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Report regarding a resolution approving the Conference Center Authority Fiscal Year 2023 - 2024 Budget. (Jim McGuire, 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) 2023-2024 Budget.
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BACKGROUND/DISCUSSION
The Conference Center is still in the stages of recovery from the COVID-19 pandemic but performed better than budgeted for FY 2022-2023 by $113,000 in Net Income. End of FY 2022-23 revenue projections are forecasted to be $4,550,073 and expenditures at $2,887,384.
The Conference Center’s FY 2023-24 budget includes an occupancy projection of 69%. It is anticipated that FY 2022-23 year-end occupancies will be approximately 63%. The Bay Area's hotel occupancy still lags behind all other major market destinations in the United States.
The Conference Center expenditure request reflects a continuation budget; however, funds have been increased in A&G, Operations Services, and Sales and Marketing due to more business coming into the building than last FY and with the large inflation factor including contract labor. Property/taxes/ lease budgets cover the Conference Center’s requirements.
This year’s Capital Improvement Budget includes funds for 9 projects that includes: Fire alarm sensor replacements, lower roof repair, parking lot sealcoating, staff cell phone replacement, China plate and dish covers, server upgrade, public bathroom countertops, PA system speakers for back-of-house, emergency lighting for public bathrooms. The full Capital Improvement projects are included in the FY 2023-24 Budget Document.
The FY 2023-24 budget includes a total revenue projection of $4,860,861 and a total expenditure request of $3,218,770, which is the first time in recorded history that the Conference Center Operations Projected Revenue will exceed Operational Expenditures. Also included in the FY 2023-24 budget is a capital project request of $224,000.
The fund balance increased by $562,000 and our FY 2022-2023 will be approximately $3,570,000 which indicates the Conference Center can operate and pay its expenses without General Fund subsidies.
CONCLUSION
The Conference Center Authority recommends the Fiscal Year 2023-24 Budget to the City Council for their review and approval. The Authority approved the budget at a Regular Authority Meeting on June 5, 2023.