Finance Director Rick Bright said last Wednesday he did not see problems with handling the City Advertising and Promotion Commission budget for the rest of the year, although the labor and salary line will be over budget because the CAPC pays ushers now and commissioners did not plan for that expense in the 2018 budget. He said there is money elsewhere to cover it, however, the night of the Larry Carlton show during the Jazz Eureka Weekend will require more labor expense. He’ll need to shift up to $6000 to meet the overage by year’s end.
Bright said the commission budgeted $15,000 for Jazz Eureka Weekend, and Carlton alone will be a $22,500 expense. He pointed out they can use ticket sales to help make up the difference, news that led to a vigorous discussion among commissioners about how to structure budgets in the future to handle bringing in big-name acts to the Auditorium.
E.D. Mike Maloney said there is strong competition in the area for attracting audiences, and the commission needs to take a fresh look at how it budgets for these events. He said Carlton is a “top-shelf performer” and ticket sales from the show should help make up the difference in the budget line.
Commissioner Terry McClung said he was pleased to have such a performer as Carlton appear at the Auditorium, but it was “highly speculative” to expect to make much off ticket sales. Commissioner Carol Wright suggested the CAPC needed sponsors for these kinds of events, to which Bright commented KUAF radio sponsors ads, as does the Northwest Arkansas Jazz Society, but there is not enough in the budget to advertise adequately.
Wright insisted businesses in town might want to sponsor shows like this, and she is willing to participate on a committee to solicit sponsorships. Bright said the Auditorium would need a larger budget if they want to begin upgrading acts they bring in, and music festivals at other venues generally need volunteers to track down sponsors.
McClung agreed Eureka Springs was looking at a different landscape for attracting quality entertainment because of the upgraded competition nearby, and commissioners should look differently at how it budgets. “Try to fill the hall,” he urged. He pointed out he has enjoyed seeing quality entertainers at Auditorium shows that were poorly attended.
Bright said there were funds in another budget line he could use to cover the overage, but Chair Susan Harman said, “A budget is a budget, and we overspent.”
Maloney contended the problem is in the planning. Entertainers need to be booked a year in advance, and the CAPC has fallen behind, but commissioners must revamp the budgeting strategy.
McClung said the commission did put $40,000 in a line item for Auditorium expenses, and that cache could be applied to this event so ticket sales could be funneled back into that line item. Harman was not confident they could count on ticket sales, and suggested they begin developing a new strategy at a workshop.
Bright repeated the budget would be okay this year as long as they are careful, and again suggested they need a new protocol if they want top name entertainers.
Wright pointed out there is more to the equation, that quality entertainers will bring people to town, and lodging properties, restaurants and shops will benefit. McClung agreed that is why the CAPC is willing to try to bring big names to town, but they cannot ignore budget constraints. However, he noted, they do have a healthy reserve if they need it.
Bright said they were $26,000 ahead in tax collections this year so nothing would be cu,t although Maloney mentioned he wished he had more money available to advertise these events on radio.
Discussion will continue at workshops and budgeting planning sessions.