AGENDA
FINANCE COMMITTEE
SPECIAL MEETING NOTICE
FEBRUARY 6, 2023
PUBLIC MEETING 3:00 P.M.
Me
mbers
Victor M. Gordo, Mayor
Tyron Hampton, District 1
Felicia Williams, District 2
ST
AFF
Matthew Hawkesworth, Director of Finance
Theresa Fuentes, Assistant City Attorney
Gloria Acevedo, Recording Secretary
MI
SSION STATEMENT
The City of Pasadena is dedicated to delivering exemplary municipal services, responsive to our entire community and consistent
with our history, culture and unique character.
In c
ompliance with the Americans with Disabilities Act of 1990, Assistive Listening Devices are available from the City Clerk’s Office with a 24-hour advance notice.
Please call (626) 744-4124 to request use of a listening device.
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e translation services are available for this meeting by calling (626)744-4124 at least 24 hours in advance.
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ngs are broadcast live on cable Channel 3 and on the Internet at http://pasadena.granicus.com/mediaplayer.php?camer a_id=2&publish_id=9 and https://www.pasadenamedia.org/watch/ (Click on Video Streamlining on the right side of the screen).
It
ems on the agenda may not be called in order listed. Agendas and supporting documents are available on the Internet at
https://www.cityofpasadena.net/commissions/city-council-finance-committee/ Mater
ials related to an item on this Agenda submitted to the Finance/Audit Committee after distribution of the agenda packet will be posted online and listed as: “Supplemental Agenda Material Received after the Posting of the agenda”
SPECIAL FINANCE COMMITTEE MEETING FOR FEBRUARY 6, 2023 AT 3:00 P.M.
NOTE
TO PUBLIC: Finance Committee meetings are now available for public in-person participation. Meetings are held at City Hall in the Council Chamber, Room S249 City Council Meeting Policy:
City Council Meeting Policy - Please Read
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gaceved
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tten correspondence will be forwarded to the Finance/Audit Committee prior to the start of the meeting, posted online, and made part of the legislative record for the item.
SPECIAL MEETING
AGENDA
FINANCE COMMITTEE
FE
BRUARY 6, 2023
Public Meeting: 3:00 P.M.
Council Chamber, Pasadena City Hall
100 North Garfield Avenue, Room S249
PUBLIC MEETING - 3:00 P.M.
ROLL CALL
PUBLIC COMMENT – LIMITED TO ITEMS ON THIS SPECIAL MEETING
AGENDA AND WILL BE HEARD AT THE TIME THE ITEM IS
CONSIDERED
APPROVAL OF MINUTES
J anuary 23, 2023 Special Meeting
NEW BUSINESS
INFORMATION ONLY
1. ECONOMIC UPDATE AND FY 2024 OPERATING BUDGET OUTLOOK
2. RO
SE BOWL OPERATING COMPANY FINANCIAL UPDATE
3. PASADENA CENTER OPERATING COMPANY FINANCIAL UPDATE
ADJOURN
APPRO
VAL OF MINUTES
January 23, 2023 Special Meeting
01 1/23/2023
CITY OF PASADENA
FINANCE COMMITTEE MINUTES
PASADENA CITY HALL
100 NORTH GARFIELD AVENUE
CITY HALL COUNCIL CHAMBER S249
JANUARY 23, 2023
SPECIAL MEETING
OP
ENING Chair Gordo called the special meeting of the Finance Committee to order at 3:06 p.m.
ROLL CALL: Mayor Victor M. Gordo (Chair)
Councilmember Tyron Hampton (Arrived at 3:07 p.m.)
Vice Mayor Felicia Williams
Sta
ff: Miguel Márquez, City Manager
David Reyes, Acting Assistant City Manager
Theresa Fuentes, Assistant City Attorney
Matthew Hawkesworth, Director of Finance
Tony Olmos, Director of Public Works
Laura Rubio-Cornejo, Director of Transportation
Kris Markarian, Deputy Director/City Engineer
Phyllis Hallowell, Management Analyst
Flora Karmiryan, Principal Administrative Analyst
Tim Park, Budget Administrator
Vic Erganian, Deputy Director of Finance/City Treasurer Sebastian Hernandez, Principal Planner
Valerie Gibson, Transportation Services Manager
Douglas Tohom, Management Analyst
Michel Go, Management Analyst
Gary Takara, Engineering Manager
Jim Wong, Senior Project Manager
Elena Chamorro, Principal Financial Rate Analyst
Gloria Acevedo, Recording Secretary
APP
ROVAL OF MINUTES: It was moved by Vice Mayor Williams and seconded by Councilmember Hampton to approve the cancellation notices of October 10, 2022, November 28, 2022, December 12, 2022, December 26, 2022, January 9, 2023 and the November 14, 2022, Special Meeting as submitted.
02 1/23/2023
NEW BUSINESS AUTHORIZE THE CITY MANAGER TO SIGN ANY AND ALL
AGREEMENTS TO RECEIVE FUNDS FROM THE ENERGIIZE
COMMERCIAL VEHICLE PROJECT GRANT
Chair Gordo introduced the item and L aura Rubio-Cornejo, Director of Transportation, provided a brief outline of the agenda item.
