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Grand River Conference Center Fiscal Year 2026 Budget Presentation Copyrighted April 9, 2025 City of Dubuque PUBLIC HEARINGS # 3. City Council ITEM TITLE: Grand River Conference Center Fiscal Year 2026 Budget Presentation SUMMARY: SUGGUESTED DISPOSITION: ATTACHMENTS: 1. 26 Policy Book Volume 4 - Conference Center 2. Presentation - Uploaded 4.9.25 Page 895 of 989 Conference Center 69 Page 896 of 989 This page intentionally left blank. 70 Page 897 of 989 GRAND RIVER CONFERENCE CENTER Budget Highlights FY 2024 Actual FY 2025 Budget FY 2026 Requested % Change From FY 2025 Budget Expenses Employee Expense 28,953 30,359 32,025 5.5 % Supplies and Services 839,104 978,658 932,321 -4.7 % Machinery and Equipment 3,937 270,150 209,450 -22.5 % Total Expenses 871,994 1,279,167 1,173,796 -8.2 % Debt on Projects paid with Sales Tax Fund (20%) 26,808 28,686 28,021 -2.3 % Property Tax Support 871,994 1,279,167 1,173,796 (105,371) Percent Increase (Decrease) -8.2 % Improvement Package Summary 1 of 1 This improvement package request seeks funding for phase 1 of security camera implementation at the Grand River Center, which would result in the addition of 10 cameras in the public areas of the facility. No security cameras are in the public space, entrances or exits. This project includes cameras, cabling and installation. The total cost in FY 2026 ($50,000) will go towards the purchase of cameras. The recurring cost starting in fiscal year FY 2027 ($2,700) will be for the license and maintenance contract. The first year license is included in the purchase price. Addition phases with more cameras may be needed and requested in future budget years. It is estimated that 2-3 total phases (including phase 1) would be necessary to implement all desired cameras. The total price for all planned phases (including phase 1) would be $100,000, which would result in 36 camera through out the Grand River Center. This improvement supports the City Council goals of Vibrant Community: Healthy and Safe and Financially Responsible, High-Performance City Organization: Sustainable, Equitable, and Effective Service Delivery. Related Cost:$ 47,300 Tax Funds Non-Recurring Recommend - No Related Cost $2,700 Tax Funds Recurring Total Cost $50,000 Property Tax Impact:$ 0.0186 0.45% Activity: Conference Center Significant Line Items Background 1.The City has contracted with the firm Global Spectrum L.P., doing business as OVG360, to privately manage the Grand River Center. OVG360's management agreement began on March 31, 2023 and ends June 30, 2028 with an option for renewal to June 30, 2033. Employee Expense 2.FY 2026 employee expense reflects a 3.00% wage package increase. 71 Page 898 of 989 3.The Iowa Public Employee Retirement System (IPERS) City contribution of 9.44% is unchanged from FY 2025. The employee contribution of 6.29% is unchanged from FY 2025. Supplies & Services OVG360 privately manages the Grand River Center. The following expenses are the responsibility of the City based on the Facility Management Agreement: 4.Building Maintenance is unchanged from $25,000 in FY 2025 to $25,000 in FY 2026. This line item represents building additions, alterations, repairs, or improvements where the cost for the expenditure is greater than $5,000 and the depreciable life of the applicable item is in excess of one year. 5.Insurance costs (property and general liability) increased from $103,658 in FY 2025 to $106,921 in FY 2026 based on information received from Iowa Communities Assurance Pool (ICAP). 