HomeMy WebLinkAboutLas Vegas Convention and Visitors Authority - Public Financial ReportTABLE OF CONTENTS
Introductory Message ................................................................................................................................... 1
About the Las Vegas Convention and Visitors Authority .............................................................................. 2
Economic Indicators ...................................................................................................................................... 3
Major Initiatives in FY 2021 .......................................................................................................................... 5
Principal Officials ........................................................................................................................................... 6
Overall Financial Position .............................................................................................................................. 7
Where the Money Came From ..................................................................................................................... 8
Where the Money Went ............................................................................................................................... 9
Debt at June 30, 2021 ................................................................................................................................. 10
Awards ........................................................................................................................................................ 12
Las Vegas Convention and Visitors Authority
3150 Paradise Road
Las Vegas, Nevada 89109-9096
(702) 892-0711
www.lvcva.com
1
Introductory Message
It is my pleasure to present the Las Vegas Convention and Visitors
Authority’s (LVCVA) Popular Annual Financial Report (PAFR) for the
fiscal year (FY) ended June 30, 2021.
The PAFR summarizes the LVCVA’s financial activities and performance
results gathered from our FY 2021 Comprehensive Annual Financial
Report. The comprehensive annual financial report is prepared in
accordance with Generally Accepted Accounting Principles (GAAP) and
was audited by the firm of BDO USA, LLP, receiving an “unmodified”
opinion. An unmodified opinion is given when the auditor can state that
the financial statements are accurately and fairly presented, in all
material aspects.
The PAFR, however, is an unaudited report and presented on a non-
GAAP basis. It is a condensed and simplified presentation and does not include all segregated funds,
required presentations, all financial statements, nor notes to the financial statements. The PAFR is
intended to simplify but not replace the Comprehensive Annual Financial Report. Individuals desiring to
view a full disclosure of our financials can obtain a copy of the Comprehensive Annual Financial Report at
http://www.lvcva.com/who-we-are/funding-and-finance or by contacting the Chief Financial Officer.
On behalf of the Las Vegas Convention and Visitors Authority, I would like to thank you for taking the time
to read our PAFR. We hope this report will provide you with information about our financials and the
services we provide.
Ed Finger, CPA
Chief Financial Officer
To view this report and other financial information, including the Comprehensive Annual Financial Report, please
visit the Financial Information at
http://www.lvcva.com/funding-and-finance
2
About the Las Vegas Convention and Visitors Authority
The LVCVA is a government agency, established by Nevada state law, primarily funded by room tax, and
governed by an autonomous board of directors. The LVCVA was created to directly drive tourism to
Southern Nevada, through ownership and operation of the Las Vegas Convention Center (LVCC), and to
enhance the marketing, sales, and advertising efforts of our resort and industry partners.
The LVCVA’s board of directors serves on behalf of a broad cross-section of stakeholders within the local
tourism and business industry and includes 14 members representing Clark County and its incorporated
cities, as well as tourism, hospitality, and business leaders.
While resorts advertise and market their individual properties, the LVCVA is the marketing organization
for Southern Nevada, including the extended destinations of Laughlin, Mesquite, Boulder City, and Primm.
The LVCVA’s mission:
To attract visitors by promoting Las Vegas as the world’s most desirable destination for leisure and
business travel.
Las Vegas Strip
The LVCVA fulfills its mission though national and international advertising campaigns, sales efforts, public
relations, and special events, as well as owning and operating a convention center, which is unique to a
destination marketing organization.
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Las Vegas Convention Center
The newly expanded LVCC is one of the busiest
convention facilities in the world. With the opening
of the new West Exhibit Hall in January 2021, the
facility now encompasses 4.6 million square feet
located within a short distance of more than
100,000 guest rooms. The center is well known
among industry professionals for its versatility. In
addition to approximately 2.6 million square feet of
exhibit space, 200 meeting rooms handle seating
capacities ranging from 20 to 2,500. Grand lobbies
and registration areas link exhibit halls and meeting rooms and allow simultaneous set-up, break-down,
and exhibiting of multiple events. The COVID-19 pandemic and government regulations limited large
gatherings during most of the fiscal year 2021. So, convention activity was paused and LVCC was at the
forefront of the return of significant convention activity, hosting World of Concrete in June 2021.
