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Home My WebLink AboutexhibitsMIAMI SPORTS AND EXHIBITION AUTHORITY Proposed Budget FISCAL YEAR 2004 Proposed Variance DESCRIPTION 2003 2004 (Increase) Budget Budget Decrease I. Payroll, Taxes and Benefits ' COMPENSATION AND BENEFITS 1 Executive Director & CEO 93,600 96,876 (3,276) 2 Finance Director 65,000 67,600 (2,600) 3 Marketing Manager, 40,500 41,715 (1,215) 4 Executive Assistant 28,500 29,925 (1,425) 5 Full Charge Bookkeeper 21,000 22,470 (1,470) 6 Event Coordinator - - 248,600 258,586 (9,986) 7 Group Insurance 39,368 38,970 398 8 SS/Medicare Contribution 27,346 29,925 (2,570) 9 Retirement Plan 19,888 20,719 (831) Total Payroll, Taxes and Benefits 335,200 348,200 (13,000) II. Operating Expenses 10 Bank Fee 3,000 - 3,000 11 Business Meeting Expenses 15,000 15,000 - 12 Business Travel 20,000 20,000 • - 13 Car Allowance/Cellphone, Mileage 7,000 7,000 - 14 Conference Registration 8,000 6,000 - 15 Contingencies 10,000 10,000 - 16 Courier/Delivery 6,800 6,800 17 Event Sponsorship 50,000 80,000 (30,000) 18 General Insurance & Directors Liability Insurance 30,000 50,000 (20,000) 19 Memberships/Subscriptions 5,000 5,000 20 Miscellaneous Warehouse Expenses 6,000 6,000 21 Office Equipment/Maintenance 1a,00o 10,000 22 Office Supplies 10,000 1o,000 23 Postage 4,000 4,000 24 Printing 10,000 10,000 - 25 Promotions/Marketing 200,000 150,000 50,000 26 Telephone 20,000 20,000 * Major Citywide Event 150,000 150,000 - TOTAL OPERATING EXPENSES 564,800 561,800 3,000 1II. PROFESSIONAL SERVICES 27 Audit 20,000 30,000 (10,000) 28 Legal Support 50,000 50,000 29 Professional Services/ Temp 30,000 30,000 - 30 Professional Services/projects 120,000 110,000 10,000 TOTAL PROFESSIONAL SERVICES , 220,000 220,000 IV. CAPITAL EXPENDITURES 31 OFFICE EQUIPMENT PURCHASES 10,000 10,000 32 FURNITURE & FIXTURES 20,000 10,000 10,000 TOTAL CAPITAL EXPENDITURES 30,000 20,000 10,000 TOTAL OPERATING BUDGET 1 1,160,000 1,160,000 , 7.1 •2003_2004 The new force in sports and entertainment. sports & exhibition authority '-*liewhr,./m w., ,t� -. _r1+F '; •"r - «. M.1."1 .s '*"T E; " �1:..�wr .� a rrr•..• �.. II�Mrr :l..A a �� .: � -c yi -� For more information, call 1ISE:\ at 305.350.7861 4)r visit Nvww.miamisea.com 11i: nri .\rr n:r is 0,‘ tied :Awl irlrer:ilc'cl VISE.k. \II\ 11.111i:rrVna.cur1i MSEA Board of Directors and the MSEA Team Memorandum to the Board of Directors Organization and its Mission Goals and Objectives liProposed Resolution Financial Summary MIL MSEA Budget MSEA Budget Footnotes Arena Budget Combined MSEA & Arena Budget Board of Directors • Hon. Mayor Manny • Hon. Commissioner 1. Hon. Commissioner 2. Hon. Commissioner 3. Eli Feinberg 4. Diego Garcia 5. Orlando Garcia, Jr. 6. Sam Gentry 7. Maritza Gutierrez 8. Al Huston 9. Marianne Salazar Finance Committee Diaz, Chairman Tomas Regalado, Vice -Chair Angel Gonzalez Arthur E. Teele, Jr. MSEA Committees Sam Gentry, Chair Eli Feinberg, Vice chair Orlando Garcia, Jr. Convention Committee Diego Garcia, Vice Chair Project Development Al Huston, Chair Marianne Salazar, Vice Chair Larry Pierre Jose Quintela MSEA Board of Directors meets on a monthly basis. The committees meet as frequently as needed. 1. James H. Jenkins Executive Director • Fereydoun Kian Director of Finance Daisy Lewis Marketing Manager Andrea De La Madriz Executive Assistant Bridgette Saleeby Financial Assistant 1.1 GI-FYVG- sports & exhibition aufbo:rity To: Honorable Chairman and Members of the Board of Directors From: Date: James Jenkins Executive Director September 17, 2003 Re: Miami Sports and Exhibition Authority Fiscal Year 2003-2004 Proposed Operating Budget RECOMMENDATION It's respectfully requested that the Board of Directors approve the budget for Fiscal Year 2003-2004 reviewed and submitted by the Finance Committee. BACKGROUND The Miami Sports and Exhibition Authority Operating Budget is funded from certain allocated proceeds of the Convention Development Tax, levied pursuant to Florida Statue 212.0305, and other Authority revenues. Section 52.6-10 of the City of Miami Ordinance creating the Miami Sports and Exhibition Authority requires that a) the City Commission on an annual basis approve the Miami Sports and Exhibition Authority Operating Budget and b) that the Authority establish a fiscal year coinciding with that of the City of Miami. This operating budget identifies the requirements for compensation and benefits, administration, professional and consultant services, and capital expenditures for the operations of the Authority. Seplernbcr 17, 2003 Honorable Mayor and Members of the Board of Directors Actual expenditures are monitored on a monthly basis pursuant to Chapter 52.6-5 of' the Authority Ordinance. The Executive Director is required to report on a monthly basis to the Authority Board, and prepare a statement of current and year to date expenditures in comparison to budget. In addition, a national accounting firm will be retained to provide complete fiscal year 2003-2004 audits pursuant to section 52.6-11 of the Miami Sports and Exhibition Authority Ordinance. The fiscal year 2003-2004 operating budget is $1,150,000.00 unchanged from Fiscal Year 2002-2003. Although this budget reflects the best available information regarding administrative responsibilities and program development, a supplemental budget would be submitted by the Miami Sports and Exhibition Authority for City Commission approval if future administrative or operational needs are required. 