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Grand River Center (Conference Center) Fiscal Year 2024 Budget PresentationCopyrighted March 22, 2023 City of Dubuque Special Meeting Public Hearings # 02. IT E M T I T L E:Grand River Center (Conference Center) F iscal Year 2024 Budget Presentation S UM M ARY: S UG G E S T E D D I S P O S I T I O N: AT TAC H ME N TS: Description Type Policy Budget Book Supporting Documentation Presentation_Uploaded 3.22.23 Supporting Documentation Conference Center -21- This page intentionally left blank. -22- GRAND RIVER CONFERENCE CENTER Budget Highlights FY 2022 Actual FY 2023 Budget FY 2024 Requested % Change From FY 2023 Budget Expenses Employee Expense — 27,526 28,694 4.2 % Supplies and Services 362,364 557,606 950,352 70.4 % Machinery and Equipment 2,598 160,680 135,000 -16.0 % Total Expenses 364,962 745,812 1,114,046 49.4 % Debt on Projects paid with Sales Tax Fund (20%) 29,847 29,010 29,469 1.6 % Property Tax Support 364,962 745,812 1,114,046 368,234 Percent Increase (Decrease) 49.4 % Improvement Package Summary 1 of 2 This improvement package request provides for the addition of 10 cameras in the public areas of GRC. No security cameras are in the public space, entrances or exits. This project includes cameras, cabling and installation. There will be a recurring cost of approximately $2,700 per year that would start in FY 2025. The first year license is included in the purchase price. This improvement supports the City Council goals of Vibrant Community: Healthy and Safe and Financially Responsible, High-Performance City Organization: Sustainable, Equitable, and Effective Service Delivery. Related Cost:$ 30,000 Tax Funds Non-Recurring Recommend - No Property Tax Impact:$ 0.0118 0.12% Activity: Conference Center 2 of 2 This improvement package request is for a new management agreement for the Grand River Center resulting from completion of the current proposal process. The negotiation process may yield specific items being required that need funding. This improvement supports the City Council goals of Vibrant Community: Healthy and Safe and Financially Responsible, High-Performance City Organization: Sustainable, Equitable, and Effective Service Delivery. Related Cost:$ 370,000 Tax Funds Non-Recurring Recommend - Yes Property Tax Impact:$ 0.1456 1.47% Activity: Conference Center Significant Line Items Employee Expense 1.FY 2024 employee expense reflects a 5.00% wage package increase. 2.The Iowa Public Employee Retirement System (IPERS) City contribution of 9.44% is unchanged from FY 2023 The employee contribution of 6.29% is unchanged from FY 2023. -23- Supplies & Services 3.Platinum Hospitality privately manages the Grand River Center. The following expenses are the responsibility of the City based on the Facility Management Agreement: Ø 50% of energy costs (gas and electric) are estimated to be $171,401 in FY 2023 and are projected to be $171,300 in FY 2024. Electric decreased from $136,594 in FY 2023 to $136,500 in FY 2024 based on FY 2022 actual. Natural Gas decreased from $34,807 in FY 2023 to $34,800 in FY 2024 based on FY2022 Actual. FY20 and FY21 closures resulted in lower than typical energy use. Ø Insurance costs (property and general liability) are estimated to be $58,515 in FY 2023 and are projected to be $71,101 in FY 2024 based on FY 2023 actual. Ø During FY 2013 an agreement was renegotiated to require a payment of 25% instead of 50% of the actual Hotel/Motel Tax generated by the Grand Harbor Hotel. Payments and budget are as follows: FY 2021 - $148,538 * FY 2022 - $86,928 FY 2023 - $88,310 (Budgeted) FY 2024 - $458,310 (Projected) *Due to COVID 19 there was a delay in reporting and payment of hotel motel tax from the Grand Harbor which delayed payment to Platinum Hospitality in FY20. The FY20 payment of $73,967 was made in July of 2020 (FY21). 4.As per the Management Agreement, the repairs and maintenance limit and aggregate will increase by the CPI as of July 1 each year. The City is responsible for repairs and maintenance in excess of $1,285 individually and $19,275 in aggregate for the fiscal year. Historical actual maintenance costs have been as follows: FY 2021 - $52,725 FY 2022 - $65,178 FY 2023 - $132,338 (Budgeted) FY 2024 - $140,000 (Projected) FY 2023 includes an additional $13,200 for replacement of pump motors and the ground water pump. Numerous maintenance projects are budgeted in FY 2023 and FY 2024 to accommodate the request for proposal for management company. 5.The FY 2024 budget includes a reserve of $106,391 for management fees due to issuing a request for proposal for the management company for the conference center. Equipment 6.The following equipment will be replaced in FY 2024 ($135,000): Conference Center Machinery and Equipment CAMERAS, loading dock (2)$ 3,000 Audio Visual Equipment $ 38,500 Window washing system $ 7,000 Toilet and urinal auto flushers $ 30,000 -24- Banner - Spine $ 12,000 3hp Garbage disposal $ 2,300 5hp Garbage disposal $ 3,200 (3) Hot boxes - tall $ 9,000 Hot boxes - plate $ 10,000 Hobart mixer $ 20,000 Total Equipment $ 135,000 Debt Service 7.FY 2024 Annual Debt Service is as follows ($29,469): Amount Debt Series Payment Source Purpose Final Payment Call Date $ 2,661 2019C G.O.Sales Tax 20%Conference Center Improvements 2027 2026 $ 26,808 2019B G.O.Sales Tax 20%Energy Improvements 2039 2039 $ 29,469 Total Conference Center Annual Debt Service For Conference Center Performance Measures see Five Flags Civic Center Outline -25- Recommended Operating Revenue Budget - Department Total 33 - CONFERENCE CENTER Fund/Account/Account Title FY21 Actual Revenue FY22 Actual Revenue FY23 Adopted Budget FY24 Recomm'd Budget 100 - General 4A - Charges for Services 47100 - Reimbursements (30,853) 0 0 0 4A - Charges for Services Total (30,853) 0 0 0 4N - Transfers 49102 - Transfer in DRA Distribution 0 0 0 0 4N - Transfers Total 0 0 0 0 200 - Debt Service 4N - Transfers 49304 - Transfer in Sales Tax 20%(30,506)(29,847)(29,010)(29,469) 4N - Transfers Total (30,506)(29,847)(29,010)(29,469) 4O - Eliminated for GW 48200 - Proceeds from GO Debt 0 0 0 0 48205 - Bond Discount/Premium 0 0 0 0 4O - Eliminated for GW Total 0 0 0 0 CONFERENCE CENTER - Total (61,359)(29,847)(29,010)(29,469) -26- 100 - General 60100 - Salaries-Regular Full Time 0 0 21,746 22,746 6A - Salaries & Wages Total 0 0 21,746 22,746 6B - Employee Benefits 100 - General 61100 - FICA - City Contribution 0 0 1,664 1,740 61300 - IPERS - City Contribution 0 0 2,053 2,147 61510 - Health Insurance 0 0 2,014 2,013 61540 - Life Insurance 0 0 7 7 61600 - Workers' Compensation 0 0 42 41 