Board of Commissioners Work Session Agenda Monday, January 9, 2012 2:00 p.m. Wake County Office Building, Ground Floor Conference Room MEETING CALLED TO ORDER: Chairman Paul Coble I. Update on Hotel/Motel Cooke, County Manager and Prepared Food and Beverage Tax Revenues David Item Summary: In 1992, Wake County enacted an occupancy tax on hotel and motel rooms and prepared food and beverages. Revenues generated by a hotel/mote occupancy tax (6.0%) and the sale of prepared food and beverages (1.0%)) are received by the County in the Major Facilities Fund that is separate from the County s General Fund. The uses of funds are administeredd by Wake County on behalf of all stakeholders identified in an Interlocal Agreement with the City of Raleigh. Stakeholders include, but are not limited to: Wake County, City of Raleigh, Town of Cary, Greater Raleigh Conventionn and Visitors Bureau (GRCVB) and the Centennial Authority. Amendments to the Interlocal Agreement distribute tax revenues to various projects that t generate tourism and draw visitors to Wake County. Significant projects include the RBC Center, Raleigh Convention Center, Five County Stadium, Cary Sports Facilities, North Carolina Museum of Art, and the North Carolina Museum of Natural History. An interlocal review of project funding was conducted in early 2011 and recommendations were presented at a Joint Meeting of the Raleigh City Council and Wake County Board of Commission ners in April 2011. The review identified additional information and/or actions that was needed andd directed a second review in 2012. For this topic, the County Manager will provide an overview of the Major Facilities Fund, recap the 2011 interlocal review and progress on recommendations, and discusss next steps. Attachments s: 1. Presentation 2. Summary of Interlocal Agreements 3. Major Facilities Cash Flow Model 4. Convention Center Financing Plan (as of 09/27/11) 5. Request from GRCVB regarding the Business Development Fund
II. Wake County and Durham County LME Merger Update Denise Foreman, Assistant to the County Manager, Ellen Holliman, The Durham Center CEO and Carlyle Johnson, Wake County LME Manager On November 7, 2011, the Wake County Board of Commissioners approved a merger proposal between the Wake County LME and the Durham Center and authorized the County Manager to negotiate an Interlocal Agreement. The new entity, a multi-county area authority, will provide public management of a system of care for the delivery of mental health, developmental disabilities and substance abuse services. The new entity will represent Durham and Wake Counties. It will have contractual relationships with Cumberland and Johnston Counties for the management of federal and state funds. The new entity will be responsible for the management of over $400 million in federal, state and local funds for the four county area. The new entity will begin LME operations for Durham and Wake counties as of July 1, 2012 and will begin MCO operations for the four county area as of January 1, 2013. Staff will provide the Commissioners with an update on the Interlocal Agreement between Durham and Wake counties. If negotiations are completed, the Board of Commissioners will be asked to approve the ILA on January 17, 2012 or February 6, 2012. Attachments: 1. Presentation (Will be provided at Work Session) 2
Wake County Board of Commissioners Worksession Update on Hotel / Motel and Prepared Food & Beverage Revenues January 9, 2012 Update on Hotel / Motel and Prepared Food & Beverage Revenues Board of Commissioners Work Session January 9, 2012 1 Agenda I. Background II. 2010-11 Interlocal Review and Follow-up III. Financial Review and Performance IV. Next Steps 2012 Interlocal Review 2 1
Wake County Board of Commissioners Worksession Update on Hotel / Motel and Prepared Food & Beverage Revenues January 9, 2012 Background Legislation approved in 1991 and amended in 1995 Original Interlocal Agreement in 1991 Revised Interlocal Agreement in 1995 Total of 17 Amendment to the Revised Interlocal Agreement 3 Quick Primer on the Agreements (Obligations Prior to New Raleigh Convention Center) First dollars out (annually): Cost of Collection/Administration City of Raleigh Holdback Town of Cary Hold Harmless Greater Raleigh Convention and Visitors Bureau Centennial Authority Projects completed with no outstanding debt: Exploris/Marbles/IMAX Soccer Center Performing Arts Center Yates Mill Pond Park American Tobacco Trail Park North Carolina Museum of Natural Sciences 4 2