2.1 a September 18, 2003 Honorable Mayor and Members of the Miami City Commission 3500 Pan American Drive Miami, FL. 33133 Honorable Mayor and Members of the City Commission: On behalf of the Miami Sports and Exhibition Authority, I am pleased to submit our operating budget for fiscal 2003-2004 for your consideration and approval. The proposed budget will be $ 1,150,000.00 unchanged from fiscal 2002-2003. In 2002-2003, The Miami Sports and Exhibition Authority continued to follow its mission by providing support for community projects such as Downtown Holiday Village, The Haitian Cultural Raisin Festival, The Worldwide Motorcycle Shows in Miami, The Miami Marathon, The Miami Film Festival and The Goldiggers Show at The Gusman Theatre. The Miami Sports and Exhibition Authority stepped up its efforts this year by developing programs which would not only continue to impact tourism, but support our role as a community leader. This year, we held the first in a series of Black History Month educational and cultural arts programs entitled "Impressions in Black History". By developing a Circus Camp, we gave many underprivileged children throughout Miami the opportunity to experience backstage magic at the circus. Many children from charitable organizations were able to enjoy the circus as well. In the second year of the RACEWEEK MIAMI program, we now have a week of activities beginning on Sept. 20- 28, 2003. MSEA kicked off the week long activities with a program called "Race Adventure", where many school children interacted with powerboats, sailboats' and a rowing competition. Activities continued throughout the week culminating with the MSEA supported Grand Prix Americas Race on the streets of Miami and a Latin concert in the Miami Arena. The Miami Sports and Exhibition Authority continued to operate the Miami Arena and will be bringing AA Hockey into Miami during 2003-2004. The Miami Manatees expansion team will be part of the new World Hockey Association 2, and should provide an exciting time for Miami guests. The Miami Arena will continue to reach out to new programs as a city associated venue with the successful first time Miami presentation of Telemundo's Billboard Latin Music Awards, the return of Showtime's Boxing Tournaments, Latin Concerts, R & B Concerts, Celebrity Basketball Tournaments, i Family programs and Community Shows that provide affordable entertainment to the citizens of Miami such as the Circus On behalf of the Miami Sports and Exhibition Staff; l want to thank you again for your support. I. look forward to working with you as we make a con cvted effort to continue providing quality sports, entertainment and community programs for all of Miami to enjoy in 2003-2004. Best Rds, im nki Executiv D' ector Cc: Members of the Miami Sports and Exhibition Authority Board of Directors 2. 3 The Miami Sports and Exhibition Authority (MSEA) was created on November 10, 1982 by City of Miami Ordinance No. 9527. It was amended to reflect its current structure on July 28, 1983, by City of Miami Ordinance No. 9662, pursuant to Convention Development Tax Legislation, Florida Statute 212.057. The Authority is an independent and autonomous agency and instrumentality of the City of Miami, established for the purposes of promoting sports, conventions and exhibitions and to attract sports franchises to utilize City facilities. The major funding for MSEA comes from the Convention Development Tax (CDT). It is one third of the 3% charge added to all guests at the County hotel,- motel, resort, trailer, camp, condominium, etc. staying less than six months in residence.. Miami - Dade County collects these monies of which MSEA receives one -third -to defray the cost of its operation. u . MISSION STATEMENT The mission of The Miami Sports & Exhibition Authority (MSEA) is to facilitate and promote sports, conventions, exhibitions, entertainment, tourism and related activities that will contribute to the economic and social growth of the City of Miami. The Authority's goal is to become a major force in the promotion of sports, entertainment and facility development in the city of Miami. 3 sports & exhibition authority Convention and Exhibition Committee 1. objective -To research and secure conventions as well as exhibitions which will utilize the City's infrastructure, hotels and facilities. To review, as well as provide a recommendation on future projects that fit the MSEA mission for creative development, community financial impact, city awareness, multi -year options and ownership. To explore Latin America and Caribbean markets for value added opportunities while partnering with GMCVB and other city organizations. The Committee will also be responsible for outlining the next step procedures to the full Board for continued progress with each new project. Procedure -Each project will be presented to the Chairman by the MSEA Executive Director for discussion before the session is called. Afterward, MSEA will schedule a meeting to discuss the information, which will be presented or forwarded for review. The meeting with a quorum will be called on the morning of a regularly scheduled Board meeting. 2. Committee will consist of 3-5 members with at least one member serving from . the Authority's Board. Committee Chairman — Diego Garcia Committee Vice Chairman - Committee Member - Recommended field of expertise: Hospitality, Tourism, Sales, Meeting Planners, Travel Industry, GMCVB or Chamber Members, Cruise Line etc. 3.1 • 4 G-tiC� sports & exhibition authority Project Development Committee 1, Objective -To research and review, as well as provide a recommendation on future projects that fit MSEA's goals and mission for development, management or community growth. The Committee will also be responsible for outlining the next step procedures as well as MSEA's primary role to the full Board for continued progress with each project. Procedure Each project will be presented to the Chairman by the MSEA Executive Director for discussion before the session is called. Afterward, MSEA will schedule a meeting to discuss the information, which will be presented or forwarded for review. The meeting with a quorum will be called on the morning of a regularly scheduled Board meeting. 2. Committee will consist of 3-5 members with at least one member serving from the Authority's Board. Committee Chairman — Mr. Al Huston Committee Vice -Chairman — Ms. Marianne Salazar Committee Member - Dr. Larinus Pierre Committee Member — Jose Quintela Recommended field of expertise: Real Estate, Architectural Firms, Independent Business Owners, Hospitality, Tourism, Entertainment Industry etc. 3.2 G14/VVC: sports & exhibition authority Finance Committee 1. Objective -To provide a recommended cost analysis of specific financial matters, which relate to the expenditures or income of the Miami Sports & Exhibition Authority. The Committee will then decide the appropriate procedural action to be presented to the full Board of Directors. Procedure - Each financial item will be presented to the Chairman by the MSEA Executive Director for discussion before the session is called. Then MSEA will schedule the meeting. The meeting with a quorum will be called on the morning of a regularly scheduled Board meeting. 