AZSTA Fiscal Year 2016 Annual Financial Budget

Transcription

1 AZSTA Fiscal Year 2016 Annual Financial Budget

2 Fiscal Year 2016 Budget OVERVIEW Inside the FY2016 Budget Overview 2 Comparative: FY2016 Budget, FC Update FY2015, FY2015 Budget 3-4 Statement of Operations - Variance Analysis - FC Update FY2015 vs FY2015 Budget 5-6 Statement of Operations - Variance Analysis - FY2016 Budget vs. FC Update FY Executive Summary - 5-year Forecast 9-11 FRCA - Facilities Revenue Clearing Account TRCA - Tourism Revenue Clearing Account AZSTA Operating Budget - FY Net Building Operating Income / (Cost) Spectra - Budget FY2016: Income Statement 23 Statutory Flow of Funds + Glossary Tourism Revenues - FY2016 by month Capital Request + Cash Available Page 2 AZSTA Budget Package This budget as presented is for FY2016 covering the period July 01, 2015 through June 30, Our guideline for the completion of the budget package comes from the authority of Section of the Arizona Revised Statutes (ARS). The financial information contained within this budget represents the Authority s 10 th year of operations at the University of Phoenix Stadium and the 15 th operating year overall. AZSTA Cash Position In 2007, as the economic recession took hold of the AZ economy, it was forecast that AZSTA would run-out of operating cash by mid Through the combined effort of the AZSTA Board of Directors, the AZSTA Staff, Global Spectrum, and the AZ Cardinals; expenses were held-down or have been lowered and new revenue opportunities have been created. At the end of FY2015, AZSTA is projecting to retain an operating cash balance in excess of $15.5M before a scoreboard payment, and our current modeling no longer projects a cash shortage through the foreseeable budgetary horizon. AZSTA Budget Overview Total Revenues for FY2016 are forecast to decrease $3.365 vs. FC Update for FY2015; due primarily to the Tourism Revenue forecast in FY2016. AZSTA s FY2016 operational expenses are forecast to be more than FC Update for FY2015 by $241.7K / 21.88%. The details for this requested increase are in the details of the AZSTA Operating Budget section of this document. Note: the FY2016 total operational request, for the first time in the history of the Authority, will exceed the actual operating costs for FY2008 and FY2009. Using FY2008 as the baseline and adding an annual CPI of 3.0% per year; the FY2016 request is $121.3K / 9.01% less than this target number. Economic Overview The economic impact of the recession on AZSTA was slightly less in FY2015 that it has been in FY2009 through FY2014 due to the stadium hosting of the Pro Bowl and Super Bowl in FY2015. AZSTA is forecasting a reduction in Tourism Revenues = $3.729M / 12.24% vs, the FC Update for FY2015. The Authority remains cautiously optimistic about TRCA revenues in the FY2016 budget; but realizes that FY2015 was an exceptional year for Tourism Revenues. Economic Overview (continued) Total FY2016 Facilities Revenues (FRCA) improve $332.6K / 1.87% vs. the FC Update FY2015. This is driven by the mix of events forecast to be held at the UOP Stadium FY2016 including the CFP Championship Game on Jan 11, Total TRCA + FRCA Revenues for FY2016 are forecast to decrease $3.396M / 7.05% vs. FC Update FY2015. MCSD Excess is expected to increase by $30.7K / 2.50% year over year. Prepared by: Kevin Daniels AZSTA Chief Financial Officer and Treasurer. Reviewed by: Thomas Sadler, AZSTA President and Chief Executive Officer To Be Reviewed and Recommended by: Finance and HR Committee for the AZSTA Board of Directors Reviewed and Approved by: The Board for the Arizona Sports and Tourism Authority; will vote on this budget at the Board meeting on June 17, 2015.

3 Comparative: FY2016 Budget - FC Update FY FY2015 Budget: Sources FY2016 FY2015 FY2015 Item Budget Forecast Update Budget Sources Tourism Revenues Hotel Bed Tax $ 14,100,724 $ 15,980,406 $13,756,804 Rental Car Surcharge Tax 12,641,651 14,491,358 12,333,318 TOTAL TOURISM REVENUES $26,742,375 $30,471,764 $26,090,122 Facilities Revenues NFL Income Tax $ 7,080,929 $ 6,987,979 6,987,979 AZ Cardinals Rent 298, , ,915 AZ Cardinals STR 5,082,204 4,958,248 4,958,248 Fiesta Bowl FUF / TUF / STR 1,243,461 1,304,786 1,218,486 NCAA National Champ Game 300, Subtotal - FOOTBALL-RELATED FACILITIES REVENUES $ 14,005,368 $ 13,543,928 $13,457,628 AZSTA/Spectra Event FUF $ 1,131,186 $ 492,774 $ 439,890 AZSTA/Spectra Event STR 1,715,150 1,595,211 1,320,222 AZSTA/Spectra Event F&B Revenue 1,024, , ,134 Telecom License Fees 21,600 19,165 13,200 AZSTA/Spectra NET Building Revenue (1,304,123) 658, ,908 AZSTA/Spectra Ancillary Income 588, , ,106 ROJO Incremental Income (guarantee $750K minimum) 909, , ,464 Subtotal - STADIUM-RELATED FACILITIES REVENUES $4,086,086 $4,214,886 $3,745,924 TOTAL FACILITIES REVENUES $18,091,454 $17,758,814 $17,203,552 Other Revenues MCSD Excess Car Rental Surcharge Tax $ 1,260,932 $ 1,230,178 $1,578,419 Subtotal - OTHER REVENUES $1,260,932 $1,230,178 $1,578,419 Page 3 TOTAL REVENUES - ALL SOURCES $46,094,761 $49,460,756 $44,872,093

4 Comparative: FY2016 Budget - FY2015 FC Update - FY2015 Budget: Uses FY2016 FY2015 FY2015 Item Budget Forecast Update Budget USES Fund Distrbutions Senior Bonds Debt Service $ 16,300,713 $ 16,015,712 $ 16,015,712 Tourism 7,479,025 7,553,093 7,130,897 Cactus League Promotion - Subordinate Bond Debt Service 4,482,945 4,570,750 4,570,750 Cactus League Promotion - IGA Reimbursements 1,379,158 1,546,390 1,387,129 Youth & Amateur Sports (YAS) 1,022,665 2,082, ,931 Subtotal - USES before Operations $ 30,664,506 $ 31,768,504 $ 30,080,419 Operations AZSTA Operations $ 1,346,139 $ 1,104,445 $ 1,083,552 Fiesta Bowl Expenses 351, , ,606 AZ Cardinals Game Day Expenses 3,121,216 3,029,483 3,007,074 Spectra - stadium management (indirect) 8,131,057 7,815,798 7,879,878 Subtotal - Operational Uses $ 12,949,910 $ 12,288,607 $ 12,315,110 Non-Operational AZSTA Distribution of MCSD Excess to Cactus League 1,260,932 1,230,178 1,578,419 Subtotal - Non-Operational Uses $ 1,260,932 $ 1,230,178 $ 1,578,419 TOTAL USES $ 44,875,348 $ 45,287,289 $ 43,973,948 TOTAL REVENUES $46,094,761 $49,460,756 $44,872,093 Less: USES before Operations (above) (30,664,506) (31,768,504) (30,080,419) Less: USES for Operations (above) (12,949,910) (12,288,607) (12,315,110) Less: USES for Non-Operational (above) (1,260,932) (1,230,178) (1,578,419) NET OPERATING SOURCES / (USES) $1,219,413 $4,173,467 $898,145 Capital Investment - Scoreboard Project AZSTA annual payment - new scoreboard $ (1,358,177) $ (1,358,177) $ (1,358,177) Capital Investment - Potential Capital Projects (FY2016) see capital detail (635,000) (1,577,187) (1,587,500) NET OPERATING SOURCES / (USES) - after capital ($773,764) $1,238,103 ($2,047,532) Page 4

