9/19/23 Item # 8
Santa Clara Stadium
Authority
Action on the Stadium Authority Financial Status Report for the Quarter and Fiscal Year Ending March 31, 2023 and
Related Budget Amendments
Item #8 (23-940)
September 19, 2023
SCSA
SANTA CLARA STADIUM AUTHORITY
Agenda
• Methodology and Limitations
• Financial Status Highlights
• NFL / Non-NFL Events
• Operating Budget
• Debt Status
• Capital Improvement Program
• Recommendation
SCSA
2 SANTA CLARA STADIUM AUTHORITY
POST MEETING MATERIAL
1 Methodology and Limitations
• Information for NFL and Non-NFL event statistics and financial information related to Stadium Manager expenses are provided by Stadium Manager. • For all other events, detailed review of financial information or source documentation is in progress.
• For Shared Expenses and NFL related financials, detailed review of financial information or source documentation is not conducted, however sampling is completed by KPMG.
• Firm contracted to review and evaluate Non-NFL event financial information from prior years.
SCSA 3
SANTA CLARA CARM AHHHORITY
Financial Status Highlights
• Revenues of $11.4 million from NFL ticket surcharge and $1.3 million from Non-NFL Events ticket surcharge
• Non-NFL Events performed at a $8.8 million profit with $20.5 million in Non-NFL Events revenues and $11.7 million in Non-NFL Events expenses
• Source documentation are still under review
• Debt service payments during the fiscal year totaled $48.6 million and overall outstanding long-term debt decreased by $35 million • Capital Improvement Program expenditures of $3.9 million SCSA 4
SANTA CLARA STADIUM AUTHORITY
2 NFL / Non-NFL Events
• Total of twelve NFL games in FY 2022/23
• One preseason game, nine regular season games, and two playoff games
• There were seven ticketed Non-NFL Events held in FY
2022/23
• There were sixty-nine non-ticketed Non-NFL special events held in FY 2022/23
SCSA
SANTA CLARA STADIUM AUTHORITY
NFL / Non-NFL Events (cont.)
NFL Event Public Safety Costs • NFL Public safety costs amounted to $5.7 million:
$600,000
$500,000 • $4.6 million (81%) are
$400,000 direct City costs
$300,000
$200,000 • $1.1 million (19%) are
$100,000 outside agency costs
$-
• $551 thousand were
Game 1 vs Packers Game 4 vs Chiefs covered by the offsite Game 5 vs Chargers Game 7 vs Dolphins Game 8 vs Buccaneers parking fee • City of Santa Clara M Outside Agency
SCSA
SANTA CLARA STADIUM AUTHORITY
3 NFL / Non-NFL Events (cont.)
Levis® Stadium • Non-NFL Events net
Net Revenue for Non-NFL Events by Event Type
FY 2022/23 $8.8 million in profit
No. of
Event Type Events Net Revenue • Other Operating
Ticketed Events
Concerts 6 $ 6,097,521 Expenses consists of
Sporting Events:
Soccer 423,573 Special Events
Net Revenue from Ticketed Events $ 6,521,094
Subtotal Ticketed Events - Other Expenses (2) $ Department Labor Net Revenue from Special Events (weddings, corporate events, etc. 69 2.789,761 Not Revenue from Non AN Events l 3 350,0, Costs, Non-Event 76 Total Performance Rent Paid to City's General Fund br Specific Staff Costs, Other Operating Expenses are expenses not attributable to a specific event.
Q) Net Revenue from Non-NFL Events does not include Non-NFL Event Ticket Surcharge of $1.3 million. and Catered Events Performance Rent is calculated as 50% of the net revenue from Non-NFL events less performance-based rent credits. Thos Staff Costs redits include 50% of Ground Rent, Public Safety Costs exceeding the threshold, and other potential credits. The calculation those credits are in dispute and part of the parties' pending Public Safety Costs arbitration.
SCSA
SANTA CLARA STADIUM AUTHORITY
Operating Budget
• Total Operating Revenues of $84.9 million or 104% of annual budget Total Operating Expenses and Transfers Out to Debt Service and Capital Expenditure Reserve of $69.3 million or 90% of annual budget • Transfers of $640 thousand to Discretionary Fund Reserve, $13.0 million in Operating Reserve and $5.3 million in Renovation / Demolition Reserve
• Recommended Budget Adjustments to align expenditures to actual or unexpected activity during the course the fiscal year:
• SBL Sales and Services and Use of StadCo Tenant Improvement expenses came in $69 thousand and $1 thousand higher than anticipated SCSA 8
SANTA CLARA STADIUM AUTHORITY
4 Operating Budget (cont.)
• Stadium Builder Licenses (SBLs)
• SBL proceeds amount to $24.9 million in FY 2022/23
• Value of currently active SBLs is $547.2 million (63,215 active SLBs or 96% of 66, 136 sellable SBLs)
• A total of 96% of principal value has been collected as of March 31, 2023 ($522.5 million)
1,594 new SBLs were sold with total face value of $11.7 million SCSA 9
SANTA CLARA STADIUM AUTHORITY
Operating Budget (cont.)
