City and Nonprofit Use of the Event Center

[council4_vaughan]

We had a good discussion at Guide Your Council today and I think it warrants discussion.

At the last council meeting, I stated that there should not be any "free" (I use the term "free" to include any reduced charge activity) events at the event center. This is hurting the financial performance of the golf course. Some may have misinterpreted my comments to suggest that there should be no public use of the event center. Rather, I am proposing that the general fund should cover the cost of any "free" events that it has at the golf course. Yes, this is our left pocket paying our right pocket. But, if we are going to ask the golf course to cover its costs (which I think we should), then we need to give it every opportunity to do so.

So, my proposal is that the golf course not be shorted any revenue that it would normally receive from similar events. The general fund should make up the difference. The golf course consultant's report stated "OHGEC staff estimates that the fees for City use of the F&B service for major and other smaller events were over $70,600 in FY2024 and projected to be over $80,000 in FY2025." It is unclear if that includes nonprofits or just city events.

If we see a public purpose to these events, then I think tax dollars (i.e. general funds) should be used to cover the cost. If we do not have sufficient general funds to cover this cost, then we have to weigh the public benefit against the budgetary constraints.

I personally think we could utilize the event center more and would like to see a line item in the general fund for these public purposes.

But, this conversation also needs to include the nonprofits that are getting reduced rental rates. Some of these nonprofits do great things for the community, but we must give equal opportunity to these reduced rental rates.

If we feel that subsidizing nonprofit events at the event center is worthy in our budget, then we should have a policy on how that is advertised to nonprofits and which types of nonprofits qualify. A suggestion at Guide Your Council was to set a budget for the rent (in the general fund) and open a lottery for nonprofits to apply for. Those randomly selected would get a general fund subsidy for their event rent/food/beverage. The lottery could be opened each budget cycle and advertised on facebook and the gateway. This would ensure fairness to all nonprofits in our community and not strip the event center of the revenue it needs to operate.

Hopefully the City's presentation on Tuesday will shed some light on the scope of current practices so that Council can make a decision on the direction we want to take going forward. This most likely will require an agenda item at a future meeting to set the policy we want.

 

[council3_rubal]

Let's consider this more closely.

First, I agree it would be good to get ACTUAL data for this with trends over at least 5 years. When I looked at convention center use in the past (by ORR), it was reported that approximately equal numbers of nonprofits and for-profit corporations use the facility. There was also significant use for celebrations of life by our residents. Should consideration not be given to residents for the celebration of life? Don’t forget that the surrounding cities also provide senior centers, and we do not. Should we continue to give lip service to our seniors?

Secondly, the GC/convention center is supported by venue tax.
Venues Defined in by Texas code Chapter 334
4) "Venue" means: • (A) an arena, coliseum, stadium, or other type of area or facility: – (i) that is used or is planned for use for one or more professional or amateur sports events, community events, or other sports events, including rodeos, livestock shows, agricultural expositions, promotional events, and other civic or charitable events; and – (ii) for which a fee for admission to the events is charged or is planned to be charged;

Third, it is a slippery slope to provide general funds for not-for-profit organizations since the general fund is primarily supported by property taxes. Our volunteer organizations provide great service to the community; however, I respectfully submit that if our residents support these organizations, they should do it through participation in the organizations' sponsored events or by direct donations by residents to the charity of their choice. Each not-for-profit organization should be financially responsible for its operation costs, and it should not be a tax burden for our residents.