File 0005

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P.O.Box 41264 Nashville,TN 37204 April 12,2009 HonorableMayor Dean MetropolitanGovernment 100MetroCourtHouse-First Floor Nashville,TN 37201 RE: FAIRGROUND BUDGET HEARING ON APRIL 7,2009 DearHonorableDean: StateFairground. Agachedis an analysesthatwasdoneon four (4) fiscalyearson the Tennessee of what This analyseswasdoneafterhearingthe budgethearingto promotean understanding items wereleft Many of us believe many of operation. direction is happeningon the sitein the andthereforewish to submitthe attachedanalysesfor your reviewand out andnot discussed understanding. Also, an in-depthreviewof the Metro Budgetwasreviewedfrom the Metro WebSite. In the submitted,but sawnoneon this budgetof 2009. In previousyear,therewascapitalimprovements needto be done. The reviewof orderto enhancethe siteandbuildingsfor rentalusage,improvements the pastbudgetshoweda capitalcontributionto O.W.SmithMusic of $500,000from the hotel/motel ratesfor their usage,andthe communitywould like a reviewfor this FiscalYearof 2009to usethis sourcefor $200.000to $350.000for enhancementsto the Faireround rentalbuildingsin orderto of the facility. This hotel/motelratehasbeenrestricted success recruitthe neededeventsto encourage facilitiesandtourism,which would fit perfectlyin regardsto the missionand for public entertainment StateFairground. objectiveofthe Tennessee Any inquiriesof the attacheddatacanbe sourcedbackto the the FairgroundAdministrationfor which StateFairgroundis generatingapproximately the datawasobtained.The fact thatthe Tennessee $4 million dollarsper yearis showinga definitivefuturefor its own growthandcurrentmainstay. Many thanksfor your time in reviewingthis informationandhopefully,a betterclarificationof whatthe Fairgroundsiteis doing canbe understoodandsupportin promotingwhatthe communitysees asa rich sourcefor all toolsof eventsfrom agriculture,greenpower,activities,races--bicycle, in usageandparticipationfor vehicles,horseshows,etc.,andeventsthat wouldbe Metro/County-wide its purposeasalreadydefinedin StateStatueandrestricteddeeds.. Yot6struly,

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FairgroundSupporter Group andMemberof FairgroundHeritagePreservation DC/Copies:Mr. R. Reibling--MetroFinanceDirector of TN StateFair Mr. BuckDozier---Director Directorof TN StateFairground Mr. Ken Sanders---Assistant BudeetandFinanceCommittee Committee *I Fuir CommitteeandTourismandPublicEntertainment andFair Board Attachment:OnePageof four (4) yearsanalyses

April 7, 2009 This letteris a follow-up from the budgethearingthat took placeon Tuesday, regardingthe FairgroundBudgetHearing. Basedon the hearingandpresentationthat took wish to presentfacts place,we, ascitizens,of DavidsonCountyandFairgroundSupporters, or misgivingof what is actuallyoccurringin the so thattherewill be no misunderstanding Fairgrounds---that hasNashvilleHistoryof over onehundred(100) processof theTN State yearsthat probablyno other City/Countycould marketfrom. With this said,the following of the decisionmakersto review andsee figuresarebeingsubmittedfor comprehension whatthe Fairgroundsis doingfor the Community,the people,andcitizensof DavidsonCounty. -.-.TEI[II-ESSEESTATE FAIRGROT]hIDANALYSES-. FOUR FISCAL YEARS --RevenuesReceived Variances Fiscal Year 2007 Between2007& 2008 FiscalYear2008* -Total Revenues -Total Revenues (7.7s%) $ 3,879,929.48--$ 3,586,605.32 -F (8.10%) 1,409,247 1,303,602.92 leaMarket .14-------FleaMarket (r3.7r%) 216,510.56 Concessions I 86,835.83----Concessions (4.1e%) Rentals 759,513.01 727,707 .18---Rentals (8.4e%) 1,450,928.49---------Fair 1,337,324.05----Fair (28.80%) Misc. 43.730.2831,135.34----Misc. 15----------Operating Expenses $4r053,595.35-OperatingExpenses $3,784,586. Variances

Between 2005& 2006 Fiscal Year 2005** Fiscal Year2006 +2.99yo Revenues I 4--------TotalRevenues $ 3,619143.72---------Total S 3r7271539. - -------- FleaMarket (r.60%) 1,464,266.17 1,441,257 .25----FleaMarket +5.$Vo | 831646.82---------Concessions 194,9ll .61-----Concessions + 1.5% o 739,560.10------Rentals 750,3I I .67----Rentals -----+9.20% 1,199,092.23 Fair .32----Fair 1.302.337 +t9.00% 38.721.29------Misc. 32.578.40------Misc. OperatingExpenses $ 3,689,686.46------OperatingExpenses$ 32921522.23------on NOTE: Not Included----*2008--ResenveFund not an'(operatingreyenue"-----**2005---Loss F'ixedAssetnot an "operatingreyenuet'. Assumptions: (l) Betweenthe Yearsof 2007and2008,economicfactorssuchashigh guscosts, weakconsumerspending,andbank failureshavehad impacton the marketsand suchfactorscauseda reductionin variancedifferences.Plus(+) is a *Gain" andBracket( ) is a "Reduction". TheAnalyses is a wrap-upof all the abovefiscalyearsto June30, XXXX. Market.Concession. Rentals-which This Reportanalysiswasdividedinto five (5) categories--Flea makesup races,equipment,/supplies, andBuildings---FairandMiscellaneous.Basedon the above analysisof generatedrevenues,the Flpa Market andthe Fair aremaintainingtheir own sustainability, while the rentalshavean adverseaffecton the overalloperationof theFairgroundEvents/Bookings. The newsmediaof the Tennessean indicatedthatthe Fair lost revenuesis not a true fact in that all the figuresand amountswere not in for recordingandpostingaccordingto GAAP & Metro Accounting ProcessandProcedures.Therefore,the amountsat the time were not a completeand accuratepicture. Onecouldconcludefrom the abovethatthe Operating Expenses(PersonnelCosts.Printing. revenues,which shouldbe Advertising & Promotion [Variable Costsl areoverridingthe generated general fund,by apnroximately13 7o andan in-depth recordedin the Enterprise Entity Fund---not revenueto analysesneedto be doneto focuson a reduction in costto maintainmoreof the generated for operateon a moreeffrcientandeffectivebases "Success". ReduceCostsby ten (l0%)Percentand (B) AnalyzeRentalRatesfor an Recommendation--(A) (10%) to fifteen (lS%)percent increasealong with community sponsorships. approximateten StateFair---Metropolitan AdministrativeOfficesSource: FinancialStatements of Tennessee DC [ProfessionalFinancial Analystl/4-Il -2009