Economic Indicators and Conditions
Room Tax
Tourism is the largest industry and economic driver in Southern Nevada. Las Vegas is the home of 18 of
the 20 largest hotels in the United States, and Southern Nevada has a hotel room inventory exceeding
160,000, with nearly 150,000 of those rooms located in the Las Vegas metropolitan area.
Top Ten Las Vegas Hotels by Number of Rooms
Estimated Rooms % of Total
at 12/31/20 Rooms
MGM Grand 4,968 3.2%
Luxor 4,400 2.8%
Venetian 4,049 2.6%
Aria 4,004 2.6%
Excalibur 3,981 2.6%
Bellagio 3,933 2.5%
Caesars Palace 3,794 2.4%
Circus Circus 3,763 2.4%
Flamingo Las Vegas 3,446 2.2%
Mandalay Bay 3,211 2.1%
In addition to the properties above, the Las Vegas market has approximately 108,000 additional rooms,
while Laughlin has over 8,600 rooms, Jean/Primm provides over 1,400 rooms, and Mesquite has nearly
1,700 rooms.
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A 10.5%-14% room tax is imposed on lodging establishments in Clark County, Nevada by the Nevada State
Legislature. Room tax collections are the LVCVA’s primary revenue source. However, the LVCVA benefits
from only a portion of all Southern Nevada room tax collections. The LVCVA has discretionary use of
slightly more than one third of all room tax revenues generated, after considering collection allocation
and debt service payments for Nevada Department of Transportation (NDOT) projects.
Room tax is affected by the number of lodging rooms available,
occupancy rate, and average daily room rate (ADR). Although
new inventory was added due to property openings at the end
of the fiscal year, including Resorts World’s 3,500 new rooms,
there were some properties that have yet to re-open at all after
the 2020 mandated shut down, or gradually re-opened their
rooms. Therefore, for most of the fiscal year, available room
inventory decreased overall. COVID-19 drove both a 33% occupancy decrease and 18.9% ADR decrease,
both in comparison to FY 2020. Room taxes and gaming fees decreased $97.4 million, 41% below the
prior year.
Conventions & Meetings
Facility charges for services decreased by 84%, as compared to the prior year, due to the COVID-19
pandemic, which effectively shut the convention facilities in mid-March 2020. The LVCVA didn’t have any
significant conventions until June 2021.
Financial Management and Accountability
Strategic planning has been a key focus of the LVCVA over the last decade. Finance staff updates long-
term operating forecasts to ensure alignment with the LVCVA’s strategic objectives. Management remains
vigilant to maintain fiscal sustainability through conservative budgeting and continuous monitoring of
actual financial results and economic trends at the local, state, and national levels. Such approach allows
the LVCVA the ability to react swiftly to changing conditions and sustain operations during challenging
periods.
In response to the significant and unprecedented decrease in revenues, LVCVA management reduced
spending, in varying levels, in all functions. This included significant staff furloughs, as well as terminating
or reducing contractual commitments and discretionary spending and transfers, leaving actual
government-wide expenditures $95.7 million below the prior year. The net result was that government
wide expenses exceeded revenues by $55.7 million. Cost reduction efforts during the fiscal year resulted
in General Fund spend down of fund balance of $30.3 million, as compared to the budgeted spend down
of $60.9 million. While the continuing impact of the COVID-19 pandemic is still unknown, room rates and
occupancy rates have increased significantly and conventions have returned, albeit with fewer attendees.
The LVCVA has continued to reduce operating budgets and strategically utilize funds to fulfill its mission.
The LVCVA is dedicated to the preservation of adequate fund balances to meet minimal operating cash
flow requirements and to satisfy debt service obligations. The LVCVA’s financial planning assumes that it
will take more than two years for full revenue recovery from the COVID-19 economic impact, led by the
continued return of leisure travel and followed by the full return of meeting and convention travel.
However, the future impact of the COVID-19 pandemic is still evolving.
