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HomeMy WebLinkAbout07-06-04 Finance Com Minutes - Fee Waivers-DACDUBLIN CITY COUNCIL Finance Committee Tuesday, July 6, 2004 Council Conference Room Minutes Attending: Mr. Keenan, Chair Mrs. Boring Mr. Lecklider Mayor Chinnici-Zuercher Mr. McCash Staff: Ms. Grigsby Guest: Jessica Fagan, Dublin Arts Council Mr. Keenan called the meeting to order at 6:10 p.m., noting that tonighYs meeting has been scheduled to discuss Dublin Arts Council fee waivers. BACKGROUND Ms. Grigsby stated that the need for policy direction for Dublin Arts Council fee waivers was identified a few months ago when Council established a policy for the Dublin Community Recreation Center fee waivers. Several weeks ago, the City received a request from the Dublin Arts Council for fee waivers for the cost of City services for the 2004 Dublin Arts Council events, "Sundays at Scioto" and the Arts and Music Festival. As it was Council's intention to review this issue and that policy direction be given before additional waivers were granted, information was provided in the last Council meeting packet regarding fee waivers granted to Dublin Arts Council over the past five years. The information also included Dublin Arts Council financial statements for years 2000, 2001 and 2002; 2004 calculations on the cost of City services; and a cover memo of explanation from the City Manager. At its June 21 meeting, Council approved the fee waiver request for the 2004 "Sundays at Scioto." The fee waiver request for the Arts and Music Festival was referred to the Finance Committee for discussion and for future policy direction for both waivers. Mr. Keenan inquired if there is a staff recommendation regarding the fee waiver for the Arts and Music Festival. Ms. Grigsby responded that staffs recommendation is that consideration be given to reducing the amount granted for the Festival fee waiver. If Dublin Arts Council should desire to host other events throughout the year, there would be the possibility of additional requests for fee waivers. Also, requests for fee waivers are received from other organizations that the City may wish to consider. Mr. Keenan explained that the "Sundays at Scioto" are not-for-profit events for the general public. The Arts Festival is somewhat different, as vendors are charged a fee for permits for tents and booth space. Finance Committee July 6, 2004 Page 2 Ms. Fagan, Dublin Arts Council Visual Arts and Communications Manager, stated that the amount charged for booths covers some of the operational expenses, such as the cost of tent rentals. There is no profit on the event. Mrs. Boring stated that most north central Ohio communities offer a summer arts/music venue to their communities. She suggested that the City partner with Dublin Arts Council for the summer concerts to the community by providing the City services free of charge. That would be accommodated in the City's regular budget, which would be similar to the City's partnership with Leadership Dublin. She noted that at the concert this past Sunday, it did not seem that the number of City staff present were necessary. Staffing should be more closely monitored. She agrees with staff, however, that the fee waiver for the Arts Festival should be re-evaluated for two reasons - a vendor permit fee is charged for the Arts Festival, and other events, such as the new Leadership Dublin "Ducky Derby" will also be requesting fee waivers. Mr. Keenan noted that some of the other events are raising money; the Arts Festival does not. Their vendor fee barely covers the operational expenses. Ms. Fagan stated that with the permit fees and event sponsors, Dublin Arts Council attempts to achieve a zero balance for the Festival. She noted that some of the expenses of the Festival include: tent rentals - $8,000; electricity for the site - $2,000; and porta-johns - $2,000. Dublin Arts Council does not have the option of increasing the vendor booth fee, as the vendors have commented that the current fee is high. To date, Dublin Arts Council has been "breaking even." Mrs. Boring inquired what the public attendance has been for the event. Ms. Fagan responded that this will be the sixth year for Dublin Arts Council to host the Arts Festival, and attendance has been consistently increasing. Mr. Keenan noted that the Dublin Women's Club previously hosted the event. The synergy was for this event to be held in Historic Dublin. Mr. Pigman, incoming Dublin Arts Council president, has commented that the location may be impeding the growth of the event. Parking in Historic Dublin is an issue. Mr. Pigman has pointed out that the Upper Arlington event has rallied, now that it is held in an open area with available parking. Mrs. Boring stated that the Dublin Arts Festival was previously held in an open area. Then there was a petition to move it to Historic Dublin. There is always a conflict regarding the objectives of its location. Mr. Keenan noted that Mr. Pigman has shared that the Dublin Arts Council Board is evaluating whether it wants to continue to host the Arts Festival. Budget is a serious issue, and the event may not survive another year. Because Dublin Arts Council has already made financial commitments for 2004, he recommended that