It w
as moved by Councilmember Hampton seconded by Vice
Mayor Williams, to approve staff’s recommendation and forward the item to the City Council for consideration.
AUTHO
RIZE THE CITY MANAGER TO EXECUTE ALL
AGREEMETNS AND ADOPT A RESOLUTION FOR THE
RECEIPT OF STATE AND FEDERAL GRANT FUNDS FOR
PASADENA DIAL-A-RIDE
Chair Gordo introduced the item and Laura Rubio-Cornejo, Director of Transportation, provided a brief outline of the agenda item.
Fo
llowing a brief discussion, it was moved by Vice Mayor
Williams seconded by Councilmember Hampton, to approve
staff’s recommendation and forward the item to the City Council for consideration.
JO
INT ACTION: EXTENSION OF BANK OF AMERICA
LETTER OF CREDIT RELATED TO THE VARIABLE RATE
DEMAND REFUNDING CERTIFICATES OF PARTICIPATION,
SERIES 2008A (Conference Center Project)
Chair Gordo introduced the item and Vic Erganian, Deputy Director of Finance/City Treasurer , provided a PowerPoint presentation and responded to questions.
Vi
ce Mayor Williams asked for confirmation on the current basis points of the letter of credit. Mr. Erganian confirmed it is 39 basis points.
Fol
lowing a brief discussion, it was moved by Vice Mayor
Williams seconded by Councilmember Hampton, to approve
staff’s recommendation and forward the item to the City Council for consideration.
03 1/23/2023
AMENDMENTS TO FISCAL YEAR 2023 CAPITAL
IMPROVEMENT PROGRAM AND OPERATING BUDGETS
Tony Olmos, Director of Public Works, provided a brief
introduction on the item.
It was
moved by Vice Mayor Williams seconded by
Councilmember Hampton, to approve staff’s recommendation and forward the item to the City Council for consideration.
AME
NDMENTS TO FISCAL YEAR 2023 ADOPTED
OPERATING BUDGET
Chair Gordo introduced the item and Flora Karmiryan, Principal Administrative Analyst, provided a PowerPoint presentation and answered questions.
Councilmember Hampton asked if the six limited-term FTE’s are going to be City Employees. Ms. Karmiryan responded that they are tied to grants. Chair Gordo added that limited-term positions are always funded by a temporary source or grant that expires.
Mr. Hawkesworth confirmed the six positions detailed on this item will be City Employees.
Councilmember Hampton asked what City Department has the most limited-term employees. Mr. Hawkesworth responded it is the Pasadena Public Health Department due to the number of grants they receive.
Following a brief discussion, it was moved by Vice Mayor Williams seconded by Councilmember Hampton, to approve
staff’s recommendation and forward the item to the City Council for consideration.
CONTRACT AWARD TO TYLER TECHNOLOGY, INC. FOR
SUBSCRIPTION SERVICES RELATED TO PAYMENT
PROCESSING
Chai
r Gordo introduced the item and Ma tthew Haw kesworth,
Director of Finance, provided a PowerPoint presentation and responded to questions.
Councilmember Hampton asked for clarification on who would be affected by the fees that are being proposed. Mr.
Hawkesworth stated that the fees are designed to be pass ed- along to developers who expressed the willingness to pay for the fees. Small transactions such as paying a utility bill, will not be affected by this item.
04 1/23/2023
INFO
RMATION ONLY
Following a brief discussion, it was moved by Vice Mayor Williams seconded by Councilmember Hampton, to approve
staff’s recommendation and forward the item to the City Council f
or consideration.
M
ITIGATION FEE ACT ANNUAL REPORTS
Matthew Haw kesworth, D irector of Finance, pr ovided a brief i
ntroduction.
On the order of the Chair and consensus of the Committee, the item was received and filed.
FY 202 3 C APITAL I MPROVEMENT PR OGRAM - SECOND
QUARTER MONITORING REPORT
Tony O lmos, D i rector of P ublic W or ks , provided a brief i
ntroduction on the item.
Chair Gordo commented on the progress on the Washington Park and asked for confirmation that the ribbon cutting ceremony will take place this summer. M
r. Olmos confirmed that it is slated
f
or September 2023.
Councilmember Hampton asked if any projects have been
affected by lack of staffing. Mr. Olmos responded that the only i
tem of concern is that bids are coming in at a higher price.
Councilmember Hampton requested that moving forward a
summary with the percentage of projects that required a change or
der be made available and thanked Mr. Olmos for the fantastic job the Public Works Department has done.
Chair
Gordo asked about the process to remove palm fronds
from private properties. Mr. Olmos responded that the City is responsible for palm tree debris that is on City property and after storms will pick up any that is l eft on the street or on the parkway.
Homeowners are responsible for disposing of palm fronds that are on their property.
Chair Gordo expressed concern about current contracts with escalator clauses tied to the Consumer Price Index (CPI).
Mr. Hawkesworth committed to bringing an update to a
future Finance Committee Meeting.
