orange county convention center fy 2009-10 budget worksession july 22, 2009
TRANSCRIPT
ORANGE COUNTY CONVENTION CENTER
FY 2009-10Budget Worksession
July 22, 2009
• Organization Chart
• Proposed FY 09-10 Budget
• Accomplishments
• Budget Overview
• Significant Future Issues
• Summary
PRESENTATION OUTLINE
• Organization Chart
• Proposed FY 09-10 Budget
• Accomplishments
• Budget Overview
• Significant Future Issues
• Summary
PRESENTATION OUTLINE
Executive Director – Tom AckertGeneral Manager – Jessie Allen
Executive Director – Tom AckertGeneral Manager – Jessie Allen
Deputy General ManagerKathie Canning
Deputy General ManagerKathie Canning
Sales, Marketing andEvent Management
Yulita Osuba
Sales, Marketing andEvent Management
Yulita Osuba
BusinessJan Addison
BusinessJan Addison
Security & Transp.Greg Forehand
Security & Transp.Greg Forehand
Information ServicesMike Walker
Information ServicesMike Walker
Facility OperationsFred Baker
Facility OperationsFred Baker
Event OperationsMichaal Rossi
Event OperationsMichaal RossiHuman Resources
Betty Meeks
Human ResourcesBetty Meeks
Guest & Community RelationsLex Veech
Guest & Community RelationsLex Veech
ORGANIZATION CHART
• Organization Chart
• Proposed FY 09-10 Budget
• Accomplishments
• Budget Overview
• Significant Future Issues
• Summary
PRESENTATION OUTLINE
• The total proposed FY 09-10 budget is decreasing 15.1% from FY 08-09
• The Tourist Development Taxes are budgeted to remain flat from the current fiscal year’s projections
• The Convention Center is an Enterprise Fund and the budget overview will be related to the operations of the Convention Center
TOTAL BUDGET
CurrentFY 09 $ Change
ProposedFY 10
Personal Services $29.9M ($3.1) $26.8M
Operating Budget 34.1M (3.6) 30.5M
Total For Operations
$64.0M ($6.7) $57.3M
Budget Change (10.5%)
Staffing 491 (29) 462
PROPOSED FY 09-10 BUDGET
Division Number
Sales & Event Management
10
Event Operations 6
Security & Transportation 4
Facility Operations 4
Business 3
Information Services 1
Guest & Community Svs 1
Total 29
Deleted Positions
PROPOSED FY 09-10 BUDGET
CurrentFY 09 $ Change
ProposedFY 10
Capital Improvement Projects
$28.2M ($18.2) $10.0M
Budget Change (64.5%)
PROPOSED FY 09-10 BUDGET
• Organization Chart
• Proposed FY 09-10 Budget
• Accomplishments
• Budget Overview
• Significant Future Issues
• Summary
PRESENTATION OUTLINE
• 5,200 Total Events• 2,038 Conventions and Tradeshows• 16 Million Convention/Tradeshow
Delegates• $21.5 Billion Economic Impact
ACCOMPLISHMENTS
FY 1983-84 Through FY 2007-08
• 248 Total Events• 1.37 Million Total Attendees• 105 Convention/Tradeshows• 1.04 Million Convention/Tradeshow Delegates• $1.97 Billion Economic Impact
ACCOMPLISHMENTS
FY 2007-08
• 225 Total Events• 1.2 Million Total Attendees• 86 Convention/Tradeshows• 0.83 Million Convention/Tradeshow Delegates• $1.57 Billion Economic Impact
ACCOMPLISHMENTS
FY 2008-09
• 841 Conventions and Tradeshows• 13 Million Convention/Tradeshow Delegates• $24.6 Billion Economic Impact
ACCOMPLISHMENTS
Future Business
• Green Initiatives
– International Organization for Standardization (ISO) 14001 Certification for Environmental Management System (EMS)
– Solar Photovoltaic Demonstration Facility and Climate-Change Education Center
– Energy Efficient Lighting Upgrades (LED)
ACCOMPLISHMENTS
• Organization Chart
• Proposed FY 09-10 Budget
• Accomplishments
• Budget Overview
• Significant Future Issues
• Summary
PRESENTATION OUTLINE
Budget Reductions:
• Wages/Benefits $3.1M