6.Pay to Other Agency decreased from $850,000 in FY 2025 to $800,000 in FY 2026. The management agreement establishes that OVG360 submits this proposed budget each October. This line item includes the fixed annual management fee that adjusts each year based on the Consumer Price Index (FY 2026 is $158,363), as well as well as the amount that is provided to OVG360 to cover the operating loss of the Grand River Center (FY 2026 is $641,637). Fixed Annual Management Fee The management agreement with OVG360 establishes that the fixed management fee is $150,000 in the first year (FY 2024), and adjusted in each subsequent year according to the June consumer price index for all urban consumers, Midwest region, not seasonally adjusted (CPIU). •In FY 2024 the fixed management fee was $150,000 •In FY 2025 the fixed management fee was $153,750 (prior year plus the June CPIU of 2.50%). •In FY 2026 the fixed management fee is estimated to $158,363 (prior year plus the estimated June CPIU of 3.00%) Amount to Cover the Operating Loss The management agreement with OVG360 establishes that the City will cover the operating loss of the Grand River Center, which is the difference between all revenues and expenses for the Grand River Center. •In FY 2024, this amount was $726,807 •In FY 2025, the amount is budgeted at $696,250 •In FY 2026, the amount to cover the operating loss is expected to be $641,637. OVG360 maintains a city operating account that all revenues and expenses outlined in the Management Agreement flow into on a fiscal year basis. OVG360 expects a trend of increased bookings resulting in a better revenue and expense profile in FY 2027 and beyond. This expectation is due to the restoration of commercial air service, current and planned aggressive marketing efforts, partnership with Travel Dubuque, improved guest and customer experiences, 72 Page 899 of 989 diversification of events, improved cleanliness, and greatly improved food and beverage offerings. Equipment 7.The following equipment will be replaced in FY 2026 ($209,450): Conference Center Machinery and Equipment Toilet and urinal auto flushers $ 28,400 Janitorial equipment - floor machines and carts $ 15,000 Replacement tables and carts-175 round $ 8,850 Replacement tables 300 classroom & 100 30" rectangle $ 72,300 AV Equipment $ 10,000 Heated food/plate cabinets $ 24,900 Staging $ 50,000 Total Equipment $ 209,450 Capital and Equipment Investment 8.Recognizing the need for capital and equipment investment due to a possible management company change, the City Council approved in the FY 2024 budget a capital and equipment replacement fund to invest in needed upgrades to the Grand River Center facility. $357,700 was spent on six new boilers which heat the facility, $99,479 on the renewal of chiller 2 adaptive frequency drive (AFD), $15,800 for replacing ABB drive on air handler 2, $10,316 for parking garage water line replacement, $15,450 for light bulb replacement, $36,044 parking garage light replacements, $33,984 for walk in cooler floor repairs, and $3,744 re-striping parking garage. Prior approved budgets for equipment replacements and repairs have been completed in FY 2024 and FY 2025, such as the purchase of a new combination oven, office chairs, stacking chairs for exhibit hall, garbage disposal, repairs to a walk in cooler, boiler supply and return piping replacement, serving tables and table covers, replacement pipe, drape and skirting, with more replacements and capital improvements in the works currently. These investments were critical to the operations of the facility. Debt Service 9.FY 2026 Annual Debt Service is as follows ($28,021): Amount Debt Series Payment Source Purpose Final Payment Call Date $ 2,649 2019C G.O.Sales Tax 20%Conference Center Improvements 2027 2026 $ 25,372 2019B G.O.Sales Tax 20%Energy Improvements 2039 2039 $ 28,021 Total Conference Center Annual Debt Service For Conference Center Performance Measures, see Five Flags Civic Center