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HomeMy WebLinkAbout13580 RESOLUTION NO. 13580 A RESOLUTION APPROVING THE PUEBLO URBAN RENEWAL AUTHORITY VENDOR FEE BUDGET FOR THE PUEBLO CONVENTION CENTER AND THE MEMORIAL HALL CAPITAL PROJECTS AND MAINTENANCE FUND, FOR THE CALENDAR YEAR 2017, COMMENCING JANUARY 1, 2017 AND ENDING THE LAST DAY OF DECEMBER 2017 BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1: The Pueblo Urban Renewal Authority (the “Authority”) fiscal year 2017 Vendor Fee Budget, a copy of which is attached hereto, is hereby approved. SECTION 2: The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Resolution to effectuate the policies and procedures described herein. SECTION 3: This Resolution shall become effective immediately upon final passage and approval. INTRODUCED: December 12, 2016 BY: Ed Brown City Clerk’s Office Item # Q-1 Background Paper for Proposed Resolution COUNCIL MEETING DATE: December 12, 2016 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 AND MAINTENANCE FUND, FOR THE CALENDAR YEAR 2017, COMMENCING JANUARY 1, 2017 AND ENDING THE LAST DAY OF DECEMBER 2017 SUMMARY: This resolution approves the 2017 Vendor Fee Budget for the Pueblo Convention Center and the Memorial Hall Capital Projects and Maintenance fund. PREVIOUS COUNCIL ACTION: Council approval of the Vendor Fee budget for the Pueblo Convention Center and Memorial Hall Capital Projects and Maintenance fund is completed annually. 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 and Memorial Hall, subject to City Council approval. FINANCIAL IMPLICATIONS: Approval of the resolution will budget $2,050,000 in 2017 Vendor Fee revenue towards the following purposes:  $1,063,713 for the payment of debt service on the Memorial Hall ($608,013)/Pueblo Convention Center bonds ($455,700);  $897,904 for the Operation and Maintenance of the Pueblo Convention Center ($731,110), the Asset Management Fee ($145,999), and the repayment of an internal loan from PCC Operating Reserve to Memorial Hall Capital Project ($20,795);  Trustee fees for the bonds $3,000;  $16,000 for the Maintenance of the Memorial Hall BOARD/COMMISSION RECOMMENDATION: The 2017 Budget was reviewed by the PURA Board at the October 25, 2016 PURA Board of Commissioners Work Session, and was approved at the Regular Meeting of the PURA Board of Commissioners on November 8, 2016. Pueblo City Council first reviewed this budget at the December 5, 2016 Work Session. STAKEHOLDER PROCESS: None ALTERNATIVES: None RECOMMENDATION: Approval of the resolution. Attachments: PURA approved 2017 Vendor Fee budget. PUEBLO CONVENTION CENTER GLOBAL SPECTRUM FISCAL YEAR 2017(January 1-December 31) INCOME STATEMENT BUDGET PROPOSAL 17 to proj 16 BUDGET PROJECTED BUDGET VARIANCE 2017 2016 2016 FAV!(UNFAV) Ifi OF EVENTS 398 249 493 149 ATTENDANCE 45,986 36,831 56,405 10,156 DIRECT EVENT REVENUE I RENTAL REVENUE 265,929 226,477 286,058 39,452 SERVICE REVENUE 144,165 167,210 156,469 (23,046) TOTAL DIRECT EVENT REVENUE 410,094 393,687 442,627 16,407 'ANCILLARY REVENUE I FOOD AND BEVERAGE REVENUE 1,255,455 843,715 1,288,959 411,740 AUDIO-VISUAL REVENUE 97,655 85,637 63,319 12,018 PARKING REVENUE 0 0 0 0 DECORATOR SERVICES REVENUE 4,600 5,024 14,350 (424) NOVELTIES REVENUE 0 0 0 0 TOTAL ANCILLARY REVENUE 1,357,710 934,375 1,366,628 423,335 TOTAL EVENT REVENUE 1,767,804 1,328,062 1,809,166 439,741 OTHER REVENUE 15,700 11,900 13,500 3,800 TOTAL GROSS REVENUE 1,783,604 1,339,962 1,822,655 443,641 'EVENT EXPENSE SERVICE EXPENSE (160,153) (174,128) (145,841) 13,975 FOOD&BEVERAGE EXPENSE (388,411) (238,101) (455,245) (150,310) AUDIO-VISUAL EXPENSE (4,781) (15,100) (12,394) 10,319 PARKING EXPENSE 0 0 0 0 DECORATOR SERVICES EXPENSE (460) (685) (1,435) 225 NOVELTIES EXPENSE 0 0 0 0 TOTAL EVENT EXPENSE (553,805) (428,014) (614,916) (125,791) TOTAL EVENT INCOME 1,213,998 900,048 1,194,240 313,950 TOTAL INCOME WITH OTHER REVENUE 1,229,698 911,948 1,207,740 317,760 INDIRECT EXPENSES Includes Revenue Reimburse-Memorial Hall Salaries EXECUTIVE 142,969 121,315 147,365 21,654 FINANCE 142,629 130,402 143,324 12,227 BOX OFFICE 9,950 10,365 11,908 (415) MARKETING&SALES 282,130 204,099 284,795 78,031 EVENTS 114,683 63,467 123,181 51,217 OPERATIONS 227,768 170,482 206,971 57,287 OVERHEAD 553,139 504,276 531,575 48,863 FOOD&BEVERAGE OVERHEAD 237,540 187,265 239,731 50,275 TOTAL INDIRECT EXPENSES 1,710,809 1,391,671 1,688,850 319,138 0 0 0 0 Info:PCC total for MH Included above indirects NET INCOME (481,110) (479,723) (481,110) (1,387) Prior year capital reserve carryover 150,000 160,000 CAPITAL EXPENSE (260,000) (150,000) (150,000) (100,000) SURPLUS/(SUBSIDY) (731,110) (479 723 1481,110 261 387) Vendor Fee-Memorial Hall&PCC 2017 2016 20 1 2(115 REVENUE Budget Budget fshc)(ae( I ural Interest Income - - 0 396 Vendors'Fees 2,050,000 1,900,000 1,725,000 1,645,483 Redemption Account Excess Revenue 606,000 587,000 637,965 Ca over Memorial Hall Renovation Funds 40,000 167,000 TOTAL REVENUE $ 2,656,000 $ 2,527,000 $ 2,529,965 $ 1,645,879 OPERATIONS EXPENSES Transfer to PCC for O&M and D/S -- 1,202,093 Debt Service 455,700.00 331,950.00 O&M Subsidy 731,110 736,725 Asset Mgmt Fee 145,999 129,611 Debt Service Payment-MH 608,013 528,263 528,263 Maintenance Memorial Hall 16,000 --- Trustee Fees 3,000 3,000 3,000 Inter-Fund Loan Pymt to Convention Center 20,795 - 20,795 Interest Ex.ense --- 1,730,683 TOTAL OPERATIONS EXPENSES $ 1,980,616 $ 1,729,549 1,754,151 1,730,683 CAPITAL EXPENSES TBD Capital Expenditures)Redemption Account) 675,384 587,000 608814 297909 Memorial Hall Renovations 40,000 167,000 TOTAL CAPITAL EXPENSES $ 675,384 $ 627,000 $ 775,814 $ 297,909 TOTAL EXPENSES $ 2,656,000 $ 2,356,549 $ 2,529,965 $ 2,028,592 EXCESS LOSS) $ (0) $ 170,452 $ - $ (382,713)