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HomeMy WebLinkAboutAmend- Ord.#8648-95, Appropriation Enterprise Funds 1997ORDINANCE No. Passed by the Common Council of the City of South Bend, Indiana December 23, 19 96 Attest: Attest: d~ 8744-96 City Clerk Presented by me to the Mayor of the City of South Bend, Indiana f~ecember %h, President of Common Council 19 96 City Clerk Approved and signed by me ~ c3 (~ 19 ~~ Mayor ORDINANCE NO . !/ ~ L! _7 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND AMENDING ORDINANCE N0. 8648-95 OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND APPROPRIATING MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF THE DESIGNATED ENTERPRISE FUNDS OF THE CITY OF SOUTH BEND, INDIANA, FOR THE FISCAL YEAR BEGINNING JANUARY 1, 1996, AND ENDING DECEMBER 31, 1996, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, AND FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT STATEMENT OF PURPOSE AND INTENT It is necessary to amend Ordinance No. 8648-95 appropriating monies to defray the expenses of the College Football Hall of Fame for 1996, in order to incorporate all financing activities and operations of the Hall into a single budget. NOW THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: SECTION I. For the expenses of the College Football Hall of Fame of the City of South Bend, Indiana, its various departments, funds, commissions and institutions for the fiscal year ending December 31, 1996, the following sums of money, as set forth in the attached budget which is made a part hereof, are hereby appropriated and ordered set apart within the College Football Hall of Fame Enterprise Fund, subject to the laws governing the same. The sums herein appropriated shall be deemed to include all expenditures authorized to be made in said year, unless otherwise expressly stipulated or provided by law. SECTION II. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. .~~'~ Member of the Common Co ncil r~ //_~~ ~C..~ PUE! iC PEA i,~G /~-~- 1~ 3rd RE:~UirJG ~~ ,~ J - ~~ NOT APPROVED R~~ E~~"ED °} p PASSED ~~'-,C~" ft~ ~ ~ ~''a~1C~,Jl,~ ~f~~ S U~STIfU77~r~I filed in Clerk's Offtce DEC 1 Q 19~u LORarTT/5 J. ~~}fir ..av,...,~ CITY CLE~3}t, 8B. Er°".rcC, ;~. COMMITTEE REPORT TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee to whom was referred BILL NO. 102-96 A BILL INCREASING APPROPRIATIONS AND DECREASING APPROPRIATIONS WITHIN THE COLLEGE FOOTBALL HALL OF FAME FUND OF THE CITY OF SOUTH BEND, INDIANA, FOR THE YEAR 1996 Respectfully report that they have examined the matter and that in their opinion, this bill has been recommend to the Council favorably, as amended by substitution. Sean Coleman Chairman COLLEGE FOOTBALL HALL OF FAME REVISED REVENUE BUDGET 1996 OPERATIONS Admissions Room & Equipment Rent Commissions - Catering Follett/Burger King Parking Golf Tournament Enshrinement Ceremony Sponsorships - Gross Miscellaneous TOTAL OPERATIONAL REVENUE Contributions - Friends of the Hall Contributed Capital Hotel Motel Tax Interest Income - DSR Other Revenue - DSR TOTAL FINANCING REVENUE TOTAL REVISED REVENUE ORIGINAL REVISED 1996 1996 BUDGET BUDGET $624,000.00 $430,617.00 $69,000.00 $52,000.00 $48,000.00 $36,400.00 $240,000.00 $89,809.00 $30,000.00 $0.00 $20,000.00 $0.00 $70,000.00 $75,000.00 $40,000.00 $620,000.00 $25,000.00 $18,159.00 $1,166,000.00 $1,321,985.00 $0.00 $100,000.00 $0.00 $1,000,000.00 $100,000.00 $100,000.00 $0.00 $60,000.00 $0.00 $500.00 $100,000.00 $1,260,500.00 1,266.000.00 X2,582,485.00 Prepared 10/14/96 Page 1 COLLEGE FOOTBALL HALL OF FAME REVISED EXPENSE BUDGET 1996 ORIGINAL REVISED 1996 1996 BUDGET BUDGET OPERATIONS SALARIES & WAGES Salaried $235,854.00 $270,308.00 Full Time Hourly 562,566.00 $62,566.00 Part-Time & Overtime $77,518.00 $76,460.00 EMPLOYEE BENEFITS Group Insurance $40,128.00 $32,000.00 Social Security $28,760.00 $31,314.00 PERF $11,191.00 $12,483.00 Other Fringe 53,720.00 $2,900.00 TOTAL PERSONAL SERVICES $459,737.00 $488,031.00 SUPPLIES Stationery $2,700.00 $4,000.00 Other Office Supplies 52,700.00 $5,000.00 Cleaning Supplies 522,500.00 $14,000.00 Maintenance Supplies $13,500.00 $7,000.00 Building Materials 510,800.00 $10,800.00 Uniforms $1,800.00 $4,225.00 Salt 51,800.00 $1,800.00 Other Supplies 51,800.00 $9,000.00 A/V Lamps $34,565.00 $23,000.00 Flags/Pennants 59,200.00 512,500.00 TOTAL SUPPLIES $101,365.00 $91,325.00 Prepared 10/14/96 Page 2 ' COLLEGE FOOTBALL HALL OF FAME REVISED EXPENSE BUDGET 1996 ORIGINAL REVISED 1996 1996 BUDGET BUDGET OTHER SERVICES Enshrinement Ceremony $50,000.00 $69,200.00 Golf Tournament $10,000.00 $0.00 Parking $10,000.00 $0.00 Postage $4,500.00 $8,600.00 Travel $13,500.00 $21,500.00 Telephone $13,500.00 $13,500.00 Printing $4,050.00 $5,000.00 Publications/Legal Notices $700.00 $1,000.00 Promotion and Training $9,000.00 $14,000.00 Marketing $100,000.00 $271,000.00 Insurance $18,246.00 $18,246.00 Electric $100,000.00 $100,000.00 Gas $32,250.00 $32,250.00 Water $3,559.00 $3,700.00 Building Repairs $9,000.00 $6,000.00 Equipment Repair $9,000.00 $18,000.00 Equipment Rental $21,000.00 $21,000.00 Dues & Subscriptions $1,500.00 $1,500.00 Other Contractuals $119,713.00 $124,853.00 Volunteer Program $8,100.00 $5,000.00 Annual Upgrade $103,416.00 $130,416.00 Sponsorship - Commissions & Other $40,000.00 $128,750.00 TOTAL OTHER SERVICES $681,034.00 $993,515.00 CAPITAL OUTLAYS $11,700.00 $38,675.00 ADMINISTRATIVE COSTS $11,701.00 $11,701.00 TOTAL OPERATIONAL EXPENSES $1,265,537.00 $1,623,247.00 FINANCING Interest Expense $0.00 $807,750.00 Construction Expenses $0.00 $20,000.00 Letter of Credit Fees $0.00 $80,775.00 Letter of Credit Transaction Fees $0.00 $2,500.00 Remarketing Fees $0.00 $22,438.00 Trust Fees $0.00 $3,000.00 Other Financing Fees $0.00 $5,000.00 Accounting & Consulting Fees $0.00 $10,000.00 TOTAL FINANCING EXPENSES $0.00 $951,463.00 TOTAL REVISED EXPENSES 51,265,537.00 $2,574,710.00 • Prepared 10/14/96 Page 3 COLLEGE FOOTBALL HALL OF FAME PERSONNEL-ADMINISTRATIVE Prepared 10/2/96 ORIGINAL REVISED 1996 1996 TITLE BUDGET ------ BUDGET ---------------------------------------- Executive Director ----- -- ------- - $43,260.00 ------------- $43,260.00 Group Sales and Special Events 528,840.00 $28,840.00 Fundraising, Pub. Relations 520,000.00 $20,000.00 A/V Exhibit Technician $35,000.00 $27,000.00 Auditor II $21,630.00 521,630.00 Senior Cashier 514,420.00 $16,640.00 Engineering Aide $20,600.00 $21,500.00 Coordinator of Education $0.00 $5,550.00 Secretary I/Receptionist $15,450.00 $20,000.00 Office Mgt./Admin. Assistant $0.00 $10,770.00 Director of Collections $30,900.00 $30,900.00 Director of Marketing and PR $0.00 $8,077.00 Director of Operations $0.00 $8,077.00 Development/Fundraising Officer $0.00 $2,310.00 Merit Bonus 55,754.00 --------------- - $5,754.00 ------------- TOTAL Notes $235,854.00 $270,308.00 Coordinator of Education - Annual Salary $24,000. 1996 figure based on October 15 - December 1996. Office Mgt./Admin. Assistant - Annual Salary $28,000. 1996 figure based on August 12 - December 1996. As of the first of September this staff member is assuming the responsibilities of the Coordinator of Public Relations. The Fundraising, Public Relations revised budget reflects the actual amount paid to the previous HOF employee occupying this position. Her last day of work was August 30, 1996. Director of Marketing - Annual Salary $35,000. 1996 figure based on October 15 - December 1996. Director of Operations - Annual Salary $35,000. 1996 figure based on October 15 - December 1996. Secretary/Receptionist and Fundraising Administrator - Annual Salary $20,000. 