The Capital City Convention Center continues to lose money but is gaining ground this year. JJ obtained a copy of the 2015 annual audit and the most recent quarterly financial statements through a public records request. The audits are posted below.
Some highlights of the annual audit are:
*The convention center lost $4.1 million in 2015 and $4.2 million in 2014. However, the convention center recognized a depreciation expense of $2.5 million in each year. Thus the actual operating loss was $1.6 million in 2015 and $1.7 million in 2014.
*The operating expenses were $6.3 million while the revenue was $2.0 million in 2015. The expenses include the depreciation expense mentioned earlier. The operating revenue is space rental fees, food services, and auxiliary services.
*Event revenue was $463,419 in 2015. It was $583,955 in 2014. The ancillary revenue was $1.66 million.
*Management fees are $242,039 in 2015. The convention center pays SMG a base management fee of $119,394 in monthly installments. The convention center also paid SMG $122,645 for food service.
*The convention center receives sales tax revenue of $4.6 million but debt service (for bonds) eats up $3.9 million. Thus the convention center only received $700,000 in sales tax revenue.
The mid-year financial statement (ending on March 31, 2016) shows some improvement in the convention center's piggy bank. Some highlights of the most recent quarterly financial statements are:
* The loss narrowed on a YTD basis from -$1.7 million in 2015 to -$682,482 on March 31, 2016. That was an improvement of over a million dollars. The improvement came from a million dollar reduction in payments to the city of Jackson. The reduction occurred due to a bond refinance. Hopefully, this change will allow the convention center to cut its operating loss in half.
*The YTD income is $2.3 million. It improved by over $40,000 from 2015. Thank you, Governor.
However, the annual audit just had to make this statement:
The absence of the convention center hotel has a significant negative impact on the convention center as well as reduced rental income and food and beverage income in the convention center.