TPEC Identifies $495,500 in 2027 Capital Needs, With Most Currently Unfunded
Four TPEC projects totaling $201,000 are included in a citywide facilities request that exceeds available funding, while another $294,500 in equipment requests are explicitly listed as unfunded.
Tony’s Pizza Events Center has nearly $500,000 in capital projects and equipment requests listed in preliminary City of Salina budget documents for 2027, but the documents do not show that any of the requests have received final approval.
Materials prepared for the city’s Aug. 10 budget study session identify four TPEC projects totaling $201,000 within the Buildings and Facilities Capital Reserve Fund:
$150,000 for arena sound upgrades
$15,000 for an LED marquee panel
$10,000 for pipe and drape
$26,000 for stair nosings
Those projects are part of a broader Buildings and Facilities list totaling $1.088 million. The presentation shows only $500,000 available for that category, leaving requests approximately $588,000 above the proposed funding level.
The document does not identify which projects would be selected for funding within the $500,000 limit. As a result, the inclusion of the four TPEC projects should not be interpreted as final authorization to spend the full $201,000.
Additional TPEC Requests Listed as Unfunded
A separate section titled “2027 Requested but Unfunded Sub-CIP” identifies another nine TPEC requests totaling $294,500:
Forklift: $90,000
LED scoreboard and controller update: $80,000
Five-foot round tables: $40,000
Eight-foot round tables: $40,000
Food and beverage refrigerator: $16,000
Meeting-room chairs: $15,000
Food and beverage holding boxes: $6,000
Popcorn maker: $6,000
Loge box chairs: $1,500
The unfunded list includes approximately $4.3 million in requests from multiple city departments and operations. The TPEC portion represents about $294,500 of that amount.
When the two sections are combined, the preliminary budget documents identify $495,500 in 2027 TPEC capital needs. Of that total, $294,500 is explicitly labeled unfunded, while the remaining $201,000 is competing against other city facility projects for limited capital-reserve funding.
City Is Responsible for TPEC Capital Costs
Tony’s Pizza Events Center is owned by the City of Salina and operated under a management agreement with OVG360.
The facility’s audited financial statements say the city is responsible for capital expenditures, including building additions, repairs, improvements and replacement equipment. Capital purchases made directly by the arena are generally reimbursed by the city.
The city and OVG360 extended the management agreement in 2020 through Feb. 28, 2030. Under that agreement, TPEC prepares an annual operating budget for city review, excluding capital expenditures. The agreement states that management must use reasonable efforts to operate within the budget but is not financially liable for failing to reach projected results.
Capital Requests Are Separate From Operating Support
The proposed capital items do not represent the city’s complete annual financial commitment to TPEC.
According to TPEC’s audited financial statements for the fiscal year ending June 30, 2024, the arena generated approximately $1.12 million in revenue and recorded about $1.81 million in expenses. That resulted in a net operating loss of $687,052.
The statements report that the City of Salina committed $846,397 in operating funds during that fiscal year.
The audit also states that OVG360 receives a fixed management fee and may earn an incentive fee for meeting specific contractual benchmarks. Those payments are made directly by the city and are not included in TPEC’s operating statements.
The Aug. 10 presentation is a capital-improvement document and does not provide TPEC’s proposed 2027 operating subsidy, management fees or projected operating results. Those amounts would need to be reviewed separately to determine the city’s complete anticipated cost for the venue in 2027.
No final funding decision for the listed TPEC capital projects is shown in the study-session materials.