1996 figure is based on the actual paid to the previous Secretary/Receptions;- through July 1096 plus a new employee for the period September-December 1996. The new person will perform all the secretarial and receptionist duties for the HOF staff plus act as administrator for the President of the Friends of the Hall. Upon hiring a full time fund-raising person, this individual will be that person's administrator. Page 4 COLLEGE FOOTBALL HALL OF FAME PERSONNEL - FULL TIME/PART TIME ORIGINAL REVISED 1996 1996 FULL TIME BUDGET BUDGET ------------------------- --------------- -------------- Housekeepers $62,566.00 $62,566.00 PART TIME ------------------------- --------------- -------------- Special Projects $7,280.00 $5,200.00 Collections Assistant 53,744.00 $900.00 Volunteer Coordinator $17,581.00 $15,000.00 Cashiers A/V Technician Weekend Operations Mgr. Overtime TOTAL $27,027.00 $27,027.00 $16,886.00 $20,000.00 $0.00 $3,333.00 55,000.00 $5,000.00 --------------- -------------- $77,518.00 $76,460.00 --------------- -------------- --------------- -------------- The Special Projects position includes responsibilities for the Traveling RV for the Hall of Fame. Budget is based on a 20 hour week at a rate of $7.00 per hour. Volunteer Coordinator position is based on a 30 hour week at 511.27 per hour. Cashiers are based on 77 hours of work per week at an hourly rate of $6.75. A/V Technicians based on actual figures through June 1996 and projected cost through December 1996. The hourly rate of pay is $9.02. Weekend Operations Manager is based on 20 hours per week at $7.00 per hour. This position will also act as a part time Collections Assistant. Prepared 10/2/96 Page 5 COLLEGE FOOTBALL HALL OF FAME OTHER CONTRACTUALS Lease - Copiers Exterminating Lease - Vehicle Window & Sculpture Cleaning Fire Alarm System Monitoring Miscellaneous Credit Card Fees Security Services Collections Consultant Education Consultant Special Events Century Center Receivable Elevators, Chillers, HVAC Management Fee NFF License Fee ORIGINAL 1996 BUDGET $5,400.00 $540.00 52,973.00 $4,500.00 51,300.00 57,000.00 50.00 $13,000.00 510,000.00 510,000.00 50.00 $5,000.00 50.00 $50,000.00 510,000.00 REVISED 1996 BUDGET $5,400.00 5780.00 52,973.00 $4,500.00 5500.00 $18,000.00 51,200.00 $17,500.00 50.00 50.00 55,000.00 55,000.00 54,000.00 550,000.00 510,000.00 TOTAL 5119,713.00 $124,853.00 Page 6 Prepared 10/2/96 COLLEGE FOOTBALL HALL OF FAME NOTES REVISED REVENUE AND EXPENSE BUDGET 1996 OPERATIONS ADMISSIONS Revised admissions revenue is based on actual figures through August 1996 and projections for the remainder of the year. Actual attendance through August 31, 1996 was 56,167. Projected monthly attendance is as follows: September - 11,000 October - 11,000 November - 8,000 December - 4,500 Total Proj. Attendance 34,500 These projections are based on an average of $5.00 admissions price. ROOM AND EQUIPMENT RENTAL The original 1996 budget separated the Room and Equipment Rental. Since both are in conjunction with the rental of the Press Box and the Gridiron Plaza we have decided to combine the two into one revenue category. The revised 1996 budget figures are based on actual revenues through July 1996 and projections for the remainder of the year, Aug- Sept $4,750 and Oct. -Dec. $12,000. The original Room Rental budget also included payments from Follett (Gift Shop) and Burger King. These two items are listed as a separate revenue item on the revised budget. COMMISSIONS -CATERING The Catering Commissions are based on actual figures through August 1996 ($23,400) and projections for Sept. -Dec. 1996. The projections figure is $13,000. Page 7 COLLEGE FOOTBALL HALL OF FAME NOTES REVISED EXPENSE BUDGET 1996 SPONSORSHIPS -GROSS Sponsorship revenues for 1996 were projected as follows: Burger King $200,000 U. S. Postal Service 150,000 Coca Cola 150,000 Bayer/Alka-Seltzer 75,000 Tyler Refrigeration 25,000 AT & T 20.000 $620,000 Expenses related to these sponsorships are the 15 percent fee paid to ISI for Burger