• Maintenance $0.7M
• Utilities $0.6M
BUDGET OVERVIEW
• Reduction in travel, training, and promotional expenses
• Reduction in operating revenues
BUDGET OVERVIEW
• 200 Total Events• 1.2 Million Total Attendees• 89 Convention/Tradeshows• 0.96 Million Convention/Tradeshow Delegates• $1.82 Billion Economic Impact
BUDGET OVERVIEW
FY 2009-10
Intl. A/C, Heating & Refrigeration Exposition
Performance Racing Industry
Premiere Beauty Show
PGA Merchandise Show
American Heart Association
Coverings
BUDGET OVERVIEW
TOP EVENTS FOR FY 2009-10
Central Florida International Auto Show
Church of God
National Business Aviation Association
Pittsburgh Conference of Analytical Chemistry and Applied Spectroscopy
National Automobile Dealers Association
BUDGET OVERVIEW
TOP EVENTS FOR FY 2009-10
OCCC Historical Operating Subsidy
Fiscal Year
Operating Revenue
Operating Expense
SubsidyNeeded
09-10* $41.8 $57.3 $15.5
08-09* $43.5 $59.6 $16.1
07-08 $58.4 $67.3 $ 8.9
06-07 $50.5 $60.9 $10.4
05-06 $53.2 $58.6 $ 5.3
04-05 $48.4 $57.5 $ 9.1
* Projected In Millions
BUDGET OVERVIEW
OCCC Operating Subsidy Projections
FY 2008-09 FY 2009-10
Expense Projections $59.60 $57.30
Revenue Projections $42.25 $41.34
Subsidy Needed $17.35 $15.96
TDT Allocation $10.00 $10.00
Surcharge $ 2.98 $ 1.50
Additional Subsidy Needed from R&R
$ 4.37 $ 4.46
In Millions
BUDGET OVERVIEW
• Organization Chart
• Proposed FY 09-10 Budget
• Accomplishments
• Budget Overview
• Significant Future Issues
• Summary
PRESENTATION OUTLINE
SIGNIFICANT FUTURE ISSUES
• Economy
• Transportation
• Competition
• Hotel Surcharge
• Unemployment
• Travel Reductions
• Sponsorship Restrictions ( TARP Recipients )
SIGNIFICANT FUTURE ISSUESEconomy
“U.S. Unemployment Soars to 26 year high
of 9.5% …”
New York Times 7-02-09
• Continue to work on solutions with community partners
SIGNIFICANT FUTURE ISSUESTransportation
SIGNIFICANT FUTURE ISSUESCompetition
City / Center Size *
Chicago - McCormick 2.7
Orlando – OCCC 2.1
Las Vegas – LVCC 1.5
Atlanta – GWCC 1.4
Las Vegas – Sands 1.1
New Orleans – Morial Center 1.1
Dallas – Dallas Conv Center 1.0
Las Vegas - Mandalay Bay 0.9
Houston – G.R. Brown 0.9
Rosemont – Stephens Center 0.8
ComparableU.S. Convention
Centers
* Square Feet of Exhibition Space ( in millions )
SIGNIFICANT FUTURE ISSUESCompetition
• Globally
• Nationally
• Locally
SIGNIFICANT FUTURE ISSUESHotel Surcharge
• Organization Chart
• Proposed FY 09-10 Budget
• Accomplishments
• Budget Overview
• Significant Future Issues
• Summary
PRESENTATION OUTLINE
• The world wide recession continues to affect the convention and trade show industry
• Conservation and cost cutting efforts have been enhanced
• Even though events are booking, spending habits have been more conservative
SUMMARY
• Authorize additional operating subsidy for up to $5 million annually for both FY 2008-09 and FY 2009-10 from renewal and replacement account
SUMMARY
Budget Consent Agenda Item
. The mission of the Orange County Convention Center is economic development.
By hosting regional, national and international conventions, meetings, and trade shows, the Center infuses the local economy with new money and expanding business opportunities.
The mission of our staff is to provide outstanding service to the clients and users of the Center, to stimulate their desire to return and to enhance the community’s reputation for excellence.
CONVENTION CENTERMISSION STATEMENT
ORANGE COUNTY CONVENTION CENTER
FY 2009-10Budget Worksession
July 22, 2009