5 Statement of Operations FY2015 Forecast Update vs. FY2015 Budget: Sources FY2015 FY2015 Increase / (Decrease) Item Forecast Update Budget Variance $ Variance % Sources Tourism Revenues Hotel Bed Tax $ 15,980,406 $ 13,756,804 $ 2,223, % Rental Car Surcharge Tax 14,491,358 12,333,318 2,158, % TOTAL TOURISM REVENUES $30,471,764 $26,090,122 $4,381, % Facilities Revenues NFL Income Tax $ 6,987,979 $ 6,987,979 $ % AZ Cardinals Rent 292, , % AZ Cardinals STR 4,958,248 4,958, % Fiesta Bowl FUF / TUF / STR 1,304,786 1,218,486 86, % NCAA National Champ Game % Subtotal - FOOTBALL-RELATED FACILITIES REVENUES $13,543,928 $13,457,628 $86, % AZSTA/Spectra Event FUF $ 492,774 $ 439,890 $ 52, % AZSTA/Spectra Event STR 1,595,211 1,320, , % AZSTA/Spectra Event F&B Revenue 385, ,134 20, % Telecom License Fees 19,165 13,200 5, % AZSTA/Spectra NET Building Revenue 658, , , % AZSTA/Spectra Ancillary Income 188, ,106 (417) -0.22% ROJO Incremental Income (guarantee $750K minimum) 874, , % Subtotal - STADIUM-RELATED FACILITIES REVENUES $4,214,886 $3,745,924 $468, % TOTAL FACILITIES REVENUES $17,758,814 $17,203,552 $555, % Other Revenues MCSD Excess Car Rental Surcharge Tax $ 1,230,178 $1,578,419 $ (348,241) % Subtotal - OTHER REVENUES $1,230,178 $1,578,419 ($348,241) % TOTAL REVENUES - ALL SOURCES $49,460,756 $44,872,093 $4,588, % Page 5

6 Statement of Operations FY2015 Forecast Update vs. FY2015 Budget: Uses FY2015 FY2015 Increase / (Decrease) Item Forecast Update Budget Variance $ Variance % USES Fund Distrbutions Senior Bonds Debt Service $ 16,015,712 $ 16,015,712 $ % Tourism 7,553,093 7,130, , % Cactus League Promotion - Subordinate Bond Debt Service 4,570,750 4,570, % Cactus League Promotion - IGA Reimbursements 1,546,390 1,387, , % Youth & Amateur Sports (YAS) 2,082, ,931 1,106, % Subtotal - USES before Operations $ 31,768,504 $ 30,080,419 $ 1,688, % Operations AZSTA Operations $ 1,104,445 $ 1,083,552 $ 20, % Fiesta Bowl Expenses 338, ,606 (5,725) -1.66% AZ Cardinals Game Day Expenses 3,029,483 3,007,074 22, % Spectra - stadium management (indirect) 7,815,798 7,879,878 (64,080) -0.81% Subtotal - Operational Uses $ 12,288,607 $ 12,315,110 $ (26,502) -0.22% Non-Operational AZSTA Distribution of MCSD Excess to Cactus League $ 1,230,178 $ 1,578,419 $ (348,241) % Subtotal - Non-Operational Uses $ 1,230,178 $ 1,578,419 $ (348,241) % TOTAL USES $ 45,287,289 $ 43,973,948 $ 1,313, % TOTAL REVENUES $49,460,756 $44,872,093 $4,588, % Less: USES before Operations (above) (31,768,504) (30,080,419) (1,688,085) -5.61% Less: USES for Operations (above) (12,288,607) (12,315,110) 26, % Less: USES for Non-Operational (above) (1,230,178) (1,578,419) 348, % NET OPERATING SOURCES / (USES) $4,173,467 $898,145 $3,275, % Capital Investment - Scoreboard Project AZSTA annual payment - new scoreboard $ (1,358,177) $ (1,358,177) % Capital Investment - Potential Capital Projects (FY2016) see capital detail (1,577,187) (1,587,500) 10, % NET OPERATING SOURCES / (USES) - after capital $1,238,103 ($2,047,532) $3,285, % Page 6

7 Statement of Operations FY2016 Budget vs. FY2015 FC Update: Sources FY2016 FY2015 Increase / (Decrease) Item Budget Forecast Update Variance $ Variance % Sources Tourism Revenues Hotel Bed Tax $14,100,724 $ 15,980,406 $ (1,879,682) % Rental Car Surcharge Tax 12,641,651 14,491,358 (1,849,707) % TOTAL TOURISM REVENUES $26,742,375 $30,471,764 ($3,729,389) % Facilities Revenues NFL Income Tax $ 7,080,929 $ 6,987,979 $ 92, % AZ Cardinals Rent 298, ,915 5, % AZ Cardinals STR 5,082,204 4,958, , % Fiesta Bowl FUF / TUF / STR 1,243,461 1,304,786 (61,325) -4.70% NCAA National Champ Game 300, , % Subtotal - FOOTBALL-RELATED FACILITIES REVENUES $14,005,368 $13,543,928 $461, % AZSTA/Spectra Event FUF $ 1,131,186 $ 492,774 $ 638, % AZSTA/Spectra Event STR 1,715,150 1,595, , % AZSTA/Spectra Event F&B Revenue 1,024, , , % Telecom License Fees 21,600 19,165 2, % AZSTA/Spectra NET Building Revenue (1,304,123) 658,972 (1,963,095) % AZSTA/Spectra Ancillary Income 588, , , % ROJO Incremental Income (guarantee $750K minimum) 909, ,464 35, % Subtotal - STADIUM-RELATED FACILITIES REVENUES $4,086,086 $4,214,886 ($128,800) -3.06% TOTAL FACILITIES REVENUES $18,091,454 $17,758,814 $332, % Other Revenues MCSD Excess Car Rental Surcharge Tax $ 1,260,932 $ 1,230,178 $ 30, % Subtotal - OTHER REVENUES $1,260,932 $1,230,178 $30, % TOTAL REVENUES - ALL SOURCES $46,094,761 $49,460,756 ($3,365,994) -6.81% Page 7