King,. U. S. Postal Service, Coca Cola and Bayer/Alka-Seltzer: $575,000 x .15 = $86,250 There is also a $2,500 fee to Tom Pilot Associates as a commission for the Tyler Refrigeration sponsorship. Other miscellaneous sponsorship related expenses are estimated at $40,000. MISCELLANEOUS Miscellaneous Income is based on actual receipts through August 1996 and projections for the remainder of the year. This income is generated from the following: You Call the Play ($5.00 per video cassette); the Roster Data Base ($3.00 per certificate); Pennants and miscellaneous items sold by the Hall of Fame. Specific computations are: You Call the Play $ 6,924 Roster Data Base 6,235 Other Revenue 5.000 $18,159 Page 9 COLLEGE FOOTBALL HALL OF FAME NOTES REVISED EXPENSE BUDGET 1996 FOLLETT/BURGER KING Revised revenues for the Gift Shop and Burger King are based on actual receipts through August 1996 and projections for the remainder of the year. These revised revenue figures are as follows: Follett (Gift Shop) through August 1996 $37,209 Follett projections Sept. -Dec 1996 37,600 Revised Revenue Follett 1996 $74,809 Burger King projection 1996 15.000 Total Follett/Burger King Revised Revenue $89,809 PARKING At the beginning of 1996 we were considering establishing a parking system for the Hall. This has not transpired, therefore, we are eliminating this revenue item. GOLF TOURNAMENT The Hall of Fame teamed with the South Bend NFL Alumni and the Ara Parseghian Foundation for the entire Enshrinement weekend. A decision was made that the Hall would not conduct it's own golf tournament to avoid competing with the NFL tournament. The proceeds paid to the Hall resulted from memorabilia auction held in the Press Box prior to the golf tournament. Estimated revenues are $5,000. These revenues are reflected in the Enshrinement Ceremony totals. ENSHRINEMENT CEREMONY Although the Hall initially projected a profit of $20,000 in the original 1996 budget, in reality the goal was to break even. Revenues generated through the sale of dinner tickets, contributions from local businesses and individuals and an auction co-sponsored with the NFL Alunmi, expenses were also offset by several in-kind contributions. As of this date revenues are projected to exceed expenses by approximately $5,800. Page 8 COLLEGE FOOTBALL HALL OF FAME NOTES REVISED EXPENSE BUDGET 1996 FiNANC1NG CONTRIBUTIONS -FRIENDS OF THE HALL This line item represents all "non-sponsorship" donations. The figure ($100,000) represents an accrual of the Friends since the establishment of this entity in 1994. CONTRIBUTED CAPITAL This $1,000,000 reflects the moneys approved by the City Council in an agreement between the City and the National Football Foundation. These funds are to be earmarked for Marketing, hiring of new staff and operational shortfalls of the Hall. HOTEUMOTEL TAX The Hotel Mote! Tax revenue is based on the original $100,000 allocated by the Tax Board for 1996. These funds are earmarked for Marketing of the Hall of Fame and are reflected in the Marketing Expense line item of the budget. INTEREST INCOME -DSR This line item represents interest earnings on the debt service trust account balances which was conservatively estimated at $5,000 per month. OTHER REVENUE -DSR This line item represents miscellaneous transactions in the debt service trust accounts. Page 10 COLLEGE FOOTBALL HALL OF FAME NOTES REVISED EXPENSE BUDGET 1996 OPERATIONS PERSONNEL SERVICES ADMINISTRATIVE SALARIES Per the 1996 Salary Ordinance, non bargaining employees received a 3% increase in January 1996. All Administrative salaries were based on this 3% increase. When preparing the original 1996 budget it was noted that two critical Hall positions were being deferred from hiring until 1997. These two positions were the Administrative Assistant and the Coordinator of Education. They have been included in the revised 1996 