Councilmember Hampton asked if the City has contractors w ho are unable to meet their agreements due to the increase in CPI.
Mr.
Hawkesworth stated there was one contractor working for t
he print services division that was unable to meet their
05 1/23/2023
obligation. Mr. Olmos stated that the Department of Public Works had several service contracts up for renewal and the contractors exercised their right to walk away due to the increase in CPI.
Following a brief discussion, on the order of the Chair and consensus of the Committee, the item was received and filed.
ADJOURNMENT On the order of the Chair, the special meeting of the Finance Committee was adjourned at 3:39 p.m.
AT
TEST: ______________________
Mayor Victor Gordo, Chair
Finance Committee
________
____________
Gloria Acevedo
Recording Secretary
NEW BUSINESS
ITEM 1
ECONOMIC UPDATE AND FY 2024 OPERATING
BUDGET OUTLOOK
Economic Update and
FY 2024
Operating Budget
Outlook
Department of Finance
February 6, 2023
Finance Committee, Item 1
Economic Outlook
2 • Unchartered economic environment
> Historically high inflation remains a concern, though starting to ease. > Interest rates continue to rise, but Fed expected to slow pace. > Unemployment rate is near a 50-year low @ 3.7%. Time on unemployment is growing and tech sector is increasing layoffs.
> Tight labor market has fueled strong wage growth.
> US economy grew at 2.9% in the fourth quarter (first estimate). • THE question of the moment….are we on the brink of a recession? > Federal Debt Limit is a concern with a divided Congress. > No consensus among economists that the US is headed toward recession. > Uncertainty on the horizon – mix of optimism and pessimism. > It’s too early to determine; not enough consistent evidence. Retail spending slowed in November, but holiday quarter overall. appears strong. Retail product returns unusually high after the holidays.
Economic Outlook
3 > Federal Reserve recently lowered its forecast for growth in the US to just
0.5% next year and a jobless rate rising to 4.6% by end of 2023. Slower GDP growth could curb demand to match supply levels, tamp down inflation, and decelerate interest rate hikes
Reduced gap between jobs and workers and small uptick in unemployment could alleviate pressure on wages and encourage employee retention
> We’ll wait and see if this soft landing is possible while avoiding a recession. 3
Under Pressure
4 FY 2024
Far Less
Emergency
Federal
Funding
Insurance
Costs
Self-Insured
Retention
Capital
Improvement
Needs
Personnel +
Supply Cost
Increases
Rent
Control
Board Initial
Funding
Projected
State Deficit
$22.5 billion
-Central Library Seismic Retrofit
-New Transit Facility
-Mobility projects related to 710
-Ongoing City Facility Needs
Budget Outlook – General Fund
5 • Property tax is up 5.8% for the first half of FY 23, which is slightly better than the budget. Slower growth is anticipated into FY 24. Total tax revenue may approach $107 million.
• Sales tax has continued its upward trend. The FY 23 forecast has improved from $71.5 million to $73.3 million. Future growth is projected to slow per the Federal Reserve monetary policy goals and actions.
• Transient occupancy tax continues to improve although the growth is coming more from tourism than business travel.
• Utility user tax revenues vary. Water, electricity, and gas are stable, telephone continues to decline, and video is flat.
• Taxes and franchise fees account for $240 million of the $302 million General Fund budget, but we must also focus on areas where we can recover or generate new or additional revenue.
Budget Outlook – Other Funds
6 Locally controlled
• Cost of service studies to be conducted for Refuse and Sewer/Storm Water programs as rates have been flat for many years and are no longer sufficient.
State or Federal
• Some special revenue funds, such as Gas Tax, are based on revenue methodologies that aren’t sufficient to keep up with the service need and construction costs.
• Other special revenue funds are not able to recoup all costs due to state law or other regulatory requirement limits.
• Grant funded program revenues are not increasing at the same rate as expense increases, and rarely provide sufficient funding to pay for overhead costs.
> Cost allocation plan gap of $10 million
Budget Guidance
7 • Every budget cycle is challenged with how to balance the budget > Due to economic uncertainty and fiscal pressures on the budget, we continue to evaluate our spending and tighten our belts wherever possible.
• The base budget largely reflects ongoing commitments that consist of Charter/PMC requirements, policy decisions, contractual obligations, and fulfilling public service needs.
> Leaves minimal financial capacity for new programs
• Short-term solutions are okay, but we need to think about longer- term, strategic solutions to address the structural imbalance. > Not only about the General Fund
> Cost recovery
> Pursuit of new revenue opportunities
> Legislative advocacy may be necessary as some state and county funding is based on older methodologies
Obligations and Commitments
• Debt service
• Pensions – Unf unded
Accrued Liability
• Animal control
• T
ree maintenance
• Crossing guards
• Insurance
• Non-profit support
> Rose Bowl Aquatics Center
> Norton Simon Museum
• Measure I to PUSD
• Library fund contribution
• Public safety
• Youth sports
• Consolidated elections
• State regulations limiting cost
recovery
• Sidewalk maintenance
8
Budget Highlights
9 • Personnel Budget
> Preliminary estimate: approximate increase of 7% (includes one-time catch-up adjustment for certain classifications and labor groups that were out of contract in the prior year).
