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HomeMy WebLinkAboutFair & ExpoFair & Expo Center Presenter: Geoff Hinds ▪FY24-25 Proposed Budget Presentation Budget Committee Meeting | May 22, 2024 Fair & Expo Overview To provide and operate a premiere multi-purpose facility offering exceptional customer service and an environment of fun while maximizing the economic potential of the facilities, as well as the economic impact for Deschutes County. Mission: 17.5 FTE Fair & Expo Overview (continued) Administrative & Financial Coordination Sales & Events Coordination Marketing & Economic Impact Support Annual Fair Production Building & Grounds Maintenance Capital Improvement Support Food & Beverage Coordination Annual Fair Production R.V. Park Office Coordination Event Production Support Administration – 6.75 FTE Operations/Food & Beverage – 9 FTE R.V. Park – 0.75 FTE Fair & Expo Accomplishments •Produced a highly successful 2023 Deschutes County Fair & Rodeo, with record attendance on Saturday and highest recorded revenue in Food & Beverage and Carnival sales. •Played host to the inaugural Fairwell Festival, bringing up to 50,000 visitors to the region over a 3-day span, and providing an estimated $120,000,000 economic impact. •Continued to play an important role in emergency response as an evacuation center for fires and other local disasters, as well as a staging area in preparation for incidents. FY 24-25 Fair & Expo Budget Details FY 24-25 Fair & Expo Five-Year Forecast Fund 615 Five Year Projection FY 24-25 Fair & Expo Five-Year Forecast Fund 616 Five Year Projection FY 24-25 Fair & Expo Fiscal Issues •Significant increase in operational costs including cost of personnel, equipment, supplies and materials in FY 25, and additional increases projected for future years creates challenges •Continued repair and replacement of aged equipment across the 320-acre Fair & Expo Campus is increasing both in size and scope Despite best efforts and significant growth of the Reserve fund over the past 5 years, current Reserve funds remain underfunded to address current and future repair; by a significant amount. With increase in expenses, ability to infuse cash into Reserve funds becomes limited Short and long-term Fiscal Issues Current Challenges and Future Initiatives •Well and Irrigation repairs/replacements •Roof repair/replacements •Asphalt repair/ replacement/enhancement •Interior drop ceiling repairs/replacement •Sidewalk repair/replacement •Plumbing upgrade/replacement •Facility exterior and interior fence repair/replacement •While still the premier facility of its type in the Northwest, the Fair & Expo complex is now approaching 25 years of age. Continued increase in repair and maintenance items is expected in order to keep the facility both first class and operational. •Increase in expenses challenges the ability to provide a balanced budget, and invest into reserve funds, while still providing an affordable price for facility users Challenges Future Initiatives •Facility exterior siding repairs/replacement •Flooring repairs/replacements •North Sister/HDAC/Arena/Barns •Exterior landscape repair/replacement •R.V. Park Expansion •On Grounds and Park Expansion FY 24-25 Fair & Expo Budget Details •FUND 616 - Annual Fair & Rodeo •Continue to invest in brand building and creation of experience •Build on success of 2023 Fair •Expect slightly lower attendee spending due to cooling discretionary spending •Significant cost increases across all areas of operation including Labor, Supplies, Materials, and Entertainment •Significant increase in headline entertainment drove up expenses, and enhances our need to diversify type and scope of entertainment offerings •Focus on providing relevant community focused entertainment and experiences •Determination of key target growth demographics •Continue to reach out to new markets with additional cultural celebration including a headline Spanish language concert •Outreach to new markets •Investment in education •Future development of Agricultural based education offerings for our community FY 24-25 Fair & Expo Budget Details •FUND 617 – Fair & Expo Capital Reserve •Investment into the property based on “S.C.A.R.” needs: Safety-Comfort-Aesthetics-Replace/Repair •Investments into projects that have partnership/payback •LED Lighting/Controls through EnergyTrust •Investments designed to address/mitigate risk •Investments that maintain or increase facility •Continued Focus on Contribution to Fund Balance/Growth •As facility ages additional facility failures expected; preparing the fund to be able to address these •Between 2020 and 2030 virtually every item on the F&E Campus will reach the end of its original useful life FY 24-25 Fair & Expo Budget Details •FUND 618 – RV Park •Operations •Adjustment in organizational staffing levels •1 0.75 FTE positions filled in FY 22-23, 1 remaining to be filled •Additional On-Call staff to supplement as needed •Additional competition in market and economic impacts •Appears to have impacted Winter business, Spring, Summer, and Fall appear unaffected to date •Change in consumer behavior and visitation continues •Cost of fuel, and discretionary income may reduce the number of visitors; although they may stay longer FY 24-25 Fair & Expo Budget Details •FUND 619 – RV Park Capital Reserve •Investments based on “S.C.A.R.” needs, focused on enhanced guest experience •Example: WI-FI Buildout •Funds allocated for catastrophic failure or damage •Fund building •Continue to build the fund for future needs including the possibility of park expansion or remodel •Capital reserve program on track for current repair and replacement schedules FY 24-25 Special Requests •No special requests are made for FY25 Thank you Deschutes County Fair & Rodeo: July 31-August 4, 2024. See you at the Fair!