Wake County Board of Commissioners Worksession Update on Hotel / Motel and Prepared Food & Beverage Revenues January 9, 2012 Quick Primer on the Agreements (Obligations Prior to New Raleigh Convention Center) Projects completed with outstanding debt: Five County Stadium Debt payments through 2015 RBC Center (or PNC Arena) Debt payments through 2020 City of Raleigh and Wake County receive $1.0 million per year for purposes consistent with legislation. 5 Agreements Since 2004 (Funding for New Raleigh Convention Center and Other Projects) 85% of all net revenue dedicated to the Convention 1, 2, 3 Center 15% of remaining net revenue has been committed to: NC Museum of Art ($15 million) NC Ballet NC Museum of Natural Sciences Green Square Project ($6 million) 4 Town of Cary Sports Facilities ($10 million) 5 St. Augustine s College Track ($1 million) Whitewater Park ($150,000) RBC Facility Improvements 6 6 3
Wake County Board of Commissioners Worksession Update on Hotel / Motel and Prepared Food & Beverage Revenues January 9, 2012 Agreement Footnotes Convention Center Footnotes: 1. Five-year review (8 th Amendment) 2. The Two-for-one (8 th Amendment) 3. Business Development Fund (13 th Amendment) North Carolina Museum of Natural Science Footnotes: 4. NC Museum of Natural Sciences-Green Square Project: City and County agree to assist the North Carolina Museum of Natural Sciences in its efforts to secure $4 million..said assistance shall include consideration of the merits of utilization of the financing method authorized by Article V., Section 14 of the North Carolina Constitution. Town of Cary Sports Facilities Footnotes: 5. Original project was Cary Aquatics Facility (10 th Amendment). Changed to new construction and upgrades for the WakeMed Soccer Park, USA Baseball Complex and Cary Tennis Park (16 th Amendment). RBC Center Facility Improvements Footnotes: 6. A total of $26 million in uncommitted funds for the period of Fiscal Year 2007-2008 through Fiscal Year 2021-2022 beginning in Fiscal Year 2007-2008 the minimum of $1 million and the maximum of $1.5 million through Fiscal Year 2017-2018 (13 th Amendment). 7 Major Facilities Flow of Funds - FY11 Actuals 8 4
Wake County Board of Commissioners Worksession Update on Hotel / Motel and Prepared Food & Beverage Revenues January 9, 2012 Interlocal Review and 2010-11 Follow-up 9 Interlocal Review Purpose As identified in 8 th and 13 th Amendments : 1. Review actual amounts that have been generated by 85% of undesignated proceeds of Occupancy Tax and Prepared Food and Beverage Tax 2. Review projected revenue amounts generated by 85% of undesignated proceeds of Occupancy Tax and Prepared Food and Beverage Tax 3. Examine whether actual amounts in proceeds are sufficient to achieve the following purposes: Provide for debt service Provide fixed funds to subsidize a portion of operation/maintenance costs of Raleigh Convention Center; and Provide projected fund balance sufficient to reserve one year of maximum annual debt service 4. Review and revisit the RBC Center Capital Improvement Funding when the City and County review the Convention center funding model. 10 5
Wake County Board of Commissioners Worksession Update on Hotel / Motel and Prepared Food & Beverage Revenues January 9, 2012 Interlocal Review 2010-11 Goals of Interlocal Review Conduct public review with all partners Review financing model and update if needed Complete by March 31, 2011 Identify next steps Total of seven meetings (Dec 16, 2010 through March 9, 2011) Representation from: Wake Hospitality Alliance Greater Raleigh Convention & Visitors Bureau Centennial Authority North Carolina State University Gale Force Holdings Town of Cary North Carolina Museum of Art City of Raleigh Wake County 11 Interlocal Review - 2010-2011 What were everyone s expectations? City of Raleigh One-Year Debt Service Coverage / Preserve AAA status RCC Operating Subsidy and Discretionary Withdrawal RCC Expansion Capital Maintenance Fund Wake County 2 for 1 current amount due + future GRCVB Business Development Fund Marketing Funds Centennial Authority Future Designation for Arena Funds The additional $500,000 per year Town of Cary Revenue Stream Identified in 15th Amendment 12 6
