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HomeMy WebLinkAboutReso 62-2017 (17-624) _x SANS City of South San Francisco 4,`• . t -o L P.O. Box 711 (City Hall, ° 400 Grand Avenue) South San Francisco, CA —_ o City Council L OB- Resolution: RES 62-2017 File Number: 17-624 Enactment Number: RES 62-2017 RESOLUTION APPROVING THE SOUTH SAN FRANCISCO CONFERENCE CENTER AUTHORITY FISCAL YEAR 2017-18 BUDGET. WHEREAS, the South San Francisco Conference Center Authority ("Conference Center ") conducted a public meeting on June 5, 2017 and reviewed the Fiscal Year(FY) 2017-18 budget("Budget"); and WHEREAS, the Conference Center Authority found that the FY 2017-18 budget represented the appropriate level of expenditures for Fiscal Year 2017-18 and recommended that the City Council approve the proposed budget; and WHEREAS, the City Council concurs with the Conference Center Authority's recommendation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco ("City Council")as follows: The Conference Center FY 2017-18 Budget attached hereto as Exhibit A showing a total revenue projection of$4,173,246 and a total expenditure request of$3,504,556 is hereby approved. The capital project request of$408,600 included within the Budget is hereby approved. Each budget category listed in South San Francisco Municipal Code § 2.78.106 is funded to the limits specified in the Budget. The funds collected pursuant to South San Francisco Municipal Code §4.20.035 are hereby appropriated to fund the Conference Center Budget. The City Manager and the Finance Director are hereby directed and authorized to make the specified funds available to the Conference Center. Copies of the Conference Center Budget shall be made available for public review and inspection in the Offices of the City Clerk and the Administrative Offices of the Conference Center. City of South San Francisco Page 1 File Number: 17-624 Enactment Number: RES 62-2017 At a meeting of the Special City Council on 6/27/2017, a motion was made by Richard Garbarino, seconded by Mark Addiego, that this Resolution be approved. The motion passed. Yes: 4 Matsumoto,Addiego, Gupta, and Garbarino Recused: 1 Normandy n Attest by r Gabrod iguez City of South San Francisco Page 2 South San Francisco Conference Center Authority Fiscal Year 2017-2018 Budget As Recommended to the South San Francisco City Council By the South San Francisco Conference Center Authority Board June 28, 2017 FY 17-18 FY 16-17 FY 16-17 Proposed BudgetApproved Budget Year End Total Revenue 4,173,246 3,770,394 3,957,271 Total Expenditures3,504,556 3,205,315 3,207,726 Surplus 668,690 565,079 749,545 Fiscal Year 2017-2018 Budget South San Francisco Conference Center 1 FY 17-18 FY 16-17 FY 16-17 % change % of Year End to Proposed BudgetApproved Budget Year End Proposed BudgetApproved Budget to Approved Budget Conference Center Operations 1,908,000 1,575,000 1,800,000 21.14%114.29% Conference Center 2,250,746 2,183,394 2,143,071 3.08%98.15% Tax Interest Income 14,500 12,000 14,200 20.83%118.33% Total 4,173,246 3,770,394 3,957,271 10.68%104.96% Expenditure Projections - All Sources FY 17-18 FY 16-17 FY 16-17 % change % of Year End to Proposed BudgetApproved Budget Year End Proposed BudgetApproved Budget to Approved Budget Conference Center Operations 2,546,129 2,255,502 2,257,913 12.89%100.11% Debt Service 474,022 469,613 469,613 0.94%100.00% Property Leases/Taxes 484,405 480,200 480,200 0.88%100.00% Total 3,504,556 3,205,315 3,207,726 9.34%100.08% South San Francisco Conference Center Fiscal Year 2017-2018 Budget Revenue Projections - All Sources 2 FY 17-18 FY 16-17 FY 16-17 % change % of Year End to Proposed BudgetApproved Budget Year End Proposed BudgetApproved Budget to Approved Budget Rent 888,000 805,000 805,000 10.31%100.00% Food & Beverage 770,000 550,000 750,000 40.00%136.36% Event Services 250,000 220,000 245,000 13.64%111.36% Total 1,908,000 1,575,000 1,800,000 21.14%114.29% Fiscal Year 2017-2018 Budget Revenue Projections-Conference Center Operations South San Francisco Conference Center 3 FY 17-18 FY 16-17FY 16-17 % change % of Year End Proposed BudgetApproved BudgetYear EndProposed 17-18to Approved to Approved 16-17 Salaries/Benefits Salaries 853,500 680,750 672,000 