Discretionary Fund Reserve
Beginning
Fiscal Year Balance Revenue
Expenses Ending Basatel - $
2014/15 $ 715,770 $
2015/16 715,770 1,238,542 714.028 1,240,284
2016/17 1,240,284 1, 164,698 699,129 1,705,853
2017/18 1,705,853 768,564 1,209,342
2018/19 1,265,075 35,244 101,267 1,960,102
2019/20 1,960,102 2,327,850
2020/21 2,327,850 18 2.327,832
2021/22 2,327,832 (18) 2,327,850
639,896 1,300,051 1,667,695
2022/23 2,327,850
' This amount represents the current surcharges transferred to the Discretionary Fund. • Current balance is $1.7 million
• Transfer out of $1.3 million to contribute $650 thousand to General Fund and $650 thousand to the operating funds in FY 2022/23
• Discretionary fund previously used to pay NFL public safety costs above the public safety threshold.
SCSA
SANTA CLARA STADIUM AUTHORITY
5 Debt Status
Santa Clara Stadium Authority
Debt Summary Report
Period Ending March 31, 2023
Interest Outstanding as of Outstanding as of
Type of Indebtedness Rates March 31, 2022 Net Change March 31, 2023 Stadium Funding Trust Loan:
Term A Loan 5.00% $ 230,138,240 $ (14,723,000) $ 215,415,240 StadCo CFD Advance 5.73% 30,374,502 (515,005) 29,859,497 StadCo Subordinated Loan 5.50% 19,800,950 (19,800,950)
Total $ 280,313,692 $ (35,038,954) $ 245,274,737
SCSA 11
SANTA CLARA STADIUM AUTHORITY
Debt Status (cont.)
Total Outstanding Debt (in millions)
• Term A - budgeted
$700
payments of $25.5 ($653.4
million $600 $561.6
$500 $464.7
• CFD Advance - required $429.8
$396.1 $382.7
to pass through revenue $400
$340.2 $325.3
$296.8 $280.3
from hotel proceeds only $300 $245.2
• Subloan - Paid off the $200
debt with year-end $100
excess revenues $41.1
$- Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 • Construction Loan •StadCo Agency Advance • Term B Loan •Term A Loan •StadCo CFD Advance •StadCo Subordinated Loan SCSA 12
SANTA CLARA STADIUM AUTHORITY
6 Capital Improvement Program
• Total Capital Budget of $23.1 million
• $3.9 million or 17% spend on Stadium CIP costs
• There were 19 Capital projects completed during the year • Command Post Communication Equipment
• Rust Prevention Mitigation
• License Plate Reader at Vehicle Entry Gates
Stadium Insulation
• Non-Slip Floor Matting
Parking Lot Camera Upgrades
SCSA 13
SANTA CLARA STADIUM AUTHORITY
Recommendation
• Note and file the Santa Clara Stadium Authority Financial Status Report for the Quarter and Fiscal Year Ending March 31, 2023 and; • Approve various FY 2022/23 Santa Clara Stadium Authority budget amendments based on actual year-end performance in the
Operating Fund
SCSA
SANTA CLARA STADIUM AUTHORITY 14
SCSA
Santa Clara Stadium Authority
Table 7
Levi's® Stadium
Non-NFL Event Results by Category
As of March 31, 2023
REVENUE:
pecial Event Revent 7,328.21
cket Platform Fer 4,511,71
Suite Ticket Revenue 718,948
1,977.593
2,357,359
752,493
2.828.692
20,475,011
EXPENSE:
Public Safety/Security 4.490.035
Event Staff 4,370,057
1,121,598
4.130,071
5.231.543
(9,079,884)
scellaneous 1.402.424
tal Expen 11,665,844
Total Non-NFL Net Revenue Ts 8,809,167
A hony ovenue. Revenue Tom Ere tense received e tom of expense gase as Stadium SCSA 16
SANTA CLARA STADIUM AUTHORITY
8 Table 8
Discretionary Fund Reserve
Beginning
Fiscal Year Balance Revenue Expenses Ending Balance
2014/15 $ $ 715,770 $ - $ 715,770
2015/16 715,770 1,238,542 714,028 1,240,284
2016/17 1,240,284 1,164,698 699,129 1,705,853
2017/18 1,705,853 1,209,342 1,265,075
2018/19 1.265.075 796,294 101,267 1,960,102
2019/20 1,960,102 367,748 2,327,850
2020/21 2,327,850 2,327,832
2021/22 2,327,832 (18) 2,327,850
639,8967 1,300,051 1,667,695
2022/23 2,327,850
This amount represents the current surcharges transferred to the Discretionary Fund.
SCSA
SANTA CLARA STADIUM AUTHORITY
Table 12
Santa Clara Stadium Authority
Debt Summary Report
Period Ending March 31, 2023
Interest Outstanding as of Outstanding as of
Type of Indebtedness Rates March 31, 2022 Net Change March 31, 2023 Stadium Funding Trust Loan: (14,723,000) $ 215,415,240
Term A Loan 5.00% 230,138,240 S
StadCo CFD Advance 5.73% 30,374,502 (515,005) 29,859,497 StadCo Subordinated Loan 5.50% 19,800,950 (19,800,950)
280,313,692 S (35,038,954) $ 245,274,737.
Total
SCSA 18
SANTA CLARA STADIUM AUTHORITY
9 Chart 1
Total Outstanding Debt (in millions)
$700
$653.4
$600 $561.6
$500 $464.7
$429.8
$396.1 S382.7
$400
S340.2 $325.3
$296.8 $280.3
$300 $245.2
$200
$100
S41.1
S Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Construction Loan • StadCo Agency Advance «Term B Loan
•Term A Loan •StadCo CFD Advance •StadCo Subordinated Loan SCSA 19
SANTA CLARA STADIUM AUTHORITY
10