Page 434 - FY 2020-21 Blue Book Volume II

Los Angeles Convention Center Private Operator

As part of the Management Agreement, AEG collects revenue from LACC operations, deposits those funds into a
separate off-budget operating account, and expends directly from the account based on a budget approved by the
Board of Los Angeles Convention and Tourism Development Commissioners (Board).

EXPENDITURES*

AEG’s sources of expenditures are categorized as follows:

Actual Adopted Budget Proposed Budget
2018-19 2019-20 2020-21
City Departmental Budget $ 919,976 $ 1,419,948 $ 1,302,254
1
Alterations and Improvements and 3,488,590 612,929 -
Capital Improvement Projects
Operating Budget for Private Manager 24,943,364 25,576,888 26,375,281

Total Appropriations $ 29,351,930 $ 27,609,765 $ 27,677,535

1 The City Departmental Budget reflects the portion of CTD’s budget funded by LACC revenues. The 2019-20 and 2020-21 amounts
include expenditures related to the Human Resources and Payroll project for the Information Technology Agency.

RESERVE ACCOUNT

In accordance to Section 6.4(b)(i) of the Management Agreement, the Board shall request that the City Council
appropriate as part of the CTD Department Budget a sum equal to ten percent of the Approved Annual Operating
Budget to fund a Reserve Account. As such, the Board approved a budget request including a Reserve Account as
described above, which was submitted on its behalf by the CTD for consideration as part of the 2014-15 Budget process.
The 2014-15 Adopted Budget did not appropriate General Fund monies for this purpose. As such, AEG-LACC has and
will continue to set aside Operating Revenues, when available, to build the Reserve Account.

The purpose of the Reserve Account is to provide funding to be used for unanticipated LACC related expenses or to
fund shortfalls caused by lower than expected revenues or higher than expected expenses. The table below provides
the status of the Reserve Account held by AEG by fiscal year:
Fiscal Year Annual Incremental Amounts
2013-14 $ 693,759
2014-15 2,168,119
2015-16 6,869,385
2016-17 1,537,187
2017-18 2,718,206
2018-19 (1,099,811)
2019-20 (Estimated) 0
2020-21 (Budgeted) 740,009
Estimated Ending Balance $ 13,626,854

*Detail of Revenues and Expenditures may not add up to the Convention Center Revenue Fund (Schedule 16) amounts due to
differences in the reporting of certain transactions by AEG. AEG will update revenue and expenditure projections as the COVID-19
crisis continues to evolve.

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