REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on the Santa Clara Stadium Authority Financial Status Report for the Quarter and Fiscal Year Ending March 31, 2025 and Related Budget Amendments
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).
This report provides information covering the Stadium Authority’s fourth quarter of the 2024/25 fiscal year (FY) which runs from January 1, 2025 - March 31, 2025.
The Adopted Stadium Authority Budget incorporates the estimated revenues and expenses for all Stadium Authority funds. As a part of the Stadium Authority policy to ensure adherence to the budget, a budget/encumbrance control system is used to ensure proper budgetary control. Budgetary appropriation control for expenditures is maintained at the fund level. The attached Financial Status Report 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.
DISCUSSION
The attached financial status report provides information covering the Stadium Authority’s fourth quarter (January 1, 2025 - March 31, 2025) of FY 2024/25. 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
There were ten NFL games held through the fourth quarter of FY 2024/25. Levi’s® Stadium hosted one pre-season NFL games of the 2024 season on August 18th and nine regular NFL season games of the 2024 season which are detailed in the report. This resulted in $14.6 million in NFL ticket surcharge revenues for the Stadium Authority and $279,000 of Senior and Youth Program Fees for the City. Public safety costs for NFL games totaled $5.9 million. $546,000 of the total NFL event public safety costs are covered by the offsite parking fees that were collected, and the remaining has been fully reimbursed by Forty Niners Stadium Management Company LLC (ManCo) to the City.
Non-NFL Event Revenue and Expenses
There were eight large-scale ticketed Non-NFL events and 67 special events which are detailed in the report. The eight ticketed Non-NFL events generated an average net profit of $1.0 million per event. Table 1 below summarizes revenues and expenditures for the eight ticketed events.
Table 1
The Non-NFL event ticket sales generated $1.4 million in ticket surcharge revenue from the $4 per ticket Base Non-NFL Ticket Surcharge for this period. One half of the Base Non-NFL Ticket Surcharge was deposited into the discretionary fund in accordance with Section 12.1 of the Stadium Lease, with the remaining half being accounted for as general Stadium revenues. As part of the Buffet and Public Safety Cost Settlement Agreement, the Non-NFL Ticket Surcharge was increased to a minimum of $8 per ticket, however that increase did not take effect for any of the large-scale ticketed events during this period. The increased ticket surcharge will affect all future ticketed Non-NFL events. Public safety costs for these events totaled $3.4 million. $246,000 of the total Non-NFL event public safety costs are covered by the offsite parking fees that were collected, and the remaining has been fully reimbursed to the City by ManCo on behalf of the Stadium Authority.
When combining ticketed and non-ticketed Non-NFL revenues to date, Table 2 below shows approximately $10.2 million in net revenue (excluding surcharge revenue) through the end of the fourth quarter. This is an increase of $1.9 million from the prior year’s Non-NFL event net revenue of $8.3 million.
Table 2
Levi’s Stadium
Net Revenue for Non-NFL Events
by Event Type
Historical Year-to-Date Through March 31, 2025
(1) Other Operating Income are income not attributable to a specific event. Examples are interest income and reimbursements unrelated to a specific event.
(2) Other Operating Expenses are expenses not attributable to a specific event. Examples are event selling expenses, administrative expenses and miscellaneous costs.
(3) Net Revenue from Non-NFL Events does not include Non-NFL Event Ticket Surcharge.
Stadium Builder Licenses (SBLs)
SBLs account for 11.1% of the Stadium Authority’s annual budgeted revenue in FY 2024/25. There is a total of 67,554 currently active SBLs. Through the fourth quarter, since inception, the value of the active SBLs amount to $562.2 million of which $536.1 million has already been collected.
Stadium Authority Budgets
The detailed analysis of Stadium Authority budget to actual financials is provided in the attached Financial Status Reports. In summary, total operating revenues were $74.5 million representing 104% of the overall budget for revenues and total operating expenses were $51.6 million or 96% of the budget. The debt service fund was able to pay down $9.1 million in debt, bringing total Stadium Authority debt down to $219.6 million. Capital expenses were $8.2 million representing 34% of the overall Capital Expense (CapEx) budget.
FY 2025/26 Stadium Authority Budget Adjustments
From time to time, budget adjustments may be necessary to align revenues or expenditures to actual or unexpected activity during the course of a fiscal year, known after the adoption of the Stadium Authority Budget. On March 11, 2025, the Stadium Authority Board adopted the Santa Clara Stadium Authority FY 2025/26 Operating, Debt Service, and Capital Budget. As of the timing of the publication of this report, additional information from FY 2024/25 has resulted in recommended budget adjustments as follows:
Operating Budget:
1) Beginning Fund Balance / Ending Fund Balance Adjustment - The FY 2024/25 year-end actual was completed and fund balance adjustments to the FY 2025/26 beginning and ending fund balances are necessary. Because the adoption of budget is conducted in March, estimates are used to determine the beginning and ending fund balances, including reserve amounts.
Debt Service Budget:
1) Beginning Fund Balance / Ending Fund Balance Adjustment - The FY 2024/25 year-end actual was completed and fund balance adjustments to the FY 2025/26 beginning and ending fund balances are necessary. Because the adoption of budget is conducted in March, estimates are used to determine the beginning and ending fund balances, including reserve amounts.