8 Statement of Operations FY2016 Budget vs. FY2015 FC Update: Uses FY2016 FY2015 Increase / (Decrease) Item Budget Forecast Update Variance $ Variance % USES Fund Distrbutions Senior Bonds Debt Service $ 16,300,713 $ 16,015,712 $ 285, % Tourism 7,479,025 7,553,093 (74,068) -0.98% Cactus League Promotion - Subordinate Bond Debt Service 4,482,945 4,570,750 (87,805) -1.92% Cactus League Promotion - IGA Reimbursements 1,379,158 1,546,390 (167,232) % Youth & Amateur Sports (YAS) 1,022,665 2,082,559 (1,059,894) % Subtotal - USES before Operations $ 30,664,506 $ 31,768,504 $(1,103,998) -3.48% Operations AZSTA Operations $ 1,346,139 $ 1,104,445 $ 241, % Fiesta Bowl Expenses 351, ,881 12, % AZ Cardinals Game Day Expenses 3,121,216 3,029,483 91, % Spectra - stadium management (indirect) 8,131,057 7,815, , % Subtotal - Operational Uses $ 12,949,910 $ 12,288,607 $ 661, % Non-Operational AZSTA Distribution of MCSD Excess to Cactus League 1,260,932 1,230,178 $ 30, % Subtotal - Non-Operational Uses $ 1,260,932 $ 1,230,178 $ 30, % TOTAL USES $ 44,875,348 $ 45,287,289 $ (411,941) -0.91% TOTAL REVENUES $46,094,761 $49,460,756 ($3,365,994) -6.81% Less: USES before Operations (above) (30,664,506) (31,768,504) 1,103, % Less: USES for Operations (above) (12,949,910) (12,288,607) (661,303) -5.38% Less: USES for Non-Operational (above) (1,260,932) (1,230,178) (30,754) -2.50% NET OPERATING SOURCES / (USES) $1,219,413 $4,173,467 ($2,954,054) % Capital Investment - Scoreboard Project AZSTA annual payment - new scoreboard $ (1,358,177) $ (1,358,177) % Capital Investment - Potential Capital Projects (FY2016) see capital detail (635,000) (1,577,187) 942, % NET OPERATING SOURCES / (USES) - after capital ($773,764) $1,238,103 ($2,011,867) % Page 8

9 Executive Summary - Five Year Forecast FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 Item Budget Forecast Forecast Forecast Forecast Forecast Sources Tourism Revenues Hotel Bed Tax $ 14,100,724 $ 14,453,242 $14,814,573 $15,184,938 $15,564,561 $15,953,675 Rental Car Surcharge Tax 12,641,651 $ 12,957,693 $13,281,635 $13,613,676 $13,954,018 $14,302,868 TOTAL TOURISM REVENUES $26,742,375 $27,410,935 $28,096,208 $28,798,613 $29,518,579 $30,256,543 Facilities Revenues NFL Income Tax $ 7,080,929 $ 7,257,952 $ 7,439,401 $ 7,625,386 $ 7,816,021 $ 8,011,421 AZ Cardinals Rent 298, , , , , ,870 AZ Cardinals STR 5,082,204 5,209,259 5,339,491 5,472,978 5,609,803 5,750,048 Fiesta Bowl FUF / TUF / STR 1,243,461 1,284,706 1,326,358 1,368,427 1,410,924 1,453,858 NCAA National Champ Game / Final Four 300, , Subtotal - FOOTBALL-RELATED FACILITIES REVENUES $14,005,368 $14,556,666 $14,416,094 $14,783,852 $15,161,602 $15,545,196 AZSTA/Spectra Event FUF $ 1,131,186 $ 1,159,466 $ 1,188,453 $ 1,218,164 $ 1,248,618 $ 1,279,834 AZSTA/Spectra Event STR 1,715,150 1,758,029 1,801,980 1,847,029 1,893,205 1,940,535 AZSTA/Spectra Event F&B Revenue 1,024,138 1,049,741 1,075,985 1,102,884 1,130,457 1,158,718 Telecom License Fees 21,600 22,140 22,694 23,261 23,842 24,438 AZSTA/Spectra NET Building Revenue (1,304,123) (1,336,726) (1,370,144) (1,404,398) (1,439,508) (1,475,495) AZSTA/Spectra Ancillary Income 588, , , , , ,026 ROJO Incremental Income (guarantee $750K minimum) 909, , , ,393 1,003,878 1,028,975 Subtotal - STADIUM-RELATED FACILITIES REVENUES $4,086,086 $4,188,238 $4,292,944 $4,400,267 $4,510,274 $4,623,031 TOTAL FACILITIES REVENUES $18,091,454 $18,744,904 $18,709,038 $19,184,119 $19,671,876 $20,168,227 Other Revenues MCSD Excess Car Rental Surcharge Tax $ 1,260,932 $ 1,292,455 $ 1,324,767 $ 1,357,886 $ 1,391,833 $ 1,426,629 Subtotal - OTHER REVENUES $1,260,932 $1,292,455 $1,324,767 $1,357,886 $1,391,833 $1,426,629 TOTAL REVENUES - ALL SOURCES $46,094,761 $47,448,295 $48,130,013 $49,340,619 $50,582,288 $51,851,400 Page 9