Wake County Board of Commissioners Worksession Update on Hotel / Motel and Prepared Food & Beverage Revenues January 9, 2012 Interlocal Review - 2010-2011 Financial Model Issues Cash Flow Imbalance Negative fund balance FY14 through FY21 Options Adjust 85/15 split Defer/change current obligations One-time transfer from Convention Center Financing Model Defer decision 13 Interlocal Review - 2010-2011 What We Agreed On Updated revenue projection methodology Need for capital maintenance plan for convention center Need for more information about convention center subsidy and marketing/sales Need for details/schedules for Cary Sports Facilities capital improvements 14 7
Wake County Board of Commissioners Worksession Update on Hotel / Motel and Prepared Food & Beverage Revenues January 9, 2012 Interlocal Review 2010-11 Recommendations 1. No amendments to the Convention Center Financing Plan until next review. 2. Complete another collaborative review between December 2011 and March 2012. 15 Interlocal Review 2010-11 Recommendations 3. Prior to December 2011, complete the following: Capital Maintenance/Improvement Plans for: Raleigh Convention Center RBC Center (update) Benchmark Raleigh Convention Center to other comparable and competitive convention centers for percent of budget spent on: Marketing/advertising; Capital Reserves; and General Public Subsidy 16 8
Wake County Board of Commissioners Worksession Update on Hotel / Motel and Prepared Food & Beverage Revenues January 9, 2012 Interlocal Review 2010-11 Recommendations 4. Town of Cary will: Proceed with improvements to WakeMed Soccer Park based on expected $2.0 million in occupancy/prepared food and beverage tax revenues Develop capital plan for facilities defined in 16th Amendment Execute Interlocal Agreement with Wake County in accordance with 10th Amendment. 17 FY 2011 Actuals and Financial Models 18 9
Wake County Board of Commissioners Worksession Update on Hotel / Motel and Prepared Food & Beverage Revenues January 9, 2012 Financial Model Occupancy Tax Assumed growth of 10.0% Actual growth of 15.2% Above long term average growth of 6.4% Prepared Food & Beverage Tax Assumed growth of 3.0% Actual growth of 5.1% Below long term average growth of 7.0% 19 Financial Model $30,000 Hotel/Motel Tax Revenue $25,000 $20,000 in Thousands $15,000 $10,000 $5,000 $- FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 Hotel/Motel Tax Revenue - Selected Option Hotel/Motel Tax Revenue - 2011 Assumptions 20 10
Wake County Board of Commissioners Worksession Update on Hotel / Motel and Prepared Food & Beverage Revenues January 9, 2012 Financial Model 20.0% Hotel/Motel Tax Revenue - Percent Change Year to Year 15.0% 10.0% Average: 6.4% 5.0% 0.0% -5.0% FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34-10.0% -15.0% Average (Actual Years Only) Hotel/Motel Tax Revenue Percent Growth 21 Financial Model $50,000 Prepared Food & Beverage Tax Revenue $45,000 $40,000 $35,000 in Thousands $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 Prepared Food Tax Revenue - Selected Option Prepared Food Tax Revenue - 2011 Assumptions 22 11
Wake County Board of Commissioners Worksession Update on Hotel / Motel and Prepared Food & Beverage Revenues January 9, 2012 Financial Model 20.0% Prepared Food & Beverage Tax Rev - Percent Change 15.0% 10.0% 5.0% Average: 7.0% 0.0% -5.0% FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34-10.0% -15.0% Average (Actual Years Only) Prepared Food Tax Revenue Growth 23 Financial Model - FY11 Actuals Projections versus Actuals Revenue Source Budget Joint Mtg (Final) Actual Difference from Budget Percent change from prior year Hotel / Motel 2.00% 10.00% 15.17% -- Prepared Food & Beverage 2.00% 3.00% 5.13% -- Total Revenue Hotel / Motel $ 13,067,000 $ 14,274,549 $ 14,944,845 $ 1,877,845 Prepared Food & Beverage $ 17,215,000 $ 17,824,815 $ 18,192,680 $ 977,680 Uncollectable Revenue & Interest --- --- ($74,816) ($74,816) Total $ 30,282,000 $ 32,099,365 $ 33,062,709 $ 2,780,709 24 12
