The El Dorado City Commission gave its consent to leave the Main Street funding at $30,000 for another year despite concerns from one commissioner.
The commission met with representatives from Main Street during their special meeting Wednesday afternoon.
Main Street Executive Director Lindsay Baines gave a brief overview of the things Main Street has done since it was formed nine years ago, including façade grants and IWW loans.
“The façade grant is something that El Dorado Main Street only has,” she said. “We budget an amount every year for us to assist in the façade of the buildings. Most recent was Willie’s with their new awning.”
In the last nine years, they have given $66,000 for façade work and $140,000 from IWW loans.
The money for the loans comes from the state. The grants are from Main Street and do not have to be paid back.
They were asked from where all of the funding comes.
That includes the city, state, investors and festivals.
She said they don’t have the final numbers yet from this year’s festival.
“That all goes into an operating account,” Baines said. “We have a maximum of $65,000. The city had requested we put a cap on that and anything over that goes into our general fund.”
They also automatically move $5,000 from the Western Festival to their general fund each year.
Mayor Tom McKibban said there were a couple of reasons whey he questioned their budget request.
“When I came on this board we were told about a decreasing agreement with Main Street,” he said. “Since they started up Frontier Days it has done well. The reason they said they were starting that is so they could become more self-sufficient.”
He said he was trying to go by what has been done in the past.
Lee Allen, Main Street treasurer, said after the 2008 festival, they had $43,000 in that account.
That leaves $22,000 more before they reach the cap and all profits go to the general fund.
McKibban also asked how they came up with $65,000 as the amount of reserve needed for the festival.
Baines explained it was based on growth.
This year they budgeted $53,000 for the festival.
“Do we have more than a year’s operating budget back in our reserves?” McKibban asked City Manager Herb Llewellyn, to which he was told they do not. “Most places don’t.”
Commissioner Shane Krause asked what their plans were for the $30,000 from the city.
Baines said they have budgeted $8,000 for façade grants.
“We also are looking at doing a farmers market downtown in one of the empty lots and to make a permanent, nice structure for the community,” she added.
Other uses for the money include the sculptures downtown, for which they have one base left, and there is a business interested in having a sculpture on that base.
“There are a lot of things that we put back into the community itself,” she said.
McKibban pointed out if the business puts in the sculpture, then there is no cost to Main Street.
Llewellyn also said Main Street was working on some federal funds for a farmers market.
The commission went on to discuss the amounts in this year’s budget.
The projected income for this year is $175,000, including the $30,000 from the city. The projected expenses are $153,000.
McKibban told them he didn’t want them to struggle, but at the same time they had to be smart with taxpayer dollars.
Commissioner Linda Clark wanted to continue reducing the funding.
“I just think we set the policy, and I’m in favor of keeping it,” she said. “In all honesty, it should only be $10,000 this year, but I would consider letting them have $20,000 and next year giving them $10,000. The whole purpose was for them to be self-sufficient.”
Main Street President David Ellis felt differently.
“This was a partnership, not a stand-alone operation,” he said.
Baines said according to the state organization, a good rule of thumb is for Main Street’s funding to be 30 percent public.
“That’s a good number, but if you decide you want to put your budget up about $70,000, then you’re asking for more public money, so I don’t believe in percents,” McKibban said.
Llewellyn said he would separate out the western festival from the rest of their budget, which is $53,000.
This brought up another question.
McKibban asked if there was any way they could get the Main Street businesses more involved in the festival because it takes away from their business.
“Main Street businesses always get first chance,” Ellis said.
McKibban pointed out one example of how J. Brian’s didn’t get an opportunity to sell beer at the festival when it was in business.
“They have first choice,” Ellis reiterated.
Baines also pointed out that moving the Saturday events from Main Street to the Civic Center parking lot was because the businesses didn’t want the street blocked off because it hurts their business.
“I was in downtown Main Street about 1:30 Saturday (of the festival) and I didn’t see hardly anyone downtown,” McKibban said.
Getting back to the budget, Commissioner Nick Badwey commented on all Main Street has done.
“I see over nine years over $1.3 million in projects,” he said. “I don’t know whether these projects would be done if they hadn’t got the grants. To me that sounds like a lot of money for $30,000.”
“I’m not against Main Street,” said McKibban. “In fact I have two buildings in that district. I’m just trying to be a good steward.”
Commissioner Shane Krause asked if anyone from Main Street at the meeting had been involved in the discussions on making it independent, to which they said they had not.
“I think it was the commission,” Llewellyn explained. “The thought was there was somewhat of a disconnect between Main Street and the people in the district. They wanted to quit funding the entire program and have them out in the district creating value.
“That vote I think was done at a work session. The commission said, we want them to be more independent. That’s how that came about.”
The history of the funding began at $58,000, then went to $50,000, $40,000 and finally $30,000, where it is now.
“The thought was to give them five years to try to become self-sufficient,” Llewellyn said.
“That philosophy is different than what they said in it being a partnership,” Krause pointed out.
“From National on down it is a partnership,” Ellis commented.
McKibban said there are some towns where the city doesn’t fund Main Street.
“Very few of them,” Baines answered.
Llewellyn voiced some concern for removing the funding.
“I think when you lose that cushion, for lack of a better word, they falter,” he said.
He did say they get a lot of money from the western festival though.
“I think without Frontier Western Festival, they will cut (services) as they run out of money,” he said.
One thing that could happen is they wouldn’t have a full-time paid director.
Commissioner Nick Badwey felt Main Street was working hard.
“I hate to penalize someone for working hard and being successful,” he said.
Krause said he still felt they had a lot of work to do and the city should support it.
“I think the whole $30,000,” he said. “I think with that funding we have the ability to say don’t do that or go look at this. If we don’t fund you, we have no control.”
McKibban did want to revisit the issue each year to see if they were making even more from the festival and did not need the funding.
Chapin also gave his approval.
“Can El Dorado exist without a Main Street?” he asked. “Yes, it did before and it can again, but Main Street is a good thing. I think it’s a partnership. It’s another tool as long as they’re moving forward and being progressive in their thoughts; as long as they are moving forward and spending the money wisely. I think if we don’t support them, they are going to go down.”
Ellis agreed it was important they exist.
“You have all seen towns where that downtown goes away,” he said. “We also are in the mode of marketing El Dorado. One of the best things you can do is keep downtown.”
Krause was looking ahead to future years as well.
“If what they do this year really excites us and they come back next year and request $40,000, we might consider that,” he said.
The commission decided to go with the $30,000 because they had four commissioners in favor of it.