10 Executive Summary - Five Year Forecast FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 Item Budget Forecast Forecast Forecast Forecast Forecast USES Fund Distrbutions Senior Bonds Debt Service $ 16,300,713 $ 22,039,313 $ 22,790,175 $ 23,429,028 $ 23,473,670 $ 23,742,075 Tourism 7,479,025 6,876,216 7,146,244 7,453,777 7,905,564 8,334,163 Cactus League Promotion - Subordinate Bond Debt Service 4,482, Cactus League Promotion - IGA Reimbursements 1,379,158 3,645,482 3,815,566 3,753,968 3,816,436 3,917,809 Youth & Amateur Sports (YAS) 1,022, , , , , ,405 Subtotal - USES before Operations $ 30,664,506 $ 33,414,416 $ 34,491,734 $ 35,387,980 $ 36,008,310 $ 36,847,453 Operations AZSTA Operations $ 1,346,139 $ 1,367,173 $ 1,398,696 $ 1,431,173 $ 1,464,638 $ 1,499,124 Fiesta Bowl Expenses 351, , , , , ,082 AZ Cardinals Game Day Expenses 3,121,216 3,576,896 3,684,202 3,794,728 3,908,570 4,025,827 Spectra - stadium management (indirect) 8,131,057 8,374,989 8,626,238 8,885,025 9,151,576 9,426,123 Subtotal - Operational Uses $ 12,949,910 $ 13,677,585 $ 14,074,835 $ 14,483,939 $ 14,905,256 $ 15,339,157 Non-Operational AZSTA Distribution of MCSD Excess to Cactus League 1,260,932 1,292,455 1,324,767 1,357,886 1,391,833 1,426,629 Subtotal - Non-Operational Uses $ 1,260,932 $ 1,292,455 $ 1,324,767 $ 1,357,886 $ 1,391,833 $ 1,426,629 TOTAL USES $ 44,875,348 $ 48,384,457 $ 49,891,336 $ 51,229,806 $ 52,305,399 $ 53,613,239 TOTAL REVENUES $46,094,761 $47,448,295 $48,130,013 $49,340,619 $50,582,288 $51,851,400 Less: USES before Operations (above) (30,664,506) (33,414,416) (34,491,734) (35,387,980) (36,008,310) (36,847,453) Less: USES for Operations (above) (12,949,910) (13,677,585) (14,074,835) (14,483,939) (14,905,256) (15,339,157) Less: USES for Non-Operational (above) (1,260,932) (1,292,455) (1,324,767) (1,357,886) (1,391,833) (1,426,629) NET OPERATING SOURCES / (USES) $1,219,413 ($936,162) ($1,761,324) ($1,889,187) ($1,723,112) ($1,761,839) Capital Investment - Scoreboard Project AZSTA annual payment - new scoreboard $ (1,358,177) $ (1,358,177) $ (1,358,177) $ (1,358,177) $ (1,358,177) $ (1,358,177) Capital Investment - Potential Capital Projects All capital needs BOARD review and approval (635,000) (816,500) (547,500) (55,000) (50,000) (50,000) NET OPERATING SOURCES / (USES) - after capital ($773,764) ($3,110,839) ($3,667,001) ($3,302,364) ($3,131,289) ($3,170,016) Page 10

11 Executive Summary - Five Year Forecast AZSTA Five-Year Forecast Tourism revenues and sales tax recapture are expected to continue to increase over the forecast time horizon, but have been at a conservative per year annual growth rate of ~ 2.5%. Facility revenues are expected to rise slightly as the Authority / Spectra (formerly Global Spectrum) / AZ Cardinals continue to refine and evolve the profitable mix of events held at the stadium each year: including major soccer events, RV sales, special events (concerts, etc.), car sales, low-rider shows, and girls volleyball tournaments. Debt service (both senior bonds and subordinate bonds) continue to be paid on-time and in-full 2 X per year (July 1 and January 1); as per the bond debt service schedules for both senior bonds and subordinate bonds debt service. These debt service schedules have been updated to reflect the FY2012 senior bond refunding issue and the FY2013 subordinate bond refunding issue. NOTE: Subordinate Bonds debt service is paid in-full as of the last payment on July 01, The Authority, in partnership with Spectra and the AZ Cardinals, will continue to drive additional revenues and seek out other opportunities for further expense reductions and and/or ongoing cost savings programs. Page 11

12 Facilities Revenue Clearing Account (FRCA) The primary purpose of the Facilities Revenue Clearing Account (FRCA) is to collect revenues for use in funding a portion of the Authority s senior bond debt service and the Authority s subordinate bonds debt service (if needed). Any undistributed FRCA funds in the monthly waterfall distribution are transferred into the operating account. The schedule on this page outlines the expected sources and uses of the FRCA revenues for FY2016 (July 01, 2015 through June 30, 2016). SOURCES NFL Franchise Income Tax - $7.081M This revenue source is comprised of the State of Arizona corporate income tax liability from the AZ Cardinals organization + the personal income tax liability for all AZ Cardinals employees and their spouses in the State of AZ. The amount to be received by the Authority in each fiscal year is established by the State of AZ, Department of Revenue. The Authority is told what this revenue source will be each month for the fiscal year. AZ Cardinal Rent - $298.7K Per the Use Agreement between the Authority and the AZ Cardinals, the Authority is to receive a monthly rent from the Cardinals. Rental $250K per year and increases each year by 2% annually thereafter. AZ Cardinals STR - $5.082M This revenue source is the Sales Tax Recapture (STR) that the Authority receives from the State of AZ-Department of Revenue and from the City of Glendale from the sales tax generated by the sale of tickets for AZ Cardinals home games, suite sales, premium parking sales, and novelty sales. Fiesta Bowl STR / Ticket Surcharge / FUF - $1.243M These revenue sources come from the Sales Tax Recapture (STR) that the Authority receives from the sales tax generated by the sale of tickets for the annual Fiesta Bowl game. Page 12 Fiesta Bowl STR / Ticket Surcharge / FUF - $1.243M (continued) Additionally, there is a ticket surcharge and a facilities use fee (FUF) applied to the total price of each ticket that gets sold. These revenues are collected by the Fiesta Bowl Foundation and remitted the Authority sometime after each Fiesta Bowl game. AZSTA / Spectra STR / FUF - $2.846M These revenue sources come from the Sales Tax Recapture (STR) that the Authority receives on sales taxes generated by the sale of tickets for all of the other events that are not AZ Cardinals home games and/or the annual Fiesta Bowl game. Additionally, there is a facilities use fee (FUF) applied to the total price of each ticket. These FUF revenues are collected by Spectra and then remitted to the Authority. ROJO Incremental Revenue - $909.5K Per the contract with ROJO, they will continue to provide new events at the stadium that will guarantee that AZSTA receives a minimum of $750K each year. Since the inception of this contract, ROJO has surpassed the $750K minimum each year. Telecom License Fees - $21.6K Starting in FY2012, there is an agreement between AZSTA, the AZ Cardinals, and the telecom company to share revenues generated by the use of telecom equipment on the stadium premises. The NET Building Revenue and Other Ancillary Revenues These are non-cash FRCA revenues. As a result, they are not considered a SOURCE ; as they do not go into the monthly waterfall distribution. Therefore, while recorded and reported on the books of AZSTA, these are not included in the USES disclosures for bond debt service and/or operational expenses. FACILITIES REVENUE CLEARING ACCOUNT FY2016 As a % (FRCA) -FY2016 Projection of FRCA Sources Sources Account ending balance 06/30/2015 $ % NFL Income Tax 7,080, % AZ Cardinals Rent 298, % AZ Cardinals STR 5,082, % Fiesta Bowl FUF / TUF / STR 1,243, % NCAA National Champ Game 300, % AZSTA/Spectra Event FUF 1,131, % AZSTA/Spectra Event STR 1,715, % AZSTA/Spectra Event F&B Revenue 1,024, % ROJO Incremental Income (guarantee $750K minimum) 909, % Telecom License Fees 21, % AZSTA/Spectra NET Building Revenue (non-cash) % AZSTA/Spectra Ancillary Income (non-cash) % TOTAL FRCA SOURCES $ 18,806, % Uses Senior Bonds Debt Service $ 6,186, % Cactus League-Subordinate Bonds Debt Service 1,146, % Operations and Reserves 11,473, % TOTAL FRCA USES $ 18,806, % Account ending balance 06/30/2016 $ -