2. Committee will consist of 3-5 members with at least one member serving from _ the Authority's Board, Committee Chairman — Mr. Samuel W. Gentry Committee Vice -Chairman — Mr. Eli Feinberg Committee Member — Mr. Orlando Garcia Jr. Recommended field of expertise: Banking, Accounting, Investment Broker, Corporate Finance, Finance Instructors, Comptrollers, etc. 3.3 MSEA - Miami Arena Organizational Chart Breda Mos.-Carrrr Assistant to I Eat & Mktg Dina W C Andrea de la Madre MSEA Executive Assistance to Executive Diteet.r MSEA Board damn Jenkins MSEA Eaetatite Director/CEO Riney Kinn MSEA Director of Flambee Ge.eel C. Mitch Monte Director of Entertait & Maketmg Naomi Fahri®t Events at MarkedfR Mgr. Ales Perez vest Semen Coordinator Marie Reyes Prod.ttioa S.penitor Group Sale Mercedes &mei= Saephnsie Rosa P.T. Bookkeeper Merdie Lax Box Office Mower Ether SmtM P.T. Box Otf war. Oiruollo Miller P.T. Ticket Sege BridRctte Seietby MSEA Fieoaeial Amhara Kara Sat[ Admtainr.t(oa Mgr i Arlen Riven PT. a..pms nAb.Ar Wildman tbkaten Gustavo Palaeln PT Gent Berrien Delia Francis PT G.nt Svcs Monitor 1 2 PT bear Receptionist Va.gn.rd Carle. Cabrera OPentlon Man.gcr Care Ramirez Operation assertions Goy Cesar Fatiety Pmbertilet Curds Grey Fealty Prerem= LT. Set Up Crew Jeffrey Pawns W eWeed F.T. Set Op Crew Hobert PkbeQa Yeeael&bedae Pedro Lecee-Mete Gkdlerme Remo 1 _ Adria= Seda �y1 Wilnrr jnnunn OMke Clerk l Eng./Tech. Supervisor Mike Jones E rest Foreman Edenrdn Cabrera Engineer Fernando Lopez Ear nerr .roan Quinones Technician Willard Welker PT Asa. Technician bnVx 1.r, is MS EA M1tarar�in��t LONG TERM GOAL: SELECTED OBJECTIVES of R 2004 MAJOR ACCOMPLISH MENTS IN 2003 a a sports & e ch .bit10 n. .,u.t . orit3., + To become South Florida's major force in promotion of sports, entertainment, and facility development 4 To support Miami Manatee Hockey's inaugural season beginning Nov 2003 4 To promote our patented "Raceweek" with a Sailing Regatta, Power Boat Championship race, Dragon Boat Qualifying Race, In conjunction with the Grand Prix of Americas championship street race In the City of Miami. + To develop new community partnerships which will have citywide Impact and support MSEA's Mission 4 To refinance the 1992 A bond which will enable us to under take new protects within the City. �] Citywide: 4 Sponsored the first Raceweek Miami: Cycling Classic as well as CART, LeMans & Trans Am street race In Downtown Miami. 4 Supported the Downtown Holktay Village, Marathon, Miami Film Festival, Resin at Bayfront, Golddiggers at Gusman in form of Grants & Title Sponsorship. 4 Proposed Melreese Golf Course Clubhouse study for future development. 4 Researched the higher bond capacity that will enable us to Issue a greater bond, if needed. 4 Developed a Website for MSEA which will enhance our access for promoters nationwide. 4 Actively participated In our role as Landlord of Watson Island by working on planned development of the GMCVB Building and the Heliport. 2) Miami Arena: 4 Assumed the Management role of the Miami Arena which resulted in saving a Mgmnt Fee, Contract fees, and Managers' wages. 4 Negotiated and secured a new hockey team, Miami Manatees, for the Arena. 4 Attracted Billboard, Latin Grammy Awards program to hold the event at the Miami Arena which will highlight our community In major networks. 4 Held the First "impressions In Black History" to educate through entertainment the African - American historical achievements. 4 Created a Circus Camp at the Arena for underprivlledged children for behind the scenes adventures 4 RESOLUTION NO. A RESOLUTION, WITH ATTACHMENT, APPROVING THE MIAMI SPORTS AND EXHIBITION AUTHORITY'S PROPOSED OPERATING BUDGET FOR FISCAL YEAR 2003-2004, ATTACHED HERETO AND INCORPORATED HEREIN. WHEREAS, City Code provisions requires that the Miarni Sports and. _Exhibition•.. Authority (MSEA) establish a fiscal year coinciding with that of the City of Miami, and that the Operating Budget be submitted for appropriate consideration by the City Commission; and WHEREAS, the proposed budget, attached hereto, identifies categories for compensation and benefits, administrative, professional and consultant services, and capital expenditures totaling $ I,150,000; and WHEREAS, the categories reflected in the projected budget comply with the required mandates which were established to facilitate the development of public facilities necessary for the expansion and promotion of professional and international sports, convention and exhibition related activities, and other events which contribute to economic and social growth in the City of Miami, with the appropriate portion of Convention Development Tax receipts and authority revenues being used to satisfy the demands of said Budget; and WHEREAS, the Fiscal Year 2003-2004 proposed administrative budget in the amount of $ I ,150, 000 which remains the same as the previous years budget. NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section I. The recitals and finding contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. 5 Section 2 The Miami Sports and Exhibition Authority Proposed Operating Budget for Fiscal Year 2003-2004, attached hereto and incorporated herein, is hereby approved. Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor. PASSED AND ADOPTED this day of , 2003. MANUEL DIAZ, MAYOR ATTEST: PRISCILLA THOMPSON CITY CLERK APPROVED AS TO FORM AND CORRECTNESS, ALEJANDRO VILARELLO CITY ATTORNEY 5.1 FINANCIAL SUMMARY 1992 Special Obligation Refunding Bonds The Miami Sports and Exhibition Authority (MSFA) issued the 1992 A & B Bonds to pay for the Arena on August 5, 1992. These Bonds, collectively referred to as 1992 SPECIAL OBLIGATION REFUNDING BONDS were issued to refund the 1991 and 1989 Bonds. 