• Services & Supplies Budget
> We do not increase all line items within Services & Supplies category by CPI – this is done based on contracts or specific analysis. > Review contracts (end date, extension clause, escalator %) and apply appropriate increases.
> November 2022 CPI 6.012%
> December 2022 CPI 4.926%
• Internal Service Charges
> At minimum, Internal Service rate increases keep pace with Personnel growth.
Financial Forecast
• Despite all these pressures, the City’s financial
posi
tion remains stable.
• General Fund reserves are fully funded plus the
Sec
tion 115 Trusts.
• The City has been successful in receiving grants and
earmar
ks.
• The City is proactively looking at solutions and
oppor
tunities to enhance revenues and reduce
expenses.
10
General Fund Forecast
11 FY 2022 FY 2023 FY 2023 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Final Budget Revised Budget Forecast Forecast Forecast Forecast Forecast Beginning Amount Available for Appropriations 0 0 0 0 0 (175,023) (453,416) (1,292,099) Revenues
Tax Revenues 235,450,392 233,807,300 233,807,300 237,737,987 248,712,928 256,749,423 264,836,049 272,422,265 Other Revenues 38,773,949 41,694,344 47,285,811 46,285,810 42,713,035 43,757,685 44,828,967 45,927,573 Contributions/Svs. From Other Funds 30,734,245 20,715,438 20,715,438 20,715,438 20,140,438 20,140,438 20,140,438 20,140,438 Total Revenues 304,958,586 296,217,082 301,808,549 304,739,235 311,566,401 320,647,546 329,805,454 338,490,276 Expens es
Personnel 172,168,785 186,860,271 187,451,679 187,451,679 199,693,982 205,300,484 212,073,524 218,467,360 Debt Service 20,646,499 11,597,702 11,597,702 11,597,702 11,588,529 12,322,553 12,323,966 12,317,139 Contributions To Other Funds 20,774,735 14,629,784 16,189,784 16,189,784 15,935,573 16,254,285 16,579,370 16,910,958 Other Expenses 79,473,305 82,852,050 84,128,156 84,128,156 84,523,339 87,048,617 89,667,277 92,038,036 Total Expenses 293,063,323 295,939,806 299,367,321 299,367,321 311,741,423 320,925,938 330,644,138 339,733,493 Operating Income/(Loss) 11,895,262 277,276 2,441,228 5,371,915 (175,022) (278,392) (838,683) (1,243,217) Ending Amount Available for Appropriations 11,895,262 277,276 2,441,228 5,371,915 (175,022) (453,415) (1,292,099) (2,535,317) Reserve for Capital & EOC* - - (5,000,000) (5,000,000) - - - - Contribution to Policy Reserve (3,416,200) (3,817,642) (3,817,642) (3,817,642) - - - - Net Income/(Loss) with Reserve Contribution 8,479,062 (3,540,366) (6,376,414) (3,445,727) (175,022) (278,392) (838,683) (1,243,217) *Reserve funds from Caltrans for 710 Stub planning and maintenance.
General Fund Five-Year Forecast
Budget Presentation
• Continuing with Council Committee presentation format (May 2023).
> Departments have continued conversations with committees on appr
opriate workplan items
> The May presentations are designed to highlight financials, sig
nificant changes, and priorities
> Specific program discussions may be presented as part of an over
all update
12
Calendar Overview
13 Internal
Service
Budgets
JANUARY
Departmental
Budgets
FEBRUARY
DEPT REQ
City Manager
Review
MARCH
FIN & CM REVIEW
City Council
Hearings
MAY – JUNE
COUNCIL
REVIEW
Budget
Adoption!!!
JUNE 12, 2023
ADOPTION
Watchlist for FY 2024 - 2025
14 Taxpayer Protection and Government Accountability Act • Far-reaching measure that would disrupt every level of government service. • Measure would cost billions every year in reduced revenues for local services.
• Majority of changes would benefit corporations and businesses. • Measure would reverse the will of voter-approved measures. • Measure would create legal chaos and fiscal uncertainty.
Source: League of California Cities
NEW BUSINESS
ITEM 2
ROSE BOWL OPERATING COMPANY FINANCIAL
UPDATE
Agenda Report
January 11, 2023
TO: Rose Bowl Operating Company (through Finance Committee) FROM: Jens Weiden, General Manager
SUBJECT: Flash Reports
Recommendation:
This is an informational item only.
Background:
Following are Draft Flash Reports for:
Mexico vs Peru Soccer Match September 2022
Preliminary UCLA Projection September-November 2022
KAMP Concerts October 2022
Flea Market October-November 2022
Golf Complex November 2022
Flash Reports are based on preliminary information for a particular month and in the case of Stadium events, are followed-up by co nt Settlement which in turn, are used to produce tenant/promoter invoices and financial statements.
Further detail on these reports is available upon request.
Fiscal Impact:
The fiscal impact for each of the aforementioned events and revenue sources is shown in the attached reports.
