NOTICE OF COMMITTEE MEETING Sonoma County Fair & Exposition, Inc

NOTICE OF COMMITTEE MEETING Sonoma County Fair & Exposition, Inc Notice is hereby given that meetings of the Sonoma County Fair and Exposition, Inc. will convene at times and locations set forth in this notice. BUDGET & FINANCE COMMITTEE Thursday, January 12, 2017, Following Buildings & Grounds Administration Building, Board Room DIRECTORS: Rob Muelrath, Chair; Marilyn Herzog, Lisa Carreño, Marcia Mickelson, Max Mickelsen 1. Call to Order AGENDA 2. Approval of the Agenda 3. Public Comments Any member of the audience desiring to address the Board on a matter not on the agenda: Please stand and after receiving recognition from the Chair, please state your name and make your comments. In order that all interested parties have an opportunity to address the Board, each person is granted 3 minutes to speak. While members of the public are welcome to address the Board, under the Brown Act, Board members may not deliberate or take action on items not on the agenda, and generally may only listen. For items that are on the agenda, each person will be allowed to address the topic being discussed, and will be allowed 3 minutes to speak. 4. Discussion and possible action regarding approval of Draft Financial Statements, through December 2016 (Attachment #1) Michael Margetts 5. Review detail of US Bank credit card charges paid through November 2016 - (Handout) Michael Margetts 6. Review detail of 2016 Sonoma County Counsel Legal Fees paid through November 2016 - (Handout) Michael Margetts 7. Discussion and possible action regarding approval of 2016 Purchase Orders in excess of $25,000 (None) 8. Discussion and possible action regarding approval of 2016 Contracts in excess of $25,000 (None) 9. Discussion of auditor for Fair, Harvest Fair, Fair Foundation (Handout) Michael 10. Discussion and possible action regarding renovation of south side of Finley Hall to match Saralee Barn (Handout) Becky Bartling 11. Discussion of changes to JLA payment process (Handout) Becky & Michael 12. Discussion of calendar 2017 budget, as passed by Board of Supervisors Becky & Michael 13. Request for future agenda items (non-discussion items) 14. Adjournment For additional information please call Lorna Fox at (707) 545-4200 x 201. DISABLED ACCOMODATION: If you are a person with a disability and require information or materials in an appropriate alternative format; or if you require any other accommodation, please contact 707-545-4200. Advance notification within this guideline will enable the County to make reasonable arrangements to ensure accessibility. C:\Users\controller\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\EWRO3J7E\January 12. Agenda Budget (1).doc

Income Statement Operating Revenue Fair 6,816,509 6,819,246 (2,738) 7,033,900 (217,391) Interim - Includes Golf Course 2,635,689 2,350,388 285,301 1,945,384 690,305 Jockey Club 409,213 403,955 5,258 365,090 44,123 Total Operating Revenue 9,861,411 9,573,590 287,821 9,344,374 517,037 Operating Expense Fair 4,020,412 3,941,847 (78,565) 4,090,315 69,903 Interim 1,796,769 1,407,982 (388,788) 1,371,881 (424,888) Jockey Club 364,798 325,234 (39,565) 301,979 (62,819) General & Administrative 3,478,716 3,297,020 (181,696) 3,361,651 (117,065) Allocated Costs - Harvest Fair (30,200) (35,800) (5,600) (35,800) Total Operating Expenses 9,630,495 8,936,282 (694,213) 9,090,026 (534,869) Operating Income/(Loss) 230,916 637,308 (406,393) 254,348 (17,832) Other Revenue 40,538 20,129 20,409 15,540 24,998 Harvest Fair - Revenue 127,317 108,488 18,828 110,000 17,317 Harvest Fair - Expense (86,041) (101,813) 15,772 (110,000) 23,959 Interest Expense (12,190) (3,333) (8,857) (23,000) 10,810 JLA, net (86,791) 45,012 (131,802) (86,791) Prior Year Revenue(Expense) 178 178 178 Net Affect of GASB 68 Adjustments (40,210) Prior Year & Misc Expense 13 28,017 (28,004) 13 Net Income/(Loss)before depreciation and capital 173,729 733,807 (519,868) 246,888 (27,349) Depreciation Expense 728,185 743,584 (15,399) 750,000 21,815 Net Income(Loss) before capital (554,455) (9,776) (535,267) (503,112) (5,533) Gain (loss) on disposal of asset Capital Expenditures Capital Funding 208,048 165,493 42,555 208,048 Net Income (Loss) incl Capital (346,407) 155,717 (492,712) (503,112) 202,515

