Greater Boise Auditorium District 2019 Budget Budget Review and Adoption October 25, 2018 1
B UDGET - C OMBINED 2019 is another period of strong growth for the District and the Boise Centre with continued investment in the Boise Centre. Budget-All funds Forecast 2018 Budget 2019 Budget > Forecast $ 14,404 $ 15,479 $ 1,075 Revenues $ 12,229 $ 13,890 $ 1,661 Expenses $ 2,176 $ 1,589 $ (587) Revenues over Expenses • Tax Revenues up 8% due to increased room demand within the District boundaries • Boise Centre revenues up 7% with record number of events. • Boise Centre expenses up 17%: increased staff and marketing to support the growth and depreciation from increased fixed assets • Capital expenditures continue through 2019 to support Boise Centre West and East with continued growth 2 • Cash position remains stable and stabilization fund increases are proposed.
H OTEL T AX S UBSIDY $6.8 million $5.1 million + Lease Payment $1.7 million = No lease payment in 2018 3
D EBT D EBT S ERVICE C OVENANTS - C OMPLIANCE Additional Debt Covenant: Tax Receipts equal to at least 2.0X the maximum annual debt service coverage. Budget: 4.56X 4
C ASH B ALANCES 5
2018 B UDGET - D ISTRICT Period: December 1, 2018 to November 31, 2019 Significant Revenue and Expense Changes • Increased Hotel Tax Revenues • Increasing interest income due to higher interest rates and cash balances early in the year • Third full year of debt payments • Cash increases $592K 6
S UMMARY - D ISTRICT B UDGET Forecast 2018 Budget 2019 Change $ 7,456 $ 8,046 $ 590 Revenues $ 181 $ 253 $ 72 Expenses $ 7,275 $ 7,793 $ 518 Revenues>Expenses 7
R OOM T AX R EVENUES 8% 3 % 12 % 8
B OISE C ENTRE G OALS - 2019 Facility Utilization: Events and Event Days Budget Number of Events Events: Local 340 Events: Convention 60 Events: Total 400 Event Days Economic Impact Events: Days 636 Budget Service Quality Dollars (in 000's) $ 30,000 Budget Attendance Guest Satisfaction Score 4.80 Attendance: Out of Town 30,000 Attendance: Local 170,000 Attendance:Total 200,000 9
S UMMARY - B OISE C ENTRE B UDGET Forecast 2018 Budget 2019 Change $ 6,948 $ 7,433 $ 485 Revenues $ 12,048 $ 13,637 $ 1,589 Expenses $ (5,099) $ (6,204) $ (1,105) Revenues>Expenses • Revenues increase 7% • 82% of expense increases centered in labor due to additional staffing positions, marketing, direct costs due to increased revenues, and depreciation 10
B OISE C ENTRE R EVENUES 7% increase in revenues 11
B OISE C ENTRE E XPENSES Expenses Increase in fixed assets Depr/Amort with $1 million security Interest enhancements Utilities Costs to implement HR and ERP system Professional Fees Administration Expenses Refer to staffing plan Labor Expenses Employee Related Elevator and Escalator Maintenance Costs Building Expenses Marketing and Sales Increased Direct Costs sales, and Direct Labor refer to $- $1,000 $2,000 $3,000 $4,000 staffing Budget 2019 Forecast 2018 plan Increase to BCVB, media marketing, room sponsorships 12 and Fam trips
Added: S TAFFING Sales Manager P LAN Event Manager IT Technician Audio Visual Technician Executive Sous Chef Facility Technician Safety and Security Specialist Purchasing Specialist HR Specialist* Director of Sales* *Added in 2018-full 12 months in 2019 13
C APITAL E XPENDITURES 14
Capital Expenditures $2,553,700 Items > $50,000 Security Doors $ 1,000,000 Various 593,700 Chiller 350,000 Kitchen Equipment 285,000 Grand Ballroom Lights 200,000 Video Camera Package 75,000 DHS Security 50,000 Total $ 2,553,700 15
M OTION FOR A PPROVAL OF 2019 B UDGET AND R ENEWAL OF A NNUAL L EASE I move that the Board: Approve the 2019 District and Boise Centre operating budgets, as presented, Approve the renewal of the Annual Appropriation Lease for the Boise Centre East building Authorize the Board Chairman and the Executive Director to take all necessary steps to affect the renewal of the Boise Centre East Annual Appropriation Lease. Motion for Second 16
For your attention! 17
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