Respectfully submitted by: Prepared by:
Jens Weiden, General Manager Mo Salama, Controller
Attachment A
ROSE BOWL OPERATING CO.
PRELIMINARY UCLA PROJECTION (SUMMARY REPORT)
REPORT DATE: 1/11/2023 (Internal only- not for distribution) Projection Basis: Expenses to Estimates/Budgets and UCLA Lic fee/Premium projection for full season:
PROJECTION BUDGET
Announced Attendance 332,740 359,463 (26,723) UCLA reporting on announced attendance Direct Revenue/Expenses:
Direct Revenues 800,000 1,120,712 (320,712) UCLA projection on Lic Fee -29% Direct Expenses (Net) (2,048,255) (2,095,072) 46,817 Event to budgetted expenses est -2% Net Direct Event Income: (1,248,255) (974,360) (273,895) 28% ANCILIARY REVENUES:
Concessions (Net) 7140 LESS 7953 1,002,549 1,073,712 (71,163) Flash reports to date -7% Novelty (Net) 42,838 42,838 - to Budget
Parking (Net) (1,099,527) (1,041,806) (57,721) Revenues Flash - expense to bud 6% Shuttle (Net) (17,511) (13,801) (3,710) Revenues Flash - expense to bud 27% Pavilion (Net) 2,880,936 3,191,541 (310,605) Legends Est Games 1-4 & budget 5-8 -10% Advertising (Net) 2,073,000 2,073,000 - Contract allocation NET ANCILIARY INCOME: 4,882,284 5,325,483 (443,199) Net Event Income 3,634,029$ 4,351,123$ (717,095)$
ROSE BOWL OPERATING CO.
PRELIMINARY UCLA PROJECTION (DETAIL REPORT)
REPORT DATE: 1/11/2023
Projection Basis: Expenses to Budgets and UCLA Lic fee/Premium projection for season Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Projection Budget Var EVENT NAME: UCLA hosting Bowling
Green
Alabama
State
South
Alabama Washington Utah Stanford Arizona USC
EVENT DATE: Sat 09/03/22 Sat 09/10/22 Sat 09/17/22 Fri 09/30/22 Sat 10/08/22 Sat 10/29/22 Sat 11/12/22 Sat 11/19/22 EVENT TYPE: Displacement
Game # 1 2 3 4 5 6 7 8
Announced Attendance 27,143 33,727 29,344 41,343 42,038 43,850 44,430 70,865 332,740 359,463 (26,723) Direct Revenue/Expenses:
Direct Revenues 48,360 48,360 48,360 74,400 125,542 85,787 76,260 292,931 800,000 1,120,712 (320,712) Direct Expenses (Net)
(2)
(258,835) $ (186,827) $ (258,985) $ (256,385) $ (274,358) $ (293,117) $ (261,219) $ (258,528) $ (2,048,255) (2,095,072) 46,817 Net Direct Event Income: (210,475) (138,467) (210,625) (181,985) (148,816) (207,330) (184,959) 34,403 (1,248,255) (974,360) (273,895) ANCILIARY REVENUES:
Concessions (Net) 7140 LESS 7953 52,635 78,214 56,743 129,607 157,370 130,681 119,351 277,950 1,002,549 1,073,712 (71,163) Novelty (Net) 3,775 3,775 3,775 4,108 5,433 5,055 3,785 13,131 42,838 42,838 - Parking (Net) (200,993) (177,916) (208,188) (136,241) (150,267) (161,692) (130,321) 66,091 (1,099,527) (1,041,806) (57,721) Shuttle (Net) (2,265) (5,181) (1,868) (1,610) (1,610) (1,757) (1,610) (1,610) (17,511) (13,801) (3,710) Pavilion (Net) 275,553 275,520 255,359 298,562 406,139 398,115 383,836 587,853 2,880,936 3,191,541 (310,605) Advertising (Net) 259,125 259,125 259,125 259,125 259,125 259,125 259,125 259,125 2,073,000 2,073,000 - NET ANCILIARY INCOME: 387,830 433,536 364,945 553,551 676,191 629,526 634,166 1,202,539 4,882,284 5,325,483 (443,199) Net Event Income 177,355$ 295,069$ 154,320$ 371,565$ 527,374$ 422,196$ 449,207$ 1,236,942$ 3,634,029$ 4,351,123$ (717,095)$ * Advertising is an allocation on 7 games
ROSE BOWL OPERATING CO.
EVENT FLASH REPORT
SINGLE EVENT
REPORT DATE: 1/11/2023 Estimate Budget
EVENT NAME: UCLA hosting Bowling Green Hawaii
EVENT DATE: Saturday Sat 09/03/22 Sat 08/28/21
EVENT TYPE: Displacement
Variance %
Announced Attendance 27,143 32,982 (5,839) -18% Direct Revenue/Expenses:
Direct Revenues: 48,360$ 97,759$ (49,399) -51% Expenses (Net) (2) (258,835)$ (272,952)$ 14,117
Net Direct Event Income: (210,475) (175,194) (35,282) 20% ANCILIARY REVENUES:
Concessions (Net) (3) 52,635 77,035 (24,400) -32% Novelty (Net) 3,775 3,775 -
Parking (Net) (4) (200,993) (190,930) (10,063) 5% Shuttle (Net) (2,265) (1,868) (397)
Pavilion (Net) (5) 275,553 337,234 (61,681) -18%
Advertising (Net) 259,125 259,125 -
NET ANCILIARY INCOME: 387,830 484,371 (96,541) -20% Net Event Income 177,355$ 309,177$ (131,823)$ -43%
ROSE BOWL OPERATING CO.