1992 A Bond 1992 B Bond Total 92 Bonds $ 40, 950,000 7, 725,000 $ 48, 675,000 * The Series 1992 A Bond matures in an annual rates increments range of $650,000 beginning in 1994 to $2;910;000 through the year 2020. The 1992 B Bonds mature in annual increments of $500,000 beginning in 1994 to $850,000 through the year 2004, The "Bonds" carry an interest rate of 2.95 percent to 6.625 percent, and are payable solely through "pledged revenues." Pledged Revenues are Convention Development Tax (CDT) monies. The Authority receives 1/3 of the 3% CDT monies collected by Dade County as a tourist tax. Every month the Miami Dade County sends MSEA's share of the CDT to SunTrust (the Trustee). The Trustee distributes the funds according to a pre -defined schedule of monthly payments. For instance, the CDT Revenue for 2001-02 amounted to approximately $8,556,395 that satisfied the following accounts: • Principal payment for Bonds $ 1,740,000 • Interest payment for Bonds 2,253,224 • Capital Reserve and Operating Deficit Fund (1) 2,000,000 • Management fee for the Trustee 13,309 • MSEA(2) 899,752 • Returned to County(3) 1,732,466 1) According to predefined schedule, known as Exhibit B, the bond requirement for CR & OD supplements Arena Capital improvements and operating deficit. 2) MSEA's share increases by 3% each year; therefore our budget reflects $954,547 for 2003/2004. 3) Once the pre -defined schedule above is satisfied, the remainder of the CDT funds is returned to the County according to the 1992 Bonds indenture. *The Principal balance on the 92 Bonds as of October 1, 2003 is projected as $32,820,000 6 SOURCES AND USES OF FUNDS I. SOURCES OF FUNDS: a) CDT. The Authority's principal source of revenue this year is CDT. The CDT allotted to the Authority's operational cost according to the 1990 County Resolution will be $ 954,547 as discussed in our Financial Summary and exhibited in Page 14 of this booklet. b) Interest Income. The yearly savings from operating under budget rolls forward and accumulates within years. The funds are non CDT and at the end of the year, they are rolled over the Project Account (Non CDT). Since the balance of Money Market Account (Restricted) at this time is $5,149,924, we project $171,000 in interest incpme for 2004. c) Parking Revenue. Currently we own a Parking Lot at 601 N. Miami Avenue that generates a revenue stream of _ $25,000 for FY 2004. d) Non Traditional Revenues. We are developing City wide events that will promote activities- in the City and will generate revenue as well,. Examples of these events are detailed under Promotional Events Initiated by MSEA. In Sum, the above Sources of Funds account for our total revenues of $1,185,549 for the fiscal year2003-04. Funds Classification: MSEA has established three Funds (A, B, C below) based on the1992 Bond Requirements. A) General Fund This Fund is subsidized by the revenue sources described in the spreadsheet above. Since the Authority has operated substantially under the approved budget, we have accrued excess revenues over the years which have been carried in our Money Market Account (III). The General Fund is the source of 6 distinct accounts, balance of each as of 7/30/2003 is shown below. Also note that as part of our 1988 Construction Agreement, $800,000 was designated for Art in Public Places for which the account balance is incorporated as Restricted Fund within General Fund. Account Title Balance Purpose 1. Payroll Account (NR) II. Operating Account (NR) III. Money Market Account (R) IV. Non -CDT Funds (NR) V. Art in Public Place(R) VI. Watson Island Project (R) $ 11,207 $ 31,687 $ 5,149,924 Administrative Exp. Operating Expenses As earmarked in Tentative Capital Project Summary. $268,706 To sponsor Non CDT activities that furthers our Mission $ 858, 890 To create artful works around the Arena. $ 2,500 To fund operation of Aviation facility in Watson Island. 6.1 It) Debt Service Fund (R): This Fund was established by the Bond Indenture to subsidize the following Accounts, balances of which are shown as of 7 30/2003. 1. Interest Fund II. Principal Fund III. Expense Fund $ 360,767 S I ,220,383 S 25,588 C) Capital Project and Operating Deficit (R) $ 2,722,030 II. USES of FUNDS: 1. Operating Budget *To pay 92 Bonds interest *To pay 92 Bonds Principal *To pay Trustee Fee Exp. *To pay for Capital Improvements, Operational Deficit at the Arena, and other !awful purposes in relationship with Arena. Of the three Funds above, General Fund, subsidizes the Authority's Operating Expenses. Once the budget is approved by the Board, it will go to the City Commission for their approval. The Operating Budget presented in this package, beginning on page 18 & 19 shows the Projected income of $1,185,549 and the Operating Expenses of $1,150,000. The budget attached then considers the Use of Funds to be, at least, 6% below the Projected Revenues to avoid the excess of expenditure over revenues. A new distinction incorporated in the use of General Fund is separation of Non CDT funds: This will include any other income from Interest income to Parking lease and Warehouse rent to.,.. public request reimbursements. 2. Capital Investments and Project Developments A Budget Summary As outlined below, MSEA Committees have reviewed, discussed and recommended several projects for serious considerations. These projects have not been assigned any specific amount, as they will be detailed once the projects are approved by the board. The lump sum budget of Capital investment, for example, is earmarked for our future role in several projects that may rise up to a MSEA controlled or owned property. The amount will then be itemized into different subheadings as shown in our Operating Budget. The detail use of General Fund falls within the ramification outlined in the bond indenture and according with general use of CDT funds. Per definition, MSEA's legal use of funds is generally determined on activities that either falls under CDT criteria or activities that fall within MSEA's mission but not expressly allowed by the current CDT criteria. Some of these considerations are in lieu of the Excess CDT being returned to the County while MSEA may undertake these projects that will benefit both the City and the County. 