Fairgrounds finance report shows $685,200 variance; board to use fund balance to cover shortfall

Finance staff presented preliminary financial results for FY25 and reported approximately $3,600,000 in revenue and about $4,300,000 in expenses, leaving an approximate variance of $685,200 as of the report dated July 21, 2025. Depreciation expense was reported at roughly $1,300,000; after depreciation adjustments the operating variance on the ledger was characterized in the presentation as approximately $2,000,000 when compared to certain adjusted measures used internally. Division-level details presented by finance staff included: flea market revenue below budget ($676,800 earned vs. $1,046,600 budgeted), events revenue exceeding budget by roughly $260,000 due to additional bookings and a new concessionaire, and fair division revenue slightly under budget after three rain days. On expenses, flea market spending was reported under budget by about $50,000 and divisions generally finished the fiscal year under their expense allotments. Finance staff said outstanding invoices totaled roughly $35,500 and noted a property tax pro‑rata appropriation of $343,118. Board members were told that the planned approach is to use the fund balance to cover the reported $685,200 variance to ensure compliance with the Metro charter mandate that the fairgrounds host divisional fair, expo center events, flea markets and auto racing. Finance also said reporting will change in FY26 to separate administrative overhead (an “admin” line) rather than allocating it across program lines; the change is intended to make decision‑making clearer when evaluating program cuts or reorganizations. Staff noted that the figures presented were preliminary and may be 45–60 days in arrears because of invoice processing and close-out timing. Questions from board members focused on how overhead attribution will be estimated if the board wants to evaluate program changes in the future. No formal budget amendment was adopted at the meeting; the board acknowledged Metro’s funding actions and accepted the finance report as presented with staff direction to continue closeout work.