EVENT FLASH REPORT
SINGLE EVENT
REPORT DATE: 1/11/2023 Estimate Budget
EVENT NAME: UCLA hosting Alabama State Hawaii
EVENT DATE: Saturday Sat 09/10/22 Sat 08/28/21
EVENT TYPE: Displacement
Variance %
Announced Attendance 33,727 32,982 745 2%
Direct Revenue/Expenses:
Direct Revenues: 48,360$ 97,759$ (49,399) -51% Expenses (Net) (2) (186,827)$ (254,957)$ 68,129
Net Direct Event Income: (138,467) (157,198) 18,731 -12% ANCILIARY REVENUES:
Concessions (Net) (3) 78,214 77,035 1,179 2%
Novelty (Net) 3,775 3,775 -
Parking (Net) (4) (177,916) (190,930) 13,013 -7% Shuttle (Net) (5,181) (1,868) (3,313)
Pavilion (Net) (5) 275,520 337,234 (61,714) -18%
Advertising (Net) 259,125 259,125 -
NET ANCILIARY INCOME: 433,536 484,371 (50,835) -10% Net Event Income 295,069$ 327,173$ (32,104)$ -10%
ROSE BOWL OPERATING CO.
EVENT FLASH REPORT
SINGLE EVENT
REPORT DATE: 1/11/2023 Estimate Budget
EVENT NAME: UCLA hosting South Alabama Hawaii
EVENT DATE: Saturday Sat 09/17/22 Sat 08/28/21
EVENT TYPE: Displacement
Variance %
Announced Attendance 29,344 32,982 (3,638) -11% Direct Revenue/Expenses:
Direct Revenues: 48,360$ 97,759$ (49,399) -51% Expenses (Net) (2) (258,985)$ (245,952)$ (13,033) Net Direct Event Income: (210,625) (148,193) (62,432) 42% ANCILIARY REVENUES:
Concessions (Net) (3) 56,743 92,442 (35,699) -39% Novelty (Net) 3,775 3,775 -
Parking (Net) (4) (208,188) (190,930) (17,259) 9% Shuttle (Net) (1,868) (1,868) -
Pavilion (Net) (5) 255,359 337,234 (81,875) -24%
Advertising (Net) 259,125 259,125 -
NET ANCILIARY INCOME: 364,945 499,778 (134,833) -27% Net Event Income 154,320$ 351,585$ (197,265)$ -56%
ROSE BOWL OPERATING CO.
EVENT FLASH REPORT
SINGLE EVENT
REPORT DATE: 1/11/2023 Estimate Budget
EVENT NAME: UCLA hosting Washington Arizona State
EVENT DATE: Saturday Fri 09/30/22 Sat 10/02/21
EVENT TYPE: Displacement
Variance %
Announced Attendance 41,343 40,522 821 2%
Direct Revenue/Expenses:
Direct Revenues: 74,400$ 107,860$ (33,460) -31% Expenses (Net) (2) (256,385)$ (251,906)$ (4,479)
Net Direct Event Income: (181,985) (144,046) (37,939) 26% ANCILIARY REVENUES:
Concessions (Net) (3) 129,607 136,557 (6,950) -5%
Novelty (Net) 4,108 4,108 -
Parking (Net) (4) (136,241) (121,558) (14,684) 12% Shuttle (Net) (1,610) (1,610) -
Pavilion (Net) (5) 298,562 386,994 (88,432) -23%
Advertising (Net) 259,125 259,125 -
NET ANCILIARY INCOME: 553,551 663,617 (110,066) -17% Net Event Income 371,565$ 519,571$ (148,005)$ -28%
ROSE BOWL OPERATING CO.
EVENT FLASH REPORT
SINGLE EVENT
REPORT DATE: 1/11/2023 Estimate Budget
EVENT NAME: UCLA hosting Utah Oregon
EVENT DATE: Saturday Sat 10/08/22 Sat 10/23/21
EVENT TYPE: Displacement
Variance %
Announced Attendance 42,038 55,675 (13,637) -24% Direct Revenue/Expenses:
Direct Revenues: 125,542$ 142,661$ (17,119) -12% Expenses (Net) (2) (274,358)$ (269,879)$ (4,479)
Net Direct Event Income: (148,816) (127,218) (21,598) 17% ANCILIARY REVENUES:
Concessions (Net) (3) 157,370 101,626 55,744 55%
Novelty (Net) 5,433 5,433 -
Parking (Net) (4) (150,267) (90,023) (60,244) 67% Shuttle (Net) (1,610) (1,610) -
Pavilion (Net) (5) 406,139 412,426 (6,287) -2%
Advertising (Net) 259,125 259,125 -
NET ANCILIARY INCOME: 676,191 686,977 (10,786) -2% Net Event Income 527,374$ 559,759$ (32,385)$ -6%
ROSE BOWL OPERATING CO.
