2016 Budget January 1, 2017 - December 31, 2017 Distribution LUZERNE COUNTY CONVENTION CENTER AUTHORITY Dave Palermo - Chairman Angelo Answini Donna Cupinski Hal Bloss Ed Harry David Capin Alex Milanes Atty. Jonathon S. Comitz Barry Payne Frank Conyngham Thomas Woods
2017 Budget CONTENTS PAGE 2017 BUDGET 2017 Budget Summary 3 2017 BUDGET COMPARISONS Income Statement Comparison 4 Event Comparison 5 Other Income Comparison 6 Total Indirect Expense Comparison 7-9 Other Non-Operating / LCCCA Comparison 10 INDEX
Lead Income Statement FY 2017 Budget Event Income Direct Event Income Rental Income 892,560 Service Income 838,969 Service Expenses (1,516,905) Total Direct Event Income 214,624 Ancillary Income F & B Concessions 967,042 F & B Catering 191,341 Novelty Sales 73,037 Parking: Self Parking 507,725 Total Ancillary Income 1,739,145 Other Event Income Luxury Box Ticket Sales 70,600 Facility Fees 424,758 Total Other Event Income 495,358 Total Event Income 2,449,127 Other Operating Income 1,459,747 Adjusted Gross Income 3,908,874 Operating Expenses Employee Salaries and Wages 2,295,115 Benefits 622,857 Less: Event Labor Allocations (1,195,471) Net Employee Wages and Benefits 1,722,501 Contracted Services 55,513 General and Administrative 413,006 Operations 185,756 Repair & Maintenance 147,850 Supplies 83,300 Insurance 114,216 Utilities 554,000 Other 5,200 SMG Management Fees 340,850 Less: Expenses Allocated (78,212) Total Operating Expenses 3,543,980 Net Income (Loss) From Operations 364,894 Non-Operating Income Non-Operating Revenue - Hotel Tax 2,145,000 Non-Operating Revenue - Misc 78,106 Non-Operating Expense (320,969) Non-Operating Depreciation (1,440,000) Net Non-Operating Income (Loss) 462,137 Net Income After Non-Operating Income (Loss) 827,031 Lead Income Statement Page 3
Lead Income Statement Prior Year Prior Year Two Years Three Years FY 2017 FY 2016 FY 2016 Prior Prior Actual Actual Event Income Direct Event Income Rental Income 892,560 936,345 868,885 768,913 870,018 Service Income 838,969 994,645 941,626 854,623 997,076 Service Expenses (1,516,905) (1,708,573) (1,586,949) (1,396,228) (1,641,878) Total Direct Event Income 214,624 222,417 223,562 227,309 225,216 Ancillary Income F & B Concessions 967,042 988,042 953,268 895,119 907,238 F & B Catering 191,341 182,789 180,614 154,727 170,544 Novelty Sales 73,037 78,173 72,369 49,781 61,738 Parking: Self Parking 507,725 564,889 442,469 352,568 383,212 Total Ancillary Income 1,739,145 1,813,893 1,648,720 1,452,195 1,522,732 Other Event Income Luxury Box Ticket Sales 70,600 108,855 66,650 57,794 69,585 Facility Fees 424,758 450,762 425,534 372,709 400,522 Total Other Event Income 495,358 559,617 492,184 430,503 470,107 Total Event Income 2,449,127 2,595,927 2,364,466 2,110,006 2,218,055 Other Operating Income 1,459,747 1,509,180 1,372,349 1,369,528 1,355,488 Adjusted Gross Income 3,908,874 4,105,107 3,736,815 3,479,535 3,573,543 Operating Expenses Employee Salaries and Wages 2,295,115 2,297,408 2,481,136 2,189,342 2,308,810 Benefits 622,857 612,386 641,556 561,567 567,169 Less: Event Labor Allocations (1,195,471) (1,236,410) (1,395,153) (1,232,441) (1,286,740) Net Employee Wages and Benefits 1,722,501 1,673,384 