To: Board of County Commissioners
Through: Gini Pingenot, Director, Open Spaces
Prepared By:
prepared
Matt Bixenman, Fairgrounds Site Manager, Open Spaces
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presenter
Presenter: Matt Bixenman, Fairgrounds Site Manager, Open Spaces
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Subject:
title
10:00 AM *Fair Fund Supplemental Request
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Purpose and Request:
recommended action
Open Spaces is requesting a transfer of funds from event revenue to the Fair fund in the amount of $101,656.00.
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Background and Discussion: The event rental revenue generated by the Fairgrounds Event Center and associated facilities has historically been the revenue funds designated to supplement the annual County Fair budget, if and when needed. The event rental revenue funds are outside of Open Space Sales and Use Tax revenue and therefore unrestricted in their use. Currently, the 2025 Fair budget is budgeted to spend $948,344 which is made up of the $925,230 annual Fair budget and the beginning Fair Fund balance of $23,114 (which is used as contingency funding if the annual Fair does not meet cost recovery goals). Open Spaces staff is requesting a transfer of $101,656 from the event rental revenue budget to the Fair Fund. This amount of additional funding will increase the 2025 Fair Budget to $1,000,000 and will also provide the event with a $50,000/5% contingency fund.
The gap between the 2025 Fair budget and the projected 2025 Fair costs/revenue is due to several factors: (1) The 2025 Fair budget was submitted before the 2024 Fair occurred making the 2025 Fair budget harder to predict as the full revenue/costs for the 2024 Fair had not been realized; (2) Increasing operational and entertainment costs due to inflation; and (3) Attendance has stayed steady or decreased slightly over the last several years, all of which has contributed to the 2025 Fair budget deficit. Over the last 3 years, the difference between revenues and expenses has generated losses that ranged from $27,000 to $74,000 / year. This event trend has decreased the Fair’s reserve fund balance each year.
The short-term solution for the 2025 Fair is addressed through this supplemental budget request ($101,656.00). The long-term solution to building up the sustainability of the Fair fund will be addressed through the following: (1) implementation of an adjustment to the annual Fair ticketing model; (2) Potential adjustments to the number of days of the Fair; (3) Review / adjustments to Fair contracts for entertainment and equipment rentals; and (4) Further methods to contain operational costs and to increase / diversify revenue streams. A future study session will be scheduled with the Board of County Commissioners to discuss long-term options in further detail.
Fiscal Impact: The event rental income cost center would support this request. The fund balance is sufficient to support this one-time transfer to supplement the 2025 County Fair budget.
Alignment with Strategic Plan:
☒Be fiscally sustainable
☐Provide essential and mandated service
☒Be community focused
Staff Recommendation: Open Spaces staff recommends BOCC approval of the supplemental request of $101,656.00 from event rental income to the Fair Fund.
Concurrence: Open Space staff have coordinated with Finance / Budget staff on the need to increase the 2025 County Fair budget and associated contingency fund.