2008-09 Annual Report from the President & Ceo and Board Chair
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RochesteR philhARmonic oRchestRA 2008-09 AnnuAl RepoRt from the president & ceo and board chair Dear Friends, When the RPO’s 2008-09 season began on September 1, 2008, Amid the clouds of our economic forecast last season were we were aggressively moving forward, armed with a bold, new some glimmers of sunlight. Although ticket income did not strategic plan and propelled by anticipation of the renovation match our original goals and ultimately contributed to our year- and expansion of the Eastman Theatre. That new Transformation end deficit, we are proud that subscription revenues for 2008- Plan was built on the foundation of the previous plan, which 09—mostly generated prior to the steep Wall Street decline in itself had been the blueprint for significant growth in both the fall of 2008—were up 5% for the year. And by season’s end, earned and contributed revenue between 2005 and 2008. ticket revenues for our two flagship series remained strong— The overarching goal of the 2008-2011 plan was to eliminate up about 1% for the Philharmonics Series and up nearly 10% for the RPO’s structural deficit by 2010-11, positioning the the Wegmans Pops Series. Thanks to terrific audience response organization for long-term financial stability. Every facet of to our first Rochester-based summer season in many years and the nine-point plan remained true to the organization’s core the creation of the First Niagara Center City Pavilion, summer values and in step with our long-range goals of organizational ticket revenues also rose impressively this past summer, up 45% excellence, community service, and national recognition. from 2008. And then the world changed—dramatically. The nationwide Consistent with our peer institutions across the country, overall economic downturn impacted the RPO and the entire nonprofit contributed revenue dropped sharply during the year, including arts industry in ways that were unimaginable in the summer of declines of 8% in individual giving and 22% from foundations. 2008 and that accelerated with each passing month of the fiscal While some 1,900 donors from 2007-08 did not renew their year. In spite of a series of decisive revenue-generating and cost- support in 2008-09, more than 1,100 first-time or lapsed cutting measures undertaken throughout the season, the RPO donors responded to the RPO’s urgent community appeals last ended its 86th season on August 31, 2009, with a sizeable season, resulting in a net loss of about 770 donors for the year, operating deficit. more than 11% of our donor base. Countering these trends, revenues from corporate and government sources grew almost In many respects, 2008-09 can be summarized with that 10% and 17%, respectively, boosted by strong support for our immortal line from Dickens: “the best of times and the worst summer concerts downtown from First Niagara Financial Group, of times.” For even as we struggled to respond to the increasing the City of Rochester, and State Senator Jim Alesi. economic challenges brought on by declining revenues, we simultaneously were making important, strategic strides in our As leaders of the RPO, we take enormous pride in the extent artistic programming and in our connections to the Rochester to which our internal constituencies—musicians, staff, and community. The following pages highlight many of these notable Board—have rallied together in this challenging time. One of success stories—from our Red Carpet gala celebration of the the early highlights of the 2008-09 season was the ratification of many contributions Jeff Tyzik has made during his first 15 years a new, three-year agreement with our musicians. This milestone as our Principal Pops Conductor…to such artistic triumphs as agreement in the fall of 2008 accomplished one of our primary Mahler’s Sixth Symphony, André Watts performing Beethoven’s strategic objectives and reaffirmed our commitment to artistic “Emperor” Concerto, The Snowman, Cirque de la Symphonie, excellence with compensation increases of 3.5% in 2008-09, and The Wizard of Oz … to our rousing, ground-breaking gospel 4.5% in 2009-10, and 5.5% in 2010-11. By the summer of 2009, concert with the local choirs AKOMA and Voices of Thunder last however, it had become clear that a course correction would spring and our extraordinary Independence Day Celebration in be necessary to bring the current budget into balance, and in the heart of the city. December, the musicians of the RPO approved a package of contract concessions totaling $300,000 for 2009-10. We are extremely grateful to our musicians, staff, and conductors for 2 their personal demonstration of support by giving back so We thank you for the part you have played in supporting the generously. Together, our employees have contributed the RPO through the economic trials of the past year. With your extraordinary sum of $520,000 toward the RPO’s deficit continued support, this organization will emerge