1,727,539 1,518,468 1,589,239 Contracted Services 55,513 62,064 54,317 58,247 48,726 General and Administrative 413,006 454,268 392,745 365,675 336,091 Operations 185,756 165,170 179,080 147,875 192,306 Repair & Maintenance 147,850 152,886 143,516 110,243 120,311 Supplies 83,300 82,912 82,300 59,301 79,749 Insurance 114,216 120,309 122,720 114,680 116,574 Utilities 554,000 529,953 565,500 499,344 575,997 Other 5,200 3,450 5,050 1,396 27,514 SMG Management Fees 340,850 338,099 338,177 325,479 327,518 Less: Expenses Allocated (78,212) (84,525) (76,142) (77,921) (66,260) Total Operating Expenses 3,543,980 3,497,970 3,534,802 3,122,788 3,347,765 Net Income (Loss) From Operations 364,894 607,137 202,013 356,747 225,779 Non-Operating Income Non-Operating Revenue - Hotel Tax 2,145,000 2,142,554 2,111,860 2,140,045 2,041,538 Non-Operating Revenue - Misc 78,106 79,993 78,106 78,106 78,106 Non-Operating Expense (320,969) (368,764) (335,596) (319,799) (289,639) Non-Operating Depreciation (1,440,000) (1,396,664) (1,500,000) (1,327,330) (1,283,313) Net Non-Operating Income (Loss) 462,137 457,119 354,370 571,022 546,692 Net Income After Non-Operating Income (Loss) 827,031 1,064,256 556,383 927,769 772,471 Lead Income Statement Compare Page 4
Event Comparison Prior Year Prior Year Two Years Three Years FY 2017 FY 2016 FY 2016 Prior Prior Actual Actual Total # of Events by Type Assemblies 7 7 7 6 9 Consumer / Public Shows 9 8 9 7 8 Concerts 8 8 9 4 7 Entertainment 6 10 8 12 16 Family Shows 24 24 22 22 24 Trade Shows / Misc 1 3 1 3 1 Other 5 4-4 - AHL Hockey 45 44 45 43 51 Total # of Events 105 108 101 101 116 Total Attendance 353,240 359,911 358,700 314,185 350,410 Direct Event Income Rental Income 892,560 936,345 868,885 768,913 870,018 Service Income 838,969 994,645 941,626 854,623 997,076 Service Expenses (1,516,905) (1,708,573) (1,586,949) (1,396,228) (1,641,878) Total Direct Event Income 214,624 222,417 223,562 227,309 225,216 Ancillary Income F & B Concessions 967,042 988,042 953,268 895,119 907,238 F & B Catering 191,341 182,789 180,614 154,727 170,544 Novelty Sales 73,037 78,173 72,369 49,781 61,738 Parking: Self Parking 507,725 564,889 442,469 352,568 383,212 Total Ancillary Income 1,739,145 1,813,893 1,648,720 1,452,195 1,522,732 Other Event Income Luxury Box Ticket Sales 70,600 108,855 66,650 57,794 69,585 Facility Fees 424,758 450,762 425,534 372,709 400,522 Total Other Event Income 495,358 559,617 492,184 430,503 470,107 Total Event Income 2,449,127 2,595,927 2,364,466 2,110,006 2,218,055 Event Compare Page 5
OTHER INCOME Prior Year Prior Year Two Years Three Years 900 FY 2017 FY 2016 FY 2016 Prior Prior Account Title Actual Actual Luxury Box Agreement Income 88,750 114,999 132,500 128,125 132,500 Luxury Box Ticket Package Income 5,000 9,999 12,500 11,875 12,500 Luxury Box Other Income 157,500 157,500 157,500 157,500 157,500 Luxury Box Marketing Expense (10,000) (15,582) (20,500) (14,767) (16,954) Luxury Box Maj. Ten #1 (55,020) (60,713) (64,505) (63,556) (63,556) Club Seats Agreement Income 296,157 284,000 342,267 325,940 439,442 Club Seats Other Income 117,000 89,582 55,000 60,824 34,703 Club Seats Marketing Expense (10,000) (8,229) (12,000) (4,752) (9,953) Club