the fee waiver for the Arts Festival be granted for this year. Different policy direction for the future may then be given, and the Dublin Arts Council Board can consider that policy in its reevaluation of its future plans for the event. Mrs. Boring suggested that the Committee determine its policy recommendation tonight. Finance Committee July 6, 2004 Page 3 Mr. Lecklider stated that he agrees with Mrs. Boring's recommendation regarding the City's support of the "Sundays at Scioto" concerts by covering 100% of the cost of City services. He is less certain of what the City's responsibility should be for support of the Arts Festival. Mr. Keenan stated that the Arts Festival is a community event. It is also Council's goal to revitalize Historic Dublin, so that should be a consideration in developing a policy. He suggested that the Committee determine its recommendation for the 2004 Arts Festival. Future policy can be discussed as a separate item. Committee consensus was to waive the cost of City services for the 2004 Arts & Music Festival. Future Policy -Sundays at Scioto Mrs. Boring reiterated her suggestion that City services for the summer concerts be included in the City's regular budget. She requested staff's recommendation. Ms. Grigsby responded the cost of City services for these events is already included in the City's budget. The only question is whether there will be offsetting revenue. It would not pose a problem if Council were to set a policy to support the "Sundays at Scioto" concerts by providing City services at no cost to the Dublin Arts Council until different direction is given. Committee consensus was to recommend such a policy to Council. Mr. Lecklider stated that if the policy states "until further direction is given," in fairness to the Arts Council, the notification process should be clarified. Mr. McCash suggested that aone-year notice be given. Ms. Grigsby inquired if the Arts Council is on a calendar year or fiscal year budget. Ms. Fagan responded that the Arts Council is on a fiscal year budget. Ms. Grigsby stated that should work well with the City's budget process. Any decision to discontinue the policy during the City's budget process would become effective for the Arts Council's neat fiscal year. Future Policy -Arts Festival Mrs. Boring stated that she was a strong proponent of Council's previous policy decision to support the Dublin Arts Council with 25% of the bed tax revenue. The intention of that policy was that there would be no additional mini grants or waivers throughout the year. The Arts Festival should be considered part of that budget. Mr. Lecklider inquired if Westerville or Upper Arlington Arts Councils receive subsidies from their cities. Finance Committee July 6, 2004 Page 4 Ms. Fagan indicated she did not know. Mr. Lecklider requested that information be provided to Council. Ms. Grigsby stated that it would be difficult to compare the communities, "apples to apples." She is not aware of any other community that provides its arts council with the level of support that Dublin provides the Dublin Arts Council. For instance, the City not only provides the funding for the "Arts in Public Places" projects, but it also insures and maintains all the art. For instance, there are some major structural issues with "The Watch House," and this year's CIP budget includes $35,000 - $40,000 for repairs. Each year, the City's annual debt service on the Dublin Arts Council facility far exceeds the rent that is received for the facility. Information will be obtained and provided to Council regarding the other communities' subsidies of their arts councils, but it will be difficult to do a comparison. Mr. McCash stated that part of the problem that the Dublin Arts Council is encountering now is related to the economy. Both sponsorships and memberships have decreased. However, this is not a large amount of money being considered, and Council's policy should consider that (1) the Arts Festival contributes to the quality of life offered to the citizens of Dublin; and (2) the cost of City services for this event -- $8,000 is a minimal investment in Historic Dublin. Mr. Lecklider inquired about the estimated attendance of the Arts Festival. Ms. Fagan estimated 5,000 attend the event. She noted that Historic Dublin merchants have stated that the date of the Arts Festival is their single best day for sales in the year. Mrs. Boring stated that 25% of the City's bed tax budget should cover the City's responsibility; it is not the City's responsibility to ensure that this particular event succeeds. The Arts Council should budget that money to cover this event. Mr. Keenan noted that the Arts Council also assumed the responsibility for some smaller grants, such as to the Dublin Singers and the Emerald Players. Mrs. Boring responded that was part of the agreement attached to the grant. Mr. McCash stated that the Arts Council is entirely dependent upon bed tax or charitable giving. The City has the ability to increase its revenue through economic development and income taxes, but the Arts Council does not have that ability. As a matter of fact, during economic depression, charitable giving is cut rather quickly. This has an impact on the Arts Council, and, therefore, the Emerald