Outline 73 Page 900 of 989 Recommended Operating Revenue Budget - Department Total 33 - CONFERENCE CENTER Fund/Account/Account Title FY23 Actual Revenue FY24 Actual Revenue FY25 Adopted Budget FY26 Recomm'd Budget 100 - General 4A - Charges for Services 47100 - Reimbursements 0 (300) 0 0 4A - Charges for Services Total 0 (300)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% (33,063) (26,808) (28,686) (28,021) 4N - Transfers Total (33,063)(26,808)(28,686)(28,021) 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 4A - Charges for Services 47450 - Sale of Salvage 0 (4,303) 0 0 4A - Charges for Services Total 0 (4,303)0 0 CONFERENCE CENTER - Total (33,063)(31,411)(28,686)(28,021) 74 Page 901 of 989 100 - General 60100 - Salaries-Regular Full Time 17,091 22,745 23,974 25,335 60635 - Special Pay Sick Lv Payout 50% 196 243 206 250 6A - Salaries & Wages Total 17,287 22,988 24,180 25,585 6B - Employee Benefits 100 - General 61100 - FICA - City Contribution 1,286 1,710 1,850 1,957 61300 - IPERS - City Contribution 1,613 2,147 2,263 2,415 61510 - Health Insurance 2,014 2,058 2,013 2,013 61540 - Life Insurance 5 7 7 7 61600 - Workers' Compensation 0 42 46 48 6B - Employee Benefits Total 4,918 5,965 6,179 6,440 6D - Repair/Maint/Util 100 - General 63100 - Building Maintenance 39,687 101,302 25,000 25,000 63321 - Vehicle Repair - Outsourced 0 0 0 0 63400 - Equipment Maint/Repair 1,993 0 0 0 63710 - Electricity 0 0 0 0 63711 - Natural Gas 0 0 0 0 6D - Repair/Maint/Util Total 41,679 101,302 25,000 25,000 6E - Contractual Svcs 100 - General 64080 - Insurance - Property 62,723 74,868 101,958 105,084 64081 - Insurance - Liability 637 1,397 1,700 1,837 64130 - Payments to Other Agencies 425,031 659,366 850,000 800,000 64185 - License/Permit/Fees 0 0 0 0 64190 - Technology Services 493 1,772 0 0 64975 - Equip Maint Cont 399 399 0 400 64980 - Technology Equip Maint Cont 0 0 0 0 64990 - Other Contractual Service 0 0 0 0 200 - Debt Service 64110 - Legal 0 0 0 0 64900 - Other Professional Service 0 0 0 0 6E - Contractual Svcs Total 489,283 737,802 953,658 907,321 6F - Commodities Recommended Operating Expenditure Budget - Department Total 33 - CONFERENCE CENTER Fund/Account/Account Title FY23 Actual Expense FY24 Actual Expense FY25 Adopted Budget FY26 Recomm'd Budget 6A - Salaries & Wages 75 Page 902 of 989 100 - General 65045 - Technology Equipment 1,081 0 11,000 0 65050 - Other Equipment 0 3,937 259,150 209,450 6F - Commodities Total 1,081 3,937 270,150 209,450 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 68010 - Principal Payment 24,885 23,936 26,091 26,209 68020 - Interest Payments 4,125 2,872 2,595 1,812 68990 - Paying Agent Fees 0 0 0 0 6H - Debt Service Total 29,010 26,808 28,686 28,021 CONFERENCE CENTER - TOTAL 583,258 898,803 1,307,853 1,201,817 Recommended Operating Expenditure Budget - Department Total 33 - CONFERENCE CENTER Fund/Account/Account Title FY23 Actual Expense FY24 Actual Expense FY25 Adopted Budget FY26 Recomm'd Budget 6A - Salaries & Wages 76 Page 903 of 989 Recommended Expenditure Budget Report by Activity & Funding Source 32 - CIVIC CENTER Fund/Activity FY24 Actual Expense FY25 Adopted Budget FY26 Recomm'd Budget 3301 - Administration 100 - General 6A - Salaries & Wages 22,988 24,180 25,585 6B - Employee Benefits 5,965 6,179 6,440 6D - Repair/Maint/Util 101,302 25,000 25,000 6E - Contractual Svcs 737,802 953,658 907,321 6F - Commodities 3,937 270,150 209,450 6G - Capital Outlay ——— 3301 - Administration Total 871,994 1,279,167 1,173,796 3380 - Debt Service 200 - Debt Service 6E - Contractual Svcs ——— 6H - Debt Service 26,808 28,686 28,021 3380 - Debt Service Total 26,808 28,686 28,021 CONFERENCE CENTER TOTAL 898,803 1,307,853 1,201,817 77 Page 904 of 989 Capital Improvement Projects by