HomeMy WebLinkAbout13347RESOLUTION NO. 13347 A RESOLUTION APPROVING THE PUEBLO URBAN RENEWAL AUTHORITY VENDOR FEE BUDGET FOR THE PUEBLO CONVENTION CENTER AND THE MEMORIAL HALL CAPITAL PROJECTS FUND, FOR THE CALENDAR YEAR 2016, COMMENCING JANUARY 1 AND ENDING THE LAST DAY OF DECEMBER 2016 BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: The Pueblo Urban Renewal Authority (the “Authority”) fiscal year 2016 Vendor Fee Budget, a copy of which is attached hereto, is hereby approved. INTRODUCED: December 14, 2015 BY: Eva Montoya M-2 City Clerk’s Office Item # Background Paper for Proposed Resolution COUNCIL MEETING DATE: December 14, 2015 TO: President Stephen G. Nawrocki and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Pueblo Urban Renewal Authority Jerry M. Pacheco, Executive Director SUBJECT: A RESOLUTION APPROVING THE PUEBLO URBAN RENEWAL AUTHORITY VENDOR FEE BUDGET FOR THE PUEBLO CONVENTION CENTER AND THE MEMORIAL HALL CAPITAL PROJECTS FUND, FOR THE CALENDAR YEAR 2016, COMMENCING JANUARY 1 AND ENDING THE LAST DAY OF DECEMBER 2016 SUMMARY: This resolution approves the 2016 Vendor Fee Budget for the Pueblo Convention Center and the Memorial Hall Capital Projects fund. PREVIOUS COUNCIL ACTION: Council approval of the Vendor Fee budget for the Pueblo Convention Center and Memorial Hall Capital Projects fund is done on an annual basis. BACKGROUND: Section 14-4-17 of the City of Pueblo’s Code of Ordinances authorizes the use of the “Vendor Fee” or 3.3% of City’s sales tax revenue, for the purposes of operations and maintenance of the Pueblo Convention Center, subject to City Council approval. FINANCIAL IMPLICATIONS: Approval of the resolution will budget $1,900,000 in 2016 Vendor Fee revenue towards the following purposes:  $860,213 for the payment of debt service on the Memorial Hall/Pueblo Convention Center bonds;  $610,671 for the Operation and Maintenance of the Pueblo Convention Center and the Asset Management Fee;  Trustee fees for the bonds;  A draw from the bond redemption fund in the amount of $429,116 with proceeds to be used for capital improvements to be determined by the City of Pueblo and the Pueblo Urban Renewal Authority. BOARD/COMMISSION RECOMMENDATION: The 2016 Budget was reviewed by the PURA Board at the November 24, 2015 PURA Board of Commissioners Work Session, and was approved at the Regular Meeting of the PURA Board of Commissioners on December 1, 2014. Pueblo City Council first reviewed this budget at the December 7, 2015 Work Session. STAKEHOLDER PROCESS: None ALTERNATIVES: None RECOMMENDATION: Approval of the resolution. Attachments: PURA approved 2016 Vendor Fee budget. PUEBLO CONVENTION CENTER GLOBAL SPECTRUM FISCAL YEAR 2016(January 1-December 31) INCOME STATEMENT BUDGET PROPOSAL BUDGET PROJECTED BUDGET Variance ACTUAL 2016 2016 2016 2014 #OF EVENTS 493 471 422 23 462 ATTENDANCE 55,405 48,401 48,337 7,005 48,796 DIRECT EVENT REVENUE RENTAL REVENUE 286,058 240,323 240,323 45,735 236,925 SERVICE REVENUE 158,489 170,460 170,460 (13,991) 188,244 TOTAL DIRECT EVENT REVENUE 442,827 410,783 410,783 31,744 408,169 ANCILLARY REVENUE FOOD AND BEVERAGE REVENUE 1,288,959 1,274,100 1,274,100 14,859 1,332,078 AUDIO-VISUAL REVENUE 83,319 55,214 71,009 8,105 53,263 DECORATOR SERVICES REVENUE 14,350 14,211 1,500 139 2,585 MERCHANDISE 0 0 0 0 0 TOTAL ANCILLARY REVENUE 1,366,828 1443,624 1,346,609 23,104 1,387,926 TOTAL EVENT REVENUE 1,809,166 1,764,307 1,767,392 64,848 1,793,095 OTHER REVENUE 13,500 11,900 13,500 1,800 18,717 TOTAL GROSS REVENUE 1,822,655 1,766,207 1,770,892 66,448 1,809,812 EVENT EXPENSE SERVICE EXPENSE (145,841) (175,665) (133,880) 29,824 (194,846) FOOD&BEVERAGE EXPENSE (455,245) (451,162) (383,824) (4,083) (485,212) AUDIO-VISUAL EXPENSE (12,394) (9,539) (5,403) (2,856) (9,691) DECORATOR SERVICES EXPENSE (1,435) (1,421) (75) (14) (20) TOTAL EVENT EXPENSE (614,915) (637,787) (523,182) 22,872 (689,789) TOTAL EVENT INCOME 1,194,240 1,116,521 1,234,210 77,719 1,103,326 TOTAL INCOME WITH OTHER REVENUE 1,207,740 1,128,421 1,247,710 79,319 1,120,043 INDIRECT EXPENSES EXECUTIVE 147,365 120,844 186,964 28,521 134,522 FINANCE 143,324 133,581 139,487 9,763 165,312 BOX OFFICE 11,908 7,519 8,000 4,389 0 MARKETING&SALES 284,795 217,823 293,480 66,972 199,034 EVENTS 123,181 61,660 104,254 61,521 86,088 OPERATIONS 206,971 155,196 158,339 51,775 142,544 OVERHEAD"` 531,575 501,028 529,522 30,647 492,947 FOOD&BEVERAGE OVERHEAD 239,732 270,683 273,837 (30,951) 242,839 TOTAL INDIRECT EXPENSES 1,688,850 1,468,314 1,693,883 220,536 1,463,286 Revenue Reimbursement for Memorial Hall Salaries 0 0 0 0 0 NET INCOME 1481010) (339,893) (448,173) (1415217) (343,243) Prior year capital reserve carryover 150,000 Capital Expeditures (180,000) (80,000) (60,000) 0 (54,966) SURPLUS/(SUBSIDY)FOR CONVENTION CENTER (481,110) (399,893) (506,173) 106,280 (398,199) VENDOR FEE INCOME Contribution from Black Hills for LED retrofit 0 0 0 0 24,270 Transfer in from Mem Hell for Debt Service 331,950 537,700 537,700 (205,750) 534,512 Transfer in from Mem Hall for O&M and Asst Mgmt 610,871 469,035 469,035 141,636 544,449 Memorial Hell Loan Repayment 0 20,795 20,795 (20,795) 20/487 TOTAL VENDOR FEE INCOME 942,621 1,027,830 1,027,630 (84,909) 1,123,698 i OTHER VENDOR FEE EXPENSES Debt Service on Convention Center Bond(P8,1) 331,950 537,700 537,700 (205,750) 534,512 1 Asset Management Fee 129,581 140,433 140,433 (10,872) 155,087 ' Misc.Expenses/Trustee Fees 0 0 0 0 TOTAL OTHER VENDOR FEE EXPENSES 461,811 678,133 678,133 (216,822) 689,599 SURPLUS/SHORT.FOR VENDOR FEE 0 (80,496) (188,778) 237.993 36,900 "'Overhead includes management fee and incentive fee 1