110
ADR IMPACT
Each $1 change in ADR changes
LVCVA room tax revenue
by more than $2 million annually
5
Major Initiatives in FY 2021
Las Vegas Convention Center District
In January 2021, Phase Two expansion of the Las Vegas Convention Center District (LVCCD) was completed
and added approximately 1.4 million total square feet, with 600,000 square feet of exhibition space, plus
additional square footage for meeting rooms, additional parking, new food and beverage outlets, and
support and service spaces. The Phase Two expansion cost approximately $1 billion.
The most significant future capital item is Phase Three of the LVCCD project, consisting of the renovation,
modernization, and addition to the existing facility to create consistency with the Phase Two expansion.
The Phase Three architectural design phase is planned to resume in early 2022. The estimated budget for
Phase Three of the LVCCD project is $600 million. The renovation is expected to begin in fiscal year 2023.
Transportation Services
In December 2020, the LVCVA purchased the Las Vegas Monorail out of bankruptcy for approximately
$24.5 million. The 3.9-mile system has seven stops along the east side of the Strip and allows passengers
to travel the Strip in 15 minutes. Historically, the Monorail moves nearly 5 million passengers per year and
is integral to overall Strip resort corridor transportation, especially to LVCC convention attendees.
In May 2021, the LVCC Loop opened to passengers and provides convenient transportation for convention
and trade show attendees across the LVCC campus, connecting the new West Hall with the existing
campus (North/Central/South Halls). Three passenger stations offer convenient access between key LVCC
destinations and nearby transportation connections. The $53 million system allows customers to turn a
30-minute walk across campus into a two-minute underground ride in a Tesla. The system is designed to
transport more than 4,400 convention attendees per hour across the campus.
Las Vegas Loop Central Station
6
Marketing
The reopening of the destination in June 2020 was highlighted by a commercial simply showing the re-
lighting of the famous Las Vegas Strip, ending with “Now Open.” Late summer and fall campaigns focused
on the #VegasSmart effort to not only highlight Las Vegas being open, but also safely open.
In May 2021, “Boom Boom Clap,” launched. As part of the
“Vegas You” campaign, it was created to serve as a reminder,
as travel became a reality for more and more guests, that Las
Vegas was ready and excited to welcome visitors.
In late summer 2021, the “The Greatest Arena on Earth,”
campaign was launched, highlighting Las Vegas as the ultimate
destination to watch and experience sports, and to also
experience the surrounding Vegas experiences.
Principal Officials
Board of Directors
The Las Vegas Convention and Visitors Authority is governed by a Board of Directors consisting of fourteen
members. Eight members are elected officials of either Clark County or one of its incorporated cities. The
Las Vegas Metro Chamber of Commerce (CC) and Nevada Resort Association (NRA) nominate three each
of the remaining six members. As of June 30, 2021, members of the board included:
Councilman John Marz, Chair City of Henderson
Ms. Marilyn Spiegel, Vice Chair Resort Hotel Industry (NRA)
Commissioner Jim Gibson, Secretary Clark County
Mr. Anton Nikodemus, Treasurer Resort Hotel Industry (NRA)
Mr. Scott Deangelo General Business (CC)
Councilwoman Michele Fiore City of Las Vegas
Mayor Carolyn G. Goodman City of Las Vegas
Councilwoman Pamela Goynes-Brown City of North Las Vegas
Ms. Jan Jones-Blackhurst Resort Hotel Industry (CC)
Mayor Kiernan McManus City of Boulder City
Commissioner Michael Naft Clark County
Ms. Mary Beth Sewald Other Commercial Interests (CC)
Mr. Steve Thompson Central Business District (NRA)
Councilman Brian Wursten City of Mesquite
7
CEO & Senior Executive Team
The LVCVA Board of Directors serves as a policy-making body and employs a President to serve as Chief
Executive Officer (CEO). As of June 30, 2021, the LVCVA CEO and senior executive team consisted of:
Mr. Steve Hill Chief Executive Officer/President
Ms. Caroline Bateman General Counsel
Mr. Ed Finger Chief Financial Officer
Ms. Lori Nelson-Kraft Sr. VP of Communications
Ms. Stana Subaric Sr. VP of People and Culture
Ms. Kate Wik Chief Marketing Officer
Mr. Brian Yost Chief Operating Officer
Overall Financial Position
The following financial information includes a Statement of Net Position for governmental activities.