Capital Improvement Project (CIP) Budget:
1) Beginning Fund Balance / Ending Fund Balance Adjustment - The FY 2024/25 year-end actual was completed and fund balance adjustments to the FY 2025/26 beginning and ending fund balances are necessary. Because the adoption of budget is conducted in March, estimates are used to determine the beginning and ending fund balances, including reserve amounts.
2) Levi’s Naming Rights Signage Refurbishment - Under the implementation agreement, the Stadium Authority is responsible for funding the first $2 million of total project costs and any costs over the initial $2 million will be shared between the Stadium Authority (70%) and StadCo (30%). All costs associated with this project will be capitalized as a fixed asset of the Stadium Authority. Therefore, the Stadium Authority will be reimbursed by StadCo for its share of the project costs. A budget adjustment of $797,607 is needed to appropriate StadCo’s reimbursable portion of this project’s costs as well as revenue from StadCo to cover such costs. A detailed breakdown of projected costs is provided below.
|
Description |
Cost |
|
Design Services |
$214,000.00 |
|
City of Santa Clara Permits |
$67,059.10 |
|
Newspaper Publications |
$1,216.78 |
|
Jones Signs Co. Inc. Bid Amount |
$3,978,555.87 |
|
Contingency for Construction Contract (10%) |
$397,855.59 |
|
Total |
$4,658,687.34 |
|
Stadium Authority’s Obligation |
$3,861,081.14 |
|
StadCo’s Obligation |
$797,606.20 |
3) CIP Carryover Adjustments - With the completion of FY 2024/25 year-end actuals, adjustments to the FY 2025/26 CapEx Budget are necessary to align project carryovers with actual spend from FY 2024/25. Because the adoption of budget is conducted in March, projected spend is used to determine the FY 2025/26 projected carry over.
4) Requested CIP Budget Amendments - The Police Department is requesting several CapEx Projects that need to be procured this fiscal year. They are described below:
i. Radio Batteries ($30,000): This project would replace 168 batteries for stadium radios. The current batteries have extended beyond their usable lifespan. The radio batteries are included in the CapEx 5 Year Forecast under FY 2026/27 in the amount of $15,500; however, they require replacement ahead of their initial projected end of life. The estimated cost in the CapEx 5 Year Forecast was based on actual costs from 2020 and the pricing has since increased.
ii. Radio Batteries/Chargers ($7,500): Santa Clara Police Department (SCPD) officers have received updated radios that are not compatible with stadium radios. This project would procure 20 backup batteries for the SCPD radios and two chargers for the backup batteries. The battery portion of this project was included in the FY 2026/27 radio battery replacement project that was included in the CapEx 5 Year Forecast described above.
iii. Body Worn Camera Storage ($30,000): This project would install a docking station in the police briefing room at the stadium for Body Worn Cameras (BWCs) utilized by officers assigned to the stadium. Currently, these BWCs are stored at the Police Department and there are operational inefficiencies associated with transporting the BWCs to and from the stadium before and after each event for usage, charging, and uploading evidence. The on-site docking station provides for cost savings in staff time that exceed the cost of the project.
iv. Livescan Equipment ($15,000): This project will procure a new monitor and hardware for fingerprinting equipment at the stadium temporary holding facility. This system is necessary to be compatible with the Santa Clara County’s updated booking system.
v. Credentialing Equipment ($17,000): This project will procure two new credentialing printers, one to be placed at the police station and another at the stadium. Due to recent changes in the credentialing process, SCPD require credentialing printers that have the ability to print credentials.
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)(5) in that it is an administrative activity that will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT
The Stadium Authority FY 2024/25 budget appropriation is maintained at the fund level. At the end of FY 2024/25, spend was within budget as there were sufficient savings in the Operating, Debt Service and Capital Budget to cover any overages within each fund.
From time to time, adjustments to the budget are required to reflect new information and align budgets with actual revenues and expenses. Attachment 2 includes technical adjustments in the FY 2025/26 Operating Budget to adjust the Beginning/Ending Fund Balance to true up fund balances based on actual FY 2024/25 performance. In the FY 2025/26 Debt Service Budget, a technical adjustment to true up the Beginning/Ending Fund Balance based on actual FY 2024/25 performance is recommended. In the FY 2025/26 CIP Budget, a technical adjustment to true up the Beginning/Ending Fund Balance, adjustments to capital project carryovers based on actual FY 2024/25 performance, an adjustment to recognize and appropriate funds to pay reimbursable capital construction costs, and adjustments for new public safety projects are recommended. The attachment will reflect these budget adjustments.
COORDINATION
This report was coordinated with the ManCo per section 4.6 of the Management Agreement as well as the Stadium Authority Counsel’s Offices.
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
1. Note and file the Santa Clara Stadium Authority Financial Status Report for the Quarter and Fiscal Year Ending March 31, 2025; and
2. Approve the FY 2025/26 Budget Amendments in the Operating Budget in the amount of $3,067,403, Debt Service Budget in the amount of $114,880, CIP Budget in the amount of $2,002,994 to make technical adjustments to true up the fund balance, capital project carryovers based on actual FY 2024/25 performance, recognize and appropriate funds to pay reimbursable capital construction costs, and to appropriate funds for new public safety projects.
Staff
Reviewed by: Kenn Lee, Treasurer
Approved by: Jovan D. Grogan, SCSA Executive Director
ATTACHMENTS
1. SCSA Financial Status Report for the Quarter and Fiscal Year Ending March 31, 2025
2. FY 2025/26 Budget Amendments