january 14, 2025 Suds Presentation Item 3.B
From Dec 3, 2024 Agenda Item Budget Amendments and Reconciliation Year-End Results - General Fund
• Revenues of $296.9 M ended 4.7% ($13.3 million) above budget; $3.0 M allocated to Advanced Planning Fee, Technology Fee and Pension Stabilization Reserves, resulting in net additional revenue of $10.3 M Expenditures of $292.0 M were 3.4% ($10.2 M) below budget; $2.9 M carried over in the FY 2024/25 in Adopted Budget, resulting in net savings of $7.3 M • Additional fund balance of $17.6 M over the estimate used to develop FY 2024/25 Adopted Budget; largest actions include:
• Reserves: Budget Stabilization ($7.5 M), Pension Trust ($5.4 M), Ending Fund Balance ($2.4 M)
• Capital Projects: FHRMS Update ($1.0 M); Library Concrete ($0.2 M) • G.O. Bond Implementation ($1.0 M)
City of
Santa Clara
1 From Dec 3, 2024 Agenda Item Budget Amendments and Reconciliation Table 4 - Recommended General Fund Budget Actions
Recommended Adjustments $ Impact
Fund Balance Reconciliation (adjusts for FY 2023/24 year-end revenues $17.6 M and expenditures)
Recommended Adjustments
General Obligation Bond Implementation (cover staffing and other costs that $1.00 M are not eligible for bond funding)
Finance - FHRMS Capital Project (PeopleSoft Upgrade, Purchasing/ $1.00 M Contracts Module, P-Cards, Inventory Management)
New Commerce/Peddler's Plaza Maintenance Capital Project (from excess $0.43 M rent revenue collected over prior two fiscal years)
Transfer to the new Fire CUPA Fund (Fire hazardous materials regulation S0.39 M funded from excess FY 2023/24 revenue)
Human Resources Department (labor negotiations, safety evaluations, and S0.34 M as-needed staffing for recruitments)
Central Park Library Concrete Sidewalk Replacement Capital Project $0.22 M 2 POST MEETING MATERIAL
1 January 14, 2025 Suds Presentation Item 3.B
Central Park Library Concrete Sidewalk Replacement Capital Project | S0.22 M (increase based on the latest engineer's estimate)
City Clerk - FY 2024/25 Election Costs (based on latest estimates from the S0.08 M County)
Human Resources Department - Safety Program Staff (1.0 Division Manager S0.00 M and 1.0 Management Analyst): cost to be absorbed in FY 2024/25 with ongoing cost of $524,000
Capital Projects Reserve (Increase CPR from project savings at the end of $0.10 M FY 2023/24)
Transfer from Capital Funds to Return Project Savings to Capital Projects (SO.10 M) Reserve
Transfer from the PW Capital Projects Management Fund (return FY 2023/24 (SO. 16 M) savings)
Commerce/Peddler's Plaza Carryover Reduction (reduce carryover from FY ($1.00 M) 2023/24 to FY 2024/25 based on actual FY 2023/24 expenses) Pension Trust Reserve (1% of GF unfunded liability/bring reserve to 6.4% of $5.38 M liability, other funds will be increased to 10%)
Budget Stabilization Reserve (with FEMA reimbursements and Stadium $7.52 M settlement funds, the BSR would increase by $16.2 M (from $53.8 M to $70.0 M): reserve increased from 18% to 23.8% of expenditures Additional General Fund Allocations
Impact on
General Fund Fund
Recommended Use of Additional Revenue Balance
Recommended Adjustments (Cont'd.)
FEMA Reimbursement Revenue / Budget Stabilization Reserve $1.36 M Stadium Settlement Funds (Performance Rent) / Budget
Stabilization Reserve $7.32 M
Total Additional Adjustments $8.68 M
City of
Santa Clara
4 2
, January 14, 2025 Suds Presentation Item 3.B
Chart 1
Total Outstanding Debt (in millions)
5700
$653.4
5800
8581.6
5500 54847
$420.8
$398.1 $3827
$400
$340.2 $325.3
$300 52908 $280.3
$245.3
5228.7 $2205
$200
$100
$41.1
Mar 2012 Mar 2013 Mar 2014 Mar 2015 Molar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mal 2024 Sap 2024 • Construction Loan #StadCo Agency Advance •Term B Loan • TermA Loan • StadCo CFD Advance a StadCo Subordinated Loan 5 Public Safety Costs - Threshold
5600,000 S00E 201
3511,166 5521,13:
S500,000
$400,000
$300,251 S145:37
5508,:k5
$245,54: S261,587
5:300,000 $343,197
- 4: 563
33131
$200,000
9$170,000
$100,000
1st Scason 2nd Scason Jrd Scason
(2014-15) (2015-16) (2016.17)
Cal PS COsTS 1501090(151
Public safety costs have increased from $245K/game to $521K which is an annual increase of 8.73% Which is MUCH higher than inflation. Why?
6 3
January 14, 2025 Suds Presentation Item 3.B
PSC Settlement - Threshold Adjustment
Threshold Overview Negotiated Outcome
• Initial threshold set at • Year 11 threshold
$170K/game, increasing increased from $251K to
4% annually, reaching
$360K/game.