budget along with a Director of Operations and Director of Marketing and PR. All other salaries are based on actual figures through June 1996 and projections for the remainder of the year. FULL TIME HOURLY The 1996 hourly rate is based on the teamster agreement. Based on actual expenses through June and projections for the remainder of the year, this line item will remain the same. PART TIMEIOVERTIME All part time budgeted figures have been calculated per average number of hours to be worked per week, per position, times the hourly rate. An overtime budget has been established since the full time housekeeping hours, at times, may exceed 40 hours per week, and to accommodate the extra hours required in preparation for the annual induction ceremony. Budgeted hours per week for key part time staff are highlighted in "Notes" on page 5. Anew position added to this category is the Weekend Operations Manager. GROUP INSURANCE Group Insurance was budgeted per Cifij rates for Health Insurance, Long Term Disability and Life Insurance. After reviewing actual expenses through June and projections for the remainder of the year, we have been able to decrease this line item. This is based on the fact that most of the Hall of Fame staff have single rather than family coverage. The single coverage is significantly less than family coverage. Page 11 COLLEGE FOOTBALL HALL OF FAME NOTES REVISED EXPENSE BUDGET 1996 SOCIAL SECURITY Social Security benefits were calculated at 7.65'/° of total wages. PERF PERF benefit is calculated at 3.75% of full time wages. SUPPLIES All revised supply budget figures are based on actual expenses through August 1996 and projections for the remainder of the year. STATIONERY/PAPER This item includes copy paper, computer paper and any other miscellaneous paper needed for the offices. OFFICE SUPPLIES This item includes day to day supplies to meet the needs of the office staff. CLEANING SUPPLIES We have worked with an outside consultant plus reviewed 1995 usage at both the Century Center and the Hall of Fame to estimate the amount of cleaning supplies needed for 1996. These supplies include cleaning chemicals, all paper products, mops, brooms, trash liners, etc. The revised budget figures reflect the actual spend through August 1996 and projections for the remainder of the year. MAINTENANCE SUPPLIES This category includes day to day supplies to maintain the Hall of Fame properly. Gas for the leased vehicle and the Traveling HOF RV are also included in this line item. All supplies are for the Maintenance and A/V Department which includes small tools, miscellaneous hardware items, minor repair parts, etc. BUILDING MATERIALS The major item in this category is light bulbs for the lighting of the Hall. Other items included in this category are paint supplies, lawn supplies and other building supplies as needed. Pale 12 COLLEGE FOOTBALL HALL OF FAME NOTES REVISED EXPENSE BUDGET 1996 UNIFORMS All employees, with the exception of some administrative staff, will be supplied with uniforms identifying them as Hall of Fame staff. Based on actual expenses to date and projections for the remainder of the year, this line item must be increased. In addition to the weekly charge for the Housekeeping and Maintenance staff there is a need for new shirts for the Cashiers and A/V staff. SALT Budgeted amount includes salt for water softeners and salt for the sidewalks during winter months. OTHER SUPPLIES After reviewing year to date expenditures we have found that this line item is much greater than anticipated when preparing the original budget for 1996. The largest amount of expenses is incurred by the Collections department. The revised budget figure reflects true costs in this area. In the 1997 budget, "Collections" will be a separate line item. A/V LAMPS This line item is for slide projector lamps, exhibit lighting lamps and