Wake County Board of Commissioners Worksession Update on Hotel / Motel and Prepared Food & Beverage Revenues January 9, 2012 Financial Model - FY11 Actuals Distribution of Additional Revenues FY11 Adopted Budget FY11 Actual Actual Difference from Budget Raleigh Convention Center $ 12,471,000 $ 14,144,062 $ 1,673,062 GRCVB $ 3,416,000 $ 3,871,375 $ 455,375 Centennial Authority $ 1,773,000 $ 1,920,847 $ 147,847 Town of Cary Hold Harmless $ 634,000 $ 724,825 $ 90,825 Wake County Collections $ 908,000 $ 990,831 $ 82,831 All other expenditures $ 11,880,000 $ 11,879,757 ($ 243) Subtotal $ 31,082,000 $ 33,531,697 $ 2,449,697 Remaining Revenues to Fund Balance $ 331,012 Total $ 2,780,709 25 Financial Model - FY12 Budget Projections versus Actuals Revenue Source FY11 Actual FY12 Joint Mtg Projection FY12 Adopted FY11 Actual to FY12 Proj Difference FY12 Revised Projection Percent change from prior year Hotel / Motel 15.17% Prepared Food & Beverage 5.13% 3.00% *above FY11 Proj. 3.50% *above FY11 Proj. -- (1.62%) 3.00% -- 1.41% 3.50% Total Revenue Hotel / Motel $ 14,944,845 $ 14,703,000 $ 14,703,000 ($ 241,845) $ 15,393,190 Prepared Food & Beverage $ 18,192,680 $ 18,448,734 $ 18,448,734 $ 256,054 $ 18,829,424 Uncollectable Rev.s & Interest ($ 74,816) --- --- --- Total $ 33,062,709 $33,151,734 $33,151,734 $ 89,025 $ 34,222,614 26 13
Wake County Board of Commissioners Worksession Update on Hotel / Motel and Prepared Food & Beverage Revenues January 9, 2012 Financial Model Fund Balance Increased growth improved fund balance projections Expected to go negative in FY16 rather than FY14 15,000 in Thousands 10,000 5,000 1,678 - (5,000) (2,495) (970) Actual Projected - 2011 Interlocal Review Assumptions Projected - Revised Assumptions 27 Financial Model Printed on 11x17 Paper 28 14
Wake County Board of Commissioners Worksession Update on Hotel / Motel and Prepared Food & Beverage Revenues January 9, 2012 Convention Center Model (prepared by City of Raleigh Staff) Printed on 11x17 Paper 29 2012 Interlocal Review Current Status: Pending Pending Updated Capital Maintenance Plan for RBC Center Capital Maintenance Plan for Convention Center Convention Center Benchmarking Data (on marketing/advertising, capital reserves, and general public subsidy) Capital Plans and Interlocal Agreement with the Town of Cary Received new Business Development Fund Request from Greater Raleigh Convention and Visitors Bureau (GRCVB) 30 15
Wake County Board of Commissioners Worksession Update on Hotel / Motel and Prepared Food & Beverage Revenues January 9, 2012 2012 Interlocal Review Next Steps: 1. Finalize convention center information and meet with City of Raleigh staff 2. Conduct meeting(s) with partners to review all new information 3. Joint meeting with the Raleigh City Council 31 Questions and Comments 32 16
SUMMARY OF INTERLOCAL AGREEMENTS BETWEEN WAKE COUNTY AND THE CITY OF RALEIGH REGARDING IMPLEMENTATION OF COUNTYWIDE OCCUPANCY AND PREPARED FOOD AND BEVERAGE TAX Date Agreement Reference 11/19/1991 Interlocal Agreement Key Provisions 1. County to initiate process to levy 6% occupancy tax and 1% prepared food and beverage tax. 2. Proceeds will be distributed in accordance with the Enabling State Legislation (Chapter 594 of the 1991 Session Laws) and this Interlocal Agreement. 3. All proceeds generated from said taxes shall be expended only for projects approved by this Agreement. Projects to be funded: A. Purchase of land for and construction of a Children s Museum in Raleigh B. Renovations to the existing Raleigh Civic Center C. Purchase of land for a new Convention Center in Raleigh D. Reserve fund for construction of new Convention Center in Raleigh E. Purchase of land for a Performing Arts Center in Raleigh F. Construction of a sports facility near RDU G. Additions to Five County Stadium H. Construction of a multi-purpose building known as Centennial Center in conjunction with NSCU I. Creation of a Future Projects Reserve Fund 4. County shall distribute proceeds in accordance with this Agreement 9/01/1992 Amendment to Interlocal Agreement 1. If undesignated proceeds are greater than estimated, the first $250,000 will be distributed to the City for use at its discretion and the next $250,000 will be distributed to the County for use at its discretion. 2. City will obtain financing for constructing the Convention Center and funds from the Reserve Fund will be used to assist with the debt service. 9/05/1995 Revised Interlocal Agreement 1. Projects revised to: A. Purchase of land for and construction of a Children s Museum in Raleigh B. Renovations to the existing Raleigh Civic Center C. Purchase of land for a Performing Arts Center in