stronger and reduction this current season alone. We also acknowledge more committed than ever to keeping the sound of music alive with profound gratitude the RPO Board and Honorary Board— and well in Rochester for the next generation of listeners. under the leadership of James Boucher and Robert Hursh, respectively—whose Annual Campaign support last season Gratefully yours, surpassed the previous year’s record total by nearly 2%, reaching an all-time high of $592,000. As a new decade dawns and the nation’s economic prospects begin to brighten, so, too, does the outlook for the RPO in the Charles H. Owens Suzanne D. Welch coming years. Notwithstanding the continued stress on the President & CEO Chair, Board of Directors RPO budget and the further reductions in operating expenses we have made for the current season, fans of the RPO have a great deal to celebrate. Most notably, there was the remarkable transformation of Kodak Hall that greeted our patrons last October. And we already are anticipating the transformation of the patron experience awaiting our audiences when the Eastman School of Music’s new wing is unveiled during the 2010-11 season. At the same time, preparations are well under way for our multi-year Celebration Beyond Measure as we honor Christopher Seaman during his farewell season in 2010-11, mark his 70th birthday in 2012, and look ahead to his lifetime appointment as the RPO’s Conductor Laureate. Meanwhile, excitement is building among music lovers in the Rochester area in this early phase of our international search for our next Music Director. When we launched our Annual Campaign a few months ago, we introduced a new theme that will tie together the RPO’s programs and communications over the next several years. This theme— Beyond Measure —represents many aspects of the RPO, from the unmatched caliber of our musicians and conductors, to the immense generosity of the Rochester community that has built this great orchestra over the past 86 years. And so, even in the midst of the economic downturn, we believe there is something even more elemental for us to celebrate in 2010: the power of RPO musicians playing great music to exhilarate and enlighten us, to comfort and transport us, to enrich our lives, inspire our children, and add vitality to our community. photo cReDits: Charles H. Owens: Lasch Photo Suzanne D. Welch: Andy Olenick, fotowerks.com 3 from our conductors Dear Friends: Our memories of the 2008-09 Season have many highlights, but for me, the most notable one was an overall sense of anticipation. These concerts would be the last ones in the Eastman Theatre as we knew it; the long-awaited summer 2009 renovations forever would transform our home into the new Kodak Hall at Eastman Theatre. From our joyous opener with pianist André Watts to our memorable—and appropriate—conclusion with Holst’s The Planets and Haydn’s “Farewell” Symphony, it was a year to celebrate the present and to look into the future with palpable excitement. I want to congratulate my fine colleague and friend Jeff Tyzik on his 15th anniversary in 2008-09 as Principal Pops Conductor, as well as recognize all of his accomplishments with this great orchestra, both on and off the podium. And, surely, our next generation of music lovers is in wonderful hands with Michael Butterman, our Principal Conductor for Education and Outreach, who shares his sense of excitement and wonder with thousands of young people throughout the community. As always, our superb musicians are up to the great variety of musical and artistic experiences we present, and I am so grateful to each and every one of them. Certainly, the Rochester Philharmonic—like every other orchestra in this country—has not been immune to this last year’s widespread economic challenges. That is why I would like to give particular and personal thanks to all of our supporters— those individuals, corporations, foundations, and government agencies, as well as our supportive and hard-working Board and staff, without whom we could not be the world-class organization that we are. In our eyes, you all are “beyond measure!” I hope this Annual Report will serve to bring back your own personal RPO memories, and as always, I look forward to seeing you all soon! Christopher Seaman Music Director 4 PHOTO: WALTER COLLEY Dear RPO Friends: Dear Friends: What an honor it was for me to begin the 2008-09 Season There is great energy and momentum about the educational with a celebration marking my 15th anniversary as your work of the RPO. Much that is happening this season and Principal Pops Conductor. The remarkable Wegmans Red beyond owes its existence to groundwork laid in 2008-09, Carpet dinner, the recognition by the community and by with the RPO's long tradition of musical advocacy and my musician colleagues—including Allen Vizzutti and my education entering a new era thanks to my colleague, daughter, Jami—and an incredible Pops Series opener made Krishna Thiagarajan, as Director of Education and this an evening I will never forget.