video projector lamps. The revised budget is based on actual expenditures through August 1996 and projections for the remainder of the year. FLAGS PENNANTS This line item is for replacement flags and pennants for the Gridiron Plaza. We estimate purchasing two pennants per year for each of the 108 Division 1-A schools plus two U.S. Flags and two State of Indiana Flags. The cost of the pennants is $85.00 each; the U.S. and Indiana flags are $94.00 each. We have embarked on a sales campaign to reduce the cost of the flags. Universities are offered the flags for $85.00. It was originally intended to reduce this line item by the revenue generated by the sale of the pennants. We have, however, decided to reflect this revenue in the Miscellaneous Revenue item. For this reason we must increase this line item to reflect the cost of purchasing two sets of pennants per year. OTHER SERVICES All revised service budget figures are based on actual expenses to date and projections for the remainder of the year. Page 13 COLLEGE FOOTBALL HALL OF FAME NOTES REVISED EXPENSE BUDGET 1996 POSTAGE This budget includes quarterly payments for the rental of the postage meter. TRAVEL The Executive Director will be traveling to several Universities plus the NFF Chapters to promote the Hall of Fame in 1996. He has estimated his travel costs for these trips. This line item also includes travel expenses incurred by the Traveling RV. The revised budget reflects actual expenses projected for the year. TELEPHONE This line item is just an estimate. The Hall of Fame is to reimburse the City on a monthly basis for telephone expenses. At this date we are unsure of what costs have been incurred for the year. PRINTING This budget includes any day to day non-promotional printing needed in 1996. PUBLICATIONSILEGAL NOTICES This budgeted item includes classified ads for employment. PROMOTION AND TRAINING This item is for local promotion not included in the Marketing funds provided by the Hotel/Motel Tax Board. It includes entertaining and meeting with potential customers of the Hall of Fame. It also includes training for the Hall Staff, e. g., A/V training at Ampro in California. The revised budget reflects actual costs. MARKETING This revised figure reflects actual amount needed to market the Hall of Fame in 1996. INSURANCE Liability insurance on the facility and it's contents. Page 14 COLLEGE FOOTBALL HALL OF FAME NOTES REVISED EXPENSE BUDGET 1996 UTILITIES The budgeted amounts for Electric, Gas and Water resulted from estimates provided by the architects of the Hall of Fame and the City Engineer. The actual expenses remain consistent with the original estimates provided with the exception of water. We have seen a significant increase in usage over the summer months. BUILDING REPAIRS Items such as doors, carpeting, drywall, painting, flagpoles and glass are some of the items not covered by warranty if damaged by the public. After reviewing year to date expenses and projections for the remainder of the year we have found that we are able to reduce this line item. Included in projections for the remainder of the year is relocating the lighting around the sculpture. This will make the lighting accessible to our AN department to repair and replace lamps. EQUIPMENT REPAIR As per the explanation just noted for Building Repairs we must also budget for equipment repair due to damage not covered by warranties. We have had to increase this line item due to repairs needed to the RV and video projector repairs not anticipated. EQUIPMENT RENTAL This item is for any A/V equipment needed for events in the Press Box. We have also budgeted for tenting on the Gridiron Plaza. DUES AND SUBSCRIPTIONS This budget item is for all magazines and publications needed for the Reference and Research Library at the Hatl of Fame. It also includes annual dues to all organizations staff