6B - Employee Benefits Total 0 0 5,780 5,948 6D - Repari/Maint/Util 100 - General 63100 - Building Maintenance 52,725 65,178 132,338 140,000 63321 - Vehicle Repair - Outsourced 1,311 0 0 0 63400 - Equipment Maint/Repair 0 0 0 0 63710 - Electricity 106,893 124,623 136,594 136,500 63711 - Natural Gas 17,217 31,351 34,807 34,800 6D - Repari/Maint/Util Total 178,147 221,153 303,739 311,300 6E - Contractual Svcs 100 - General 64080 - Insurance - Property 48,803 52,937 57,942 69,989 64081 - Insurance - Liability 429 511 573 1,112 64130 - Payments to Other Agencies 148,538 86,928 88,310 458,310 64185 - License/Permit/Fees 400 0 400 400 64190 - Technology Services 384 0 0 0 64975 - Equip Maint Cont 155 399 155 2,400 64980 - Technology Equip Maint Cont 0 437 96 450 64990 - Other Contractual Service 0 0 106,391 106,391 200 - Debt Service 64110 - Legal 0 0 0 0 64900 - Other Professional Service 0 0 0 0 6E - Contractual Svcs Total 198,709 141,211 253,867 639,052 6F - Commodities 100 - General 65045 - Technology Equipment 0 0 101,930 41,500 65050 - Other Equipment 0 2,598 58,750 93,500 6F - Commodities Total 0 2,598 160,680 135,000 6G - Capital Outlay 100 - General 67100 - Vehicles 0 0 0 0 67270 - Other Capital Equipment 0 0 0 0 6G - Capital Outlay Total 0 0 0 0 6H - Debt Service 200 - Debt Service Recommended Operating Expenditure Budget - Department Total 33 - CONFERENCE CENTER Fund/Account/Account Title FY21 Actual Expense FY22 Actual Expense FY23 Adopted Budget FY 24 Recomm'd Budget 6A - Salaries & Wages -27- 68010 - Principal Payment 24,885 24,973 24,885 26,091 68020 - Interest Payments 5,621 4,874 4,125 3,378 68990 - Paying Agent Fees 0 0 0 0 6H - Debt Service Total 30,506 29,847 29,010 29,469 CONFERENCE CENTER - TOTAL 407,362 394,809 774,822 1,143,515 Recommended Operating Expenditure Budget - Department Total 33 - CONFERENCE CENTER Fund/Account/Account Title FY21 Actual Expense FY22 Actual Expense FY23 Adopted Budget FY 24 Recomm'd Budget 6A - Salaries & Wages -28- Recommended Expenditure Budget Report by Activity & Funding Source 32 - CIVIC CENTER Fund/Activity FY22 Actual Expense FY23 Adopted Budget FY24 Recomm'd Budget 3301 - Administration 100 - General 6A - Salaries & Wages —21,746 22,746 6B - Employee Benefits —5,780 5,948 6D - Repari/Maint/Util 221,153 303,739 311,300 6E - Contractual Svcs 141,211 253,867 639,052 6F - Commodities 2,598 160,680 135,000 6G - Capital Outlay ——— 3301 - Administration Total 364,962 745,812 1,114,046 3380 - Debt Service 200 - Debt Service 6E - Contractual Svcs ——— 6H - Debt Service 29,847 29,010 29,469 3380 - Debt Service Total 29,847 29,010 29,469 CONFEENCE CENTER TOTAL 394,809 774,822 1,143,515 -29- Capital Improvement Projects by Department/Division CONF CENTER OPERATION Project Number Capital Improvement Project Title Department Fund Account FY 24 Recomm'd Budget 3346000003 Replace Carpet Conference Center 305 64004 5,000 3346000003 Replace Carpet Conference Center 305 64070 10,000 3346000003 Replace Carpet Conference Center 305 67500 110,000 3346000012 Conference Center - Management Chan Conference Center 304 64004 40,000 3346000012 Conference Center - Management Chan Conference Center 304 67990 460,000 CONF CENTER OPERATION TOTAL 625,000 -30- PROGRAM/ DEPT PROJECT DESCRIPTION FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 