Fair Income Statement PTD PTD Variance YTD Variance Revenue Admissions 1,694,535 1,589,143 105,392 1,799,500 (104,965) Parking 460,188 465,491 (5,303) 463,000 (2,812) Commercial Space 425,600 430,638 (5,038) 425,000 600 Carnival 688,470 687,926 544 685,000 3,470 Concessions 1,177,851 1,185,344 (7,493) 1,142,500 35,351 Exhibits 89,953 90,745 (792) 103,900 (13,947) Racing 1,615,049 1,751,135 (136,086) 1,636,500 (21,451) Attractions 170,482 211,800 (41,318) 326,500 (156,018) Sponsorships 349,608 278,175 71,433 320,000 29,608 VIP Tent 51,128 23,591 27,537 31,000 20,128 Miscellaneous 93,644 105,259 (11,615) 101,000 (7,356) Total Fair Revenue 6,816,509 6,819,246 (2,738) 7,033,900 (217,391) Expense Advertising & Publicity 350,097 349,728 (369) 309,933 (40,164) Attendance 502,690 474,758 (27,933) 513,785 11,095 Signage/Other/Drinking Water - Premium 293,872 288,334 (5,538) 296,500 2,628 Hall of Flowers 214,025 250,703 36,678 254,859 40,834 Exhibits 674,981 611,583 (63,398) 663,725 (11,256) Commerical/Concessions Exhibits 6,141 952 (5,190) 2,500 (3,641) Racing 1,123,796 1,082,214 (41,582) 1,118,507 (5,289) Attractions 676,290 692,528 16,237 704,715 28,425 Miscellaneous 128,139 127,445 (694) 148,791 20,652 VIP Tent 34,694 33,596 (1,098) 30,000 (4,694) RV Park - Fair - Contract Services 15,687 30,007 14,319 47,000 31,313 Total Expense 4,020,412 3,941,847 (78,565) 4,090,315 69,903 Fair Income/(Loss) 2,796,097 2,877,400 (81,303) 2,943,585 (147,488) print date: 1/6/2017 5:41 PM

Interim Income Statement Revenue Long Term Rentals 99,389 106,111 (6,722) 106,000 (6,611) Building Rental 501,558 420,267 81,292 323,300 178,258 Facility Rental 301,957 288,251 13,706 201,000 100,957 Equipment Rental 143,142 136,380 6,762 144,000 (858) Trailer & RV 425,938 345,977 79,961 335,000 90,938 Interim Parking 376,354 338,026 38,327 354,000 22,354 Insurance/Costs Reimbursed 84,007 71,923 12,084 44,950 39,057 Security Reimbursed 198,571 161,602 36,969 145,000 53,571 Food & Other Concessions 138,532 131,950 6,582 130,134 8,398 Alcohol Concessions 366,241 349,901 16,340 162,000 204,241 Other Interim Revenue - Total Revenue 2,635,689 2,350,388 285,301 1,945,384 690,305 Expense Int Wages & Benefits 1,330,148 993,526 (336,622) 1,056,161 (273,987) Int Pkg Wages & Benefits 64,569 52,126 (12,442) 51,170 (13,399) Total Wages & Benefits 1,394,716 1,045,652 (349,064) 1,107,331 (287,385) Contract Services-Interim 13,152 18,348 5,195 18,300 5,148 Contract Services-RV Park 2,673 1,063 (1,609) 250 (2,423) Straw Removal 1,500 1,500 Security 1,071 131 (941) 1,650 579 Supplies & Equipment 22,820 15,076 (7,744) 11,100 (11,720) RV Park Utilities 81,948 71,497 (10,452) 74,200 (7,748) RV Park Advertising 4,932 198 (4,734) 1,000 (3,932) Miscellaneous RV Parking 7,505 10,194 2,689 4,000 (3,505) RV Supplies & Equipment 1,992 1,434 (558) 2,650 658 Interim Advertising 503 503 2,500 2,500 Business Partner Incentive 15,644 4,721 (10,923) 5,000 (10,644) Insurance/Costs Reimbursed 47,840 44,221 (3,620) 7,400 (40,440) Security Costs Reimbursed 183,515 169,682 (13,833) 115,500 (68,015) Equipment Rental 7,880 2,397 (5,482) 2,000 (5,880) CalTrans Median Strip Rent 10,170 18,640 8,470 10,000 (170) Special Repairs & Equipment 910 4,226 3,316 7,500 6,590 Total Expense 1,796,769 1,407,982 (388,788) 1,371,881 (424,888) Interim Income/(Loss) 838,920 942,407 (103,487) 573,503 265,417 print date: 1/6/2017 5:41 PM

