A.G. Gancarski
Friday morning saw Jacksonville’s Chief Administrative Officer Sam Mousa, and CFO Mike Weinstein review the budgets for venues.
Some highlights from the review of SMG budgets:
- The baseball stadium saw contractual services revenues down $319,000. Estimates were inflated, given revenue from the Armada underperformed projections at the time of budget submission last summer.
- Despite discussions of a new lease for the Suns, maintenance budget is the same. The new lease is still being discussed. Mousa says he’s “trying to get a better deal for the city.” The Suns are going to take over more of the maintenance. The new lease will not affect this budget; it isn’t near being finalized. The video board is already end of life.
- The convention center sees revenues slightly down year-over-year, with an uptick in expenses due to contractual services of $68,000.
- The Performing Arts center anticipates a lower ticket incentive fee, as expectations are 2017 sales will be down due to the mix of events. The less concerts hosted, the less there is for ticket incentive fees.
- The Ritz Theater sees an increase in contractual services fees. Concerts in the 402-seat theater are much more expensive than can be collected in revenues. The hope is for another year in which more sponsorships and community buy-in can bring corporate and civic events. Mousa believes it’s a “landmark,” and an “important theater in an important location.”
- The arena was next. Revenues will be up over $1.2 million; concessions and merchandise up $380,000. Revenues up across the board. It is actually making a profit. Weinstein notes that across the country, not too many arenas make money, so it’s a good anomaly to have.
City budgets for venues were up next.
- All surcharges for the football stadium will be set aside for capital improvement, resulting in the bulk of the $1.9 million uptick in a city budget. This will put more stress on the general fund. The city subsidy for the stadium: $5.3 million.
- Ticket surcharges are expected to go down $175,000, due to the loss of the Florida Country Superfest.
- The city is going to be paying off until 2020 the Bud Zone and Terrace Suite, added in 2004 for the Super Bowl.
- The Performing Arts Center debt service dates back to the River City Renaissance from when Ed Austin was mayor. This building will be paid off in October 2018.
- A public buildings allocation is provided for the Ritz, though no one at the table can recall what specifically was provided to affect that.
- Bed tax money sees a roughly even split between debt service and capital investment — both are close to $3.5 million each.
- Advance stadium spending is limited to $2.4 million pending council approval.
Enhancements were then discussed.
- Practice field replacement has been framed as an obligation of the city by the Jaguars, via SMG. The issue is player safety, and it is maintained to a standard described as “questionable,” with “worn parts of the field.” The middle of the fields need re-sodding in the middle of the season. The field is 13 years old. Mousa: “there is no other cash” and “we’ve gone above and beyond this year in separating the surcharge to make up for the debt service.” There is disagreement on whether practice fields are “capital” or “maintenance.” After some discussion, it is agreed the issue is sod replacement; the fields were turf until Jack Del Rio pushed for a change during the dumpster fire that was his coaching tenure.
- Video boards have gone past the warranty period, requiring a maintenance budget. The boards were warrantied for two years on labor, three years on parts. A heckuva deal. The desire: a labor service agreement and an extended warranty.
- JFRD wants a rate increase. There has been trouble getting paramedics and EMTs to work for regular pay rates; with extra pay, they might get better results. The staff is getting time and a half, but JFRD is not billing the difference. Statute precludes using private ambulance services for EMTs.
- JSO wants to bump up its police presence at events, in response to security risks. The Pulse atrocity last month has created a sense of urgency, and JSO wants the discretion to deploy resources as needed. Mousa believes “this thing is so fluid and dynamic that I’m not comfortable putting extra money in the budget,” yet he would like to see these situations evaluated on a case-by-case basis.
- “This is really not the year for us to be looking at many enhancements,” said Mousa.
- SMG anticipates labor negotiations soon. They will need more money, but this is something that will be revisited after the pension referendum. The majority of SMG employees are union. Amazing how in the south, the private sector is all about right to work, and the public sector is yoked into mid-century collective bargaining agreements. Guess who’s better off?
- Mousa wants stricter accountability on venue leases from SMG and S&E head Dave Herrell.