Department/Division CONF CENTER OPERATION Project Number Capital Improvement Project Title Department Fund Account FY26 Recomm'd Budget 3346000014 Public Restroom Remodels Conference Center 305 67500 365,500 3346000014 Public Restroom Remodels Conference Center 305 64004 19,500 CONF CENTER OPERATION TOTAL $385,000 PROGRAM/ DEPT PROJECT DESCRIPTION FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 TOTAL PAGE CONFERENCE CENTER General Government Replace Carpet $ — $ — $ — $ 65,000 $ 299,000 $ 364,000 62 Roof Restoration $ — $ — $ 33,000 $ 1,350,000 $ — $ 1,383,000 63 Dishwasher and Water Softener Replacement $ — $ 181,000 $ — $ — $ — $ 181,000 64 Public Restroom Remodels $ 385,000 $ — $ — $ — $ — $ 385,000 65 TOTAL $ 385,000 $ 181,000 $ 33,000 $ 1,415,000 $ 299,000 $ 2,313,000 78 Page 905 of 989 C I T Y O F D U B U Q U E , I O W A DEPARTMENT DETAIL - PERSONNEL COMPLEMENT 33 CONFERENCE CENTER FY 2026 FD JC WP-GR JOB CLASS FTE BUDGET 61010 Full Time Employee Expense 100 1535 GE-21 PARKS AND RECREATION DIRECTOR 0.15 $ 25,335 TOTAL FULL TIME EMPLOYEES 0.15 $ 25,335 TOTAL CONFERENCE CENTER DIVISION 0.15 $ 25,335 79 Page 906 of 989 CITY OF DUBUQUE, IOWA ACTIVITY PERSONNEL COMPLEMENT SUMMARY FY 2026 ACCT FD JC WP-GR POSITION CLASS FTE BUDGET Conference Center Operation 3201 60100 100 1535 GE-21 PARKS AND RECREATION DIRECTOR 0.15 $ 25,335 Total 0.15 $ 25,335 TOTAL CONFERENCE CENTER DIVISION 0.15 $ 25,335 80 Page 907 of 989 FISCAL YEAR 2026 BUDGET PRESENTATION Grand River Center ImOn Arena Five Flags Civic Center Page 908 of 989 Marie Ware Parks and Recreation Director Jared Charland Project & Facilities Manager Five Flags Civic Center Aaron Rainey General Manager ImOn Arena Mark Plantery General Manager Grand River Center Ryan Bonifas General Manager .15 FTE each to Five Flags and Grand River Center Charges time to capital improvement projects PROJECTS AND FACILITIES STAFFING Page 909 of 989 GRAND RIVER CENTER FISCAL YEAR 2026 BUDGET PRESENTATION Page 910 of 989 GRAND RIVER CENTER CONFERENCE & EVENT CENTER (0.15 Full Time Equivalents) City of Dubuque OVG360 Management contract Day-to-day operations Operating loss Staffing Management fee and incentive fees Building owned by City Capital improvement funding Building insurance Page 911 of 989 OVG LEADERSHIP TEAM Ryan Bonifas General Manager Rick Stecher Director of Finance Jayme Mescher Director of Operations Ray Mihalic Director of Food and Beverage, Executive Chef Eliza Wilson Director of Events & Catering Rachel Clisch Director of Sales & Marketing Page 912 of 989 HIGHLIGHTS Page 913 of 989 CONFERENCES AND EVENTS Page 914 of 989 CONFERENCES AND EVENTS Page 915 of 989 HIGHLIGHTS Page 916 of 989 COMMUNITY EVENTS AND FUNDRAISERS Page 917 of 989 COMMUNITY OUTREACH Page 918 of 989 HIGHLIGHTS Page 919 of 989 WHAT THEY ARE SAYING Page 920 of 989 WHAT THEY ARE SAYING Page 921 of 989 FUTURE INITIATIVES •Strong push on youth sports tournaments •Local and regional call for art •Edible garden •All disposable dishes and flatware to be compostable Page 922 of 989 Grand River Center FY 2026 REQUESTED PROPERTY TAX SUPPORT $1,173,796 $18.37 Net Operating Property Tax Support Average homeowner’s* property tax cost for Grand River Center (*Avg. home value of $196,508) Page 923 of 989 PUBLIC SAFETY Emergency Shelter Community Connection: A place where we care, we volunteer and we watch out for each other. Page 924 of 989 Project FY 26 Total 5 YR Public Restroom Remodel $385,000 $770,000 GRAND RIVER CENTERGRAND RIVER CENTER 2026 CAPITAL IMPROVEMENT PROJECTS Page 925 of 989 PERFORMANCE MEASURE FOR ALL THREE CENTERS Host community events and activities that support families and children. FY24 87 events, all three centers 8.75% increase Page 926 of 989 www.grandrivercenter.com Page 927 of 989