Page 392 - FY 2021-22 Blue Book Volume 2

Los Angeles Convention Center Private Operator

EXPENDITURES*

AEG’s use of funds are categorized as follows:

Actual Adopted Budget Proposed Budget
2019-20 2020-21 2021-22

City Departmental Expenditures $ 2,845,044 $ 2,072,433 $ 1,478,857
1
Alterations and Improvements and 1,115,097 - -
Capital Improvement Projects
Operating Budget for Private Manager 24,027,328 26,375,281 21,141,731

Total Appropriations $ 27,987,469 $ 28,447,714 $ 22,620,588

1 The City Departmental Expenditures reflects the portion of CTD’s budget and related costs funded by LACC revenues, as well as
other City expenditures that are reimbursed by LACC revenues.

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 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.

On September 1, 2020 AEG submitted a request to use the Reserve Account. With the ongoing moratorium on large
gatherings and events due to the pandemic, the LACC has been unable to host regular events since the month of
April 2020, and the resulting loss of economic activity and business has had a significant adverse financial impact on
the LACC. Pursuant to Section 6.4(b)(i) of the Management Agreement the Executive Director of CTD authorized the
use of the Reserve Account for critical operations of the LACC on September 4, 2020.

Status of LACC Reserve Account Held by AEG

Balance as of July 1, 2020 $ 12,308,437
2020-21 Estimated Incremental Amount (6,141,000)
2021-22 Budgeted Incremental Amount (3,095,175)
Estimated Balance as of June 30, 2022 $ 3,072,262

*The Reimbursement of General Fund Costs line item was removed from the Detail of Revenues table and is now included in the
City Departmental Expenditures line item in the Expenditures table.

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