6. 2 Balance on the General Fund/Money Market Account (7/30/2003) S 5,149,924 a) Capital Investments $ 5,000,000 To embark on projects in accordance with criteria outlined in the 92 Bond Resolution, FS 212.057, and CDT criteria. The Committees have reviewed several projects in 2003 and recommended further study of such projects as Orange Bowl improvement, Construction of a Club house at the Melreese Golf Course, and other underutilized City facilities as listed in the Berkowitz study. THE DETAIL BUDGET FOR CAPITAL PROJECTS WILL BE SUBMITTED ONCE APPROVED BY THE BOARD. b) Project Development® Non -CDT Projects $150,000 To allocate and establish a Non CDT fund as opined by Berkowitz in May 2002 Board Meeting to develop projects that further MSEA's mission within the criteria outlined in the 92 Bonds indenture. _ A couple of requests for sponsorship has reached MSEA at this time which will be addressed at MSEA's September board meeting.. They are Downtown Holiday Village, and Resin Haitian Festival. In our submittal budget for Operating Expenses, we have set aside $50,000 to study the projects that Committees have discussed to undertake; therefore the amount shown above as Capital Investment, is the lump sum amount for all MSEA projects. Once a project is fully studied, the project budget is prepared, and submitted for approval. Based on historical data and legal provisions for utilizing the funds not restricted by statutes (indentures, agreements, ordinances), certain limitation governs our allocation of funds to each project. Thus, the above summary provides only the perimeters of our activities and expected expenditures. *R after the Fund means the fund has a RESTRICTED use; N stands for NON -RESTRICTED, and P is for PARTIAL restriction. b.3 Miami Sports and Exhibition Authority Income Projection 0 2003 2004 Budget Projection Revenues: 1 CDT 926,746 954,547 2 Interest Income 150,000 171,000 3 Parking Lot 25,000 25,000 4 Non Traditional Revenu - 35,000 Total Revenue 1,101,746 1,185,547 Expenses: 5 Operating Expenses 1,100,000 1,150,000 Excess (shortage) of Revenue over Expenditures 1,746 35,547 Projection Notes: 1 CDT Revenues will increase at 3% a year 2 Our Interest Income is projected to increase if we maintain our present bank balance. 3 The Parking revenue should increased as we negotiated with a new parking manager. 4 This is the result of a new approach to Events initiated by MSEA for 2004. 5 This amount represents our proposed Operating Budget for FY 2003/2004, itemized on the next page. 7 MIAMI SPORTS AND EXHIBITION AUTHORITY Proposed Budget FISCAL YEAR 2004 Proposed Variance DESCRIPTION 2003 2004 (Increase) Budget Budget Decrease I. Payroll, Taxes and Benefits COMPENSATION AND BENEFITS 1 Executive Director & CEO 93,600 96,876 (3,276) 2 Finance Director 65,000 67,600 (2,600) 3 Marketing Manager. 40,500 41,715 (1,215) 4 Executive Assistant 28,500 29,925 (1,425) 5 Full Charge Bookkeeper 21,000 22,470 (1,470) 6 Event Coordinator - 248,600 258,586 (9,986 7 Group Insurance 39,366 38,970 _ _ 396 8 SS/Medicare Contribution 27,346 29,925 (2,579) 9 Retirement Plan 19,888 20,719 (831) Total Payroll, Taxes and Benefits 338,200 r 348,200 (13,000) II. Operating Expenses 10 Bank Fee 3,000 - 3,000 11 Business Meeting Expenses 15,000 15,000 - 12 Business Travel 20,000 20,000 13 Car Allowance/Ceephone, Mileage 7,000 7,000 14 Conference Registration 8,000 8,000 - 15 Contingencies 10,000 1o,aoo 16 Courier/Delivery 6,800 6,800 17 Event Sponsorship 50,000 80,000 (30,000) 18 General Insurance & Directors Liability Insurance 30,000 50,000 (20,000) 19 Memberships/Subscriptions 5,000 5,000 - 20 Miscellaneous Warehouse Expenses 6,000 6,000 - 21 Office Equipment/Maintenance 10,000 10,000 22 Office Supplies 10,000 10,000 - 23 Postage 4,000 4,000 - 24 Printing 10,000 10,000 - 25 Promotions/Marketing 200,000 150,000 50,000 26 Telephone 20,000 20,000 - * Major Citywide Event 150,000 150,000 TOTAL OPERATING EXPENSES 564,600 561,800 3,000 III. PROFESSIONAL SERVICES 27 Audit 20,000 30,000 (10,000) 28 Legal Support 50,000 50,000 29 Professional Services/ Temp 30,000 30,000- 30 Professional Services/projects 120,000 110,000 10,000 TOTAL PROFESSIONAL SERVICES , 220,000 220,000 IV. CAPITAL EXPENDITURES 31 OFFICE EQUIPMENT PURCHASES 10,000 10,000 32 FURNITURE & FIXTURES 20,000 10,000 10,000 TOTAL CAPITAL EXPENDITURES 30,000 20,000 10,000 TOTAL OPERATING BUDGET I 1,160,000 11,150,0001 - 7.1 PAYROLL, TAXES, AND BENEFITS 1. Executive Director Responsible for the overall administrative and operation of the Authority as well as the Miami Arena staff. The director shall attend all meetings, furnish monthly reports with respect to the operation, maintenance and financial condition of the Authority. Provides general supervision for the overall operation of the Arena. Attends exhibitions, conferences and seminars to expand the Authority's event opportunities. Reviews proposals and funding requests for development of sports events and activities for the City of Miami to further the Authority's Mission. 2. Director of Finance Responsible for monitoring General Funds, Project Funds, Debt Services, CDT Distributions Schedule, and investments. Oversees finance, operation and administration departments of the Miami Arena, as well as Watson Island Project and all MSEA's long term contracts for economical impact to the City. Arranges for -the -annual audit conducted by independent auditing firms, prepares responses to Auditor's Report, and_to'the. - Florida Auditor's General. 3. Marketing Representative Marketing Representative coordinates MSEA marketing and promotional activities in connection with the Miami Arena and City related.. Duties involve research and interaction with conventions and exhibitions that utilize the City of Miami facilities. Responsibilities also include developing marketing plans, print collateral promotional materials, and initiating correspondence with organizations or media to increase promoters' interest in the City venues. 