members are affiliated with in conjunction with Hall of Fame activities. OTHER CONTRACTUALS The majority of the items in this category are ordinary monthly services for the day to day operation of the Hall of Fame. Several items need further clarification. Security Services is a contract service provided by Mikolajewski and Assoc.. Their services are part of the existing contract with Century Center which Page 15 COLLEGE FOOTBALL HALL OF FAME NOTES REVISED EXPENSE BUDGET 1996 includes the Hall of Fame. Security personnel will monitor the Hall with the camera systems located in the Century Center. They will also be on call from their location at the Center. Actual security presence in the Hall will be requested four hours per day: One hour to open the Haii; one hour to close the Hall; one hour physical walk-thru between midnight and one hour physical walk- thru between midnight and 6 a.m.. This item has been increased to reflect actual and projected expenses for this year. Part of the increase is due to additional security requested by a client renting the facility. This cost is billed to the client by the Hall of Fame and the revenue is reflected in the Miscellaneous Income line item. An amount of $50,000 has been budgeted to reimburse Century Center for the Management Fees due per a signed contract between the City, Center and the NFF. Per contract, a license fee of $10,000 will be due the NFF in 1996. Since the warranties on most of the major equipment in the building will expire at the end of August, it was necessary for us to add monthly and annual maintenance agreements to the 1996 budget. These include the Elevator, Chillers and HVAC equipment. We have also added an amount of $5,000 for Special Events. These expenses are in association with Hall of Fame promotional events held in the Press Box or on the Gridiron Plaza. We have added an item for Credit Card Fees. Since we accept credit cards as payment for admissions we are charged a service fee on a monthly basis by the bank. We have eliminated the Education and Collections Consultants originally part of the 1996 budget. We have had to increase the Miscellaneous Contractuals substantially based on actual year to date figures and projections for the remainder of the year. The majority of the increase is for the A/V department. We were on a contract basis for the head of this department at the first of the year and incurred expenses until a person was hired. There were also expenses incurred in the training of this person in association with Donna Lawrence Productions and A/V Associates. Page 16 COLLEGE FOOTBALL HALL OF FAME NOTES REVISED EXPENSE BUDGET 1996 VOLUNTEER PROGRAM The volunteer work-force is an important cost saving element of the Hall of Fame. During the first three months of operations, 85 volunteers contributed over 3,200 hours of work for the Hall. Costs for the program include training, travel (seminars and recruiting), shirts (1/2 of the cost subsidized by the volunteers themselves), professional publications and recognition incentives and awards (volunteer dinner, e.g.). ANNUAL UPDATE Gerald Hilferty and Associates (the Exhibit Designer) and Donna Lawrence Productions (Audio Visual Contractor) estimated the annual update of the Hall to be $144,500 and $68,061 respectively. This includes updates for the Hall of Champions, Scholar-Athlete, Pantheon, Bowl Games, National Champions, Hall of Honor, NFF Chapter Exhibit, Training Center, Locker Room, Theme Sculpture and Stadium Theatre. Our budget simply could not afford this amount. We originally budgeted $103,416. We have increased this amount to $130,416 to reflect the actual cost of the update. CAPITAL We originally budgeted $11,700 to purchase backup equipment for the AN department. This was done. Following is a list of additional equipment needed yet in 1996: Decorating of the Conference