The price of parties

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ST. CHARLES – Several times a year, the city closes down its downtown streets to make way for seasonal festivals that draw thousands.

And though organizers of the Scarecrow Festival, Electric Christmas Parade and St. Patrick’s Day Parade say their annual events help brand St. Charles as a unique and charming city, they know the reputation comes at a cost to them and the city.

The city’s Convention and Visitors Bureau spends about $170,000 each year on the Scarecrow Festival. The Downtown St. Charles Partnership spends more than $35,000 on its holiday parade. And the city spends nearly $80,000 each year on providing its services to St. Charles' festivals.

The slumping economy and city’s desire to be consistent has resulted in a proposed policy that could cost some of the festival organizers more each year. It also has the potential to put about $30,000 each year into the city’s coffer – a double-edged sword of sorts.

“Consistency and standardization”

When festivals and parades take place, the city’s public works, police and other departments take on the responsibility of shutting down streets, enforcing public safety and a handful of other tasks.

Currently, the city does not have a policy with a specific reimbursement rate that festival organizers are required to pay the city back for its costs.

The Downtown Partnership has been paying the city about $6,300, or 50 percent, of the city’s cost of the holiday parade. Scarecrow Festival organizers say the cost has varied over the years, including some in which no reimbursement was made.

City Administrator Brian Townsend said these inconsistencies spurred staff to start working on a policy months ago. A draft form was presented earlier this month to the city’s Government Operations Committee and a revised policy is set to be discussed on Jan. 26 at the Government Services meeting.

“When we started analyzing our practice of supporting specific events in St. Charles, it became pretty clear that we have different practices and procedures for different groups,” Townsend said. “We want to bring consistency and standardization.”

Townsend said the policy would also help the city recoup some of its costs. He said the city spends about $80,000 each year on providing services for festivals and other downtown events. About $12,000 was paid by the festival organizers this year, he said.

If the policy, which will call for a 50 percent reimbursement rate, is approved by the City Council, Townsend said the city could save about $32,000 a year. Some events, like the high school’s homecoming parades, would continue to be exempt.

Townsend stressed that this would be a policy, not an ordinance. Aldermen earlier this month stressed the importance of a yearly review, citing the potential for the economy to rebound, which could allow the city to lower the reimbursement percentage.

“Dwindling” sponsorships

David Richards, executive director of the Downtown St. Charles Partnership and a city alderman, said he thinks 50 percent reimbursement is fair, both for the city and affected organizations.

With a $35,000 price tag attached to the partnership’s annual parade, Richards said the group heavily relies on sponsorships. This year, the group was unable to secure a title sponsor, which in exchange for $15,000, gives the sponsor the parade's naming rights.

“It’s dwindling,” Richards said of the top sponsor spots. “We have had a higher number of smaller sponsors though.”

The city’s convention and visitors bureau is also familiar with a decline in sponsorship. 

Executive Director Amy Egolf said at one point, sponsorships funded nearly $100,000 of the $170,000 cost of the Scarecrow Festival. In 2006, the amount decreased to $82,000 and again last year to about $76,000.

“It’s concerning”

The combination of declining sponsorships and the city’s reimbursement estimates has Egolf worried. She believes the policy is fair, but said she is concerned for the future.

“We could conceivably be in trouble and it’s concerning,” Egolf said. “But, it’s a tough time for everybody and we know the city is facing the same challenges.”

Under the proposed policy, the city estimated that the bureau would have been charged about $26,000 in 2007 and $32,000 in 2008 for city services used at the Scarecrow Festival.

“It could jump next year and if I can’t do $32,000 then I certainly can’t do $39,000,” Egolf said. “We don’t want to get rid of the Scarecrow Festival, but from now on, our board will have to look at whether it’s worth our time and money  each year.”

Aldermen earlier this month acknowledged how festivals help the city by bringing in sales tax revenue, providing residents a low cost event and putting St. Charles on the list for its popular festivals.

They were concerned with a portion of the proposed policy that would not allow two events that require road closures to take place within 30 days of each other. Townsend said that provision may be revised before the Jan. 26 meeting.