4. Executive Assistant Position provides direct administrative support to the Executive Director and handles day to day general office tasks such as preparation of the Authority's monthly agenda packages. Explores community calendar and event formats for potential MSEA involvement. Liaison with activities held at the Miami Arena. Designs and updates MSEA website and ensures our internet presence. 5. Financial Assistant The position provides direct support to the Finance Director in all matters pertaining to the internal financial operation, Accounts Receivable, Payable, posting CDT distribution, verifying invoices, Bank Reconciliation. etc. 6. Group Insurance The Premium is projected for the next fiscal year to provide medical and dental coverage for full-time employees. The amount is increased from last year's budget due to an increase in the number of employees. 7. SS/Medicare Contribution The FICA/ Medicare Contribution is 1.45 plus 6.2% of the total employee compensation up to a ceiling of $60,600 per salaried employee. The proposed FICA/Medicare contribution is increased in accordance to the increase in total compensation. 8. Retirement Plan The proposed budget includes an 8°A of the total salary contribution per Employee. Operating Expenses 9. Bank Fee. This item is the result of our diversified investments and analysis charges by the bank. 10. Business Meeting. The yearly expenditure for Business includes refreshments, meals, meeting announcements, name plates, and supplies for the meetings. 11. Business Travel The proposed amount for out of town travel includes airfare, hotel and _ meals for staff members who travel on behalf of the Authority in an effort to explore and secure additional conventions for the city of Miami, and to keep abreast of the ever changing business environment. 12. Car Allowance/Parking Fees/Milease/Cell phone. Anticipated yearly expenditure for Car' Allowance and Cell phone allowance for the Executive Director. 13. Conference Registration. The proposed budget amount includes fees for staff participation in local and national meetings for Authority business, as well as enhanced education for professional development. This line item remains unchanged from the last fiscal year. 14. Contingencies. The proposed budget includes miscellaneous costs associated with Authority operations and unforeseen emergency expenses. 15. Courier/Delivery. The proposed budget includes expenditures for local courier service, hand delivered documents and emergency deliveries, as well as Federal Express overnight deliveries. 16. Event Sponsorship. The proposed budget amount is scheduled to provide funding by the Authority for the sponsorship of special events to meet the social responsibility of the organization as they mirror our mission statement. 17. General Insurance & Directors Liability Insurance. Premium payments to provide insurance coverage for Authority operation. "fhe insurance offers protection from Commercial Crime, fire at commercial property, Commercial Liability, Commercial Umbrella Liability for injury and Workers' Compensation and Directors Liability Insurance. 18. Membership/Subscription. The proposed budget includes fees for membership in professional planning and management organizations that provide the Authority with resource material for projects and professional staff development, as well as subscriptions to local and professional publications, and electronic bulletin boards. 19. Miscellaneous Expenses. The line item refers expenses related to the warehouse and some other expenditure that do not fall into any other categories in this format. 20. Office Equipment Repair/replacements. The proposed budget covers the costs associated with repair and replacement of the tape recorder for meetings, facsimile machine, and copying machine maintenance. 8.1 21. Office Supplies. The proposed budget amount covers general office expenses such as stationary, binders, water, coffee, staples, ribbon and cartridges. 22. Postage. The proposed budget amount for postage includes postage stamps and FedEx for urgent deliveries. 23. Printing. The proposed budget includes MSEA letterhead, business cards, professional printing costs, anticipated flyers, brochures, and copies. 24. Promotions/Marketing. The proposed budget is to provide funding . for MSEA :Joint Venture events promotions, public relations activities, bid proposals for events, MSEA advertising in print and electronic media, and the creation of a Website for MSEA., For this fiscal year we are budgeting for Impressions in Black History Exposition, Autocross Series,' Summer/ Learning Series, Portable Skate Park, and Raceweek Miami. All 'these events are -'i MSEA initiated or otherwise copyrighted events. 25. Telephone. The proposed budget includes all anticipated telephone expenses for general office operations. This line item has increased as MSEA is now fully responsible for the telephone lines and independent form the City's Information Technology. 26. Audit. The proposed budget is to retain a national Certified Public Accounting firm for the annual Authority audit and to provide assistance with internal financial accountability. 27. Legal Support. The proposed budget is to provide legal support for the Authority. 28. Professional Service/Intern. The proposed amount is to cover the cost of temporary assistance of interns to support the department with clerical and project assistance. This amount reflects the need for restructuring of MSEA file system and presentation package developments. 29. Professional Services. This line item pays for professional assistance in outlining strategies in refunding bonds, financial advising and strategic planning for new projects or various studies by outside firms. 30. Office Equipment Purchases. The proposed budget amount is to cover the cost to acquire new software, equipment purchase or replacement. 31. Furniture & Fixture. The proposed budget amount is anticipated for the purchase of furniture and fixtures at MSEA's executive offices. 