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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 ...
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