Date Agreement Reference Key Provisions Raleigh D. Additions to Five County Stadium E. Exhibits for the North Carolina State Museum of Natural Sciences F. Construction of a sports facility comprised of soccer and baseball fields and related structures G. Creation of a Future Projects Reserve Fund 2. Maintains the following provision from the agreement dated 9/1/1992: If undesignated proceeds are greater than estimated, the first $250,000 will be distributed to the City for use at its discretion and the next $250,000 will be distributed to the County for use at its discretion. 12/3/1996 Amendment to the Revised Interlocal Agreement 5/1/1997 Second Amendment 1. Authorized disbursement of funds for the Performing Arts Center to the City of Raleigh. 2. Deleted contingency provisions related to development of Five County Stadium. 1. Amount of funding for Children s Museum increased by $4.5 million. 2. Amount of funding for Performing Arts Center increased by $10 million contingent upon raising $5 million in private investment. 3. Authorize use of revenues to fund debt service on $48 million of debt for construction of the Regional facility to be constructed adjacent to Carter-Finley Stadium. 4. Beginning in Fiscal Year 2001, distribute annually $1 million to each of the City and County for their sole use and discretion for funding any of the purposes enumerated in the Enabling Acts. 9/09/1998 Third Amendment 9/07/1999 Fourth Amendment 7/20/2000 Fifth Amendment Fund debt service required to retire $10 million in net construction funds for Five County Stadium Increased amount of funding for exhibits for the Natural Sciences Museum to $4 million (from $2 million) 1. Added funds of $1 million for Yates Mill Park 2. Added funds of $1 million for the American Tobacco Trail 3. Increased funds for Performing Arts Center to $14.1 million (from $12.1 million)
Date Agreement Reference 7/18/2000 Sixth Amendment 1/29/2001 Seventh Amendment 1/20/2004 Eighth Amendment Key Provisions Added funds for IMAX theatre totaling $11.945 million. Project to be constructed next to the Children s Museum. Authorized distribution of $5 million for the Soccer Center 1. Established funding for the Raleigh Convention Center. Project Cost shall not exceed $200 million. 2. Dedicated 85% of uncommitted revenues and defined financing plan for the Convention Center. 3. Authorized City to utilize up to $1,000,000 additional per year for convention center operating expenses, and, if utilized, County receives two dollars for every one dollar utilized by the City. 4. Established a review of the funding on or before each five year anniversary of the agreement by the City Manager and County Manager. 11/22/2004 Ninth Amendment 9/19/2005 Tenth Amendment Increased not to exceed project cost on the Convention Center to $212 million. 1. Provided funding for the following projects from the 15% revenue not allocated to the Convention Center: a. North Carolina Museum of Art b. Cary Aquatics Facility c. North Carolina Museum of Natural Sciences d. North Carolina Ballet e. St. Augustine s College Track Project f. Falls Whitewater Park 2. Included language to further support the North Carolina Museum of Natural Science s Green Square Project: Agree to assist NC Museum of Natural Sciences in its effort to secure $4,000,000... including consideration of TIF. 2/02/2006 Eleventh Amendment 12/18/2006 Twelfth Amendment 4/23/2007 Thirteenth Amendment Increased not to exceed project cost on the Convention Center to $235,538,800. Increased not to exceed project cost on the Convention Center to $241,938,800. 1. Established a Business Development Fund to support the new Convention Center (approved through 2015.) 2. Accelerated initial payment for the North Carolina Museum
Date Agreement Reference Key Provisions of Art Improvements. 3. Provided $26 million for capital improvements to RBC Center (through 2022); required matching funds by NSCU. 11/20/2007 Fourteenth Amendment 9/30/2008 Fifteenth Amendment 5/04/2009 Sixteenth Amendment 9/21/2010 Seventeenth Amendment Revised payment schedule of matching funds by NSCU established in the Thirteenth Amendment. Revised funding schedule between Town of Cary for Cary Aquatics Facility and North Carolina Museum of Natural Sciences. Reallocated funding previously identified for the Cary Aquatics Center to WakeMed Soccer Park, USA Baseball Complex and Cary Tennis Park. 1. Extend Business Development Funds for additional $150,000 in FY2011 and FY2010, $150,000 for FY2016 through FY2018 and $316,000 in FY2011 for NHL All-Star Game Events. 2. Conduct public, inclusive review of Convention Center Financing Model by March 31, 2011.