8.2 MSEA Grant Support Events 2003 - 2004 \ Event Name; Entity Amount of Funding Date Application Support Requested Received Event Date Facility or Location Title Sponsorship of City Wide Events Budget $150,000 First Quarter Events $300,000 Funds requested to date Rasin Festival '04; Center for Haitian Studies $ 150,000.00 7/30/2003 1111l2003 Bayfronl Park Downtown Holiday Village; Unipro Group Inc. $ 150,000,00 6/18/03 received tentative outline 12/1 12/31/03 Bayfront Park Grant Budget $50,000 First iQuar'torEvents $' 5,QO0 FQ°Ods requested'°to da1:0 Children's outreach foundation; Source Magazine $ 10,000,00 Awaiting 10/712003 Bicentennial Park and Miami Arena Dragon Boat Racing; Miami Dragon Boat Club Inc. $ 10,000,00 6/19/2003 10/18- 10/19/03 Bayfront Park Miami International Wine Fair; Global Event Management LLC $ 10,000.00 7/29/2003 10/02 - 10/04/03 James L. Knight Center Sports Abitlity Games for the Physically Challenged Youth; Jr. Orange Bowl Committee $ 5,000.00 7/30/2003 12/4 - 12/6/03 Coconut Grove, Kendall, Miami Dade college/Kendall Miami Outboard Club Youth Foundation Holiday Boat Parade; Miami Holiday Magic Event $ 10,000.00 7/31/2003 12/20/2003 Biscayne Bay & MOC Watson island Second Quarter Events $30000 Funds re nested to date econ ua er ven s q Miami Tropical Marathon; Racing Inc. PR $ 20,000,00 6/24/2003 2/1/2004 Dowtown Miami Through miami beach anc City of Miami completing at Bayfront Park Miami International Film Festival, FIU $ 5,000.00 Awaitin Feb. '04 Cities of Miami & Miami Beach The Gold Diggers $ 5,000.00 Awaiting March '04 Gusman Center Third QuarterEvents $45,000 Funds requested to date Memorial Day Weekend Jam. Proof Inc. Bullet $ 10,000.00 Awaiting May '04 Miami Arena Billboard Latin Music Awards Show; Telemundo $ 10,000.00 Awaiting May '04 Miami Arena _ Festival Argentino; Events EK $ 10,000.00 Awaiting April '04 City of Miami World Wide Motorcycle Shows: World Wide Motorcycle Shows Inc. $ 15,000 00 Awaiting June '04 Coconut Grove Fourth QuarterEvents $10,000 Funds requested to.date Music Fest Miami 2003; Music Fest Inc. $ 10,000 00 6/18/2003 for 2003 event with resubmit by Oct 1 Sept. '04 Bayfront Park $ 130,000.00 Total Grant Funds reqeuested to date for the year MSEA Confidential 9/9/2003 Page 8.3 Miami Arena Operation Budget, 2003-2004 Description CDT Non CDT TOTAL Fixed ' Variable Arena Budget 1 Capital Reserve & Operating Deficit (1) 1,106,086 923,419 2,029,505 REVENUES: 2 Rent Revenue from Events @Arena 546,500 546,500 3 Facility Restoration Fees 280,500 " 280,500 4 Box Office Revenue 102,474 102,474 6 Concessions& Mds 204,359 204,359 8 Advertising 145,000 145,000 7 Other Income 21,800 21,800 TOTAL REVENUE N 1,106,086 923,419 1,300,633 3,330,138 OPERATING EXPENSES 8 COMPENSATION & BENEFITS As detailed In attachment COMPENSATION AND BENEFITS 1,030,630 1,030,630 IL Operating Expenses 78,157 s General & Admin. 78,157 10 General Insurance 550,000 146,602 696,602 11 Marketing & Promotions 53,484 53,484 12 Repair and Maintenance 91,067 91,067 13 Utilities - 603,717 603,717 TOTAL Operatin , Expenses 660,000 973,027 1,623,027 III. PROFESSIONAL SERVICES 14 Professional Services/Outsourced 220,395 _ _ 220,395 TOTAL PROFESSIONAL SERVICES 220,395 220y396 [V. CAPITAL EXPENDITURES - 556,086 556,086 TOTAL CAPITAL EXPENDITURES - TOTAL OPERATING EXPENSES 1;108,086 2,224,052 3,330,138� Excess( shortage) of Revenue over Expenses(CDT) (1,300,633) (1,300,633) Excess( shortage) of Revenue over Expenses(non CDT) - 1,300,633 I 1,300,633 Combined Excess (shortage) of Revenue over Expenses Notes: 1 The Capital Reserve & Operating Deficit {CROD) is used to fund the operating deficit at the Arena as well as Capital Improvement, accordingly they are not considered Revenues. These notes appear on the next page as well. 2 Projected Operating Expenses Projected Non CDT Revenue (2) $ _ .- $ (3,330,136) $ 1,300,1333 Projected Operating Deficit EYE 9)3012004 $ (2,029,505) Projected deficit funded by CROD $ 2,029,505 Combined Excess(Shortage) of Revenue over Exp. 5 - 4- Projected Operating Deficit funded by CROD Resulting from the Fixed Expenses $ 1,106,056 Resulting from Venable Expenses 5 923,419 $ 2,020,505 9, Arena Budget Summary Footnotes: 1 The Capita! Reserve & Operating Deficit (CROD) is used to fund the operating deficit at the Arena as well as Capital Improvement, accordingly they are not considered Revenues. The CROD is predetermined in the Bond Indenture as Schedule B. The Authority will receive $4,000,000 of CROD according to the Schedule. 2 Projected Operating Expenditures: (3,330,138) Projected Non CDT Revenue $ 1,300,633 Projected Operating Deficit FYE 9/30/2004 $ (2,029,505) Projected deficit funded by CROD $ 2,029,605 Combined Excess(Shortage) of Revenue over Exp. $ Protected Operating Deficit funded by CROD*: Resulting from the Fixed Expenses Resulting from Variable Expenses (*) Capital Reserve and Operating Deficit distribution for 2005-2009 is as follows: 2005 1,054,000 2005 1,054,000 2007 1,054,000 2008 5,000,000 2009 5,500,000 Total CR&OD if arena continues operation through 2009 $ 13,662,000 $ 1,106,086 $ 923,419 $ 2,029,505 9,1 11}I:\11I ARENA BUUI)(GE'l' 2004 FOOTNOTES FISCAL YEAR 2003/2004 1.- Capital Reserve & Operating Deficit Reserve is used to fund the deficit at the Arena and the Capital Improvements REVENUES: 2.- Rent Revue from Events (Arena Represents the total rental income from the events budgeted for the year 3.- Facility Restoration Fees Comprises the income generated from the fees charged. Based on the attendance 4.- Box Office Revenue Includes Ticket Master performance rebates based on projected attendance 5.- Concessions & Mds Revenues from the participation contract with Aramark. Based on attendance 6.- Advertising Suites and bowl sponsor signatures. 7.- Other Income This group represents the commission from ATM machines, phones and vending machines OPERATING EXPENSES: 8.- Compensation & Adm See attached 9.- General & Admin. This group comprises all office expenses such as: office supplies, computer services, auditing, etc 10- General Insurance See attached 11.- Marketing & Promotions Grouped under this item are the trade shows, the printed ads and the direct mailing propaganda. 12.- Repairs and Maintenance Represents all disbursements to up keep the premises in workable conditions. 13- Utilities Electricity, Water, Phones and Chilled Water conforms this group. CAPITAL. IMPROVEMENTS: Sec attached 9. 