Seats Maj. Ten #1 (379,440) (379,440) (379,440) (379,440) (373,860) Advertising Income 500,000 460,672 440,000 448,331 406,849 Advertising Income- Trade 140,500 121,089 147,000 109,418 128,955 Advertising Income-Naming Rights 250,000 250,000 250,000 250,000 225,000 Naming Rights Expense (3,500) (2,044) (3,500) (428) (535) Advertising Production Cost (5,000) (2,245) (5,000) (613) (3,730) Advertising Other Expenses (27,000) (24,525) - (4,875) - Ticket Rebates 347,300 462,143 273,027 289,390 268,573 Other Rent 30,000 32,090 30,000 33,000 9,000 Ice Rental 3,000 1,800 3,000 5,700 3,918 Billed Labor - 1,500-7,894 120 Bank Earned Interest 300 24 300 20 (209) Vending Machine Commissions 1,500 345 1,500 1,914 202 Telephone Commissions - - - - - Payroll - Misc Income 200 110 200 - (13) Other Income - TM 10,000 13,614 10,000 6,868 3,556 Miscellaneous Income 2,500 2,491 2,500 1,159 1,482 900 $ 1,459,747 $ 1,509,180 $ 1,372,349 $ 1,369,528 $ 1,355,488 Other Income Compare Page 6
ALL INDIRECT DEPARTMENTS Prior Year Prior Year Two Years Three Years FY 2017 FY 2016 FY 2016 Prior Prior Account Title Actual Actual Salaries Administration $ 995,428 $ 991,243 $ 1,031,472 $ 935,649 $ 949,245 Salaries Operations 97,286 79,947 84,188 79,356 85,129 Novelty / F&B - Wages 13,684 12,089 15,324 6,670 10,224 Changeover Labor - Part-Time 26,180 44,359 28,789 31,943 18,927 Changeover Labor - Event 114,238 89,456 99,881 82,968 101,729 Custodial - Part-Time 68,283 71,714 61,016 63,457 69,283 Custodial - Event 34,152 42,586 30,965 20,622 34,856 Zamboni Driver - Part-Time 12,193 10,757 10,783 11,763 11,656 Audio/Video Tech - Part-Time 5,639 4,759 3,533 5,138 4,001 General - Event 6,803 6,084 7,869 5,865 4,464 Warehouse / F&B - Wages 27,902 29,663 26,130 24,343 23,765 Concessions / F&B - Wages 135,052 129,855 131,789 116,944 133,252 Kitchen / F&B - Wages 24,703 23,752 24,653 17,896 19,385 Catering / F&B - Wages 40,425 37,808 39,918 36,942 40,885 Parking - Event 67,746 78,550 82,787 69,306 83,108 Security - Part-Time 78,000 76,099 78,000 75,228 75,931 Security - Event - - 125,287 109,723 122,124 Stagehands - Event 225,605 273,805 273,833 235,474 219,877 B.O./Ticket Sellers - Part-Time 30,492 26,230 29,512 25,894 30,119 B.O./Ticket Sellers - Event 5,500 90 5,500 - (72) Ushers&Tckt. Takers - Event 176,352 162,426 182,455 134,561 180,147 Bonus - Performance 50,000 47,882 48,000 46,204 43,771 Commissions 40,000 38,803 40,000 33,946 27,551 Auto Allowance 19,452 19,451 19,452 19,450 19,450 Payroll Taxes 300,842 306,827 331,564 290,762 306,672 Benefits 212,445 189,647 193,167 171,146 160,536 401 (k) 15,806 15,488 16,029 10,737 11,044 Union Pension 19,176 20,537 20,537 17,353 15,485 Worker Compensation Ins. 67,088 72,322 72,759 61,567 67,134 Vacation Expense 4,500 4,500 4,500 8,166 4,189 Other Employee Benefits 3,000 3,065 3,000 1,836 2,110 Contracted Non-Profit Groups 55,513 51,880 54,317 45,776 45,456 Other Contracted Services - 10,184-12,471 3,270 Professional Fees - Other 1,000 1,000 1,000-195 Bad Debt Expense 5,000 5,000 5,000 - - Bank Service Charges 200 100 200 - (25) Travel 1,800 3,107 2,725 1,851 1,263 Corporate Travel 1,000 1,252 2,000 218 254 Meals & Entertainment 6,700 6,959 7,475 4,549 4,801 Meetings & Conventions 19,000 17,159 15,500 11,577 12,666 Dues & Subscriptions 11,960 11,864 9,939 9,825 10,389 Postage 5,000 6,460 6,700 4,173 6,269 Courier Fees 7,000 7,636 6,000 6,705 6,444 Rental Office Equipment 28,900 28,933 29,640 27,042 30,925 Office Supplies 22,500 19,236 22,500 18,835 18,235 Printing & Stationary 9,200 9,578 9,200 6,731 5,733 Payroll Processing 39,000 42,184 36,000 38,537 36,496 Advertising 52,425 46,825 51,500 59,163 24,002 Advertising Website 5,600 4,588 13,250 10,588 9,237 Corporate Advertising 1,000 733 1,000 656 452 Indirect Department Compare Page 7
ALL INDIRECT DEPARTMENTS Prior Year Prior Year Two Years Three Years FY 2017 FY 2016 FY 2016 Prior Prior Account Title Actual Actual Legal Fee Advertising 1,500 1,500 1,500-166 Newspaper Adver-Employment 2,500 3,003 2,000 1,490 6,116 Photography Expense 3,000 2,813 3,000 714 436 Printing Marketing 2,000 1,750 2,000 - - Promotional 6,800 6,497 6,500 2,485 2,348 Licenses & Fees 2,500 2,082 2,500 1,067 847 Other Taxes 4,028 3,954 3,954 3,524 3,206 Box Office Service Charges 63,597 89,439 48,430 61,836 51,646 Credit Card Discounts 58,796 78,437 58,952 59,611 57,355 Computer Expense 12,000 12,363 9,000 3,765 4,975 Computer Maintenance 29,000 30,233 25,720 21,320 33,341 Employee Training 2,000 2,000 2,000 1,139 276 Cable 8,000 7,550 7,560 7,531 7,531 Trash Removal 16,000 15,339 18,000 11,776 14,956 Snow Removal 50,000 31,996 50,000 44,322 72,612 Landscaping 2,500 1,800 1,800-1,377 Exterminating 1,500 1,200 1,200 1,160 1,140 Equipment Rental 2,500 2,500 2,500-6,314 Small Equipment 3,000 2,441 1,700 2,637 1,971 Safety Equipment 4,650 4,162 3,650 2,240 3,353 Vehicle Maintenance 11,500 12,877 10,500 10,289 10,493 Employee Trade Training 5,800 3,200 3,200 1,246 3,500 Operating Supplies-F&B 30,610 31,240 30,810 28,100 27,099 Flower Decoration-F&B 1,000 935 1,000 413 252 Cleaning Supplies-F&B 8,444 9,564 8,216 8,083 8,089 Renewals & Replacements-F&B 6,000 7,469 6,000 671 3,456 Laundry & Linen - F&B 6,500 7,886 6,000 5,770 5,672 Menu Costs-F&B 1,200 500 500 388 763 Repair & Maintenance-F&B 27,000 23,983 27,000 24,155 26,052 Protective Service-F&B 552 669 504 514 373 Equipment Rental-F&B 4,000 5,064 4,000 4,518 2,000 Uniforms-F&B 2,500 2,345 2,500 1,113 2,353 General Building Repairs 13,000 12,550 13,000 3,839 3,992 Sound Equipment Maintenance 2,500 2,500 2,500-4,020 Electrical Systems 22,000 19,376 20,000 10,816 19,579 Marquee Maintenance 2,500 1,775 1,500 1,175 - Telecommunication Equipment 14,600 15,348 12,160 11,520 9,269 Elevator/Escalator R&M 3,150 2,862 2,825 1,886 599 Floor Maintenance 22,000 25,372 20,000 19,818 20,411 HVAC Systems 19,000 17,960 19,000 15,355 19,953 Maintenance Agreements 36,600 46,666 43,031 35,665 36,934 Kitchen Equipment Maint. 7,500 6,287 7,500 6,615 5,324 Site Repairs / Maintenance 5,000 2,190 2,000 3,555 230 Indirect Department Compare Page 8