25.38%98.71% Workers' Compensation 18,000 7,600 35,000 136.84%460.53% Health, Dental, Vision, LTD, STD 198,000 162,000 157,000 22.22%96.91% Pension, Medicare FICA 145,000 115,000 102,300 26.09%88.96% 1,214,500 965,350 966,300 25.81%100.10% Operations/Maintenance Services Set Up/Tear Down Service 124,500 115,000 123,500 8.26%107.39% Janitorial Service 120,000 104,500 116,500 14.83%111.48% Transportation Service 6,500 6,500 5,700 0.00%87.69% Linen/Water Service 21,500 20,000 20,000 7.50%100.00% Temporary Event Labor 170,000 170,000 148,000 0.00%87.06% Electr/Plum/HVAC Main. Service 37,700 34,500 34,500 9.28%100.00% Pest Control 4,000 3,800 3,600 5.26%94.74% Fire Extinguisher/Alarm Service 5,000 4,500 7,300 11.11%162.22% Landscape Service 17,000 15,500 13,200 9.68%85.16% 506,200 474,300 472,300 6.73%99.58% Operation/Maintenance Supplies Janitorial Supplies 14,000 14,000 14,000 0.00%100.00% Operations Supplies 35,500 24,500 26,000 44.90%106.12% 49,500 38,500 40,000 28.57%103.90% Marketing Services Ad Production/Placement 172,000 172,000 198,000 0.00%115.12% Public Relations 25,000 12,500 12,500 100.00%100.00% Client Entertainment 19,000 11,000 13,400 72.73%121.82% Client Gifts 9,000 7,500 8,500 20.00%113.33% Booth Rental & Equipment Fee 7,500 4,000 3,800 87.50%95.00% Industry Event Registration 12,000 10,000 9,000 20.00%90.00% Group Incentive Rentals 9,000 20,000 9,600 -55.00%48.00% 253,500 237,000 254,800 6.96%107.51% Meeting Travel/Dues/Memberships Dues/Memberships 6,000 6,500 6,000 -7.69%92.31% Meeting Travel Expense 18,000 16,000 15,000 12.50%93.75% 24,000 22,500 21,000 6.67%93.33% Legal/Professional Services Legal Services 30,000 30,000 26,500 0.00%88.33% Professional Services 80,500 70,000 70,000 15.00%100.00% 110,500 100,000 96,500 10.50%96.50% Fiscal Year 2017-2018 Budget Expenditure Budget Conference Center Operations 4 FY 17-18 FY 16-17FY 16-17 % change % of Year End Proposed BudgetApproved BudgetYear EndProposed 17-18to Approved to Approved 16-17 Audit/Payroll Services 24,150 22,770 22,000 6.06%96.62% City Finance Services 10,000 10,000 10,000 0.00%100.00% General Insurance Property Insurance 18,271 14,055 14,055 30.00%100.00% Liability Insurance 18,808 14,468 14,468 30.00%100.00% 37,079 28,523 28,523 30.00%100.00% Bank Charges/Bad Debt Bank Charges 89,000 80,000 85,000 11.25%106.25% Bad Debt 6,000 6,000 0 0.00% 95,000 86,000 85,000 10.47%98.84% Office Machines/Publication/Supplies Postage/Rental Equipment Office Machines 8,000 8,000 7,200 0.00%90.00% Computer Supplies 5,500 5,500 5,500 0.00%100.00% Office Supplies 3,800 3,800 3,800 0.00%100.00% Postage 2,300 2,500 1,990 -8.00%79.60% 19,600 19,800 18,490 -1.01%93.38% Printing 2,500 2,500 2,000 0.00%80.00% Utilities Internet Service 56,500 57,500 57,300 -1.74%99.65% Gas/Electric 96,200 95,000 95,000 1.26%100.00% Telephone/Long Distance 16,900 17,200 16,500 -1.74%95.93% Water 15,500 16,000 15,500 -3.13%96.88% 185,100 185,700 184,300 -0.32%99.25% Other Adjustment Retiree Health Cost 14,500 12,559 13,200 15.46%105.10% 2,546,129 2,205,502 2,214,413 15.44%100.40% Expansion Study 50,000.00 43,500.00 -100.00%87.00% TOTAL 2,546,129 2,255,502 2,257,913 12.89%100.11% 5 Capital Improvement Budget Budget 1 Replace Two (2) HVAC Units 57,000.00$ 2 Replace and Repair Roof with Ceramic Flex Coat 275,000.00$ 3 Replace and Upgrade the Emergency Lighting 68,500.00$ 4 Replace two (2) Natural Gas Stock Pot Range 2,500.00$ 5 Purchase five (5) Speed Kitchen Racks with Covers 5,600.00$ TOTAL:408,600.00$ South San Francisco Conference Center Fiscal Year 2017-2018 Budget 6 Ending Unrestricted Fund Balance 2,550,678$ 6/30/2016 Plus Projected FY 2016-17 Surplus/Loss 749,545$ Less FY 2016-17 Capital Expenditures (Actual)(390,441)$ Projected Unrestricted Fund Balance 6/30/17 2,909,782$ Plus Projected FY 2017-2018 Surplus 668,690$ Less FY 2017-18 Capital Expenditures (408,600)$ Projected Unrestricted Fund Balance 6/30/18 3,169,872$ Authority Designated Reserves *500,000$ Projected Undesignated Reserves 2,669,872$ Projected Fund Balance 6/30/18 3,169,872$ * Designated Reserve Categories Capital Improvements 100,000$ Insurance 100,000$ Debt. Service 150,000$ Contingencies 150,000$ Total 500,000$ South San Francisco Conference Center Fiscal Year 2017-2018 