State of Indiana an Equal Opportunity Employer State Board of Accounts 302 West Washington Street Room E418 Indianapolis, Indiana 46204-2765

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State of Indiana an Equal Opportunity Employer State Board of Accounts 302 West Washington Street Room E418 Indianapolis, Indiana 46204-2765 STATE OF INDIANA AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS 302 WEST WASHINGTON STREET ROOM E418 INDIANAPOLIS, INDIANA 46204-2765 Telephone: (317) 232-2513 Fax: (317) 232-4711 Web Site: www.in.gov/sboa Board of Directors Capital Improvement Board of Managers 100 South Capital Avenue Indianapolis, Indiana 46225-1021 We have reviewed the audit reports prepared by BKD, LLP, Independent Public Accountants, for the period January 1, 2007 through December 31, 2008. In our opinion, the audit reports were prepared in accordance with the guidelines established by the State Board of Accounts. Per the Independent Public Accountants’ opinions, the financial statements included in the reports present fairly the financial condition of the Capital Improvement Board of Managers, as of December 31, 2007 and 2008 and the results of its operations for the periods then ended, on the basis of accounting described in the reports. The Independent Public Accountants' reports are filed with this letter in our office as a matter of public record. STATE BOARD OF ACCOUNTS Capital Improvement Board of Managers (of Marion County, Indiana) (A Component Unit of the Consolidated City of Indianapolis - Marion County) Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2007 Anne T. Dillon, Treasurer Dixie L. Gough, Controller Comprehensive Annual Financial Report Fiscal Year Ended December 31, 2007 Capital Improvement Board of Managers (of Marion County, Indiana) - a Component Unit of the Consolidated City of Indianapolis- Marion County Indianapolis, Indiana Prepared by: Anne T. Dillon, Treasurer Dixie L. Gough, Controller Capital Improvement Board of Managers (of Marion County, Indiana) (A Component Unit of the Consolidated City of Indianapolis-Marion County) December 31, 2007 Contents Introductory Section Letter of Transmittal ..........................................................................................................................................2 Certificate of Achievement for Excellence in Financial Reporting..................................................................10 Organization Table...........................................................................................................................................11 Principal Officers and Management.................................................................................................................12 Financial Section Independent Accountants’ Report....................................................................................................................14 Management’s Discussion & Analysis.............................................................................................................16 Financial Statements Balance Sheets............................................................................................................................................30 Statements of Revenues, Expenses and Changes in Net Assets .................................................................32 Statements of Cash Flows ..........................................................................................................................33 Notes to Financial Statements ....................................................................................................................35 Other Supplementary Information Balance Sheet Information...............................................................................................................................64 Analysis of Revenues, Expenses and Changes in Net Assets ..........................................................................65 Analysis of Certain Operating Expenses..........................................................................................................66 Independent Accountants’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance With Government Auditing Standards .......... 68 Statistical Section (Unaudited) Table I - Net Assets by Component .................................................................................................................70 Table II - Changes in Net Assets......................................................................................................................72 Table III - Event Statistics................................................................................................................................74 Table IV - Largest Customers ..........................................................................................................................76 Table V - Rate Schedule - Exhibits..................................................................................................................77 Table VI - Rate Schedule - Meetings ...............................................................................................................78 Table VII - Rate Schedule – Hourly Labor Reimbursement Rates ..................................................................79 Table VIII - Food Service and Concession Revenues......................................................................................80 Table IX - Ratios of Outstanding Debt by Type ..............................................................................................81 Table X - State and Local Tax Assistance........................................................................................................82 Table XI - Pledged Revenue Coverage ............................................................................................................84 Table XII - Demographic and Economic Statistics..........................................................................................86 Table XIII - Principal Employers.....................................................................................................................87 Table XIV - Number of Employees (FTEs) by Identifiable Activity...............................................................88 Table XV - Occupancy Statistics .....................................................................................................................89 (THIS PAGE INTENTIONALLY LEFT BLANK) Introductory Section Facilities: Among the facilities managed by the CIB is a multi-purpose sports and convention facility, the Indiana Convention Center & RCA Dome, which is located in a six-block area in the heart of downtown Indianapolis, bordered by the State Capitol, Pan American Plaza, Union Station, Capitol Commons, Circle Centre Shopping and Entertainment Complex, Victory Field and several major hotels. The Indiana Convention Center contains 308,700 square feet of clear span convention and exhibition space, 48 meeting rooms and four ballrooms. The seven exhibit halls range in size from 29,500 square feet to 51,000 square feet. The Sagamore is the largest ballroom, with 33,335 square feet, and can be divided into seven different sections. It is the largest ballroom in the state and the largest among the cities with which Indianapolis frequently competes for business. Since opening in 1972, the Indiana Convention Center has had three major expansions and a fourth is scheduled for completion in the fall of 2010. An expansion in 1999 added 100,000 square feet of exhibit space, expanded registration and lobby areas, 25 truck docks and 2 drive-in ramps. In keeping pace with the changing business environment, global single and multi-mode networks for video conferencing and Internet access have also been added. The RCA Dome is a domed stadium, with seating for 57,890 and is the home of the National Football League’s Indianapolis Colts. The Dome will be demolished in 2008 to make way for the fourth expansion of the Convention Center. The expansion will contain a combination of additional exhibit halls, meeting rooms and docks, together with additional pre-function and support spaces. Now under construction in downtown Indianapolis is the new Lucas Oil Stadium (LOS), a multi- purpose facility that will replace the current RCA Dome. Directing the project is the Indiana Stadium and Convention Building Authority. LOS is a state-of-the art, retractable roof, multi-purpose stadium featuring spectacular views of the Indianapolis skyline. In addition, the stadium has an infill playing surface, 7 locker rooms, exhibit space, meeting rooms, operable north window, dual two-level club lounges, 137 suites, retractable sideline seating, house reduction curtains, two large video boards, ribbon boards, spacious concourses, interior and exterior plaza space, 11 indoor docks and two vehicle ramps to the event level. In 2010, LOS will be connected to the newly expanded convention center and several hotels and entertainment options by a new pedestrian connector. Tradeshows can take advantage of an indoor 30,000 square foot loading dock with 11 bays, retractable seating and operable walls to utilize up to 183,000 contiguous square feet of space. Football games can be played indoors or outdoors using the retractable roof and operable north window. The house reduction curtain system covers the entire Terrace Level seating, reducing capacity from 63,000 to approximately 41,000. Basketball and other mini-dome events have the option of playing in the round for up to 70,000 fans or in a much smaller configuration with a house reduction curtain system. Concerts may be played indoors or outdoors in full stadium or reduced house configurations.
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