$251K/game by Year 11
(2024-25) • Increase of $109K/game x
10 games = $1.1M
• StadCo has discretion to additional value per year
adiust the threshold after
compared to original
good faith negotiations.
contract threshold
SCSA 49
SANTA CEANA STADTON AUTHORIEY
7 4
January 14, 2025 Brian Doyle Item 3.B
presentation
SCSA
Santa Clara Stadium Authority
1.14.2025 SANTA CLARA
STADIUM AUTHORITY
FINANCIAL STATUS REPORT
Quarter Ending September 30, 2024
Consent Calendar
Item 3B
1 CONTRARY TO POPULAR BELIEF...
...The City of Santa Clara makes NO money
from the 49ers' Management of Levis Stadium
2 POST MEETING MATERIAL
1 January 14, 2025 Item 3.B
TURN TO P. 24 - Table 15
City of Santa Clara Net General Fund Impact
uring the current reporting period there was a total of $1.4 million that was contribute o the General Fund as shown in Table 15. This section of the report also provide information on General Fund revenue and expenditure impacts resulting from the stadium.
Table 15
City of Santa Clara
Net General Fund Impact
Partle Ending September 30. 2024
Ground Rent $ 1,000,000
erformance Ren
enior and Youth Fee 72,911
Sales Tax 347,546
Total Not General Fund Impact 5 1,420,457
3 TURN TO P. 9 - Table 6
Table 6
Net Revenue for Non-NFL Events
by Event Type
Historical Year-to-Date through September 30, 2024
2020/21 2021/22 202223 2023/24 2024/25
No.of Net No. of Net Net No. of Net No. of
Event Ravenue Events Revenue Events Net Revenue
EVENT TYPE Events Revenue Events Revenuo
Ticketed Events
Concerts 4 $ 2.986,483 54,267,153 S 4,074,498
Sporting events:
Football (non-NFL) om 305,067
231,987 3,392,260
discellaneous event 34.572.220 3 7.468.758
ot Rovenue from Ticketed Event: 353218470
Subtotal Ticketed Events - Other Expenses
Net Revenue from Special Events (weddings. $ 1,198,148
corporate events, elc.) 96,187 31 $ 1,350.957 25 $ 903.221 30 Other Operating Income" 63.987 $ 1271,700 $ 1,029,491
Other Operating Expenses! S(601,530) 3(681,705) 3(1.188 9511 Total Non-NFL Net Revenue W 86.1871 36 54,031,884 33 56,065,43638 6 8.505.448] ents unrelated to a specte evert.
4 2
January 14, 2025 Item 3.B
So if Performance Rent equals half of Net Revenue
$8,505,446 ÷ 2 = $4,252,723
Why is the Performance Rent
$0.00
5 TURN TO P. 24:
Public safety costs for NFL events continue to be above the annual public safety cap.
Pursuant to the Amended and Restated Lease, the Stadium Authority was in discussion with StadCo to adjust the annual public safety cap to reflect the true cost of service, which is higher than the cap. On May 23, 2024, the Stadium Authority entered into a settlement agreement with StadCo and ManCo over disputes regarding public safety and buffet costs. As a result of the settlement, the public safety cap will be adjusted to increase the per game and annual threshold beginning in FY 2024/25. Under the contingency funds and partially over time through excess revenues. 6 3
January 14, 2025 Item 3.B
Now go to p. 19
- Table 17
Stadium Management Fee - The Stadium Manager receives an annual base management fee to manage Levi's® Stadium. The fee was $400,000 in the first lease Table 17
Annual Base Stadlum Additional
Stadium markoung Stadlum Stadium
Mananament and Booking Net Income ist Tier- Marketing and 2nd Tier- Marketing and Total Stadium Lease Foe (SCSA Fee from Non- paid at 10% Booking Fee paid at 15% Booking Fee Management Fiscal Yoar Year Share) Benchmark Fee 10% 1st Tier Fee 15% 2nd Tier 2014/15 IS. 200,000$5,000,000S5.207.553 10,378 210,378
2015/16 206,000 5,150,000 6,078.016 46.451 | 252.451
2016/17 212,180 5,304,500 5.316,894 620 212,800
2017/18. 218.545 | 5,463,635 5,163.329] 2,000 0001 4,000,000 218,545 2018/19 225,102 5,627,544 185911 2, 060,000 4,120,000 225,102 2019/20 231,855 5,796,370 (2,741 014) 2,121,800 4,243,600 231855 2020/21 238,810 | 5,970,261 (476 960) 2,185<54 4,370,908 238,810 2021/22 245,975 6149 369 (283.7411 2251018 - 4.502.035 245,975 7 So it looks like...
The Stadium Authority is paying ManCo a management
fee of $217,618 to earn $0 in Performance Rent, because all of the Net Revenue from non-NFL events goes to pay
for public safety costs of NFL games.
8 4
January 14, 2025 Item 3.B
SANTA CLARA EASES CURFEW RULES
AT LEVI'S - City manager can approve
time extensions for 5 weeknights a year
November 18, 2021 Mercury News, The (San Jose, CA)
Author/Byline: Grace Hase [email protected] Page: A1 Section: Front "This decision will help draw world class entertainment to Santa Clara and will not only excite those in our community who love live music, but will also generate necessary revenue for the City of Santa Clara, local hotels, and small business," he said. "It's thoughtful policy and we hope to continue moving past the petty political disputes and dysfunction under Mayor Gillmor and Manager Santana." - Rahul Chandhok
SANTA CLARA, 49ERS END LONG
STADIUM DISPUTE - Latest issues stem
from public safety costs and food buffet
reimbursements
May 29, 2024 Mercury News, The (San Jose, CA)
Section: Front
42 Words erasely teles 18b area everup com Page: 41
In the news release, the city boasted the deal's "many benefits" including the reduction in the amount of money the Stadium Authority owes the NFL team - from $22 million to $14.8 million - and the payment of $7.1 million in performance rent. 10 5
January 14, 2025 Item 3.B
So what happened to the
$7.1 Million that was
supposed to go to the City's
General Fund?
11 "You cannot be serious!"
- John McEnroe
12