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HomeMy WebLinkAboutFair & ExpoFair & Expo Center Presenter: Geoff Hinds ▪FY23-24 Proposed Budget Presentation Budget Committee Meeting | May 24, 2023 Department Overview •Fund 615: Fair & Expo year-round operations •Fund 616: Annual Fair & Rodeo •Fund 617: Fair & Expo Capital Reserve Fund •Fund 618: RV Park •Fund 619: RV Park Capital Reserve Fund Mission: 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. Department Accomplishments •Produced a highly successful 2022 Deschutes County Fair & Rodeo, with highest ever attendance and earnings in all categories. •Received numerous industry awards including NPRA 2022 Fair Rodeo of the Year and 10 awards from Western Fairs Association. •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. •Served as an offsite host facility for the Deschutes County Circuit Court, allowing justice to continue to be served within our community despite the impacts of COVID 19. FY 23-24 Department Budget Details Fair & Expo is an enterprise fund, with multiple business lines across several funds. Resources are generated through the short-term leasing of space, Food & Beverage sales, and equipment rental •Revenues from all funds are expected to increase significantly due to the recruitment of multiple new/large events Funding is also received from Transient Lodging Tax (TLT) funding, spread across all funds including Capital Reserve funds •TLT funding is anticipated to be reduced from FY22 and FY23 amounts by a small amount 23-24 RESOURCES FY 23-24 Department Budget Details •Increases in number of FTE’s and inflation will be the largest drivers of additional expense for all Fair & Expo funds. •Addition of up to 4 new positions in order to meet demand of multiple new large contracts, and to continue to provide repair of an aging facility 23-24 REQUIREMENTS FY 23-24 Department Fiscal Issues •Continued repair and replacement of aged equipment across the 320-acre Fair & Expo Campus. 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. Short and long-term Fiscal Issues Current Challenges and Future Initiatives •Well and Irrigation repairs/replacements •HVAC repair/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 over 20 years old. An increase in repair and maintenance items is expected in order to keep the facility both first class and operational. Challenges Future Initiatives •Facility exterior siding repairs/replacement •Interior/Exterior paint •Flooring repairs/replacements •North Sister/HDAC/Arena/Barns •Exterior landscape repair/replacement •Event Center Audio/Video System •Outdoor Arena Electrical/Lighting upgrades •R.V. Park Expansion •On Grounds and Park Expansion FY 23-24 Department Budget Details •FUND 616 -Annual Fair & Rodeo •Continue to invest in brand building and creation of experience •Build on success of 2022 Fair •Expect slightly lower attendee spending •Significant cost increases across all areas of operation including Labor, Supplies, Materials, and Entertainment •Continue to invest in brand building and creation of experience •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 23-24 Department 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 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 23-24 Department Budget Details •FUND 618 –RV Park •Operations •Adjustment in organizational staffing levels •2 new .75 FTE positions created in FY22, 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 •Higher midweek/recreational stays vs. event based visitation FY 23-24 Department 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 23-24 Special Requests •Maintenance Specialist 1 –addition of two positions. The Fair & Expo campus is continually evolving and in high demand for events of all types and sizes. Increased utilization in tandem with a facility that has reached 20+ years of age continues to be a strain on existing staffing levels. As the facility continues to age, and additional business comes on line, additional Maintenance/Operations staff will be necessary. Funding: 75% Fund 615; 25% Fund 616. •Administrative Support Assistant. Fair & Expo continues to grow in demand and utilization for events of all sizes. The addition of multiple large new events, while continuing to serve existing clients currently taxes existing team members; and creates wait times for those we serve. This position would create efficiencies in administration of Fair & Expo. Funding: 75% Fund 615; 25% Fund 616. •Sales, Marketing & Events Coordinator. This position will allow Fair & Expo to provide support to existing clients; as well as to effectively market the facility to potential new clients and provide more effective community relations. This position would also work to identify and solicit new sponsors as well as to provide additional support to existing sponsors.Funding: 75% Fund 615; 25% Fund 616. Thank you Deschutes County Fair & Rodeo: August 2-6, 2023. See you at the Fair!