City of Austin Performance Report 2015-16

Number of Days of Operating and Maintenance Expense Sustained with Combined Operating Ending Balances 

Measure Description
This measure shows how many days of operating and maintenance expenses are contained within the operating fund ending balances of the Austin Convention Center (ACC), Palmer Events Center (PEC) and the department’s three parking garages. The Austin Convention Center Department (ACCD) financial policy states that an operating reserve equivalent to 180-days of operating and maintenance expenses for both the ACC and the PEC operating funds should be maintained.
Calculation Method
This measure is calculated by using prior year's operating expenses and other requirements divided by 360 to obtain the expenditures per 1-day of operation. The current year's ending balance is divided by the expenditures per 1-day of operation in order to obtain the number of days of operating and maintenance expense sustained with combined operating ending balances.
FY 2015-16 Results
In FY 2015-16, the number of days of operating and maintenance expenses sustained was 277, just under the established goal of 283 days.
Assessment of Results
In FY 2015-16 there was an increase in the transfer to the Capital Improvement Program (CIP) for future facility development. Despite the additional transfers, however, the number of days of operating and maintenance expenses were 277, which exceed the 180-day target stipulated by ACCD’s financial policy. The number of days of operating and maintenance expense sustained with combined operating ending balances is dependent on both the amount of operating expenses and the beginning balances of the combined facilities. The Convention Center and Palmer Events Centers’ combined funds ending balances have remained strong the past several years.
Next Steps
Continuing a healthy ending balance is critical in providing financial resources in the event of future revenue losses or other unforeseen circumstances. Transferring funds to the CIP continues for future building investments, including a contemplated expansion of the Convention Center. An expansion of the Convention Center would be a strategic move for the city which will help ACCD keep up with growing customer demands, compete in larger convention markets, and prevent further loss of convention business due to lack of space.
Contact Information
For more information contact Carla Steffen, Assistant Director, at (512) 404-4014.