Room, Office Hallway and Reception Area Press Box Decor Elevator Key Switch High School Walk of Fame transferred from Kings Island Work Station for the Accounting Department Additional Computer for the A/V Department Additional File Cabinets for storage The Press Box lighting and shelving for the Library will be funded through the City Lease Purchase Program. Repayment of these funds will not start until 1997. FINANCING INTEREST EXPENSE The annual budget is based on outstanding principal on the bonds ofi $17,950,000 multiplied by the average variable interest rate which is estimated Page 17 COLLEGE FOOTBALL HALL OF FAME NOTES REVISED EXPENSE BUDGET 1996 at 4.5% for 1996. The interest rate should be evaluated every year for changes in the bond market. A rate cap of 7% has been purchased on the bonds. CONSTRUCTION EXPENSES This line item represents all construction activity on the Hall of Fame that was funded by the bond issue proceeds. Funds remaining in the construction account at 8131/96 was $9,001. LETTER OF CREDIT FEES This line item represents annual fees related to the letter of credit and reimbursement agreement between the Redevelopment Authority and Fuji Bank. The letter of credit terms include an annual fee of .45% of the outstanding bonds of $17,950,000 which is $80,775. The budget for letter of credit fees should be evaluated annually for revisions in terms or new letter of credit providers. LETTER OF CREDIT TRANSACTION FEES This line item represents fees that are charged for administrating the letter of credit which include transfer fees, negotiation fees and amendment fees per the letter of credit and reimbursement agreement. REMARKETING FEES This line item represents annual fees related to the remarketing agreement between the Redevelopment Authority and First Capital Markets, Inc. in connection with the bond issue. The remarketing agreement terms include an annual fee of .125% of the outstanding bonds of $17,950,000 which is $22,438. The budget for remarketing fees should be evaluated annually for revisions in terms or new providers. TRUST FEES This line item represents estimated annual trustee fees for administrating the trust accounts per the trust agreement with Norwest Bank. OTHER FINANCING FEES This line item includes other bond related fees such as bond rating updates and other miscellaneous expenses. Page 18 COLLEGE FOOTBALL HALL OF FAME NOTES REVISED EXPENSE BUDGET 1996 ACCOUNTING AND CONSULTING FEES This line item represents fees for accounting service, audit fees, budgetary and financial proforma and other professional fees. This line should be evaluated every year. Page 19 ~ o~,:,_ ~7;~ ,~ .. ~ , ~W ~\r.n~r:~,. .,~, ?,r~~ zs. K x .. Department of Administration and Finance Kevin C. Horton DATE: November 25, 1996 TO: Mr. Roland Kelly, Council President FROM: Jeff Kinard, ~~ Deputy City Controller RE: Hall of Fame Revised 1996 Budget Attached is the Bill revising the 1996 Budget for The College Football Hall of Fame. As you know from your review of this budget in the Century Center Board's committee meeting, there are significant changes we are purposing. The revised budget incorporates all financing activities (sponsorship/debt) along with operations into one budget. This is a very clear picture of the entire business and will provide the council and the public better information on a go-forward basis. Attached is the detail on all the changes purposed. Thank you for your favorable consideration on this bill. iriled in ~#~i: i;'s Osfice DEC 1 ~ 1995 I.~Rt:ST~J. otlt),a c~~ ~i.~r~K, ~. ast~o, t*a. City of South Bend Joseph E. Kernan. Mayer County-City Building • South Bend, Indiana 46601 • 219/235-9216 Fax 219/235-9928 Catherine A. Hubbard Jeffrey A. Kinard Isabel Gonzalez Ronalda Minnis Gatha Vaughn Director Human Resources Finance Director Safety & Risk Manager Benefits Manager Barrett Law