliseum has been paying a majority of the utility bills for the adjacent Pepsi Ice Center. The city operates the ice center and is expected to reimburse the Coliseum managers for the utility costs.

The total utility bills for the complex were $329,000 so far this fiscal year.

Nelson and Butler also mention the economic development the Coliseum has brought to the area and estimate $13.2 million in extra revenue likely has been generated locally. The economic impact was based on a formula that estimates 25 percent of those going to Coliseum events were from out of town and 75 percent were local.

Coliseum managers said their estimate was conservative.

In addition to looking at how to trim the deficit, Hanson said the council needs to look at the overall benefit of having the Coliseum in the area.

"There is a benefit to being able to have a venue that offers young families the opportunity to enjoy themselves for an afternoon or evening," Hanson said. "We do need to look at this as a long-term investment for the city's future."