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Report regarding a resolution approving the Conference Center Authority (Authority) Fiscal Year (FY) 2020-2021 Budget. (Dean Grubl, South San Francisco Conference Center Executive Director)
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RECOMMENDATION
Recommendation
It is recommended that the City Council of the City of South San Francisco adopt a resolution approving the Conference Center Authority (Authority) Fiscal Year (FY) 2020-2021 Budget.
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BACKGROUND/DISCUSSION
The Conference Center was on track for another record-breaking fiscal year; however, COVID-19 changed all our revenue projections for the current fiscal year and next. End of FY 2019-20 revenue projections are forecasted to be $3,189,355 and expenditures at $3,208,024.
The Conference Center’s FY 2020-21 budget includes an occupancy projection of 58%. It is anticipated that FY 2019-20 year-end occupancies will be approximately 55.5%. This is based upon a few of South San Francisco Hotels that closed during March 2020 and have not re-opened at this time.
The Conference Center expenditure request reflects a continuation budget. Funds have been decreased in advertising, travel, tradeshow participation, and in operations for the first six months of FY2020-21 due to COVID-19. Property/taxes/lease budgets cover the Conference Center’s requirements.
This year’s Capital Improvement Budget includes funds for 4 projects that includes: replacing and installing new PTZ cameras, replacing and installing water heater booster for dishwasher in the kitchen, phase three of the network upgrade and purchasing a halo disinfection system. The full Capital Improvement projects are included in the FY 2020-21 Budget Document.
The FY 2020-21 budget includes a total revenue projection of $3,698,263 and a total expenditure request of $3,342,456. Also included in the FY 2020-21 budget is a capital project request of $107,500. The fund balance (approximately $4,093,496 at FY 2019-20 year-end) continues to be healthy and indicates the Conference Center can operate and pay its expenses without General Fund subsidies.
Enclosed is the budget document, which describes all the details as well as an explanation of the changes from last year’s budget.
CONCLUSION
The Conference Center Authority recommends the Fiscal Year 2020-21 Budget to the City Council for their review and approval. The Authority approved the budget at their June 8, 2020 regular meeting. If I may answer any questions or clarify any information about the budget, please let me know.