Raleigh Convention Center Capital Improvements Overview

Raleigh Convention Center ILA Stakeholders Meeting April 14, 2016

Raleigh Convention Center Capital Improvements Overview September 2008 - Raleigh Convention Center opened February 2012 - Heery Capital Expenditure Matrix (Heery Plan) for capital improvements through 2036 May 2012 - ILA Amendment 18 Provided funding for 95% of the Heery Plan Annually - The RCC staff uses the Heery Plan to develop a Capital Improvement Plan (CIP). As a part of the overall City of Raleigh s budgeting process, the CIP is reviewed and approved by the City s Capital Budget team, City Manager and City Council. 4/14/2016 2

A summary of the original Heery Plan and respective 95% cost by category is as follows: Heery Plan Category Cost Site $ 1,148,804 Building Envelope 9,741,537 Interior Finishes 39,640,636 Building Systems 11,185,675 Life Safety/Security 5,264,736 Technology 3,744,841 Grand Totals $70,726,229 $67,189,917 The $70,726,229 total includes a 2.75% annual escalation. The Heery Plan cumulative total without escalation is $56,142,203 (based on 2011 values). Funded Heery Plan $ 1,091,364 9,254,460 37,658,604 10,626,391 5,001,499 3,557,599 4/14/2016 3

The following is a summary of the adopted CIP budget and the actual expenditures by year. Please note any excess funds are retained in the CIP fund balance. Heery Plan Heery Plan Funded from Funded from YearConst. Fund Bal(3) RCC Fin Plan Expenditure CIP Fund Balance 2012 $1,838,103 2013 764,247 1,251,500 1,305,595 2014 1,980,434 2015 2,446,000 2016 1,152,000 2,822,040(4) (1,670,040)(Projected) 2017 2,708,000 2018 2,709,000 2019 2,709,000 2020 2,709,000 2021 2,709,000 2022-36 44,213,633 Total $67,189,917 $5,564,609 (3)After the construction of the Convention Center was complete, the RCC Construction Fund balance had $2,602,350 of excess funds. As a result, $1,838,103 of the excess RCC Construction Fund was used to fund the 2012 CIP Budget and the remaining balance of $764,247 was used to fund a portion of the 2013 CIP budget. (4)Projects that are planned to be completed by June 30, 2016. See list of specific projects in the handout. The above CIP fund balance of $3,867,675 is the projected balance for June 30, 2016 assuming that all of the planned FY16 projects are completed by that time. The CIP fund balance represents budgeted projects that were included on the Heery Plan but have not been completed yet. The balance is not inclusive of the FY17-36 activity. Actual Difference/ $ 0 $1,838,103 (Actual) 710,152 (Actual) 1,451,820 (Actual) 1,537,640 (Actual) 528,614 908,360 - - - - - - - (Submitted) - (Submitted) - (Submitted) - (Submitted) - (Submitted) - (Projected) $3,867,675 4/14/2016 4

The actual CIP expenditures include projects from the Heery Plan and additional projects (non-plan) that were identified as important to the continued success of the Convention Center. The non-plan projects have been separately reported. Total Actual Expenditures of Completed Projects: Non -Plan FY On Heery Plan Projects 2012 - - 2013 $1,299,852 $ 5,743 2014 394,270 134,344 2015 835,027 73,333 $2,529,149 $213,420 Total Expenditures - $1,305,595 528,614 908,360 $2,742,569 4/14/2016 5

The following schedule is a summary of the annual CIP budget and respective expenditures: 2012 2013 2014 2015 2016 Beg. CIP Fund Balance $ 0 $1,838,103$2,548,255 $4,000,075 $5,537,715 Funded from Construction Bal (5)1,838,103764,247 Funded from RCC Financing Plan 1,251,5001,980,434 2,446,000 1,152,000 Plan Expenditures 0 (1,299,852) (394,270) (835,027) (1,701,426) Sub-Total $1,838,103$2,553,998 $4,134,419 $5,611,048 $ 4,988,289 Non Plan Expenditures 0 (5,743) (134,344) (73,333) (1,120,614) CIP Fund Balance $1,838,103 $2,548,255 $4,000,075 $5,537,715 $3,867,675 (5) After the construction of the Convention Center was complete, the RCC Construction Fund balance had $2,602,350 of excess funds. As a result, $1,838,103 of the excess RCC Construction Fund was used to fund the 2012 CIP Budget and the remaining balance of $764,247 was used to fund a portion of the 2013 CIP budget. Projected 4/14/2016 6

Questions ? Hazel Cockram City of Raleigh Raleigh Convention Center 919.996.8521 4/14/2016 7