EVENT FLASH REPORT
SINGLE EVENT
REPORT DATE: 1/11/2023 Estimate Budget
EVENT NAME: UCLA hosting Stanford Oregon
EVENT DATE: Saturday Sat 10/29/22 Sat 10/23/21
EVENT TYPE: Displacement
Variance %
Announced Attendance 43,850 55,675 (11,825) -21% Direct Revenue/Expenses:
Direct Revenues: 85,787$ 132,738$ (46,951) -35% Expenses (Net) (2) (293,117)$ (288,638)$ (4,479)
Net Direct Event Income: (207,330) (155,900) (51,430) 33% ANCILIARY REVENUES:
Concessions (Net) (3) 130,681 145,232 (14,551) -10% Novelty (Net) 5,055 5,055 -
Parking (Net) (4) (161,692) (148,399) (13,294) 9% Shuttle (Net) (1,757) (1,757) -
Pavilion (Net) (5) 398,115 408,413 (10,298) -3%
Advertising (Net) 259,125 259,125 -
NET ANCILIARY INCOME: 629,526 667,669 (38,143) -6% Net Event Income 422,196$ 511,769$ (89,573)$ -18%
ROSE BOWL OPERATING CO.
EVENT FLASH REPORT
SINGLE EVENT
REPORT DATE: 1/11/2023 Estimate Budget
EVENT NAME: UCLA hosting Arizona Arizona State
EVENT DATE: Saturday Sat 11/12/22 Sat 10/02/21
EVENT TYPE: Displacement
Variance %
Announced Attendance 44,430 40,522 3,908 10% Direct Revenue/Expenses:
Direct Revenues: 76,260$ 99,396$ (23,136) -23% Expenses (Net) (2) (261,219)$ (256,740)$ (4,479)
Net Direct Event Income: (184,959) (157,344) (27,615) 18% ANCILIARY REVENUES:
Concessions (Net) (3) 119,351 136,557 (17,207) -13% Novelty (Net) 3,785 3,785 -
Parking (Net) (4) (130,321) (102,758) (27,564) 27% Shuttle (Net) (1,610) (1,610) -
Pavilion (Net) (5) 383,836 386,994 (3,158) -1%
Advertising (Net) 259,125 259,125 -
NET ANCILIARY INCOME: 634,166 682,094 (47,928) -7% Net Event Income 449,207$ 524,751$ (75,543)$ -14%
ROSE BOWL OPERATING CO.
EVENT FLASH REPORT
SINGLE EVENT
REPORT DATE: 1/11/2023 Estimate Budget
EVENT NAME: UCLA hosting USC LSU
EVENT DATE: Saturday Sat 11/19/22 Sat 09/24/21
EVENT TYPE: Displacement
Variance %
Announced Attendance 70,865 68,123 2,742 4% Direct Revenue/Expenses:
Direct Revenues: 292,931$ 344,782$ (51,851) -15% Expenses (Net) (2) (258,528)$ (254,049)$ (4,479)
Net Direct Event Income: 34,403 90,733 (56,330) -62% ANCILIARY REVENUES:
Concessions (Net) (3) 277,950 307,228 (29,279) -10% Novelty (Net) 13,131 13,131 -
Parking (Net) (4) 66,091 (6,280) 72,372
Shuttle (Net) (1,610) (1,610) -
Pavilion (Net) (5) 587,853 585,012 2,840 0.5%
Advertising (Net) 259,125 259,125 -
NET ANCILIARY INCOME: 1,202,539 1,156,606 45,933 4% Net Event Income 1,236,942$ 1,247,340$ (10,397)$ -1%
DocuSign Envelope ID: FDFAB947-EADF-4B99-AF7F-4CCBC0CC49A4 ROSE BOWL OPERATING CO.
EVENT FLASH REPORT
REPORT DATE:
EVENTNAME:
EVENT DATE:
EVENT TYPE:
Scanned Attendance
Direct Revenue/Expenses:
Direct Revenues:
Expenses (Net)
Net Direct Event Income:
ANCILIARY REVENUES:
Concessions (Net)
Novelty (Net)
Parking (Net)
Shuttle (Net)
Pavilion (Net) (5)
NET ANCILIARY INCOME:
Net Event Income
1/11/2023
Concerts
Saturday
Estimate
KAMP 2Days
10/15 & 16, 2022
2 days displacement events
Stadium 6,339
Pavilion
6,339
1,756,805
(798,894)
957,911
60,833
6,339
(66,307)
(4,914)
(18,756)
(22,804)
$ 935,107
Budget
58,112
1,050
59,162
2,357,691
(1,766,737)
590,954
156,200
62,500
(158,827)
(33,581)
(9,246)
17,046
$ 608,000
NOTES: Revenues and expenses based on preliminary reporting and cost recovery pending settlement reviews.