Jockey Club Income Statement Revenue Admissions 40,071 42,652 (2,581) 40,000 71 Turf Club 7,658 8,033 (375) 6,500 1,158 Commissions 267,930 252,325 15,605 230,000 37,930 Programs/Other 2,575 4,075 (1,500) 3,400 (826) Race Forms, etc 73,167 74,866 (1,699) 65,440 7,727 Concessions 9,308 9,417 (109) 9,500 (192) Costs Recovered 3 (3) - Prior Year Costs Recovered - Interim Rental - ATM Fees 8,505 12,585 (4,080) 10,250 (1,745) Interim Concessions - Total Jockey Club Revenues 409,213 403,955 5,258 365,090 44,123 Expense Wages & Benefits 223,245 182,406 (40,838) 166,229 (57,016) Contract Services 31,749 31,849 100 34,700 2,951 Supplies & Expense 20,975 18,055 (2,920) 20,770 (205) Utilities 22,284 25,563 3,279 21,000 (1,284) Cost of Periodicals 60,007 63,169 3,163 51,100 (8,907) Garbage 6,496 2,476 (4,021) 4,480 (2,016) Advertising & Marketing 43 1,715 1,672 3,700 3,658 Total Jockey Club Expenses 364,798 325,234 (39,565) 301,979 (62,819) Jockey Club Income/(Loss) 44,415 78,722 (34,307) 63,111 (18,696) print date: 1/6/2017 5:41 PM

Harvest Fair Cost Recovered Harvest Fair 127,317 108,488 18,828 110,000 17,317 Total Revenue 127,317 108,488 18,828 110,000 17,317 Expense Admin Wages and Benefits 8,890 6,468 (2,423) 9,000 110 Publicity Wages and Benefits 11,959 10,286 (1,673) 8,000 (3,959) Maintenance Wages and Benefits 13,721 23,459 9,738 23,300 9,579 Interim Wages and Benefits 14,166 12,728 (1,438) 14,000 (166) Exhibits Wages and Benefits 28,544 39,538 10,994 37,200 8,656 Attendants Wages and Benefits 7,139 6,476 (663) 7,000 (139) Attractions Wages and Benefits 1,621 2,266 645 500 (1,121) Miscellaneous 0 592 592 11,000 11,000 Total Expenses 86,041 101,813 15,772 110,000 23,959 Harvest Fair Income(Loss) 41,276 6,675 3,056 0 41,276