Major Facilities Model Section 1 - Summaries & Assumptions Cash Flow Model NOTE: All dollars are in thousands ($,000) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Budget Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Proj Economic Growth Assumptions Occupancy Tax na -0.02% 1.51% 7.09% 10.34% 12.34% 7.74% -8.18% -3.77% 15.2% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 2.56% 2.53% 2.49% 2.46% 2.42% 2.37% 2.33% 2.27% 2.22% 2.16% 2.10% 2.06% 2.02% Prepared Food and Beverage Tax na 6.69% 7.67% 11.43% 9.41% 9.42% 7.48% 3.98% -1.91% 5.1% 3.50% 3.50% 4.00% 4.50% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 3.68% 3.82% 3.93% 3.92% 3.89% 3.82% 3.75% 3.68% 3.60% 3.51% 3.41% 3.31% 3.29% Sources of Funds: 1.01 Occupancy Taxes 10,119 10,117 10,269 10,998 12,135 13,632 14,687 13,485 12,977 14,945 14,703 15,393 15,855 16,331 16,821 17,325 17,845 18,380 18,932 19,500 20,085 20,599 21,119 21,646 22,177 22,713 23,251 23,792 24,333 24,873 25,411 25,943 26,478 27,014 1.02 Food and Beverage Taxes 10,302 10,991 11,834 13,187 14,427 15,786 16,967 17,642 17,306 18,193 18,449 18,829 19,583 20,464 21,487 22,561 23,689 24,874 26,118 27,423 28,795 29,855 30,995 32,212 33,475 34,776 36,105 37,459 38,836 40,233 41,644 43,066 44,493 45,957 1.03 Interest Revenues 100 95 86 201 369 815 931 201 132 35 - - - - - - - - - - - - - - - - - - - - - - - - 1.04 NSF Service Charges - - (28) (27) (30) (37) (42) (61) (39) (110) - - - - - - - - - - - - - - - - - - - - - - - - Total Sources 20,522 21,203 22,161 24,359 26,901 30,196 32,543 31,268 30,376 33,063 33,152 34,223 35,438 36,794 38,308 39,887 41,534 43,254 45,049 46,923 48,879 50,453 52,115 53,858 55,652 57,489 59,356 61,252 63,170 65,106 67,055 69,010 70,971 72,971 Uses of Funds: 2.01 Administration and Collection 2.02 E Occupancy Taxes 294 304 308 298 364 409 441 405 389 448 441 462 476 490 505 520 535 551 568 585 603 618 634 649 665 681 698 714 730 746 762 778 794 810 2.03 E Food and Beverage Taxes - 330 354 427 432 472 508 527 518 542 554 565 587 614 645 677 711 746 784 823 864 896 930 966 1,004 1,043 1,083 1,124 1,165 1,207 1,249 1,292 1,335 1,379 2.04 E City of Raleigh Holdback 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 680 2.05 E Greater Raleigh Convention & Visitors Bureau 2,630 2,704 2,743 2,917 3,190 3,553 3,809 3,517 3,394 3,871 3,813 3,980 4,092 4,207 4,326 4,449 4,575 4,704 4,838 4,976 5,118 5,242 5,369 5,496 5,625 5,755 5,886 6,017 6,148 6,279 6,409 6,539 6,668 6,798 2.06 E Town of Cary Hold Harmless 477 492 507 534 589 661 712 654 629 725 713 747 769 792 816 840 865 891 918 946 974 999 1,024 1,050 1,076 1,102 1,128 1,154 1,180 1,206 1,232 1,258 1,284 1,310 2.07 Use of Raleigh & Wake County Funds 2.08 E Centennial Authority 2,359 1,185 1,224 1,400 1,537 1,700 1,830 1,817 1,772 1,921 1,934 1,993 2,066 2,148 2,241 2,338 2,439 2,545 2,656 2,772 2,892 2,989 3,091 3,199 3,310 3,424 3,539 3,657 3,776 3,897 4,018 4,140 4,262 4,387 2.09 E City of Raleigh 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 2.10 E Five County Stadium (Debt Service) 991 991 991 991 991 991 991 991 991 991 991 991 991 991 991 79 - - - - - - - - - - - - - - - - - - 2.11 E RBC (Debt Service) 5,249 5,208 4,970 5,209 5,122 5,206 5,035 5,209 5,208 5,209 5,208 5,208 5,208 5,209 5,207 5,209 5,210 5,211 5,209 868 - - - - - - - - - - - - - - 2.12 E Wake County 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 2.13 2.14 Subtotal, Uses for Administration & Holdbacks 14,680 13,893 13,778 14,455 14,904 15,673 16,006 15,800 15,582 16,388 16,334 16,625 16,869 17,132 17,411 16,791 17,016 17,329 17,653 13,649 13,131 13,424 13,727 14,041 14,360 14,685 15,013 15,345 15,680 16,015 16,352 16,687 17,024 17,365 Wake County & City of Raleigh Amounts for Distribution: 3.01 To Calculate Payment to New Raleigh Convention Center 3.02 Add Total Revenues - - - 24,359 26,901 30,196 32,543 31,268 30,376 33,063 33,152 34,223 35,438 36,794 38,308 39,887 41,534 43,254 45,049 46,923 48,879 50,453 52,115 53,858 55,652 57,489 59,356 61,252 63,170 65,106 67,055 69,010 70,971 72,971 3.03 Less Uses for Administration & Holdbacks - - - (14,455) (14,904) (15,673) (16,006) (15,800) (15,582) (16,388) (16,334) (16,625) (16,869) (17,132) (17,411) (16,791) (17,016) (17,329) (17,653) (13,649) (13,131) (13,424) (13,727) (14,041) (14,360) (14,685) (15,013) (15,345) (15,680) (16,015) (16,352) (16,687) (17,024) (17,365) 3.04 Less Interest Revenues - - - (201) (369) (815) (931) (201) (132) (35) - - - - - - - - - - - - - - - - - - - - - - - - 3.05 Equals Actual Amount for Distribution - - - 9,703 11,628 