Stadium Authority posts $13 million operating surplus for first six months; council approves budget amendment and reserve boost

The Santa Clara Stadium Authority on Tuesday approved its financial status report for the quarter ended Sept. 30 and a related budget amendment that increased the authority’s budget stabilization reserve.

Board Member Jane pulled Item 3B for discussion and asked staff to explain the figures after the quarterly report showed operating revenues of about $25 million and operating expenses of roughly $12.3 million for the six‑month period, leaving about $13 million in operating surplus. Jane asked staff how much of that was one‑time and how much was ongoing.

Finance Director Ken Lee (Stadium Authority Treasurer) told the board the quarter is a point‑in‑time snapshot and that some revenues arrive unevenly during the year. He summarized a December budget amendment that showed $10.3 million in additional revenues and $7.3 million lower expenditures compared with budget, producing a $17.6 million one‑time fund balance. In addition, staff reported stadium settlement funds and FEMA reimbursements totaling roughly $7.5 million that were used to boost the budget stabilization reserve. The report shown to the board indicated the stabilization reserve rose from about 18% to 23.8% of target — the board’s target is 25%.

Lee also described debt paydown: stadium operations produced cash that paid down about $8 million in principal between March and September, and seat‑license and naming‑rights receipts remain the primary dedicated sources to service outstanding bonds. He said the implementation of the May 2024 settlement defined how public‑safety costs above the contract cap would be paid and that a remaining public‑safety outstanding balance was reflected in the amended budget as roughly $6.5 million to be paid in the near term as part of the settlement implementation plan.

Board Member Jane said the headline numbers made the stadium look profitable, but asked why a performance‑rent line in the quarterly report showed a zero value and asked when the performance rent and settlement dollars would be transferred and trued up. Lee explained performance rent and other transfers are trued up after fiscal‑year close and that the city had initiated December budget actions reflecting the settlement; he said transfers and execution steps were in progress and expected to be complete before fiscal year close. He added that timing lags and late invoices sometimes change the final numbers.

Council Member/Board Member Cox abstained from the vote, saying she felt “ill equipped” to make the decision without more time to review documents; the roll call showed the motion to note and file the quarterly report and to approve the budget amendment was carried 6–0 with one abstention (Cox). The roll call presented on the record listed yes votes by Board Members Gonzales, Chahal, Hardy, Park and Jane and Mayor/Chair Gilmore, with Cox recorded as abstaining.

The board’s fiscal team said the settlement implementation will continue to be monitored and that staff will bring back more detailed reporting and a true‑up when the year is closed and auditors have reviewed final amounts.