Date: April 14, 2023
To: Members of the Santa Monica Pier Corporation Board of Directors From: Jim Harris, Executive Director
Re: Summary of Proposed Budget for FY2023-2024
Attached is the proposed budget for the Santa Monica Pier Corporation for Fiscal Year 2023-2024, which includes comparison Fiscal Year 2022-2023’s proposed budget and the actuals that are projected for the fiscal year’s conclusion.
The following are note on some specific line items:
INCOME:
• Facilities – Event Deck Rental: The FY2022-2023 projected actuals will be significantly higher due to the Major League Baseball All-Star Oceanfront event which, at the time that the budget was presented, was not yet a certainty and ultimately provided an unexpected significant boost in income. The proposed FY2023-2024 budget number is aligned with a return to more normal expectations.
• Facilities – Film Permits: FY2022-2023 included an unexpected drought of film bookings on the Pier during the late fall and winter months, which are usually very active. Since the reasons for that drop in business are still unclear, the expectation for FY2023-2024 have been lowered to a more modest level.
• Facilities – Merry Go-Round: Rental rates for FY2023-2024 event and party rentals in the facility will be increased by 20%, maintaining competitive pricing as interest in indoor events has recently been rejuvenated.
• Partnerships: The new Locals’ Night event series and summer kickoff Pier 360 Beach Festival have drawn significant interest from prospective sponsors for the upcoming fiscal year.
• Merchandise Sales (New Line Item): The organization expects significant sales of merchandise that will include new specialty items as well as the release of the new 2nd edition of the Pier history book. • Donations and Grants: The organization will employ increased focus in this area, better utilizing its non-profit status.
EXPENSES:
• Facilities – Event Staffing, Security & Supplies: FY2022-2023 included unexpected levels in repairs to the small electric “peewee” event support truck and a surge in amusement park tickets purchased for resale. Neither of these expense items are expected to be as significant for FY2023-2024, but materials for the new year’s historical walking tour plus upgrades to existing event furniture and supplies will add to this line item. • People – Wages & Salaries: The organization intends to increase staff by one full time assistant-level position plus one part-time weekend position. • People – Services, Audit, Insurance, Consultant: During FY2021-2022 the Pier Corporation was named in two separate law suits, neither of which directly involved the organization (one on a beach walking path, the other underneath the pier deck, and neither associated with a Pier Corporation event). Nevertheless, the organization’s insurance company at the time chose to settle both suits, then subsequently drop service to the Pier Corporation, leaving the organization to source a new insurance company while having two negative marks on its record within the previous year and, as a result, a $10,000 increase over the expected insurance rate.
This cancellation and sourcing occurred after the FY2022-2023 budget was approved by the Board and submitted to the City. An addition to this line item for FY2023-2024 will be a prospective consultant to assist with the organization’s 3-5 year strategic plan indicated in its work plan. • Pier Produced Programming: The burgeoning popularity of the new Locals’ Night and Dia de los Muertos events indicates need for growth.
Likewise, the Pier 360 Beach Festival is expected to expand its offerings as it continues to grow as the area’s marquee summertime beach kickoff event.