13 Facilities Revenue Clearing Account (FRCA) - continued USES Senior Bond Debt Service - $6.187M The primary use of these FRCA revenues is to share in the payment of meeting the debt service obligations of the Authority in the order of priority; as dictated by statute and by the indenture. This process is accomplished in the monthly waterfall distribution. Tourism revenue (TRCA) are limited to funding no not more than $165.5M of the original bond principal. Therefore, this is the FRCA portion of those senior bonds debt service (Series 2007A and Series 2012A) for FY2015. Subordinate Bond Debt Service - $1.147M The secondary purpose of FRCA revenues is to assist the Tourism Revenue Clearing Account (TRCA) in meeting the debt service obligations for the subordinate bonds debt service (series 2013).. These are the funds forecast in FY2016 to be used to help pay the $4.5M in subordinate bond debt service (P&I) due in FY2016. TRCA revenues cover ~ 85% of subordinate bonds debt service in FY2016. $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 NFL Income Tax Total FRCA SOURCE by Fiscal Year FRCA USES - FY2016 $274,200 Operations Account & Reserves $11.473M If there are any remaining FRCA revenues in the monthly waterfall after meeting the senior and subordinate bond debt service for the month, the balance of these available FRCA revenues are transferred into the OPERATIONS account in order to meet current and future operating expenses and requirements (AZSTA operations + Spectra operations (indirect spending) ad also to fill some of the reserves for YAS, OPS, and Capital. $10,248,196 $6,186,864 $1,146,989 $33,333 Senior Bond DS Subordinate Bond DS YAS Reserve Operations + Ops Reserve Capital Reserve Page 13

14 Tourism Revenue Clearing Account (TRCA) The Tourism Revenue Clearing Account (TRCA) exists by statute to collect the tourism revenues (hotel bed tax and rental car surcharge tax) and then distribute these funding sources in accordance to statute via a mechanism we call the monthly waterfall. The schedule on this page represents the SOURCES and USES of their priority order of the statutory flow of funds (i.e. as a result of the monthly waterfall ) for FY2015. SOURCES Hotel Bed Tax - $14.1M This revenue source is derived from 1% of every dollar spent on lodging in Maricopa County. The Authority receives these dollars from the Treasurer of the State of Arizona Dept. of Revenue, A modest 2.5% increase over actual receipts for FY2015 is projected for FY2016. The Authority is cautiously optimistic about the future of tourism revenues. Rental Car Surcharge Tax - $12.641M 3.25% of every dollar spent on car rentals in Maricopa County (minimum of $2.50 per contract) is collected as a surcharge tax to support tourism promotions in Maricopa County. Of the total surcharge collections, the first $2.50 is distributed by the State Treasurer to the Maricopa County Stadium District (MCSD) to maintain the annual debt service payment on the MCSD bonds previously issued. Any excess after MCSD bonds debt service is paid gets wired to the Authority in June for distribution by the Authority toward Cactus League Promotions. The FY2016 projection is for a 2.5% increase vs. FY2015 budget (same as the Hotel Bed Tax). Page 14 Sources Uses TOURISM REVENUE CLEARING FY2016 As a % of ACCOUNT (TRCA) FY2016 Projection TRCA Sources Account - ending balance 06/30/2015 Hotel Bed Tax $ 14,100, % Rental Car Surcharge Tax 12,641, % TOTAL TRCA SOURCES $26,742, % Senior Bonds Debt Service $ 10,113, % Tourism Promotion 7,553, % Cactus League Subordinate Bonds DS 3,234, % Cactus League - Cactus League Promotion 1,379, % Youth & Amatuer Sports Promotion 1,022, % Operations and Reserves 3,439, % TOTAL TRCA USES $26,742, % Ending Balance - $ $0 Total Tourism Revenues - $26.742M The FY2016 projection is for a 2.5% increase vs. the FY2015 budget. USES Senior Bond Debt Service - $10.113M The first priority of the TRCA revenues is to pay the senior bond debt service. A total of $16.301M is to be paid in FY2016; with $10.113M coming from TRCA revenues. The remaining balance comes from FRCA revenues. By statute and per the bond indenture, TRCA revenues are limited to funding not more than $165.5M of the original bond principal. The senior bonds debt service is the aggregate of all outstanding senior bonds amortization schedules (Series 2007A and Series 2012A). Tourism Promotion - $7.553M The second priority for use of the TRCA revenues is to aid in the promotion of tourism in Maricopa County via a monthly distribution to the AZ Office of Tourism (AOT). Prop 302 mandates an annual statutory distribution to AOT for FY2016 = $7.749M. Given the FY2016 forecast for Tourism Revenues; the Authority is forecasting that we will NOT be able to met 100% of the statutory distribution for Tourism each month in FY2016. In FY2015, the Authority missed matching 100% of the statutory target by less than 1.0%t. USES Tourism Promotion - (continued) The AOT, in turn, distributed the majority of these funds to the various municipal Convention and Visitor s Bureau (CVB s) based upon a formula derived from total hotel sales generation by municipality. The statutory funding mechanism to AOR $4.00M for the first 12-months and increase by 5% each twelve-month period thereafter for a total of 360 months (thru 2031). Cactus League Promotion - $4.613M This third priority is used to pay the subordinate bonds debt service for the promotion of Major League Baseball Spring Training in Maricopa County. These subordinate bonds were issued to pay for a portion of the, then, new construction of the Surprise Stadium and practice fields.spring Training home of the KC Royals and the Texas Rangers. Cactus League dollars above the monthly payment of subordinate bonds debt service are used for the promotion of Cactus League and its associated activities. The Authority currently uses these funds to pay-down two outstanding inter-governmental agreements (IGA s) with the City of Scottsdale and the City of Tempe. These IGA s are in place to pay for a portion of the dollar spent by these cities on renovations and improvements to their existing Spring Training facilities. Youth and Amateur Sports - $.1.022M. The fourth priority for TRCA revenues is for the promotion of Youth and Amateur Sports in Maricopa County. These funds are to build or renovate fields and facilities and for the promotion and marketing of youth and amateur sports activities. Just like with Tourism and Cactus League, there is a statutory schedule for FY2016. This funding increases $100K each 12 month period, per statute.

