GEORGE L. SMITH, I1 GEORGIA WORLD CONGRESS CENTER
ANNUAL REPORT
FISCAL YEAR 1979-80

GEORGE L. SMITH, I1
GEORGIA WORLD CONGRESS CENTER ANNUAL REPORT

TABLE OF CONTENTS

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-2

. . . . . . . . . . . . . . . . . Financial Analysis Overview
Income
. . . . . . . . Rentals . . . . . Food Service
Exhibit U t i l i t y Services
. . . . . Georgia Hall . . . . . . . . Parking . . . . . Miscellaneous

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3-4 5 5-7 8-9
10-1 I
12- 14 15
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. . . . . Expenditures . . Personal Services . Operating Expenses

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. . . . . . . . . . . . . . . Financial Synopsis .Four Years of Operation

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State of Georgia Balance Sheet . . . . . . . . . . . . . . . . . . . . . 22-23

Event Attendance Analysis . . . . . . . . . . . . . . . . . . . . . . . 24-25

Staffing . . . . . .
Affirmative Action

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26-27 28-29

. Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31-32

LIST OF EXHIBITS:
. . . . . . . . . . Income and Expenditures: Projected versus Actual . . . . . . . . . . . . . . . . . . . . . . . . . . Rental Income . . . . . . . . . . . Rich's Food Service Division: Financial Summary . . . . . . . Exhibit U t i l i t y Services: Income and Expenditures Report . . . . . . . . . . . Operating Expenditures: Projected versus Actual . . . . . . . . . . . . . Financial Synopsis: Four Years of Operation . Estimated FY80 Economic Impact of the Georgia World Congress Center . . . . . . . . . . . . . . State of Georgia Economic Balance Sheet . . . . . . . . . . . . . . . . . . . . Event Attendance Summary . . . . . . . . . Georgia World Con ress Center Table of Organization P . . . . . . . . . . . . . . . . . . . . . . Summary of Work orce . . . . . . . . . . . . . . . . . . . . . . Analysis of Work Force

INTRODUCTION
Fiscal year 1979-80 marked completion of the third full fiscal year of operation of the Georgia World Congress Center. The year was most rewarding in terms of continued success in establishing a tradition of excellence on a national and international level. Future commitments of conventions and tradeshows have been confirmed at a record pace and the Congress Center has literally guaranteed near maximum utilization through the year 1990.
On the other side of the coin, the Congress Center felt the pinch of recession and suffered to a certain extent from rapid inflation. Even though the convention and tradeshow industry prospers we1l during such times, local activities and particularly public consumer shows have indeed declined. A total of four major consumer shows cancelled during the year. Combined with minor reductions in secondary income, particularly food services, the Center required an appropriation of $350,000 for operations to maintain its level of service throughout the fiscal year.
In addition to the effects of a recessionary economy, the Congress Center had projected FY80 t o be a transition year as basic rental rate increases were approved i n 1979, effective January 1980. This was the first increase in rental rates since the Center opened in 1976. With contractual agreements made far in advance, additional income from increased rental rates will begin to be significant during the
final two quarters of fiscal year 1981. Consequently, the transition period between
agreements at the original rates and those at. new rates occurred primarily during FY80.
It is pertinent to comment no operating appropriation was requested for FY81, nor is an operating appropriation anticipated for FY82. Consumer shows cancelled in FY80 have been replaced for FY81 and we anticipate an excellent year in al l respects.
Of much greater significance than operating profit or loss is the economic impact generated by activities in the Congress Center. From a total attendance in excess of 700,000, legitimate out-of-town visitors numbered 312,000 for the year.
These visitors spent an estimated $ 1 15 MILLION NEW DOLLARS in direct
expenditures, resulting in an economic impact of an estimated $259 MILLION DOLLARS. Based upon calculations by the Georgia Economic Forecasting Project, University of Georgia, the State of Georgia realized $9,932,621 I N NEW TAX
REVENUES, while the City of Atlanta realized $2,060,515 IN HOTEL-MOTEL TAX
REVENUES as a direct result of Congress Center activities.
Among the more significant developments in FY80 was approval and funding for preliminary essential steps leading toward proposed expansion of the Center. By way of a brief update, an expansion feasibility study was commissioned in FY79. Results from the study and companion market analysis were extremely positive in support of expansion. Expansion funding, estimated at $90 million dollars, was requested of the Georgia General Assembly during the 1980 session. Though full approval was not received, the General Assembly authorized $10 million dollars for acquisition of land and retention of architects to complete full design documents.