Governmental funds normally include the General Fund, Capital Funds, Debt Service Funds, Special
Revenue Funds, and certain Internal Service Funds. The LVCVA presents a General Fund, LVCCD Capital
Fund, LVCCD Debt Service Fund, Capital Projects Fund, Debt Service Fund, and Internal Service Fund. The
LVCVA does not have a special revenue fund. The General Fund is the primary operating fund for the
LVCVA. The information for revenues and expenditures is presented on a modified accrual basis.
Governmental Governmental
Activities Activities
FY 2020 FY 2021
ASSETS
Current and other assets 730,653,942$ 333,714,177$
Capital assets 1,595,862,021 1,766,739,245
TOTAL ASSETS 2,326,515,963 2,100,453,422
DEFERRED OUTFLOWS OF RESOURCES 24,576,272 39,840,061
LIABILITIES
Current liabilities 263,025,999 71,507,185
Noncurrent liabilities 1,816,027,308 1,841,029,433
TOTAL LIABILITIES 2,079,053,307 1,912,536,618
DEFERRED INFLOWS OF RESOURCES 33,175,022 44,569,609
NET POSITION
Net investment in capital assets 261,668,738 297,678,000
Restricted 240,632,838 53,737,706
Unrestricted (263,437,670) (168,228,450)
TOTAL NET POSITION 238,863,906$ 183,187,256$
Las Vegas Convention & Visitors Authority's
Statement of Net Position
As of June 30, 2021
8
The Statement of Net Position presents the LVCVA’s financial position from a long-term perspective. It
reports all of the LVCVA’s assets and deferred outflows (what we have) and liabilities and deferred inflows
(what we owe), with the difference between the two reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the LVCVA’s financial position is
improving or deteriorating.
Net position is made up of three components: 1) Net investment in capital assets, which represents the
LVCVA’s investment in capital assets, less any related outstanding debt used to acquire those assets; 2)
Restricted net position, which reflects legal constraints from debt covenants or other restrictions that limit
the LVCVA’s ability to use those assets for day-to-day operations; and 3) Unrestricted net position,
representing accessible resources.
Explanation of Significant Differences:
Net position decreased $55.7 million during FY 2021. Net investment in capital assets increased $36
million primarily due to the addition of the building assets for the LVCCD expansion. Restricted net
position decreased $186.9 million, of which $132 million is attributable to a reduction in debt resources
as restricted bond proceeds were used to complete a debt defeasement on a cross-over refunding
initiated in 2017. Unrestricted net position improved $95.2 million as a result of the changes above.
Where the Money Came From
The revenues presented below are from General Fund activities, the LVCVA’s primary operating fund. In
FY 2021, General Fund operating revenues represented 89.9% of total revenues. All amounts are reported
using the modified accrual basis of accounting, which means revenues are recognized when they become
measurable and available to pay current period liabilities. General Fund revenues decreased 57% from
previous fiscal year, attributable to the COVID-19 pandemic.
General Fund
(Modified accrual basis)
Room Taxes: Room tax revenues decreased by $122 million, 52% below the previous fiscal year. During
the year, both business and leisure travel were greatly reduced, resulting in low occupancy and ADR, all
related to the COVID-19 pandemic, culminating in the significant reduction in overall revenue for the year.
Use of Facilities: This category represents revenues generated by the operation of the LVCC. The decrease
of 89% from FY 2020 is solely due to the COVID-19 pandemic as most shows and events in the LVCC were
delayed or cancelled through June 2021.
Other Fees & Charges: Other fees & charges decreased $2.3 million, primarily related to loss of ancillary
revenue from lack of show activity.
Room taxes 281,389,017$ 283,540,300$ 286,428,607$ 233,394,445$ 111,240,941$ -52%
Gaming fees 1,593,600 1,581,702 1,620,485 1,409,665 1,427,732 1%
Use of facilities 59,984,761 58,809,912 54,875,029 48,344,032 5,257,454 -89%
Transportation - - - - 2,266,358 100%
Other fees & charges 8,022,338 7,019,488 4,107,973 4,463,495 2,104,498 -53%
Interest & other 397,606 453,044 819,620 2,745,312 1,735,439 -37%
351,387,322$ 351,404,446$ 347,851,714$ 290,356,949$ 124,032,422$ -57%
FY 2017 FY 2018 FY 2019
% Change
from FY 20FY 2020 FY 2021REVENUES:
9
Interest & Other: Interest & other includes investment interest, interest and penalties related to room
tax, and other miscellaneous revenues. The 37% decrease in FY 2021 was attributable to reduced cash
and investment balances, as well as lower interest rates.