15 Tourism Revenue Clearing Account (TRCA).continued USES - continued Operating Account +Reserves - $3.419M The Authority s operating account exists to operate, market, promote, furnish, and equip a multi-purpose stadium, to pay the administrative costs associated with operating the Authority, to pay debt service and/or the early redemption of bonds. YAS Reserve The YAS reserve has priority over the other two reserves: operating and capital repair and replacement. The Authority will begin FY2016 with a balance of $0 in this reserve. The reserve was drawn-down over the past few years due to the less than forecast (original Prop 302 TRCA revenue projections) actual TRCA revenue receipts. This has created insufficient funds from Tourism Revenues to meet all of the statutory distribution minimums for each monthly waterfall distribution. There was a biennial grant cycle executed in FY2014 with a total of $1.712M in grants approved. As of June 2015, there is an o/s balance in the FY2014 biennial grant account = $193K that will need to be closed-out before the Authority begins the FY2016 biennial grant cycle. In addition, the Authority executes a Quick / Program Grant opportunity that will likely generate an additional maximum of $200,000 to be paid out in FY HB2177 created a requirement for the Authority to fund a separate reserve fund for YAS = the prior 12-month funding. Due to the lower than forecast total Tourism Revenue receipts vs. the statutory distributions, this requirement will not be met in FY2016. Operating Reserve In any given monthly waterfall distribution, once the first four priorities have been fulfilled 100% at their statutory amount, and then the YAS reserve has been it s statutory amount; any undistributed TRCA revenues still available are to be distributed into the general operating reserve account. Due to the lower Tourism Revenues vs. what was originally forecast for Prop 302, this requirement cannot be met at this time. Capital Repair and Replacement Reserve In any given monthly waterfall distribution, once the first four priorities have been fulfilled 100% at their statutory amount, and then the YAS reserve has been it s statutory amount; any undistributed TRCA revenues still available are to be distributed into the Capital R&R reserve account. Due to the lower Tourism Revenues vs. what was originally forecast for Prop 302, this requirement cannot be met at this time. Page 15

16 Tourism Revenue Clearing Account (TRCA).continued Sources Debt Service Accounts FY2016 As a % of Budget FY2016 $ Debt Service Sources Account - ending balance 06/30/2015 $9,599, % TRCA $ for Senior Bond DS in FY ,113, % TRCA $ for Sub Bond DS in FY2016 3,234, % FRCA $ for Senior Bond DS in FY2016 6,186, % FRCA $ for Senior Bond DS in FY2016 1,248, % TOTAL Debt Service SOURCES $30,383, % Uses Senior Bonds Debt Service $9,570, % Subordinate Bonds Debt Service 4,357, % Senior Bonds Debt Service 6,382, % Subordinate Bonds Debt Service 109, % TOTAL Debt Service USES $20,420, % Ending Balance - $ $9,962,899 Tourism Promotions FY2016 As a % of Budget FY2016 $ Tourism Sources Sources Account - ending balance 06/30/ % TRCA $ into Tourism account 7,553, % TOTAL Tourism SOURCES $7,553, % Uses AZSTA Monthly 'w ires" to AZ Office of Tourism $7,553, % TOTAL Tourism USES $7,553, % Ending Balance - $ $0 Page 16

17 Tourism Revenue Clearing Account (TRCA).continued Sources Uses Cactus League Promotions FY2016 As a % of Cactus Budget FY2016 $ League Sources Account - ending balance 06/30/2015 $0 0.00% TRCA $ into Cactus League Account 1,379, % TOTAL Cactus League SOURCES $1,379, % December 2015 IGA distributions $401, % June 2016 IGA distributions 977, % TOTAL Cactus League USES $1,379, % Ending Balance - $ $0 NOTE: This does not include the 'excess' MCSD $ in June Youth & Amateur Sports Promotions FY2016 As a % of Cactus Budget FY2016 $ League Sources Sources Account - ending balance 06/30/2015 $5,678, % TRCA $ into YAS Account 1,022, % TRCA $ into YAS RESERVE 8, % FRCA $ into YAS RESERVE 41, % TOTAL Cactus League SOURCES $6,751, % Uses Quick/Program Grants - FY2016 (10% of Biennial) $200, % 2014 Biennial distributions (o/s balance) $193, % 2016 Biennial distributions (total =$2.0M) 750, % TOTAL Tourism USES $1,143, % Page 17 Ending Balance - $ $5,607,511

18 Operating Budget - AZSTA Operating Budget FY2016 Expense Category / Classification Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Budget FY2016 Bank Service Fees / Trust Fees $ 2,540 $ 40 $ 40 $ 40 $ 40 $ 40 $ 2,540 $ 40 $ 540 $ 40 $ 40 $ 3,040 $ 8,980 Communications 1,448 1,448 1,448 1,448 1,448 1,448 1,448 1,448 1,448 1,448 1,448 1,448 $ 17,376 Employee Compensation (salaries + car) 13,910 38,910 38,910 38,910 38,910 38,910 38,910 38,910 38,910 38,910 38,910 38, ,919 Medical + Dental Insurance (employer pays) 2,734 2,734 2,734 2,734 2,734 2,734 2,734 3,255 3,255 3,255 3,255 3,255 35,417 Training & Seminars for Employees Employer-Paid Taxes 3,168 1,824 1,824 1, ,686 2,986 2,936 2,936 2,936 2,965 28,806 Retirement & LTD (employer share) 7,099 4,469 4,469 4,469 4,469 4,469 4,469 4,469 4,469 4,469 4,469 4,469 56,261 Subtotal: Employee Costs (compensation + benefits) 26,911 47,938 47,938 47,725 47,080 47,080 49,799 49,620 49,570 49,570 49,570 49,599 $ 562,403 Insurance (non-employee-related) 1,075 1,263-1, ,075-1,400 1,075-14,134 $ 21,098 Marketing & Promotions 1,517 2,117 7,117 2,117 1,517 2,117 2, ,517 3, ,617 $ 26,275 Office Expenses (excludes copier lease) 875 1, ,625 1, , $ 16,225 Equipment Rent-copier $ 4,389 Professional Services & Fees - Legal 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24, ,000 Professional Services & Fees - All Other 31,844 17,844 59,844 17,844 36,844 18,844 22,983 55,344 18,844 16,844 16,844 20, ,763 Subtotal: Professional Services & Fees 55,844 41,844 83,844 41,844 60,844 42,844 46,983 79,344 42,844 40,844 40,844 44,844 $ 622,763 Travel 265 1, , ,365 2, ,415 1, $ 14,730 Meetings , $ 6,900 Other (game day expenses + contingencies) , $ 45,000 Total AZSTZ Operational Expenses $ 91,228 $ 98,192 $ 142,379 $ 97,264 $ 113,322 $ 98,622 $ 157,506 $ 133,812 $ 99,112 $ 102,737 $ 95,787 $ 116,175 $ 1,346,139 Page 18