Unrestricted Fund Balance/Designated/Undesignated Reserves 7 SOUTH SAN FRANCISCO CONFERENCE CENTER Salary Schedule Fiscal Year 2017-2018 Executive Director 4/1/00 Hourly 72.36 150,500.00 Semi-Monthly 6,270.83 Monthly 12,541.67 Chief Financial Officer 5/1/98 Hourly 58.40 121,480.89 Semi-Monthly 5,061.70 Monthly 10,123.41 Director of Facility Operations 7/1/93 Hourly 51.11 106,304.44 Semi-Monthly 4,429.35 Monthly 8,858.70 Director of Sales 43.27 11/28/16 90,000.00 Hourly 3,750.00 Semi-Monthly 7,500.00 Monthly Facility Services Manager 6/18/13 Hourly 36.06 75,000.00 Semi-Monthly 3,125.00 Monthly 6,250.00 Sales Manager 7/1/15 Hourly 26.44 55,000.00 Semi-Monthly 2,291.67 Monthly 4,583.33 Event Manager 3/1/15 Hourly 28.85 60,000.00 Semi-Monthly 2,500.00 Monthly 5,000.00 Administrative Services Assistant 12/1/15 Hourly 27.88 58,000.00 Semi-Monthly 2,416.67 Monthly 4,833.33 Meeting Manager Vacant 26.44 55,000.00 Hourly 2,291.67 Semi-Monthly 4,583.33 Monthly Facility Services Coordinator Vacant 26.44 55,000.00 Hourly 2,291.67 Semi-Monthly 4,583.33 Monthly Total 826,285.33 Incentive/Increase 27,214.67 Total 853,500.00 8 SOUTH SAN FRANCISCO CONFERENCE CENTER AUTHORITY FISCAL YEAR 2017-2018 BUDGET Explanations of Changes June 5, 2017 255 South Airport Boulevard, South San Francisco, California 94080 tel 650.877.8787 fax 650.877.5356 www.ssfconf.com Revenue and Expenditure Projections - All Sources - A surplus of revenue over expenses for FY 17-18 in the amount of $668,690 is projected. This contributes to the fund balance and provides for capital improvements. The projected Fund Balance at June 30, 2017 is $2,909,782. The budgeted surplus for the FY 2016-17 was $565,079; however, the year-end projection is that the surplus will be $749,545. Revenue Projections - All Sources - Conference Center Revenue – A 21.14% increase in Operations Revenue is projected for FY 2017-18 from FY 2016-17 approved budget. The hospitality industry continues to improve and 114.29% of the FY 2016-2017 budget projection was achieved. The FY 2017-18 projections are anticipated to be met based on the level of confirmed and tentative business currently booked. The outlook for the coming year is still very positive for the San Francisco International Airport area. Conference Center Occupancy Tax - An occupancy rate of 80% is projected for Fiscal Year 2017-18. This does included the addition of two (2) new hotels coming into the inventory and the closure of one (1) hotel in Fiscal Year 2017- 2018. It is anticipated that FY 2016-17 year-end occupancies will be approximately 80.5%. Interest Income – Interest income is projected to remain relativity the same; however changes can be based on market fluctuation. 10.68% Revenue increase projected for FY 2017-18 from FY 2016-17 approved budget. 255 South Airport Boulevard, South San Francisco, California 94080 tel 650.877.8787 fax 650.877.5356 www.ssfconf.com Expenditure Projections - All Sources - Conference Center Operations Expenditure – A 12.89% increase is projected from FY 2016-17 approved budget and an overall 9.34% increase from FY2016- 17. Please see the Operations Detail section for explanations. Debt Service - Amounts reflect a continuation budget. Property Leases/Taxes - Amounts reflect a continuation budget. Expenditure Projections - Conference Center Operations All operating areas reflect the level of projected business. Funds are included to add a Meetings Manager and a Facility Services Coordinator to the staff of the Conference Center. In Marketing Services, the Public Relations and Client Entertainment has been increased based upon the Sales Staff several planned events and sales missions for coming fiscal year. Capital Improvements Budget - The Capital Improvement Budget lists projects which require HVAC upgrades (1), replacing and repairing the roof (2), replace and upgrade the emergency lighting in the building (3), replace and install two (2) natural gas stock pot ranges in the kitchen (4), purchase five (5) speed kitchen racks with covers (5). The Capital Improvement Budget reflects the Authority’s continued commitment to making annual capital improvements to the Conference Center so no single year requires an excessive amount of funds to be budgeted.