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HomeMy WebLinkAboutCity Council Committees - Public Facilities Distict Board - 04/26/2012 i r KENT Ylnenixarox ', Public Facilities District April 26, 2012 Board Members Present: Mike Miller, Greg Haffner, Lew Sellers, Randall Smith Others Present: Bob Nachlinger, Tim Higgins, Beth Sylves, Patrick McCluskey, David Galatin, Ben Wolters, Steve Hunter I. Call to Order The meeting was called to order at 4:05 p.m. a. Introductions. Introductions were not made. b. Approval of Minutes. Sellers moved to approve the minutes of February 23, 2012. Smith seconded and the motion carried. U. Finance Reports a. City of Kent. Nachlinger noted that in 2011 the sales tax revenue was about $650,000 and intergovernmental revenue was approximately $3.1 million. He said he anticipates about $3700 more in sales tax this year, and anticipates that revenue from the city will be down about $100,000. He said approximately $105,000 of the $125,000 beginning balance will be used for debt service, leaving a balance of $20,000. He said sales tax collections in December 2011 were the highest ever seen, and provided a form showing sales tax collections by month from 2008 through January of 2012. Nachlinger went on to explain the City's 2012 Operating Fund for ShoWare, which shows about $250,000 in admissions tax and $500,000 in expenditures for supplies and services for the building. He noted an approximate $50,000 net loss for the year, which is substantially better than previous years. In response to a question from Haffner, he said that sales tax was also down in January for the city, and confirmed for Miller that he expects that the admissions tax will be up this year. b. ShoWare Center. McCluskey reported that the January Actuals were very close to Budget, but that February fell behind about $61,000 because the attendance at the Harlem Globetrotters was down and one scheduled concert did not take place. He noted that they were right on budget for March, but because i I Public Facilities District April 26, 2012 Page Two of utilities in January and February and B & O use tax, the first quarter is off by about $68,000. He noted that revenues for club seats, suites, and advertising is up about $20,000. III. Operation Undate a. Operator Update. Higgins reported that the firm which was hired to conduct an energy audit has found 16 things which could be done to save money, and they are exploring four of them which are reasonable and could be done quickly. b. Marketing Update. Sylves distributed copies of the marketing update and reported on attendance and the growth of social media, and outlined upcoming events. She provided the results of surveys taken after the Kelly Clarkson concert and the Pandora Unforgettable Moments event. Higgins mentioned that he shares the survey results with promoters, which helps sell the building. He also noted that he is working with local promoters on some events for the second half of this year. IV. Seattle Thunderbirds Update a. Sales Marketing and Attendance. Higgins noted that the Thunderbirds' schedule will be available approximately June 22. He said that all of the suites were sold for the Kelly Clarkson concert, and that for Rise Again, the attendees wanted to be on the floor. b. Advertising and Suite Sales. No report was given. V. Other Business Miller stated that some revenue enhancements are being looked into and that there will be more to come on this issue in the future. Wolters added that many of them are within the responsibilities of SMG. He noted that the building makes gains in some areas and losses in others, which may give the impression of standing still when it comes to the yearend number, but that if it weren't for the things that have been done and the things which will be done going forward, the numbers could be worse. He said that ShoWare is starting to gain traction in the marketplace, particularly in the non-hockey arena, thanks to the efforts of SMG and the Thunderbirds, and that an announcement to be made on Friday will be something the whole community will rally around. f Public Facilities District April 26, 2012 Page Three Sellers explained the situation with a similar facility in Wenatchee and how sales tax was raised to retire the debt. He pointed out that local Kent Valley Hockey Association teams play at that facility, so it impacts us. Higgins added that routing events through ShoWare, Wenatchee and Idaho results in a savings, and Miller noted that it is good for the bond market and bond rating agencies not to have a default on such a facility. VII. Adjournment. At 4:30 p.m. Smith moved to adjourn. Sellers seconded and the motion carried. f � . Brenda Jacober,�CMC City Clerk