Where the Money Went
The operating expenditures presented in the following chart are from General Fund activities. The General
Fund is generally the largest source of current expenditures for the LVCVA. It is used for the general
operations and activities of the LVCVA and does not include capital, debt service, or the internal service
activities, which are accounted for in separate funds. The modified accrual basis of accounting is used for
the General Fund, which recognizes increases and decreases in financial resources only to the extent that
they reflect near-term inflows or outflows of cash.
General Fund
(Modified accrual basis)
General Government: Decrease in expenditures of $5 million is primarily due to strategically implemented
cost containment as room tax and facility revenues were unprecedently reduced during the fiscal year
due to the COVID-19 pandemic.
Marketing/Advertising and Special Events: Marketing showed a decrease compared to the previous fiscal
year because of strategically implemented cost containment. The decrease in Advertising expenses is
primarily attributable to the reduction of advertising activities to mirror the decline in business and leisure
travel to Southern Nevada during the COVID-19 pandemic. In FY 2021, special events grants decreased
39%, mainly due to the due to cancellations or postponement of events in the wake of the COVID-19
pandemic.
Electric Daisy Carnival – Special Event
Allegiant Stadium in Las Vegas, NV
General government 19,532,835$ 20,029,693$ 19,536,345$ 16,556,545$ 11,064,160$ -33%
Marketing 45,094,547 39,813,998 38,220,616 28,462,981 8,195,538 -71%
Advertising 95,905,154 106,726,431 100,315,540 81,183,541 52,041,490 -36%
Special events grants 12,196,297 12,551,768 15,315,686 15,770,524 9,679,335 -39%
Operations 39,289,787 39,898,070 38,729,965 40,313,033 14,397,759 -64%
Transportation - - - - 5,361,774 100%
Other community support 25,000,000 25,000,000 25,000,000 23,480,411 11,266,867 -52%
237,018,620$ 244,019,960$ 237,118,152$ 205,767,035$ 112,006,923$ -46%
FY 2018 FY 2019
% Change
from FY 20FY 2020 FY 2021EXPENDITURES:FY 2017
10
Operations/Transportation: Decrease in expenditures of $26 million is primarily due to the closure of the
LVCC as government regulations limited capacity for large gatherings, resulting in limited shows during
the fiscal year, as well as furloughed employees and reduced utility costs. The transportation costs, new
in FY 2021, are related to the operation of the Las Vegas Monorail and Vegas Loop. See Major Initiatives
above for more information.
Other Community Support: Other Community Support decreased as compared to FY 2020, related to the
decrease in room tax revenue. This expenditure is collection allocation, which is a 10% distribution to the
collecting government agencies. Provisions in SB1 capped the maximum funds for collection allocations
returned to the collecting entities at $25 million. Any collection allocation exceeding the cap is transferred
to the LVCCD Capital Fund in accordance with the new law.
Debt at June 30, 2021
The LVCVA issues general obligation bonds and revenue bonds to provide funding for the improvement,
acquisition, or construction of major capital assets. At June 30, 2021, the LVCVA had total outstanding
bonded debt of $1.6 billion. During the fiscal year, the LVCVA issued debt of $21.5 million for the purchase
of the Las Vegas Monorail. In July 2020, the LVCVA effectively refunded General Obligation/Revenue
Bonds 2010C, a crossover refunding originally done in 2017, with the refunded bonds carried on the books
until they could be called in July 2020. This reduced principal debt by $132.4 million during the fiscal year.
Bond Ratings: Current LVCVA bonds issued through Clark County are rated “AA+” by Standard and Poor’s
(S&P) and “Aa1” by Moody’s. An “AA+” rating by S&P is equivalent to Moody’s “Aa1,” an investment grade
rating reflecting a very strong capacity to meet financial commitments. LVCVA’s separate bond ratings, as
of June 30, 2021, was “Aa3” by Moody’s.