General & Administrative Expenses Expense Wages & Benefits-Admin 868,893 763,470 (105,422) 795,210 (73,683) Contract Services-Admin 86,529 73,883 (12,647) 69,300 (17,229) County Indirect Services 89,024 131,036 42,012 66,103 (22,921) Legal 13,978 4,570 (9,408) 18,300 4,322 Office Expense-Admin 127,690 120,115 (7,575) 110,050 (17,640) Postage & Telephone 48,702 49,536 834 45,550 (3,152) Director's Expense & Travel 24,330 22,925 (1,405) 21,000 (3,330) Donations 1,254 - (1,254) Insurance 30,882 (3,040) (33,922) 67,300 36,418 Audit Fee 25,000 (25,000) 12,000 (13,000) Bad Debt and Cash Short/Over 1,500 8,860 7,360 - (1,500) Administration Expenses 1,317,783 1,171,356 (145,173) 1,204,813 (112,970) Wages & Benefits-Maint 1,382,532 1,381,762 (770) 1,430,133 47,601 Contract Services-Maint 66,021 70,506 4,485 59,200 (6,821) Equipment Rental-Maint 23,029 14,969 (8,060) 16,500 (6,529) Utilities 231,790 269,245 37,455 247,250 15,460 Utilities - Harvest Fair(Reimbursed) (5,500) (5,500) Trash Removal 84,838 69,113 (15,724) 69,375 (15,463) Maintenance Supplies 302,974 258,388 (44,587) 274,280 (28,694) Repairs & Maintenance 36,152 21,776 (14,376) 21,880 (14,272) Equipment Repairs 33,596 39,906 6,309 43,720 10,124 Maintenance Expenses 2,160,933 2,125,664 (35,269) 2,156,838 (4,095) General & Administrative Expenses 3,478,716 3,297,020 (180,442) 3,361,651 (117,065) print date: 1/6/2017 5:41 PM

Salary & Benefit Expenses Permanent Salaries Fair 140,397 162,620 22,223 174,017 33,620 Interim 653,348 499,256 (154,093) 553,088 (100,260) Jockey Club 56,617 53,003 (3,614) 44,875 (11,742) Golf Course - Administration 497,437 389,388 (108,050) 446,686 (50,751) Maintenance 619,675 655,324 35,649 667,120 47,445 Total Permanent Salaries 1,967,475 1,759,591 (207,884) 1,885,786 (81,689) Temporary Salaries Fair 970,803 965,983 (4,820) 1,028,050 57,247 Interim 208,039 140,419 (67,619) 97,400 (110,639) Jockey Club 96,233 70,729 (25,503) 63,900 (32,333) Golf Course - Administration 25,513 36,886 11,373 18,800 (6,713) Maintenance 217,786 224,228 6,443 241,000 23,214 Total Temporary Salaries 1,518,373 1,438,246 (80,127) 1,449,150 (69,223) Health Benefits Fair 93,014 69,773 (23,242) 78,881 (14,133) Interim 87,718 71,194 (16,523) 88,984 1,266 Jockey Club 17,146 9,953 (7,193) 13,153 (3,993) Golf Course - Administration 40,218 40,320 102 45,848 5,630 Maintenance 115,580 94,652 (20,928) 89,100 (26,480) Total Health Benefits 353,675 285,891 (67,784) 315,966 (37,709) FICA,Medicare & Workers Comp Fair 119,133 128,933 9,801 137,783 18,650 Interim 98,428 77,835 (20,594) 85,129 (13,299) Jockey Club 17,709 14,851 (2,858) 14,208 (3,501) Golf Course - Administration 54,668 57,166 2,497 62,704 8,036 Maintenance 93,085 51,938 (41,147) 111,520 18,435 Total Workers Comp & Payroll Taxes 383,024 330,723 (52,301) 411,344 28,320 Retirement, UI, Other Fair 142,443 142,210 (233) 153,911 11,468 Interim 360,929 269,550 (91,379) 296,730 (64,199) Jockey Club 34,099 33,666 (433) 30,093 (4,006) Golf Course - Administration 257,981 244,711 (13,270) 226,172 (31,809) Maintenance 349,450 379,019 29,569 344,693 (4,757) Total Retirement & Other Benefits 1,144,902 1,069,156 (75,746) 1,051,599 (93,303) TOTAL 5,367,450 4,883,607 (483,843) 5,113,845 (253,605) TOTAL BY DEPT Fair 1,465,790 1,469,519 3,729 1,572,642 106,852 Interim 1,408,463 1,058,254 (350,209) 1,121,331 (287,132) Jockey Club 221,804 182,202 (39,602) 166,229 (55,575) Golf Course Administration 875,818 768,470 (107,347) 800,210 (75,608) Maintenance 1,395,575 1,405,161 9,586 1,453,433 57,858 TOTAL ALL DEPARTMENTS 5,367,450 4,883,607 (483,843) 5,113,845 (253,605) print date: 1/6/2017 5:41 PM