Players and Dublin Singers. There is the potential of something being sacrificed that the residents are not happy about. Dublin residents expect the quality of life to which they are accustomed in Dublin to continue. It is, after all, what makes this City different from most other communities. Mr. Keenan inquired about the actual dollar amount of the 25% bed tax grant and how much of that is used for the facility lease payments. Finance Committee July 6, 2004 Page 5 Ms. Grigsby responded that this year the grant is $473,000 and the lease is $64,000. The amount of the grant is increased 2% each year. Mr. McCash noted that the Schools are impacted by what happens to the Arts Council. When the school funding becomes tight, the first items in their budget sacrificed are arts and music. However, in Dublin, the Dublin Arts Council can fill that gap. The City would not want to create a shortage that would impact the Schools. Mrs. Boring stated that as long as the Arts Council enjoys the City's subsidy of City services, they are not challenged to look at ways to decrease the cost. For instance, are four stages for entertainment necessary? Mayor Chinnici-Zuercher stated that the issues for City Council are: (1) What activities does Council want to make available to the community? (2) What price is Council willing to pay for that? If Council would like an Arts Festival to be available to this community, is Council willing to invest the cost of City services? If not, it is the Arts Council's issue. All non-profit agencies have been impacted and have had to deal with cutbacks on staffing and services. Non-profit agencies have had to find funding through creative means. This is the reason Council appointed Chris Curry as the Arts Council representative -that is his profession and field of expertise. Mr. Keenan inquired if the Committee requested any additional information before policy discussion and recommendation at a September meeting. Mr. Lecklider reiterated a request for information on other cities' subsidies to arts councils, such as Upper Arlington, Westerville, and Grove City. He would propose that the Arts Festival fee waiver be considered on an annual basis. Mr. Keenan stated that the objective was to eliminate the annual request to Council. Mr. McCash suggested a policy for an annual grant of $5,000 towards the cost of City Services for the Arts Festival. The Arts Council would have to budget any additional amount in the 25% bed tax grant from the City. Mrs. Boring requested information regarding: communities similar in size to Dublin; and (2) other communities? (1) How arts councils are supported in other Who is responsible for the arts festival event in Mr. Lecklider suggested that it would also be helpful to have a sample budget of the arts councils in those other communities. It would be helpful to not only know if there is an arts festival subsidy, but how much and what proportion that is of a larger amount that may be contributed to their arts councils. Mrs. Boring stated that the "Sundays at Scioto" and the Arts Festival are not the only events the Dublin Arts Council holds for the community. For instance, there is also the Japan Festival. Finance Committee July 6, 2004 Page 6 Mayor Chinnici-Zuercher stated that only those two events are targeted for the Dublin community. Their other events are not Dublin-focused and are marketed to a broader audience. Mr. McCash stated that for Council, the distinction would be those events that incur a cost for City services. Mr. Keenan stated that it would be helpful to have the 2003 financial statements for Dublin Arts Council. The financial statements from the previous years reflect that the Arts Council is on a calendar year. Ms. Grigsby stated that the City has requested a copy of their 2003 financial statement. The Arts Council has indicated their auditor is preparing the statements, and a copy will be forwarded as soon as it is available. Mr. Keenan stated that an in-house draft statement would be available, and that would suffice for this Committee's purpose. Mayor Chinnici-Zuercher stated that the Dublin Arts Council Board of Directors has made a decision that no financial statements are available for public review until the Board has approved them. Mr. Keenan stated that is far too long to have that information unavailable. However, there should be a statement by activity. It would be helpful to have financial statements from the last two to three years specific to the Arts Festival event and the projected budget for the 2004 event. Ms. Fagan will request that information be forwarded to Council. Mr. Keenan summarized that the recommendation to Council will be to waive the cost of City services for the Arts & Music Festival for 2004. The Committee will also recommend to Council that a policy be adopted to provide 100% of the cost of City Services for the "Sundays at Scioto" concerts, until Dublin City Council gives further direction. Notification of a change in this direction should be made to the Dublin Arts Council one year before an effective date. A general policy regarding future waivers for the Dublin Arts Festival will be recommended pending further discussion in September. The meeting was adjourned at 7:00 p.m. Deputy Clerk of Council