Variance
(51,773)
(1,050)
(52,823)
(600,886)
967,843
366,957
(95,368)
(56,161)
92,520
28,668
(9,510)
(39,850)
$ 327,107
NEW BUSINESS
ITEM 3
PASADENA CENTER OPERATING COMPANY
FINANCIAL UPDATE
TO:
FROM:
SUBJECT:
Miguel Marquez
City Manager
DEPARTMENT OF FINANCE
February 6, 2023
Matthew Hawkeswor;tii �
Director of Finance '---
Pasadena Center Operating Company Financial Update
Per the Finance Committee's request, financial updates for the Pasadena Center Operating Company (PCOC) will be provided on an ongoing basis similar to those being provided for the Rose Bowl Operating Company.
The attached financial update is through December 2022. Revenues from operations and tax (Transient Occupancy Tax and Tourism Business Improvement District) are all trending higher than estimates for the first half of the year. Expenditures are trending slightly below budget and when offset by revenue, represent a positive gain of $3.9 million for the fiscal year. While some of this positive gain can be attributed to Transient Occupancy Tax, most of the gain is from operating revenue at the convention center, civic auditorium, and ice-skating rink.
Attachments:
A - Year-to-Date Actuals vs. Budget through December 2022
Attachment A
'r�PAfADENA /-- Year - to - Date Through December 2022
�� CENTER OPERATING C,OMPANY
Actual VS. %Change FY 2023
Actual Budoet Budget Prior Year CYvs. PY CYvs. PY Revised Budget Fav I (unfav) Fav I (unfav)
Operating Revenue
Convention Center $ 1,521,000 $ 1,015,000 $ 506,000 $ 613,000 $ 908,000 148.1% $ 2,300,000 Other rentals & Commissions 1,077,000 760 000 317,000 312,000 765,000 245.2% 1,900,000 Subtotal Center revenue 2,598,000 1,775,000 823,000 925,000 1,673,000 180.9% 4,200,000 Civic Auditorium & Facility Fees 820,000 479,000 341,000 102,000 718,000 nla 1,325,000 Food Service Commission 452,000 440,000 12,000 173,000 279,000 16 1.3% 900,000 Parking Garage 930,000 675,000 255,000 508,000 422,000 83.1% 1,600,000 Ice Skating Center 1,805,000 1,365 000 440,000 1,475,000 330,000 22.4% 2,900,000 Total Operating Revenues I 6,605,000 4,734,000 1,871,000 3,183,000 3,422,000 107.5% 10,925,000 Investment Earnings 13,000 13,000 - 13,000 - 0.0% 25,000 Total Revenues: I 6,618,000 4,747,000 1,871!000 3,196,000 3,422,000 107.1% 10,950,000 Center Operating Expenses
Convention Center 3,183,000 3,505,000 322,000 2,140,000 (1,043,000) -48.7% 7,300,000 Parking Garage 140,000 180,000 40,000 50,639 (89,361) -176.5% 400,000 Ice Skating Center 827,000 866,000 39,000 549,000 (278,000) -50.6% 1,800,000 Total Center Operating Expense 4,150,000 4,551,000 401,000 2,739,639 (1,410,361) -515% 9,500,000 r Operating Results: ---, 1,450� 24 68 000 196 000 22 72,000 456 361 2 011,639 "°·"' Debt Service - Loans 92,000 91,000 (1.000) 155,000 63,000 40.6% 466,000 Net Gain/(Loss) $ 2,376,000 $ 105,000 $ 2,271,000 $ 301,361 $ 2,074,639 688.4% $ 984,000 TOT I Bonds Debt Services
Transient Occupancy Tax 6,246,000 5,800,000 446,000 4,166,000 2,080,000 49.9% 10,800,000 Debt Services & Allowance 5,477,000 5,803,000 326,000 5,346,000 (131,000) -2.5% 11,027,000 Net Gain / (Loss) $ 769,000 $ 13,0001 $ 772,000 $ (1,180,000) $ 1,949,000 -165.2% $ (227,000) Convention Visitors Bureau
TBID Assessment 2,050,000 2,000,000 50,000 1,385,000 665,000 48.0% 3,600,000 Convention Visitors Bureau Expenses 1,251,000 1,270,000 19,000 874,000 (377,000) -43.1% 3,000,000 Net Gain / (Loss) $ 799!000 $ 730,000 $ 69!000 $ 511!000 $ 288!000 56.4% $ 600,000 Grant Funds
Shuttered Venue Operator Grant - - - 583,000 (583,000) nla - American Rescue Plan Act Grant - - - 141,000 (141,000) nla - Total Grants $ - $ - $ - $ 724,000 $ (724,000) nla $ -
Total PCOC
Total Revenue $ 14,914,000 $ 12,547,000 $ 2,367,000 $ 9,471,000 $ 5,443,000 57.5% $ 25,350,000 Total Expenses 10,970,000 11,715,000 745,000 9,114,639 (1,855,361) -20.4% 23,993,000 Toal Net Gain / (Loss) $ 3!944!000 $ 832,000 $ 31112,000 $ 356,361 $ 3,587,639 �% $ 1,357,000 sage Intel