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Report regarding a resolution approving the South San Francisco Conference Center Authority Fiscal Year 2026-27 Budget. (Jim McGuire, South San Francisco Conference Center Authority 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 South San Francisco Conference Center Authority Fiscal Year 2026-27 Budget.
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BACKGROUND/DISCUSSION
The South San Francisco Conference Center Authority (“Conference Center Authority”), which includes members Mayor Addiego and Councilmember Coleman, reviewed and approved the Fiscal Year (“FY”) 2026-27 Budget at its regular meeting on June 1, 2026.
The FY 2026-27 Budget includes a total revenue projection of $5,748,773 and a total expenditure request of $3,600,819, which is the fourth consecutive year that the Conference Center Operations Projected Revenue will exceed Operational Expenditures. The Conference Center Authority projected it will end up with a Net Income surplus of $141,490. For Fiscal Year 2025-26, the Conference Center Authority’s Net Income was budgeted to be a surplus of $125,815, however, will end up with over $288,000 Net Income surplus.
The Conference Center Authority’s FY 2026-27 Budget includes a hotel occupancy projection of 70%. It is anticipated that FY 2025-26 year-end occupancies will be approximately 67%. The Bay Area's tourism economy continues its gradual recovery yet still lags all other major market destinations in the United States. While occupancy continues to improve, San Mateo County has experienced slower growth in Average Daily Rate (ADR).
The Conference Center Authority’s expenditure request reflects a continuation budget; however, funds have been increased in Administrative and General, Operations Services, and Sales and Marketing due to more business coming into the building than last FY and taking into consideration, the every-growing inflation factor including labor, the current administration’s direction that effect travel and rising costs of daily living expenses. Property taxes and lease budgets cover the Conference Center Authority’s requirements.
This year’s Capital Improvement Budget includes funds for six (6) projects, including: a new HVAC unit for the Oyster Point Room, laptops for staff with cloud migration, the replacement of carpeting in all meeting space (including Grand Ballroom, Baden Rooms and Oyster Point Room), paint the interior of all meeting space, replace fabric on the air walls, and resurface the roof above the warehouse.
The full list of Capital Improvement projects is included in the FY 2026-27 Budget Document and sets forth a proposal of $455,000 in expenditures.
The Conference Center Authority’s fund balance increased by $373,813 and the FY 2025-26 projected ending unrestricted fund balance is approximately $4,913,281 (which is an all-time high balance) and indicates that the Conference Center Authority can operate and pay its expenses without General Fund subsidies.
An overview of the FY 2025-26 Year End Budget and FY 2026-27 Proposed Budget is included in the table below:
FISCAL IMPACT
The South San Francisco Conference Center Authority Fiscal Year 2026-27 Budget approval will not impact the City’s budget as it does not include General Fund subsidies.
RELATIONSHIP TO CITY COUNCIL PRIORITIES ACTION PLAN
Approval of the South San Francisco Conference Center Authority FY 2026-27 Budget aligns with the Major Focus Area of Modern and Sustainable Organization, as the Conference Center’s operating and capital needs are self-sufficient and do not require a General Fund subsidy.
CONCLUSION
The South San Francisco Conference Center Authority recommends the Fiscal Year 2026-27 Budget to the City Council for their review and approval.