ALL INDIRECT DEPARTMENTS Prior Year Prior Year Two Years Three Years FY 2017 FY 2016 FY 2016 Prior Prior Account Title Actual Actual General Building Supplies 22,000 20,264 22,000 17,643 21,238 Plumbing 8,800 8,861 8,300 7,019 10,050 Small Tools 1,500 1,500 1,500 451 - First Aid 4,500 2,070 3,000 2,013 1,782 Janitorial 31,000 36,264 33,000 27,510 32,805 Uniforms 4,000 4,359 4,000 50 3,426 Parking Supplies 5,000 4,815 5,000 3,883 3,970 Signage 6,500 4,779 5,500 732 6,477 General Liability Insurance 114,216 120,309 122,720 114,680 116,574 Electricity 375,000 343,562 375,000 341,901 376,750 Heating Fuel 90,000 95,631 100,000 80,086 111,605 Telephone 19,000 18,958 20,500 19,786 19,656 Water & Sewage 70,000 71,802 70,000 57,571 67,987 Community Relations 3,250 2,100 3,100 650 420 Contributions 1,200 861 1,200 255 1,294 Miscellaneous Expense 750 489 750 492 800 Base Fee 227,520 224,780 227,700 223,217 221,446 Base Fee - F&B 113,330 113,319 110,477 102,262 106,072 Allocated Operations Labor (38,275) (33,248) (39,515) (33,908) (34,220) Allocated Novelties / F&B (16,695) (14,749) (18,695) (8,331) (12,473) Allocated Change Over Labor (101,550) (106,269) (84,035) (106,398) (76,249) Allocated Changeover - PT (18,275) (11,599) (21,458) (18,234) (12,892) Allocated Custodial (41,665) (43,648) (37,777) (24,305) (36,352) Allocated Custodial - PT (40,605) (50,645) (31,740) (54,476) (38,126) Allocated Audio / Video Labor (6,880) (5,775) (4,310) (6,099) (4,692) Allocated Zamboni Driver (13,045) (8,762) (11,325) (11,030) (10,612) Allocated General (8,300) (7,435) (9,600) (6,820) (4,816) Allocated Warehouse / F&B (24,891) (30,098) (22,728) (23,533) (22,767) Allocated Concessions / F&B (164,763) (158,466) (160,783) (141,766) (161,015) Allocated Kitchen / F&B (21,598) (24,230) (21,537) (20,537) (20,498) Allocated Catering / F&B (49,319) (46,143) (48,700) (42,698) (46,517) Allocated Parking (82,650) (95,956) (101,000) (84,340) (101,254) Allocated Security - PT (35,255) (33,000) (29,120) (29,353) (31,477) Allocated Security - - (152,850) (129,772) (145,106) Allocated Stagehands (291,030) (343,898) (353,245) (300,384) (282,088) Allocated BO/Tkt Sellers - PT (525) (110) (335) - (310) Allocated BO/Tkt Sellers (25,000) (22,647) (23,805) (22,770) (24,465) Allocated Ushers&Tkt Tkrs. (215,150) (199,732) (222,595) (167,689) (220,811) Allocated Contracted Services (55,513) (58,689) (54,317) (56,852) (45,456) Allocated Other Expenses (22,699) (25,836) (21,825) (21,069) (20,804) ALL INDIRECT DEPARTMENTS $ 3,543,980 $ 3,497,970 $ 3,534,802 $ 3,122,788 $ 3,347,765 Indirect Department Compare Page 9
NON-OPERATING Prior Year Prior Year Two Years Three Years 815 FY 2017 FY 2016 FY 2016 Prior Prior Account Title Actual Actual Hotel Tax Revenue $ (2,145,000) $ (2,142,554) $ (2,111,860) $ (2,140,045) $ (2,041,538) Misc Revenue - SMG Loan Forgiveness (78,106) (78,106) (78,106) (78,106) (78,106) Misc Revenue - Derivative Settlement - (1,887) - - - Sale of Disposable Assets - - - (1,451) - Depreciation 1,440,000 1,396,664 1,500,000 1,328,781 1,283,313 Incentive Fee 31,048 83,406 31,098 79,165 30,056 Annual Audit Fee 49,000 47,500 47,500 45,500 48,500 Professional Fees - Legal 85,000 84,451 85,000 40,351 78,520 Professional Fees - Other 10,000 10,000 10,000 13,900 - Consulting Expense - - 18,000 - - Legal Fees Advertising 3,500 3,561 1,500 7,275 2,476 Other Administrative 900 848 3,500 340 442 Insurance Expense 141,521 138,998 138,998 133,268 129,645 815 $ (462,137) $ (457,119) $ (354,370) $ (571,022) $ (546,692) Non-Operating Compare Page 10