13,709 15,606 15,266 14,662 16,640 16,818 17,598 18,569 19,662 20,897 23,095 24,519 25,925 27,396 33,274 35,749 37,030 38,387 39,817 41,292 42,804 44,343 45,906 47,490 49,091 50,703 52,323 53,948 55,606 3.06 Percent Allocated to New Raleigh Convention Center na na na 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 3.07 Multiple Amount for Distribution by the Percent Allocated - - 10,941 8,257 9,884 11,652 13,265 12,976 12,463 14,144 14,295 14,958 15,783 16,713 17,762 19,631 20,841 22,036 23,287 28,283 30,386 31,475 32,629 33,845 35,098 36,383 37,692 39,020 40,367 41,727 43,098 44,474 45,855 47,266 3.08 3.09 E New Raleigh Convention Center - - 10,941 8,257 9,884 11,652 13,265 12,976 12,463 14,143 14,295 14,958 15,783 16,713 17,762 19,631 20,841 22,036 23,287 28,283 30,386 31,475 32,629 33,845 35,098 36,383 37,692 39,020 40,367 41,727 43,098 44,474 45,855 47,266 3.10 3.11 Subtotal, Payments to New Raleigh Convention Center - - 10,941 8,257 9,884 11,652 13,265 12,976 12,463 14,143 14,295 14,958 15,783 16,713 17,762 19,631 20,841 22,036 23,287 28,283 30,386 31,475 32,629 33,845 35,098 36,383 37,692 39,020 40,367 41,727 43,098 44,474 45,855 47,266 Wake County & City of Raleigh Joint Projects / Other Agreements 4.01 E American Tobacco Trail - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4.01 E Cary Sports Facilities 5,000 - - - - - - - - - - - 400 1,000 1,000 1,300 1,700 2,600 2,000 - - - - - - - - - - - - - - - 4.02 E Exploris / IMAX Theatre 5,601 742 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4.03 E North Carolina Ballet - - - - - - 150 100 - - - - - - - - - - - - - - - - - - - - - - - - - - 4.04 E NC Musuem of Art - - - - - - 6,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 - - - - - - - - - - - - - - - - - 4.05 E NC Museum of Natural Science (Green Square) - - - - - - - 1,900 700 900 900 900 800 200 200 400 - - - - - - - - - - - - - - - - - - 4.06 E Raleigh Convention Center (Old) - 85 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4.07 E RBC Center (Facility Improvements) - - - - - - 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 2,000 2,000 5,000 5,500 1,000 - - - - - - - - - - - - 4.08 E RBC Center (Advanced Facility Funds) - - - - - - - 500 - - - - - - - - - - - - - - - - - - - - - - - - - - 4.09 E St. Augustine's College Track - - - - - - - 300 100 100 100 100 100 100 100 100 - - - - - - - - - - - - - - - - - - 4.10 E Whitewater Park - - - - - - - - - - - 150 - - - - - - - - - - - - - - - - - - - - - - 4.11 E Other Projects 1,275 20 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4.12 Subtotal, Projects / Other Agreements 11,876 847 - - - - 7,150 4,800 2,800 3,000 3,000 3,150 3,300 3,300 3,300 3,800 3,700 4,600 4,000 5,000 5,500 1,000 - - - - - - - - - - - - 5.01 TOTAL USES 26,556 14,740 24,718 22,712 24,788 27,325 36,421 33,577 30,845 33,530 33,629 34,733 35,952 37,145 38,473 40,222 41,557 43,965 44,940 46,932 49,017 45,899 46,357 47,885 49,458 51,068 52,705 54,366 56,046 57,742 59,449 61,161 62,879 64,630 5.04 5.05 Fund Balance 5.06 Beginning Fund Balance 4,419 (1,616) 4,847 2,290 3,812 5,925 8,798 4,922 2,613 2,145 1,678 1,678 1,167 653 302 137 (199) (221) (933) (823) (832) (970) 3,585 9,343 15,315 21,509 27,930 34,581 41,467 48,591 55,954 63,560 71,408 79,500 5.07 Increase In Uncommitted Funds - 6,463-1,647 2,113 2,871 - - - - - - - - - - - - 109 - - 4,554 5,758 5,973 6,194 6,421 6,651 6,886 7,124 7,364 7,606 7,848 8,092 8,341 5.08 Use of Uncommitted Funds (6,034) - (2,557) - - - (3,878) (2,309) (469) (468) (465) (510) (515) (351) (165) (336) (22) (711) - (9) (138) - - - - - - - - - - - - - 5.09 Adjustments - - - (125) (0) 2 1 (0) 1 0 (12) - - - - - - - - - - - - - - - - - - - - - - - 5.10 Ending Fund Balance (1,616) 4,847 2,290 3,812 5,925 8,798 4,922 2,613 2,145 1,678 1,200 1,167 653 302 137 (199) (221) (933) (823) (832) (970) 3,585 9,343 15,315 21,509 27,930 34,581 41,467 48,591 55,954 63,560 71,408 79,500 87,841 Other Withdraws Wake County Withdraws (due to 10th Amendment) - - - - - - - - - - - 8,000 2,000 2,000 2,000 2,000 2,000 2,000 - - - - - - - - - - - - - - - - Other Withdraws - - - - - - - - - - - 8,000 2,000 2,000 2,000 2,000 2,000 2,000 - - - - - - - - - - - - - - - - 1/4/2012 10:43 AM Z:\Special Funds\2500 - Major Facilities\MODEL - Major Facilities\MASTER Major Facilities Model - 2012.01.04 Cash Flow Model Page 1 of 1