19 Comparative-FY2016 Budget vs. FY2015 Forecast Update BUDGET 2016 vs. F/C Update FY2015 Expense < / (> ) $ < / (> ) % Category F/C FY2015 F/C FY2015 Bank Service / Trust Fees $ (44) (0.49%) increased trust service fees for bonds + Wells CC fees Communications % reduced from new ipad + 2 phones in FY2015; offset by increases in cell phone and internet fees Employee Comp + Benefits ($29,137) (5.46%) Salary increases, p/r taxes, ASRS, Med & Dental insurance increases Insurance (non-employee) ($1,630) (8.37%) Increase in premiums year-over-year Marketing & Promotions $6, % YAS events $5K, Final $3K, $25K event-related TBD Office Expenses/Equipment ($2,292) (16.45%) reduction in office supplies consumption Professional Services ($166,345) (36.45%) Legal (Saban, Hotel, MSE Wall, RFP's, YAS, Bonds-EMMA, Mega-Events) + Audit X 2 Travel ($2,668) (22.12%) Sadler + Board: National Champ Game Semi-Final, Final Four, IAVM, Tourism in DC Meetings ($2,149) (45.24%) more meetings due ot RFP's + audits X 2 + mega-events coming in FY FY2017 Other ($45,000) (100.00%) Hold "contingency" $ fro FY2015 budget Total ($241,694) (21.88%) Comparative - FY2016 Budget vs. FY2015 Budget Expense < / (> ) $ < / (> ) % Category Budget 15 Budget 15 Bank Service / Trust Fees ($1,500) (20.05%) Maintain same bank (Wells Fargo) & trustee (BNY Mellon CorpTrust): bond fee increase + CC fees Communications ($840) (5.08%) ipad, iphone connectivity + cell phone (Verizon) increases, mobile w ireless hub Employee Comp + Benefits $23, % ASRS mid-year change, Med & Dental increase by FEB 2016 Insurance (non-employee) ($535) (0.05%) projected decrease in all: general prop & liability & unbrella Marketing & Promotions $8, % $10K for Cactus League study, National Champ Game, Final Four Office Expenses/Equipment ($4,159) (22.70%) Professional Services ($285,296) (26.33%) Legal (Saban, Hotel, MSE Wall, RFP's, YAS, Bonds-EMMA, Mega-Events) + Audit X 2 Travel $ % National Championship Game + Final Four (plus 2 Board) Meetings ($1,900) (0.18%) Increase $ for various meetings + Board/Committee meetings Other $0 0.00% Misc expenses / contingency Page 19 BUDGET 2016 vs. FY2015 Budget Total ($262,587) (24.23%)

20 AZSTA Operating Budget - Trend Graphic $700,000 $650,000 $600,000 $550,000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- Actuals FY2006 Actuals FY2007 Actuals FY2008 Actuals FY2009 Actuals FY2010 Actuals FY2011 Actuals FY2012 Actuals FY2013 Actuals FY2014 FC Update FY2015 BUDGET FY2016 Page 20

21 Building Operating Income / (Cost) Budget F/C Update AZSTA / Spectra Events FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 Building Gross Revenue $ 2,232,419 $ 2,877,606 $ 3,446,345 $ 2,464,986 $ 2,383,095 $ 2,278,087 $ 3,468,893 $ 2,191,217 $ 3,019,876 Ancillary Income 1,612, ,300 1,006, , , ,874 1,680, ,679 1,128,485 FUF 1,131, , , , , , , , ,614 Sales Tax Recapture 2,624,614 2,469,675 1,634,844 1,590, , ,470 1,230, ,721 1,108,976 Subtotal - Revenues $ 7,601,027 $ 6,414,355 $ 6,757,023 $ 5,020,746 $ 3,950,155 $ 3,700,290 $ 7,083,718 $ 3,303,469 $ 5,615,951 Building Expenses - related to events (3,536,542) (2,218,634) (2,682,274) (1,999,953) (1,695,649) (1,676,586) (2,687,930) (1,509,466) (2,903,454) (A) - Net Income From Events $ 4,064,485 $ 4,195,721 $ 4,074,749 $ 3,020,793 $ 2,254,506 $ 2,023,704 $ 4,395,788 $ 1,794,003 $ 2,712,497 Budget F/C Update Fiesta Bowl FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FUF & Ticket Surcharge $ 583,650 $ 653,975 $ 617,487 $ 639,784 $ 603,468 $ 570,003 $ 550,800 $ 629,000 $ 501,256 Sales Tax Recapture 650, , , , , , , , ,000 Subtotal - Revenues $ 1,234,461 $ 1,304,786 $ 1,212,530 $ 1,225,225 $ 1,179,307 $ 1,165,003 $ 1,115,824 $ 1,164,431 $ 1,001,256 Game Day Expenses (AZSTA) (351,498) (338,881) (337,566) (337,849) (314,371) (292,777) (419,947) (475,442) (482,540) (B) - Net Income From Fiesta Bowl $ 882,963 $ 965,905 $ 874,964 $ 887,376 $ 864,936 $ 872,226 $ 695,877 $ 688,989 $ 518,716 Budget F/C Update AZ Cardinals FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 Sales Tax Recapture $ 4,890,001 $ 4,770,733 $ 4,654,373 $ 4,540,852 $ 4,353,872 $ 3,970,707 $ 3,939,646 $ 4,281,734 $ 3,213,275 Rent 298, , , , , , , , ,000 Subtotal - Revenues $ 5,188,775 $ 5,063,648 $ 4,941,544 $ 4,822,392 $ 4,629,892 $ 4,241,315 $ 4,204,948 $ 4,541,834 $ 3,468,275 Game Day Expenses (AZSTA) (3,121,216) (3,029,483) (2,847,873) (2,601,648) (2,527,458) (2,460,130) (2,314,286) (2,420,243) (2,112,249) (C) - Net Income From AZ Cardinals $ 2,067,559 $ 2,034,165 $ 2,093,671 $ 2,220,744 $ 2,102,434 $ 1,781,185 $ 1,890,662 $ 2,121,591 $ 1,356,026 Budget F/C Update Other FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 (D) Facility Management (Spectra) - Indirect $ (8,131,057) $ (7,815,798) $ (7,692,737) $ (7,357,228) $ (7,237,539) $ (6,789,659) $ (6,822,386) $ (8,266,934) $ (9,037,053) (E) ROJO "Guarantee" - incremental revenues 909, ,464 1,338, ,025 1,125, , (F) Telecom License Fees 21,600 19,165 11,398 18, Total Net Building Operating Income/ (Costs) A + B + C + D + E + F $ (184,986) $ 273,622 $ 700,618 $ (271,971) $ (890,372) $ (1,217,019) $ 159,941 $ (3,662,351) $ (4,449,814) Budget F/C Update FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 AZSTA Operating Budget $ (1,286,139) $ (1,104,445) $ (947,896) $ (1,068,586) $ (865,814) $ (1,002,598) $ (979,365) $ (1,073,821) $ (1,158,447) Total Net Building Operating Income/ (Costs) $ (1,471,125) $ (830,824) $ (247,278) $ (1,340,557) $ (1,756,186) $ (2,219,617) $ (819,424) $ (4,736,172) $ (5,608,261) Page 21

