HomeMy WebLinkAboutIR 7160 INFORMAL REPORT TO CITY COUNCIL MEMBERS No 7160.
To the Mayor and Members of the City Council December 9, 1986
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Subject: CONVENTION CENTER FINANCIAL PRO-FORMA
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Soon after the City Council approved City assumption Of operating
responsibility for the Convention Center, Councilman Russell Lancaster
requested that a multi-year financial pro forma be developed. In
response to that request, a committee comprised of representatives of
the City Manager's Office, Management Services Office and Public Events
Department worked together to provide the following projections
based on information available to date. The projections also were
reviewed by the current Manager of the Tarrant County Convention Center
who will be joining the City staff after January 1 .
January 1 - September 30, 1987
Based on historical data and a review of events booked for the remainder
of the city's 1986-87 fiscal year, our estimate of revenues and expend-
itures are:
REVENUES
Building Rentals $ 660,000
Concessions 220,000
Catering 60,000
Miscellaneous 140,000
Parking 420,000
1 ,500,000
EXPENDITURES_
Personal Service (01 ) $ 995,740
Supplies (02) 104,680
Contractual Services (03) 1 ,093,895
$2,194,315
Estimated Loss $ 694,315
The estimated loss of $694,315 is $67,986 more than the amount budgeted
in 1986-87 for the City's subsidy. It is the intent of the Public
Events staff to reduce the loss by achieving additional savings in
expenditures and/or by increasing revenues during the operating period.
Based on the above nine-months operating projection, then making some
assumption about enhanced activity by the Convention and Visitors
Bureau, a new concession contract and other positive revenue impacts , as
well the increasing expenditures which would result from more activity
and capital costs required after the first two years operation when the
City has committed spending at least $2,000,000 to refurbish and upgrade
the appearance of the facility, the additional three-year pro-forma
summarized on the following page was developed:
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7160-P-2
To the Mayor and Members of the City Council December 9, 1986
CONVENTION CENTER FINANCIAL PRO-FORMA
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FY 1987-88
Revenues $ 2,000,000
Expenditures 2,800,000
Operating Loss 800,000
FY 1988-89
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Revenues $ 2,200,000
Expenditures 3,000,000
Operating Loss 800,000
FY 1989-90
Revenues $ 2,600,000
Expenditures 3,250,000
Operating Loss 650,000
The City staff has spent a considerable amount of time since arriving at
terms with the County reviewing current staffing patterns and personnel
at both the Convention Center and the Will Rogers Complex. With assist-
ance from the Personnel department, a staffing plan has been developed
and will be presented to the City Council next week. The proposed total
number of full-time employees is 71 which is 18 fewer than the combined
total existing when the Arthur Anderson study was done in 1984-85.
It should be noted that the projections in this report reflect only the
direct revenues of the Convention .Center. During the next few months,
City staff will be working with the staff of the Convention and Visitors
Bureau to develop methodology to assess the impact of conventi on
business on hotel/motel and sales tax receipts.
Douglas Harman
bCity Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS