Greater Boise Auditorium District 2019 Budget Budget Review and - - PowerPoint PPT Presentation

Greater Boise Auditorium District 2019 Budget

Budget Review and Adoption October 25, 2018

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• 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

• Cash position remains stable and stabilization fund

increases are proposed.

BUDGET - COMBINED

2019 is another period of strong growth for the District and the Boise Centre with continued investment in the Boise Centre.

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Forecast 2018 Budget 2019 Budget > Forecast

Revenues

14,404 $ 15,479 $ 1,075 $

Expenses

12,229 $ 13,890 $ 1,661 $

Revenues over Expenses

2,176 $ 1,589 $ (587) $

Budget-All funds

HOTEL TAX SUBSIDY

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No lease payment in 2018 $5.1 million $6.8 million + Lease Payment $1.7 million =

DEBT SERVICE

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DEBT COVENANTS

• COMPLIANCE

Additional Debt Covenant: Tax Receipts equal to at least 2.0X the maximum annual debt service coverage. Budget: 4.56X

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CASH BALANCES

2018 BUDGET - DISTRICT

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

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SUMMARY - DISTRICT BUDGET

Forecast 2018 Budget 2019 Change

Revenues

7,456 $ 8,046 $ 590 $

Expenses

181 $ 253 $ 72 $

Revenues>Expenses

7,275 $ 7,793 $ 518 $

12% 3%

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ROOM TAX REVENUES

8%

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BOISE CENTRE GOALS - 2019

Budget Guest Satisfaction Score 4.80 Service Quality Budget Events: Local 340 Events: Convention 60 Events: Total 400 Events: Days 636 Facility Utilization: Events and Event Days Number of Events Event Days

Budget Dollars (in 000's) 30,000 $ Attendance: Out of Town 30,000 Attendance: Local 170,000 Attendance:Total 200,000 Attendance Economic Impact

SUMMARY - BOISE CENTRE BUDGET

• Revenues increase 7%
• 82% of expense increases centered in labor due to

additional staffing positions, marketing, direct costs due to increased revenues, and depreciation

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Forecast 2018 Budget 2019 Change

Revenues

6,948 $ 7,433 $ 485 $

Expenses

12,048 $ 13,637 $ 1,589 $

Revenues>Expenses

(5,099) $ (6,204) $ (1,105) $

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BOISE CENTRE REVENUES

7% increase in revenues

$- $1,000 $2,000 $3,000 $4,000 Direct Labor Direct Costs Marketing and Sales Building Expenses Employee Related Labor Expenses Administration Expenses Professional Fees Utilities Interest Depr/Amort

Expenses

Budget 2019 Forecast 2018

Increased sales, and refer to staffing plan Refer to staffing plan Increase to BCVB, media marketing, room sponsorships and Fam trips

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Increase in fixed assets with $1 million security enhancements Costs to implement HR and ERP system Elevator and Escalator Maintenance Costs

BOISE CENTRE EXPENSES

STAFFING PLAN

 Added:  Sales Manager  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

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CAPITAL EXPENDITURES

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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

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MOTION FOR APPROVAL OF 2019 BUDGET AND RENEWAL OF ANNUAL LEASE

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

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For your attention!

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