Sonoma County Fair & Exposition, Inc Income Statement Stub Year - 07/01/16-12/31/16 Actual Budget PTD PTD Operating Revenue Fair (less JLA) 6,785,178 6,968,900 Interim 1,379,560 1,093,750 Satellite Wagering 183,617 173,030 Harvest Fair 102,317 110,000 Miscellaneous Non-Fair 20,722 7,300 Prior Year Revenue Adjustments 178 0 Total Operating Revenue 8,471,572 8,352,980 Operating Expense Administration 669,905 652,121 Maintenance 1,156,532 1,214,622 Fair 3,361,466 3,536,396 Interim 975,904 723,750 Satellite Wagering 179,606 154,313 Harvest Fair 85,952 110,000 Harvest Fair Allocated Expenses (30,700) 0 Prior Year Expense Adjustments & Other Expenses (1,648) 0 Other - Interest Expense 6,081 11,496 Total Operating Expense 6,403,098 6,402,698 Operating Income (Loss) 2,068,475 1,950,282 Other Operating Revenue (Net) 0 0 Capital Contributions 190,342 126,500 Net Income (Loss) Not Incl Depreciation 2,258,817 2,076,782 Net Income (Loss) Not Incl Depreciation 2,258,817 2,076,782 Page 1 of 3

Revenue Summary Stub Year - 07/01/16-12/31/16 Actual Budget PTD PTD Fair Revenue Admissions 1,694,535 1,799,500 Commercial Space 426,100 425,000 Carnival 688,470 685,000 Concessions 1,177,851 1,142,500 Exhibits 89,781 103,900 Racing 1,589,419 1,571,500 Attractions 165,639 326,500 VIP Tent 51,128 31,000 Sponsorships 349,608 320,000 Parking 459,003 463,000 Miscellaneous 93,644 101,000 Total Fair 6,785,178 6,968,900 Interim Revenue Building Rental 267,044 191,500 Facility Rental 133,207 106,000 Long Term Rentals 48,903 46,000 RV Park 217,702 201,000 Equipment Rental 91,872 88,000 Parking Revenues 218,493 190,000 Utility Reimbursement 3,601 1,750 Costs Recovered 16,732 24,000 Concessions 263,150 167,100 Other Revenues 118,857 78,400 Total Interim 1,379,560 1,093,750 Satellite Wagering 183,617 173,030 Harvest Fair 102,317 110,000 Miscellaneous Non-Fair 20,722 7,300 Prior Year Rev 178 0 Operating Revenue 8,471,572 8,352,980 Capital Contribution 190,342 126,500 Total Revenue 8,661,914 8,479,480 Page 2 of 3

Sonoma County Fair & Exposition, Inc Expense Summary Stub Year - 07/01/16-12/31/16 Actual Budget PTD PTD Fair Expense Publicity 251,914 255,965 Attendance 468,528 497,629 Premiums 291,397 295,500 Hall of Flowers 68,705 66,766 Exhibits 484,503 492,744 Miscellaneous Fair 173,183 203,182 Racing 976,948 1,038,290 Attractions 646,288 686,320 Total Fair 3,361,466 3,536,396 Interim 975,904 723,750 Satellite Wagering 179,606 154,313 Harvest Fair 85,952 110,000 Harvest Fair Allocated Expenses (30,700) 0 Administration 669,905 652,121 Maintenance 1,156,532 1,214,622 Prior Year Operating Expense Adjustment (1,648) 0 Other - Interest Expense 6,081 11,496 Total Operating Expense 6,403,098 6,402,698 Page 3 of 3