FY 2016 Budget and Actuals
Here’s the Breakdown on Eastern Market Expenses for 2016
By Larry Janezich
On September 4, Capitol Hill Corner posted a piece titled, “It Costs About $870,000 a Year to Run Eastern Market – Here’s Where It Comes From”. http://bit.ly/2eExsh6
Here’s where it goes.
On Wednesday night, the Department of General Services released the Total Expenses for 2016 – the period applicable to the previously released income figures – as part of the Market Manager’s Report to the Eastern Market Community Advisory Committee.
Operating Expenses for Eastern Market, 2016
Advertising $42,103.00
Security $44,878.00
Extermination $4,020.00
Trash $22,916.00
Interior Cleaning $208,019.00
Repairs and Maintenance $92,564.00
Snow Removal $5,081.00
Office Support $5,693.00
Electric $76,211.00
Water $26,602.00
Gas $7,886.00
HVAC $9,628.00
Total Operating Expenses $547,600.00
Administrative Expenses for Eastern Market, 2016
Manager $128,739.00
Asst. Manager $104,806.00
Treasury Dept. Rent Collection $2,265.00
North Hall Event Coordinator $84,435.00
Total Administrative Expenses $320,244.00
Total Expenses $867,845.00
Net Income $25,857
CAPITOL HILL CORNER 
Someone should do some comparison shopping for cleaning expenses in similar structures. 40% of operating expenses are for cleaning?
The administrator pay packages are much higher than I would have expected for such a small operation.
BNot defending, just saying when I worked in the govt very few people understood what I did or were qualified to judge what it was worth
These pay packages are absurd. The mayor makes 200,000 last I checked. I can not believe that the manager and assistant manager at eastern market make more combined than the mayor! Also why were they and the event coordinator paid an extra 38,000? Was 317,000 for the three positions not enough compensation? Could this money which is over double the net revenue not have been used to make the market self sustaining? After viewing these numbers and the 300,000 combined cost for cleaning, repairs, and maintenance I am not surprised that the market would be hard pressed to be self sustaining.
The management team has done a lot to make the market self-sustaining. Special events in the south hall are on the rise. To me, the vendors are what is dragging the market down. I can’t begin to tell you how many times I’ve come home with bread and produce with Costco and Safeway stickers. Same goes for the weekend vendors. It’s the same stuff every weekend.
It gets old after awhile.
Please stop by my cheese counter sometime! I am 100% Costco/Safeway free and purchase through long term importers from NY, NJ or other reputable dealers in the area. Neither Costco nor Safeway carry Tricking Springs Milk or Lewes Dairy Heavy Cream. I offer new/seasonal cheeses on a regular basis. In fact, I just received a limited supply of Rogue River Blue Special Reserve. Wrapped in Syrah grape leave and macerated in pear brandy it is quite incredible. It is delicious! As for making the market self-sustaining… it always has been. Warm Regards, Mike Bowers – Owner of Bowers Fancy Dairy Products – Cheers!
I can easily match my personal marketing budget against the entire Eastern Market budget, The issues is; the market’s budget is directed towards tourism, where mine is directed to the local consumer.
What do you mean by “tourism,” and how does the budget support that? Advertising? Free promotions? Tours?
The market has printed tons of expensive tri-trifold brochures they are placing in hotels as part of its marketing program. It primarily promotes the weekend market experience. I have started to sell pints of milk, just to support what ever Air-Bnb business I get. Then yes, I have tour groups come by on a regular basis. Watch as people point at and take pictures of my butter. The tax revenues DC gains from tourism far exceeds whatever the South Hall merchants can provide, although as for rents, we have surpassed the values legislatively required. Notwithstanding, tourism conflicts with the South Hall’s fundamental mission as the last standing Public Fresh Food Market in DC and threatens its very existence. Under current operations, in the next several years, South Hall businesses will fail, and we will be left with prepared foods or some form of Union Market. The community will stand around and asked what happened, intellectualizing competitive pressures, Trader Joes, etc. The fundamental issues are two fold; who is Eastern Market targeting as its audience and how is the consumer to reach us. Advertising (correctly done) and accessibility are what is needed. If we are truly targeting the local community, then why was only 4% ($2,000) of the budget spent on the Hill Rag.
I failed to mention the signage promoting Eastern Market on the Metro buses. I don’t know how successful that may have been.