TOTAL PAGE CONFERENCE CENTER General Government Replace Carpet $ 125,000 $ 30,000 $ — $ 226,000 $ — $ 381,000 62 Replace Table, Chairs, and Podiums $ — $ — $ — $ 50,500 $ — $ 50,500 63 Replace Fabric Wall Covering $ — $ — $ 35,000 $ — $ — $ 35,000 64 Roof Restoration $ — $ 385,000 $ 385,000 $ — $ — $ 770,000 65 Paint Exterior Metal $ — $ — $ 55,000 $ — $ — $ 55,000 66 Overhead Door Replacement $ — $ — $ 21,000 $ 55,000 $ — $ 76,000 67 Replace/Rehab Room Doors $ — $ — $ 64,900 $ — $ — $ 64,900 68 Improvements Necessitated at Management Changeover $ 500,000 $ — $ — $ — $ — $ 500,000 69 TOTAL $ 625,000 $ 415,000 $ 560,900 $ 331,500 $ — $ 1,932,400 -31- C I T Y O F D U B U Q U E , I O W A DEPARTMENT DETAIL - PERSONNEL COMPLEMENT 33 Conference Center Operation FY 2022 FY 2023 FY 2024 FD JC WP-GR JOB CLASS FTE BUDGET FTE BUDGET FTE BUDGET 61010 Full Time Employee Expense 100 3375 GE-44 LEISURE SERVICES MANAGER —$ — 0.15 $ 21,746 0.15 $ 22,746 TOTAL FULL TIME EMPLOYEES —$ — 0.15 $ 21,746 0.15 $ 22,746 TOTAL CONFERENCE CENTER DIVISION —$ — 0.15 $ 21,746 0.15 $ 22,746 -32- CITY OF DUBUQUE, IOWA ACTIVITY PERSONNEL COMPLEMENT SUMMARY FY 2021 FY 2022 FY 2023 ACCT FD JC WP-GR POSITION CLASS FTE BUDGET FTE BUDGET FTE BUDGET Conference Center Operation 10033100 61010 100 3375 GE-41 LEISURE SERVICES MANAGER —$ — 0.15 $ 21,746 0.15 $ 22,746 Total —$ — 0.15 $ 21,746 0.15 $ 22,746 TOTAL CONFERENCE CENTER DIVISION —$ — 0.15 $ 21,746 0.15 $ 22,746 -33- This page is intentionally left blank -34- GRAND RIVER CENTER FISCAL YEAR 2024 BUDGET PRESENTATION GRAND RIVER CENTER CONFERENCE & EVENT CENTER (0.15 Full Time Equivalents) City of Dubuque OVG360 Operations oversight Day-to-day operations Building owned by City Capital improvement funding Property and general liability insurance CREATING AN EQUITABLE COMMUNITY OF CHOICE HIGHLIGHTS COMMUNITY EVENTS AND FUNDRAISERS FOCUS ON SUPPORTING NEW MANAGEMENT FUTURE INITIATIVE FOCU ON SUPPORTING NEW MANAGEMENT FY 24 CONFERENCE CENTER POLICY BOOK Project #Line Item Amount 63100 Building Maintenance $119,538 63710 Electricity $136,500 63711 Natural Gas $34,800 64130 Payment to Other Agency (Hotel/Motel Tax Payment)$88,310 64975 Equipment Maintenance Contract $2,400 64980 Technology Equipment Maintenance Contract $450 64130 Payment to Other Agency $370,000 64990 Other Contractual Service (Management Fee)$106,391 TOTAL FY24 POLICY BOOK $858,389 FOCU ON SUPPORTING NEW MANAGEMENT APPROVED MANAGEMENT AGREEMENT FY24 BUDGET Project #Line Item Amount 64990 Other Contractual Service $858,389 Approved subsidy management agreement budget FY24 $691,230 Grand River Center FY 2024 REQUESTED PROPERTY TAX SUPPORT $1,114,046 $16.12 Net Operating Property Tax Support Average homeowner’s* property tax cost for Grand River Center (*Avg. home value of $159,503) FY 2024 RECOMMENDED IMPROVEMENT LEVEL PACKAGES Project FY 24 Cost New Management Agreement Requirements $370,000 Project FY 24 Cost Replace carpet in pre-function, spine, River Room & River Room pre-function $125,000 Capital improvements to be identified $500,000 GRAND RIVER CENTERGRAND RIVER CENTER 2024 CAPITAL IMPROVEMENT PROJECTS PERFORMANCE MEASURES GRAND RIVER CENTER MAINTAIN INFRASTRUCTURE AND AMENITIES TO SUPPORT ECONOMIC DEVELOPMENT AND GROWTH GROWING SUSTAINABLE COMMUNITIES CONFERENCE www.grandrivercenter.com