22 UNIVERSITY OF PHOENIX STADIUM FOR FISCAL YEAR ENDING JUNE 30, 2016 CONSOLIDATED INCOME STATEMENT - BUDGET PROPOSAL Spectra Budget FY2016 I/S PROPOSED BUDGET FY2015 FY2015 FY2016 Forecast BUDGET # OF EVENTS # OF EVENT DAYS ATTENDANCE - FOOTBALL EVENTS 668, , ,080 ATTENDANCE - SPECTRA EVENTS 545, , ,535 TOTAL ATTENDANCE 1,213,470 1,230,291 1,212,615 BUILDING INCOME RENTAL REVENUE/TOUR REVENUE $ 748,256 $ 807,805 $ 854,819 OTHER TICKET REVENUE 182, , ,568 BUILDING EXPENSES BILLED 1,301,377 1,746,253 1,314,905 Less: BUILDING EXPENSES RELATED TO EV (3,536,542) (2,218,634) (1,844,383) TOTAL BUILDING NET REVENUE (1,304,123) 658, ,908 ANCILLARY INCOME RELATED TO SPECTRA EVENTS REFRESHMENT COMMISSIONS 975, , ,050 CATERING/SUITE COMMISSIONS 49,032 27,013 52,085 EXHIBITOR INCOME 13,874 18,583 13,874 PARKING LOT REVENUE 565, , ,822 NOVELTY INCOME 9,192 57,160 31,410 TOTAL ANCILLARY INCOME FOR SPECT 1,612, , ,240 SPECTRA EVENT INCOME (LOSS) ^^ 308,685 1,233,272 1,098,148 FIESTA BOWL/BCS GAME DAY EXP (351,498) (338,881) (344,606) CARDINALS GAME DAY EXPENSES (3,121,216) (3,029,483) (3,007,074) TOTAL EVENT OPERATING INCOME (LOSS) (3,164,029) (2,135,092) (2,253,532) INDIRECT EXPENSES EXECUTIVE/SALES 586, , ,452 MARKETING 365, , ,120 FINANCE 543, , ,299 OPERATIONS 5,452,509 5,328,823 5,378,849 OVERHEAD 1,183,231 1,074,103 1,084,158 TOTAL INDIRECT EXPENSES 8,131,057 7,815,798 7,879,877 NET BUILDING OPERATING INCOME $ (11,295,086) $ (9,950,890) $ (10,133,409) Other revenue resources for the Authority FACILITY USER FEE SPECTRA EVENTS ^^ $ 1,131,186 $ 492,774 $ 439,890 EST TAX RECAPTURE SPECTRA EVENTS ^^ $ 2,624,614 2,469,675 2,194,686 $ (7,539,285) $ (6,988,441) $ (7,498,833) Page 22 SUMMARY OF TOTAL EVENT REVENUES ^^ TOTAL NET EVENT REVENUES AZSTA Board Approved: 4,064,486 June 17, 4,195, ,732,724 Amount towards $750k Cardinals 909, , ,464 NET SPECTRA EVENT REVENUES 3,155,022 3,321,257 2,858,260

23 AZSTA - Statutory Flow of Funds Sources of Funds Tourism Revenue Clearing Account (TRCA) 1) 1% Hotel Bed Tax 2) 3.25% Car Rental Surcharge Facilities Revenue Clearing Account (FRCA) (a) 1) NFL Income Tax - pledged 2) Sales Tax Recapture - State & City of Glendale 3) Facility Event Revenues (including direct event revenues, facility use fees, sales tax recapture, concessions commissions, etc. Uses of Funds 1st Priority = Senior Bond Debt Service (b) 1) 2007A Refunding Issue - $90.00M principal + interest final maturity is July 01, ) 2012A Refunding Issue - $ M principal + interest final maturity is July 01, nd Priority = Tourism Fund 1) Total of $ M over 30 years. For Maricopa County tourism marketing and promotion Increases by 5% each year June May rd Priority = Cactus League General Fund 1) Total of $ M over 30 years 2) First priority is Subordinate Bond debt service 2013A Refunding Issue - $12.485M principal + interest Surprise Stadium - final maturity July 01, ) Second priority is $1.248M subordinate bond reserve established and funded as of June ) Third priority is funding the renovation projects for Scottsdale and Tempe. Split on 50:50 basis from any and all available funds until paid-in-full 4th Priority = Youth and Amateur Sports 1) Total of $73.500M over 30 years $1.0M in June 2001; increases by $100K each year June May th Priority = AZ-STA Operating Budget 1) Includes the operating budget for AZSTA + the contracted stadium management operator 6th Priority = AZSTA Reserves 1) The Authority is required to fund 3 reserves: Youth & Amateur Sports, Operating (equal to one year's operating budget, and Capital Repair & Replacement $25.0M in 2001 value Page 23 Footnotes: (a) The Facility Revenue Clearing Account (FRCA) is used for debt service requirements for senior and subordinate bonds/ Any remaining funds go into the operations account. (b) All sources of revenue to the Authority (except for the non-pledged portion of the NFL Income Tax) are pledged to the Authority's senior debt and subordinate bond debt service above all other distribution priorities

24 Glossary of Acronyms & Terms Projection - The Authority's forecast utilizes actual data and is then extended through to the end of a fiscal year. This is the 'projection' of revenues (sources) and expenses/distributions (uses) ARS - Arizona Revised Statutes Tourism Revenues - Revenue receipts paid to the Authority from the AZ State Department of Revenue. Comprised of two components: Hotel Bed Tax & Rental Car Surcharge Tax TRCA - Tourism Revenue Clearing Account By statute, the Authority must report and track Tourism Revenues in a separate account. This account is named the Tourism Revenue Clearing Account (TRCA) because each month, the account needs to be 100% distributed via the waterfall process. FRCA - Facilities Revenue Clearing Account By statute, the Authority must report and track Facilities Revenues in a separate account. This account is named the Facilities Revenue Clearing Account (FRCA) because each month, the account needs to be 100% distributed via the waterfall process. STR - Sales Tax Recapture By statute, the Authority must report and track Sales Tax Recapture as a type of Facilities Revenue/FRCA. F&B Revenues - Food and Beverage Revenues The Authority receives a % commission from the sales of food and beverages for events held at the stadium. This is a specific type of Facilities Revenue / FRCA. Page 24

25 Glossary of Acronyms & Terms Ancillary Revenues - The Authority receives revenues generated by various transactions that take place at the stadium events. Examples include the collection of ATM fees, parking revenues, and Ticket-Master box office fees. These are specific types of Facilities Revenues/FRCA. MCSD - Maricopa County Stadium District The Authority has an IGA with the MCSD to receive any excess rental car surcharge taxes after the MCSD covers their debt service and their administration expenses. ROJO Commission Advance - The Authority has an agreement with the ROJO Hospitality Group for their management of food services for the stadium. As part of the terms of that initial agreement, ROJO has provided the Authority with Food & Beverage (F&B) commissions advances. The final advance is due to be received by the Authority in AUG of The balance is reduced via the monthly report of F&B Commissions earned during the events held at the stadium. IGA - Intergovernmental Agreement Contract terms between the Authority and local cities and/or governmental agencies (example - MCSD) Page 25 Distributions - By statute, the Authority must distribute the balance in each of the TRCA and FRCA revenue accounts on a monthly basis in a specific priority order. The distribution process is called "the waterfall" and is executed on the 2nd Tuesday of each calendar month.