2 MIAMI SPORTS AND EXHIBITION AUTHORITY Insurance Policies 2 GENERAL LIABILITY 03/08/03- 03/07/04 Lexington Insurance Company Policy #9UAIP0000223416500 1,000,000 General Aggregate Limit No Deductible 5,000 Medical Expense Limit per person 1,000,000 Personal & Advertising Injury, Employee Benefits, Fireworks & Liquor for each 3 AUTO LIABILITY Hartford Underwriters Insurance Policy #21UECUV3424 1,000,000 Liability coverage 3,258 PIP 26 Auto Medical Payments 14 Unlaured Motorist 127 Comprehensive coverage $600 Deductible 128 Collisge coverage $500 Deductible 244 4 EXCESS LIABILITY National Union Fire Insurance Policy #BE2988479 5 PRIMARY PROPERTY Lexington Insurance Company Policy #7473736 All Risks Policy 6 EXCESS PROPERTY Allianz Insurance Company Polley #CLP3003089 All Risks Policy 7 BOILER & MACHINERY Travelers Indemnity of IL Policy #13MC3-5341)9242- TIL-03 8 STORAGE TANK LIABILITY Zurich American Insurance Company Policy #USC9271195.1 9 CRIME Hartford Fire Insurance Company Policy 821I3DDBP0088 10 DIRECTORS OFFICERS LIABILITY National Union Fire Insurance Policy #874-75-65 11 MSEA WORKERS COMP. Hartford Underwriters Insurance Company #76WEG KT17I6 02/27/03- 02/26/04 03/08/03- 03/07/04 03/10/03- 03/09/04 03/10/03- 03/09/04 03/10/03- 03/09/04 01/01/03- 01/01/04 04/08/03- 04/07/04 ISub Total 12/07/02- 12/67/03 06/02/03- 06/01/04 ITota1: COST $88,626 $3,797 $68,818 $250,254 $250,000 $5,176 5672 $6,663 $674,006 $13,250 $2,075 $689,331 MSEA 21.50% $ 19,027 21.50% $14,796 $1,036 $13,250 $2,075 $ 50,184 Property Insurance $505,430 Miami Arena General Liab $133,717 MSEA Insurance Exp $50,184 Total Exp for 2002-2003 $889,331 Arena $69,599 $3,797 $54,022 $250,254 $250,000 $5,176 $672 $5,627 $639,147 9.3 Miami Sports and Exhibition Authority Combined statement of Revenues and Expenditures A 9 0 Q Description Actual Budget 2003 MSEA MIAMI ARENA Combined Total oovernmental Fund COT Non CDT TOTAL CDT No„ CDT MSEA 9udgn Fiara v,rlohk operating Arena Budget MSEA.JARENA REVENUES: MSEA Convention Development Taxes Interest Income Parking tot Revenue Non Traditional Reverlue0MSEA Events ARENA Capital Reserve & Operating Deficit 11) Rent Revenue from Events sArene Facility Restoration Fees Box Office Revenue Concessions& Mds Advertising Otherin0Ome 926,746 160,000 17,000 954548 i 7 i.c. si 75.000 35,000 954,548 171,000 25,000 35,000 1.106.086 2,224,052 546,500 280,500 102,474 204,359 145,000 21,e00 3,330,13E 546,500 280,500 102,474 204,359 145,000 21,900 954,548 171,000 26,000 36,000 3,330,138 949,600 260,500 102,474 204,369 146,000 21,800 TOTAL REVENUE 1,093,748 954,548 n1050 1,195,548 1,1e63114 2,32443E 1,300,633 .4,030,771 6,816,319 ' ' ' 96,678 67,800 41,716 29,926 22,470 • 38,970 29,926 20,719 OP#RA1V4G MUMMIES 1. COMPENSATION & BENEFITS COMPENSATION AND BENEFITS 1 Executive Director! Arena GM 2 Finance Director 3 Marketing Rep. 4 Executive Assistant 6 Bookkeeper PAYROLL TAXES AND BENEFITS• Group Insurance SS/Medicare Contribution Retirement Plan . 93,600 66,00E 40,600 26,600 21,000 39,38E 27,34E 19,ee8 96,676 67,600 41.716 29,926 22.470 38.970 29.925 20.719 - - 96,876 67,600 41,715 29,925 22,470 38,970 29,925 20,719 TOTAL COMPENSATION & BENEFITS 335,200 345,200 - 348,200 1,o36,630 1,030,630 1,378,830 11. Operating Expenses General & Admin Bank Fee Business Meeting Expenses Business Travel Car Allowance/Cell phone/Exec Conference Registration Contingencies Courier/Delivery Event Sponsorship & Grants General Insurance Memberships/Subscriptions Miscellaneous Warehouse Expense EquipmenUMaintenance Office Supplies Postage Printing Promotional Events Repair and Maintenance Security Services Telephone Tile Sponsorship of Citywide Events Utilities 3,000 15.000 20.000 7,000 8,000 10,009 5,800 50,000 30,000 5.000 6.000 10A00 t0.0oo 4.000 lopes 143000 20,000 150000 15,000 20,000 7,000 8000 10,000 6,e00 40,000 50,000 5.000 5.000 tome 1oo00 4.000 10.000 110.000 20000 40,000 40005 150,000 - 16,000 20,000 7,000 8,000 i0,000 8,800 80,000 50,000 5,000 6,000 10,000 10,000 4,000 10,000 160,000 - 20,000 160,000 - 550000 76.157 146602 53.484 91 067 603,717 - 78.157 696,602 53.484 91,057 603,717 78,167 - 15,000 20,090 7,000 8,000 10,000 6,800 80,000 746,602 6,000 6,000 10,000 10,000 4,000 10,000 203,484 91,067 20,000 150,000 603,717 TOTAL Operating Expanses 507,800 331,800 230.00E 561,800 650,000 973,027 - 1,523,027 2,084,827 111. PROFESSIONAL SERVICES Audit Legal Support Professional Services/Intern Professional ServlcesfOutuaurced 20,000 50.000 30900 120,000 30000 50,000 30000 110,000 30,000 50,000 30,000 110,000 220,395 220,395 - 30,000 50,000 30,000 330,365 TOTAL PROFESSIONAL SERVICES 220,000 220,000 220,000 . 220,396 . 220,39E 440,395 IV. CAPITAL EXPENDITURES OFFICE EQUIPMENT PURCHASES FURNITURE & FIXTURES 10.000 20,000 10,000 10 000 - 10,000 10,000 556986 556,086 558,086 10,000 10,000 TOTAL CAPITAL EXPENDITURES 30,000 20.000 20,000 556,06E . _ . 20,000 TOTAL OPERATING EXPENSES 1,093,000 920.000 230.000 1,150,000 1.10E nee ' 2,224 052 - 3,330,138 4,480,138 Excess( shortage) of Revenue over Expenses (CDT) 748 34 646 34,648 - - 34,548 Excess( shortage) of Revenue over Expenses (NON CDT) _ 1,000 1,000 -1,300,933 • 1,300,633 1,301,833 Total Excess (shortage) of Rev. & Exp. Of Operation 36,548 1,300,633 " 1 338,181 10 Arenal3LidgutFnapnates Arena Budget. Summary Footnotes: 1 The Capital Reserve & Operating Deficit (CROD) is used to fund the operating deficit at the Arena as well as Capital Improvement, accordingly they are not considered Revenues. The CROD is predetermined in the Bond Indenture as Schedule B. The Authority will receive $4,000,000 of CROD according to the Schedule. 2 Projected Operating Expenditures: (3,330,138) Projected Non CDT Revenue $ 1,300,633 Projected Operating Deficit FYE 9/30/2004 $ (2,029,505) Projected deficit funded by CROD $ 2,029,505 Combined Excess(Shortage) of Revenue over Exp. $ Projected Operating Deficit funded by CROD*: Resulting from the Fixed Expenses Resulting from Variable Expenses (*) Capital Reserve and Operating Deficit distribution for 2005-2009 is as follows: $ 1,106,086 $ 923,419 $ 2,029,505 2005 1,054,000 2006 1,054,000 2007 1,054,000 2008 5,000,000 2009 5,500,000 Total CR&OD if arena continues operation through 2009 $ 13,662,000 10. 1