By EDWARD HUSAR

Herald-Whig Staff Writer

The Quincy Civic Center Authority might need to seek financial backers at some point to keep operating the Quincy Gems in coming years.

Hubert Staff, chairman of the authority's Finance Committee, said the Gems last season held their own financially for the first time in several years. But he wonders how long that can continue.

"We made tremendous progress last year, but we are really to the point where it's a break-even operation," Staff told fellow authority members while reviewing the agency's proposed budget at a Finance Committee meeting Monday.

The Gems -- an affiliate of the Oakley-Lindsay Center -- consume "roughly 25 percent of our energy, effort and time," Staff said. "So the question is: Can we continue to expend 25 percent of our time and energy on a break-even event?"

Staff said he realizes the Gems offer benefits to the community that can't be measured in dollars. "But we don't run a budget based on those intangible values. We run it based on dollars," he said.

"I'm not suggesting we do anything differently. We'll see how the Gems turn out this year. But there may be a point where to continue the Gems, the (Civic Center Authority) may need to consider looking for financial sponsors to help us."

Financial reports show the Gems lost money for at least five straight seasons before the team made an estimated $5,000 profit last year. Audited figures for fiscal year 2007, which covers the 2006 season, are not available, although board members believe the Gems also lost money then.

Audit reports obtained from the OLC show the Gems lost $10,370 in the fiscal year ending April 1, 2002, followed by losses of $25,468 in 2003, $20,271 in 2004, $25,736 in 2005 and $15,563 in 2006.

The OLC still hasn't received an audit report for the fiscal year that ended April 30, 2007. OLC Director Rob Ebbing said the center's bookkeeping records show the team earned about $5,000 last season, which will be reflected in the fiscal year 2008 audit.

Ebbing attributes the turnaround in part to some new promotions and strong financial support from the business community, which bought advertising signs and hosted "corporate night" events.

"We made some huge strides," Ebbing said. "Hopefully we'll keep that trend rolling and can make some similar strides again this year."

Ebbing said he hopes the Gems will be able to continue playing in Quincy for years to come.

"It's a great program for the community," he said. "Baseball has been here for years and years -- since the 1930s. I would sure like to see it continue, and I think it can if we work a little harder on attracting more community support. There are sponsorships and advertising opportunities that we're putting together."

No action was taken on the Gems situation at Monday's committee meeting.

"It's just something to think about," Staff said.

The committee spent a great deal of time discussing salaries for nine full-time employees who operate the OLC and the Gems.

The Civic Center Authority's proposed $1.4 million balanced budget initially called for giving 3 percent cost-of-living pay raises and 3 percent bonuses to employees, provided the OLC and the Gems meet certain undetermined financial goals.

However, after noting how health insurance costs are projected to rise by about 10 percent next year, which would have come out of employees' pockets in the form of higher premiums, the committee recommended that the governing board give 3 percent raises to all employees and also cover the full cost of the health insurance increase. Bonuses would not be given under this scenario.

The cost-of-living raises will cost about $9,100, while the higher premiums will cost about $8,300.

If employees had to bear the brunt of the premium increase themselves, "that would wipe out most of the cost-of-living increase," Staff noted.

Staff also reported that the proposed budget still includes a cut in funding for the Quincy Convention and Visitors Bureau, which is slated to receive $80,000 next fiscal year. That's about $30,000 less in net revenue after some bookkeeping changes are figured in.

The Civic Center Authority is slated to finalize the budget at its April 23 meeting.

-- ehusar@whig.com/221-3378