This was a most critical appropriation as it allowed expansion t o proceed with the essential steps required in calendar year 1980 t o maintain a proposed completion schedule of 1984. Thus, should we be successful in receiving construction funding during the 1981 General Assembly, ground breaking for the expansion facility is projected for September, 1981.
It is pertinent to note at this point that 8 1 major conventions and tradeshows have requested dates in the proposed expansion, pending approval of funds in the coming General Assembly. This represents approximately 150 days of major events per year for 1984 through 1990. Dramatic evidence the expansion would be most successful !
Obviously, fiscal year 1981 will be a pivotal and exciting year. Our short range goals are t o continue to battle inflation while maintaining a high level of service t o our users. We must also continue to work diligently toward expansion. On a more long term basis, we continue t o make inroads in the international market place. We have reached a level of hosting some five or six major international events each year. However, we believe the potential for future international activities is several times our current level.
Complete facts and figures regarding the operations and activities of the Georgia World Congress Center are offered in this annual report. We are extremely proud of the facility and look forward to continued success throughout the coming decade of the 80's.

F I N A N C IAL ANALYSIS
OVERVIEW:
discussed briefly in t h e introduction, FY80 was anticipated to be a transitional y e a r when increased r e n t a l rates would not dramatically effect income unti 1 c o n t r a c t u a l agreements incorporati n g new rates become effective. In addition, continued r e c e s s i o n coupled with cancel lation of four major public shows created a significant d o w n t u r n in incolne compared to the previous year. A decrease in income of $676,093 f r o m FY79 t o FY80 was projected. Recovery to a certain extent was
- accomplished l a t e in the fiscal Year a n d actual incorne was $425,001 less than the
previous y e a r
co"verseIy, expenses were projected at $208,291 increase in FY80 over
~ ~ 7 E9 v.e n t h o u g h only a 7% increase in the face of dramatic inflation, we projected
our F y 8 0 b u d g e t with advance recognition we would be required t o operate as fiscally restrictive as possible with the anticipated income decrease. Actual expenses
amounted t o $233,230 increase, or about 8%,over the previous year.
A n appropriation of $350,000 for operations was approved in the FY80
supplemental budget. Combined w i t h an upswing i n business during the final quarter of the year, the Center ended the Year w i t h a balance of $67,174 carried forward to FY81.
TWO additional appropriations were approved during F Y80. $50,000 was f o r the expansion feasibility study and $ 1 10,000 was approved for upgrading
service capacities in t h e exhibition hall. The latter was necessary to accommodate an International Woodworking Machinery Show and similar heavy machinery shows. Upon upgrading the electrical service, the Woodworking Show committed dates every other year for the next ten years.
Income increases over projections occurred pr irnarily in the major categories
of Rent and E x h i b i t Utility Services- This takes into account revised projections upon
cancellation of four public shows* Several srnaller shows were booked late in the year, however, the recovery was predominant1Y from corporate and other meeting faci 1ity users rather than exhibit hall users- The Exhibit U t i l i t y Services increase can be
attributed essentially to the Newspaper Publishers Show in June, a massive machinery show.
Expenditures in major categories were reasonably close t o projections. personal services expense was held t o slightly less than projected by placing a freeze on non-essential vacancies as they occurred and restricting part-time labor as much as possible. Regular Operating expenses increased by some $23,000 over projection primarily due t o increased electrical costs generated by heavy exhibit hall usage for exhibits.
Exhibit "A1' summarizes projected income and expenditures compared with
actual income and expenditures- Note the expense columns reflect the electrical upgrading project and the expansion study.