City of Raleigh, North Carolina Convention Center Project with Expansion Financing Plan ($ 000) - FY2011 Update (as of October, 2011) Balance per Model 100% of 85% of Funds NOT put $55M Variable $190M Fixed Annual Other Debt Service Additional Business COR Uncommitted Uncommitted into the Series 2004A Net Forward Swap Net Debt Annual Surplus/Deficit Expenses to from $121M Capital Developm't Interest Discretionary Fund Fiscal Year Funds Funds Convention Center Debt Service Net Debt Service Service Revenues be Paid Issue in 2017 Expend. Fund Income 3% Withdrawals Balance Fiscal Year Column A Column B Column C Column D Column E Column F Column G Column H Column I Column J Column K Column L Column M Column N Column O Column P Column Q 6/30/2005 19,001 6/30/2005 6/30/2006 11,628 9,884 1,744 46 123 170 9,884 9,714 2,181 - - - 788-27,323 6/30/2006 6/30/2007 13,709 11,650 2,058 285 228 513 11,650 11,138 2,246 - - - 1,649-37,863 6/30/2007 6/30/2008 15,606 13,117 2,489 1,776 114 1,890 13,117 11,227 2,314-16,400-2,002-32,379 6/30/2008 6/30/2009 15,266 13,153 2,113 1,882 6,252 8,133 13,153 5,020 2,383 - - 350 998 1,000 34,663 6/30/2009 6/30/2010 14,662 12,433 2,230 1,099 9,165 10,263 12,433 2,169 2,454 - - 350 661 1,000 33,689 6/30/2010 6/30/2011 16,640 14,144 2,496 776 9,192 9,967 14,144 4,177 2,528 - - 816 370 1,000 33,891 6/30/2011 6/30/2012 16,818 14,296 2,523 1,878 9,275 11,153 14,296 3,143 2,604 - - 500 1,017 1,000 33,947 6/30/2012 6/30/2013 17,763 15,098 2,664 1,880 9,273 11,153 15,098 3,945 2,682 - - 350 1,018 1,000 34,879 6/30/2013 6/30/2014 18,827 16,003 2,824 1,870 9,319 11,189 16,003 4,814 2,762 - - 350 1,046 1,000 36,627 6/30/2014 6/30/2015 20,029 17,024 3,004 1,870 16,606 18,476 17,024 (1,451) 2,845 - - 350 1,099 1,000 32,079 6/30/2015 6/30/2016 22,193 18,864 3,329 1,878 16,599 18,477 18,864 387 2,931 - - 150 962 1,000 29,348 6/30/2016 6/30/2017 23,581 20,044 3,537 1,871 16,605 18,476 20,044 1,568 3,019 - - 150 880 1,000 27,629 6/30/2017 6/30/2018 24,951 21,208 3,743 1,874 16,599 18,473 21,208 2,735 3,109 - - 150 829 1,000 26,933 6/30/2018 6/30/2019 26,384 22,426 3,958 1,884 16,591 18,475 22,426 3,952 3,202 - - - 808-28,490 6/30/2019 6/30/2020 32,222 27,389 4,833 1,869 16,607 18,476 27,389 8,913 3,298 3,418 - - 855-31,541 6/30/2020 6/30/2021 34,655 29,457 5,198 1,871 16,602 18,473 29,457 10,984 3,397 6,837 - - 946-33,237 6/30/2021 6/30/2022 35,727 30,368 5,359 1,874 16,598 18,472 30,368 11,896 3,499 6,837 - - 997-35,794 6/30/2022 6/30/2023 36,800 31,280 5,520 1,874 16,601 18,475 31,280 12,804 3,604 6,837 - - 1,074-39,231 6/30/2023 6/30/2024 37,872 32,191 5,681 1,887 16,588 18,475 32,191 13,716 3,712 6,837 - - 1,177-43,575 6/30/2024 6/30/2025 38,945 33,103 5,842 1,867 16,604 18,471 33,103 14,632 3,824 6,837 - - 1,307-48,854 6/30/2025 6/30/2026 40,017 34,015 6,003 1,870 16,605 18,475 34,015 15,540 3,939 6,837 - - 1,466-55,084 6/30/2026 6/30/2027 41,090 34,926 6,163 1,874 16,599 18,473 34,926 16,453 4,057 10,347 - - 1,653-58,786 6/30/2027 6/30/2028 42,162 35,838 6,324 1,878 16,595 18,473 35,838 17,365 4,178 10,346 - - 1,764-63,391 6/30/2028 6/30/2029 43,235 36,749 6,485 1,871 16,604 18,475 36,749 18,274 4,304 10,347 - - 1,902-68,916 6/30/2029 6/30/2030 44,307 37,661 6,646 1,884 16,594 18,478 37,661 19,183 4,433 10,346 - - 2,067-75,388 6/30/2030 6/30/2031 45,380 38,573 6,807 14,970 5,906 20,875 38,573 17,697 4,566 10,347 - - 2,262-80,433 6/30/2031 6/30/2032 46,452 39,484 6,968 14,952 5,908 20,860 39,484 18,624 4,703 10,347 - - 2,413-86,421 6/30/2032 6/30/2033 47,525 40,396 7,129 14,939 5,906 20,846 40,396 19,550 4,844 10,346 - - 2,593-93,374 6/30/2033 6/30/2034 48,597 41,307 7,290 14,919 5,905 20,824 41,307 20,483 4,989 10,346 - - 2,801-101,324 6/30/2034 Total $ 873,041 $ 742,082 $ 130,959 $ 101,268 $ 342,161 $ 443,428 $ 742,082 $ 298,653 $ 98,608 $ 127,210 $ 16,400 $ 3,516 $ 39,403 $ 10,000 ** 6/30/09 actuals, $147k payment due to the City for FY08 is included for FY09 Column F for FY 11-34 calculated $190M ( 4.88%) ~4.36% fixed swap rate +.42 bps liquidity +.10 remarketing. Column K for FY17 thru 35 calculated $121M expansion - with 2 years cap int and 2 years delayed principal w/ 30 yr maturity, (5% rate) Column M - 9/21/10 Council Meeting - Increase annual BDF funding by $150k for FY11 & FY12, additional funding years (FY16 - FY18) at $150k/yr. Council will revisit this and other needs in Dec 2011 to determine if continuing increase through 2018. And added one-time amount of $316k for NHL All-Star Game in FY2011. Convention Center Model - FY11 Actuals (092711)