Summary of Debt Instruments
(In thousands)
Types of Debt
General Obligation (GO) Bonds: The LVCVA may issue general obligation bonds in the name of, and on
behalf of, Clark County. GO bonds are direct and general obligations of Clark County, and the full faith and
credit of the County is pledged for the payment of principal and interest, subject to certain Nevada
constitutional and statutory limitations. The GO bonds are additionally secured by a pledge of revenues
from the LVCVA. As a matter of practice, the LVCVA has never had to use property taxes for debt service,
using only net pledged revenues derived from operations.
Direct-Pay Bonds: One of the outstanding LVCVA bonds is considered to be a direct-pay bond, which is
also referred to as “Build America Bonds.” The LVCVA was able to obtain certain tax advantages when
issuing taxable obligations for capital projects that meet certain requirements of the U.S. Tax Code and
U.S. Treasury Regulations under the American Recovery and Reinvestment Act of 2009 (the “Recovery
Act”). In FY 2021, the LVCVA received over $1.5 million in federal subsidies to offset a portion of interest
obligations on these bonds.
GO Bonds Revenue
Bonds
Medium Term
Bonds Total
Principal balance, June 30, 2020 940,840$ 829,800$ -$ 1,770,640$
Principal payments (145,470) (3,730) (100) (149,300)
New issuances - - 21,500 21,500
Principal balance, June 30, 2020 795,370$ 826,070$ 21,400$ 1,642,840$
11
Revenue Bonds: Under Nevada Law, the LVCVA may issue revenue bonds payable solely from the net
revenues derived from operations and room taxes. Revenue bonds are not general obligations of Clark
County, and no ad valorem taxes may be levied to pay the debt service. The LVCVA’s direct placement
bond with a bank is also a revenue bond.
Debt Policy
The Board of Directors has adopted a debt policy, which is applicable to all debt issuance activities of the
LVCVA. This policy establishes the requirements and procedures for ensuring compliance with federal laws
relating to issuance and post-issuance monitoring of tax-exempt bonds and taxable direct-pay bonds.
The LVCVA coverage ratio is 1.2x as of June 30, 2021. The LVCVA has budgeted that, as a result of increased
travel and tourism, revenues should be sufficient to comply with the coverage ratios in the bond
resolutions for the fiscal year ending June 30, 2022.
12
Awards
PAFR Award
The Government Finance Officers Association of
the United States and Canada (GFOA) has given an
Award for Outstanding Achievement in Popular
Annual Financial Reporting to the LVCVA for its
Popular Annual Financial Report for the fiscal year
ended June 30, 2020. The Award for Outstanding
Achievement in Popular Annual Financial Reporting
is a prestigious national award recognizing
conformance with the highest standards for
preparation of state and local government popular
reports.
To achieve an Award for Outstanding Achievement
in Popular Annual Financial Reporting, a
government unit must publish a Popular Annual
Financial Report, whose contents conform to
program standards of creativity, presentation,
understandability, and reader appeal.
An Award for Outstanding Achievement in Popular
Annual Financial Reporting is valid for a period of
one year only. The LVCVA has received a Popular
Award for the last fourteen consecutive years. We believe our current report continues to conform to the
Popular Annual Financial Reporting requirements, and we are submitting it to the GFOA for consideration.
Comprehensive Annual Financial Report Award
The LVCVA comprehensive annual financial reports for the years ended 2017-2020, from which the
information on pages 7-11 has been drawn, were awarded the Certificate of Achievement for Excellence
in Financial Reporting by the Government Finance Officers Association of the United States and Canada
(GFOA). The Certificate of Achievement is the highest form of recognition for excellence in state and local
government financial reporting.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable
and efficiently organized comprehensive annual financial report, whose contents conform to program
standards. Such a Comprehensive Annual Financial Report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
Comprehensive Annual financial report continues to conform to the Certificate of Achievement Program’s
requirements, and we are submitting it to GFOA to determine its eligibility for another Certificate.
We hope you found reading the Las Vegas Convention and Visitors Authority FY 2021 Popular Annual
Financial Report both informative and enjoyable, and we invite you to read our other financial documents
along with this document, by going to: http://www.lvcva.com/who-we-are/funding-and-finance.