Fiscal Year 2011-2012 Adopted Budget - County of Sonoma

FAIRGROUNDS
Tawny Tesconi, Fair Manager
The budget continues funding for improvements and maintenance of the 180 acre facility for use by the community and outside
promoters for various non-fair events and activities as well as use for declared state or county emergencies.
The budget will also maintain the golf course, RV Park and Satellite Wagering Facility all of which enhance the quality of life in
Sonoma County and promote the tourism industry.
Fair Financial and Operating Budget
The SCF budget is comprised of operating and non-operating components. The operating budget reflects revenues and expenditures
associated with day-to-day operations of the fairgrounds including the annual fair and other year-round events. The non-operating or
capital budget reflects all other expenditures associated with capital investments. The net cost for both of these components is supported
by the use of reserves.
• In 2011 there will be four additional days of racing, which enables the fair to offer the community more weekend days of fair. The
proposed increase will result in four additional days including one additional weekend and will have all fifteen days of racing coincide
with the overall fair experience. To maximize revenues and to minimize overtime for the organization and fair partners, the Fair will
be closed on Mondays. The 2011 Fair will be held from July 27 through August 14, and closed August 1 st & August 8 th . Revenue and
expense accounts have been adjusted accordingly, although revenue accounts were adjusted to assume a 16% decrease in per day
attendance to recognize that some people will just shift the day that they attend the fair. Calculations show that the fair will realize an
increase of approximately $120,000 in revenues over expenditures by implementing these changes.
• The SCF is in the process of refinancing the Photovoltaic note because the short term bridge loan (at approximately 2.4%) has been
transferred by California Construction Authority (CCA) to a less desirable loan with an interest rate of 7.3%. Fair staff is working
closely with the Auditor’s Office to refinance this loan independent of the other fairs that are part of this obligation. The 2011 budget
assumes an estimated interest rate of 5%.
• The Budget includes the addition of one FTE, the Deputy Fair Manager position effective March 1, 2011. The structure which
includes a deputy fair manager position is consistent with 27 other fairs in the state. The Deputy Fair Manager will be responsible for
growing the fair sales and interim rental business to increase revenues. Two positions were eliminated; a maintenance worker and
simulcast attendant in order to balance operating expenditures with revenues.
COMPARATIVE INCOME STATEMENT & WORKING CAPITAL
2008-2011
2008 2009 2010 2011
Description Actual Actual Actual Budget
Operating Revenues 8,728,164 8,623,217 9,081,358 9,495,700
Operating Expenses
9,246,482 8,605,090 9,167,644 9,495,600
Net Operating Income (Loss)
Plus: Non-Operating Revenues
(518,318) 18,127 (86,286) 100
119,334 20,998 319,231 882,010
Net Income (Loss)
(398,984) 39,125 232,945 882,110
Loan Payment (For Turf Track) (147,681) (147,681) (151,522) (165,000)
State Loan (For Photovoltaic System)
Racing Shortfall
(86,763) (175,747) (178,879) (175,000)
Capital Expenditures (51,727) (59,987) (389,786) (1,002,780)
Net Change in Working Capital
(Fund Balance)
County of Sonoma
FY 2011-2012 Adopted Budget
(685,155) (344,291) (487,242) (460,670)
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Other County Services