The James E. Bruce Convention Center Committee Chair Darrell Gustafson presented a financial update for the convention center to the Hopkinsville Committee of the Whole Thursday during a virtual meeting.
While The Bruce was not asking for additional funding, Gustafson reported a 11 month financial statement showing a profit loss.
From Mar. 1, 2019 to Feb. 1, 2020, The Bruce reported $206,450.43 income from room rentals and special event booth rentals. In a stark contrast, for Mar. 1, 2020 to Feb 1, 2021, the convention center reported only $70,624.14 for ordinary income.
COVID-19 has been challenging the event center as they have had 120 event cancel resulting in $440,140.00 of lost revenue according to Gustafson.
In addition, Gustafson reported 16 events being rescheduled due to the pandemic. These 16 events would put $114,550.00 into The Bruce’s gross income, according to the report.
In the financial period before the pandemic, Gustafson communicated that the convention center’s total income was $1,049,962.31.
During the 11 month period of Mar. 1, 2020 to Feb. 1, 2021, Gustafson reported that the convention center only made $167.769.75 for total income.
According to the financial report shown during the meeting, The Bruce recorded a $326,023.86 loss in net ordinary income.
The balance sheet presented during the meeting, which was current as of Jan. 21, 2021, displayed The Bruce has $31,225.48 in total current assets.
Gustafson explained that the money in total current assets will go to The Bruce’s operating expenses.
Without the typical income Gustafson detailed that the money to cover operating costs was dwindling.
The balance sheet presented showed total cash amounting to $1,063,143.45, according to Gustafson.
Gustafson continued to report to the council that the convention center has a reserve for the 2017 WINS program totaling $541,742.21.
The WINS program reserve money has stayed untouched so that the convention center will be able to pay on the program’s debt, Gustafson explained.
The majority of the convention center’s total cash reserves have been allotted for payment of bonds and other expenses excluding future operating expenses, Gustafson detailed.
The committee chair also told the council that The Bruce will have no issue covering its expenses once life “returns to normal.”