While the economy took a bite out of rentals, the Vicksburg Convention Center continued to bring in more revenue than expected and keep expenses under budget in the second quarter, Larry Gawronski told advisory board members Tuesday.

Gawronski, executive director of VenuWorks — which manages the convention center and Vicksburg Auditorium — said the number of businesses and organizations booking the convention center has remained steady. However, he noted changes in the types of bookings being made.

“The meetings, conferences and conventions are still happening, but groups have been spending $5,000 instead of $12,000 on food and beverages; they’re booking two days instead of three; there are 75 people attending instead of 125  — but they’re still happening,” Gawronski said.

From January through March, overall attendance at convention center events was up 15 percent from a year ago, revenue was $17,000 over budget expectations and expenses ran $24,000 under budget. The 2 percent lodging tax revenue the convention center and auditorium receive from local stays was 8 percent below what the managers thought would be brought in during the quarter. However, the $237,000 brought in by the lodging tax fiscal year-to-date is $23,000 more than budgeted. In addition to the lodging tax and rental income, the facilities are also subsidized by the City of Vicksburg.

“Even before we factor in the lodging tax revenue we are operating 26 percent below budget. With the tax revenue added, we are 62 percent under budget. We take credit for the 26 (percent), and we’re happy to take the 62 (percent),” Gawronski said. “We are coming into our best quarter of the year.”

Meanwhile, the auditorium met revenue expectations in the second quarter, but is still 10 percent below budgeted revenue for the fiscal year. Expenses ran 3 percent below budget for the quarter, with the year-to-date figures 4 percent under budget. The auditorium operating deficit during the second quarter was $35,603 — 6 percent under budget.

“We attribute the success to a combination of new business rentals, steady food and beverage sales — even in an economic downturn — and a very close watch on variable expenses,” Gawronski said. “We are confident we will continue to outperform in revenue and hold expenses where possible.”

Gawronski and his staff set a goal at the start of last fiscal year to reduce the convention center’s net operating deficit by 50 percent through the end of fiscal year 2010. The operating deficit was reduced by 25 percent in 2008. If the second quarter numbers hold steady or improve through the third and fourth quarters, Gawronski said the 50 percent reduction goal could be reached a year ahead of schedule.

“We very well may achieve that goal by the end of the fiscal year, and for that we are extremely proud,” Gawronski said.

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Contact Steve Sanoski at ssanoski@vicksburgpost.com