REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on the Financial Status Report for the Quarter and Fiscal Year Ending March 31, 2018
Report
BACKGROUND
In Fiscal Year 2014/15 the Stadium Authority Board (“Board”) requested that staff prepare quarterly Santa Clara Stadium Authority (“Stadium Authority”) Financial Status Reports. These reports provide an update on the events held at Levi’s Stadium, Stadium Authority finances, and the impact of Stadium Authority activity on the City of Santa Clara (“City”).
DISCUSSION
The attached fourth quarter financial status report provides information covering the Stadium Authority’s 2017/18 fiscal year, which runs from April 1, 2017 to March 31, 2018. The report summarizes National Football League (“NFL”) and non-NFL event activity at Levi’s Stadium and describes the financial impact of these events on the Stadium Authority and City since FY 2014/15. The report also provides the budget to actual revenue and expense summaries for the operating, debt service, and capital funds. Analysis of the financial activity through the fiscal year measures the adherence to the budget and allows the Stadium Authority to monitor and project revenues and expenses. Any significant variances are explained in the report.
NFL Event Revenue and Expenses
Levi’s Stadium hosted ten NFL games in the Fiscal Year 2017/18 with a total of 643,189 tickets sold. This resulted in $7.8 million in NFL ticket surcharge for the Stadium Authority and $225,000 of Senior and Youth Program Fees for the City. Public safety costs for NFL games totaled $2.6 million which is 14.6% lower than the prior fiscal year due to the continued effort to be more efficient with the deployment of our limited staff resources and to utilize other widely used public safety strategies. All of these costs have been reimbursed to the City. The Tasman lot parking fee also generated $28,000 for the City’s General Fund.
Non-NFL Event Revenue and Expenses
The Stadium Authority held 13 ticketed non-NFL event and 113 special events which are detailed in the report. The non-NFL event ticket sales generated $1.5 million in ticket surcharge revenue, half of which funded the discretionary fund. Public safety costs for these events totaled $2 million all of which have been reimbursed to the City.
New to this report is the inclusion of two additional tables (shown on page 8 of the attached report) in response to Board inquiries which provide detail on the net $5.16 million revenue generated for non-NFL ticketed and other events in FY 2017/18:
1. Net Revenue for Non-NFL Events by Event Type - this reflects the net revenue for non-NFL events by event type.
2. Non-NFL Event Results by Category - this reflects total revenue and expenses for all Non-NFL events by category.
As detailed in one of these tables (see below), the net $5.16 million in net revenues is due to ticketed events and other events generating $1.52 million and $3.64 million in net revenues, respectively. The table furthers provide information on the net revenue generated from ticketed events in the amount of $1.52 million whereby net revenue primarily from concerts and soccer events in the amount of $1.82 and $3.23 million, respectively, are offset with net losses from non-NFL football events in the amount of $3.6 million.
Stadium Builder Licenses (“SBLs”) account for 37.6% of the Stadium Authority’s annual revenue in 2017/18. Annual SBL proceeds amounted to $31.7 million, 100% of what was budgeted. There are a total of 60,467 currently active SBLs which is 91.8% of the 65,877 total sellable SBL seats. The value of these SBLs amounts to $532.9 million of which $424 million has already been collected.
The detailed analysis of Stadium Authority budget to actual financials is provided in the attached Financial Status Report. In summary, total operating revenues were $82.5 million representing 98% of the overall budget for revenues and total operating expenses were $22.5 million or 87% of the budget. The debt service fund was able to pay down $47.1 million in debt, bringing total Stadium Authority debt down to $382.7 million. Lastly, capital expenses amounted to $1.3 million or 27% of the $4.8 million budget
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
Costs associated with the regular preparation of this report are included in the Stadium Authority Operating Budget.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Note and file the Santa Clara Stadium Authority Financial Status Report for the Quarter Ending March 31, 2018.
Staff
Reviewed by: Angela Kraetsch, Treasurer
Approved by: Deanna J. Santana, Executive Director
ATTACHMENTS
1. SCSA Financial Status Report for the Quarter and Fiscal Year Ending March 31, 2018