REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on the Santa Clara Stadium Authority Financial Status Report for Quarter Ending September 30, 2024
Report
BOARD PILLARS
Ensure Compliance with Measure J and Manage Levi’s® Stadium
Enhance Community Engagement and Transparency
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’s (“City”).
This report provides information covering the Stadium Authority’s second quarter of the 2024/25 fiscal year (FY), which runs from July 1, 2024 - September 30, 2024.
The Adopted Stadium Authority Budget incorporates the estimated revenues and expenses for all Stadium Authority funds. 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 reports.
Additionally, staff is recommending amendments to the FY 2024/25 Stadium Authority Budget to carryover unspent Capital Expenditure (CapEx) funds from FY 2023/24.
DISCUSSION
The attached financial status report provides information covering the Stadium Authority’s second quarter (July 1, 2024 - September 30, 2024) 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 three NFL games held in the second quarter of FY 2024/25. Levi’s® Stadium hosted one pre-season NFL game of the 2024 season on August 18th and two regular NFL season games of the 2024 season on September 9th and 29th which are detailed in the report. This resulted in $3 million in NFL ticket surcharge for the Stadium Authority and $73,000 of Senior and Youth Program Fees for the City. Public safety costs for NFL games totaled an estimated $1.5 million which will be fully reimbursed to the City.
Non-NFL Event Revenue and Expenses
There were eight ticketed Non-NFL events and 30 special events which are detailed in the report. The eight ticketed Non-NFL events generated an average net revenue of $933,000 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, half of which will fund the discretionary fund. Public safety costs for these events totaled an estimated $3.1 million which will be fully reimbursed to the City by the Stadium Authority.
When combining ticketed and non-ticketed Non-NFL events to date, Table 2 below shows approximately $8.5 million in net revenue (excluding surcharge revenue) through the end of the second quarter. It should be noted the financial information provided is a draft and subject to change as additional revenues and/or expenditures are recorded.
Table 2
Stadium Builder Licenses (“SBLs”)
SBLs account for 8.1% of the Stadium Authority’s annual budgeted revenue in FY 2024/25. There is a total of 66,256 currently active SBLs. Through the second quarter, since inception, the value of the active SBLs amount to $559.9 million of which $530.7 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 Report. In summary, total operating revenues were $25.5 million representing 41% of the overall budget for revenues and total operating expenses were $12.3 million or 28% of the budget. The debt service fund was able to pay down $8.2 million in debt, bringing total Stadium Authority debt down to $220.5 million. Capital expenses were $3 million representing 13% of the overall CIP budget.
FY 2024/25 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 12, 2024, the Stadium Authority Board adopted the Santa Clara Stadium Authority FY 2024/25 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:
Capital Budget:
1) Stadium Event Signage - This project funds the design, furnishing and installation of new stadium event signage including, but not limited to, tunnel awnings, accessible seating reference areas, lower bowl sections placards, security, mobile signage, and additional fire and building code signage. A budget adjustment of $6,035 is needed to carry over the unspent CapEx funds from FY 2023/24 to pay for the final contract retention.
2) Updated Stadium Wayfinding Signage - This project funds the design, furnishing and installation of new wayfinding and information signage to include, but not limited to, new premium/club wayfinding, suite wayfinding, smoking section signs, no smoking signs for around the main and upper concourses, section numbers/floor decals, ADA accessibility signs, Tunnel signs for "no photos/no autographs", etc. A budget adjustment of $97,736 is needed to carry over the unspent CapEx funds from FY 2023/24 to pay for labor and the final contract retention.
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
As discussed, staff recommends the budget amendments detailed in the table below:
Capital Budget
|
Description |
Current |
Increase/ Decrease |
Revised |
|
Stadium Event Signage (Carryover) |
$0 |
$6,035 |
$6,035 |
|
Updated Stadium Wayfinding Signage |
$0 |
$97,736 |
$97,736 |
|
Ending Fund Balance |
$1,447,379 |
($103,771) |
$1,343,608 |
COORDINATION
This report was coordinated with the Stadium Manager per section 4.6 of the Management Agreement as well as the Stadium Authority Counsel’s Office.
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 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 Ending September 30, 2024; and
2. Approve a budget amendment in the Capital Budget to increase Construction Expense for Stadium Event Signage and Updated Stadium Wayfinding Signage in the amount of $103,771, offset by a decrease to Ending Fund Balance.
Staff
Reviewed by: Kenn Lee, Treasurer
Approved by: Jovan D. Grogan, Executive Director
ATTACHMENTS
1. SCSA Financial Status Report for the Quarter Ending September 30, 2024