Item Coversheet
CITY OF PEORIA, ARIZONA
COUNCIL COMMUNICATION
 
Agenda Item: 9C. 


Date Prepared:  8/8/2024 Council Meeting Date: 8/27/2024

TO:Mike Faust, City Manager 
THROUGH:
Kevin Burke, Deputy City Manager 
FROM:  Chris Calcaterra, Parks and Recreation Director 
SUBJECT:
Budget Amendment, Fiscal Year 2024 Expenditure Budget Overage, Peoria Sports Complex 

Purpose:

Discussion and possible action to approve a budget amendment in the amount of $480,000 from Contingency to the Sports Complex Fund to pay for expenditures in excess of the Fiscal Year 2024 budget.

Summary:

Peoria Sports Complex incurred operating budget overages in multiple expenditure line items primarily due to accelerated utility costs, major unexpected repairs, and a profitable revenue investment.

 

Utilities continue to be a significant challenge despite mitigation efforts for electricity, water and gas consumption. Utility expenses account for $160,000 of the total overage amount. Additional actions to further improve this operating burden for the next fiscal year are in process or already implemented. These include electrical scheduling efficiencies, irrigated turf reductions and building use adjustments.

 

Among the major unbudgeted costs were repairs for uncontrollable damages and equipment failures for the facility pump station caused by an electrical strike/surge, replacement of an air conditioner unit, repairs to damaged field lighting conduit and mainline irrigation repairs.

 

The investment to secure the Savannah Bananas’ national tour for a second year in a row was another major element in the budget overage. Fortunately, this intentional unbudgeted expenditure was ultimately profitable, generating $138,000 in net revenue.

 

While Peoria Sports Complex did experience these operating budgetary expenditure challenges, it also delivered its second-best revenue-producing fiscal year in its history, largely driven by a very successful spring training season as well as expanded business development in its year-round event calendar. The average fiscal year revenue from FY2015 through FY2019 was $3,326,099. (The years of FY2020 through FY2022 are not included as they were anomalous due to the effects of the COVID-19 pandemic in 2020 and 2021 and the Major League Baseball lockout in 2022.) The fiscal year revenue for FY2023 and FY2024, in comparison, were $5,042,713 and $4,296,000, respectively, significantly exceeding the revenue budget each year.

Staff Recommendation:

Staff recommends approval of a budget amendment in the amount of $480,000 from Contingency to the Sports Complex Fund.

Fiscal Analysis:

The Sports Complex Fund has sufficient fund balance to cover this request. With the increased revenues, the Sports Complex was within its normal subsidy transfer from the Half Cent Sales Tax Fund for FY2024.

Contact Name and Number:  

Chris Calcaterra, Parks and Recreation Director / 623-773-8703