Heritage Festival chairman Douglas Herbrand presents budget information to the Community Services Committee Monday night as finance chairman Anthony Koziol looks on.
Heritage Festival chairman Douglas Herbrand presents budget information to the Community Services Committee Monday night as finance chairman Anthony Koziol looks on. ____________________________________________________________
Wristband sales of $700,000 are “doable” for the 2004 North Bay Heritage Festival and Air Show, chairman Douglas Herbrand says, particularly with the big-name entertainment act planned for the event.
The Community Services Committee approved the festival’s budget $1.43 million budget Monday night, after grilling Herbrand and festival finance chairman Anthony Koziol for about an hour.
"We’ve spent more time with them than with the North Bay-Mattawa Conservation Authority,” Coun. Judy Koziol said, well into the proceedings.
Marquee act This year’s budget includes an increase of $150,000 for entertainment acts compared to 2003.
As well the festival would use an anticipated $28,497 profit to repay one-third of its $85,000 deficit; the entire debt could be repaid in 2004 if final festival revenues are high enough, Herbrand added.
A number of issues had to be settled, though, before committee approval was given.
Prior to last Monday’s meeting, Herbrand and Koziol had presented a budget to council while also requesting an advance to use as a deposit on a marquee act the festival has been negotiating with.
But last night Herbrand and Koziol presented the Community Services Committee with three budget options. The first contained a provision to repay the deficit in full this year, the second a provision to repay half of it and the third to repay 30 per cent of it.
Route to go All three options listed $700,000 from wrist band sales, even though four days of rain last year saw that revenue source dip to $500,000.
Option 3 proposes the festival spend $480,000 on entertainment, with the emphasis on snagging a premier act.
It will also see wristbands sold in three price ranges: $20 until the May long-weekend, $25 from that point on until opening day, and $30 at the gate.
No change in revenue Herbrand recommended Option 3,which includes $63,000 more for entertainment than Option 1, as the route to go.
Fedeli wanted to know “why on Earth” the festival “would gamble” $63,000 more “for absolutely no change in revenue.”
The gamble, Herbrand replied, would come from Option 1 and trying to repay 100 per cent of the $85,000 deficit.
“And it wouldn’t be the top level entertainment that you’d have with Option 3, so that one very much would be a gamble,” Herbrand said.
But, Fedeli, said, Option 1 “was the budget that you presented to us last week.”
“I wish you would have told us it was a gamble before we approved the expenditure,” Fedeli said, before yielding the microphone.
Herbrand said he wanted to be conservative in his revenue estimates, even with Option 3.
“This thing could oversell itself,” he said.
Doesn't like curveballs Community Services chairman Dave Mendicino said Herbrand and Koziol had delivered "a curveball" by bringing multiple options to council.
Mayor Vic Fedeli said he wasn’t too pleased about that.
"I don’t like curveballs,” Fedeli said after the meeting. “They presented one option to us, we studied it all week, I had all the questions that were needed. I didn’t even realize there were three options until tonight, and it was accidental that I chanced upon it. That is not a good way to present to a council that is so budget conscious.”
Herbrand said he was under the impression that the festival had to fully repay the $85,000 this year.
“But after making the presentation to council last week in camera we felt that there might be some flexibility on that and perhaps 100 percent shouldn’t necessarily be the option we’re going with, and the very next day those options were brought forward,” Herbrand said.
$700,000 is doable He’s also confident wristband sales projections can be achieved.
“The $700,000 figure is doable,” Herbrand said. “We’re hoping for high-end entertainment because we’ll draw more numbers and it will be more beneficial all around, and the trickle-down number everywhere will be bigger.”
He said average attendance at the festival over the past six years has been a little over 35,000.
“So if you take last year out, which was horrible with wrist band fraud and four days of rain, it was the lowest year we’ve ever had,” Herbrand said.
“And all things being equal, everything within our control, we will do it, absolutely. I’m confident if we have an average year, as we have in every past year in terms of attendance figures, we will make those revenue generation streams.”
Herbrand added measures are being taken to eliminate wristband fraud.
Needed in the community Fedeli said he voted in favour of Option 3, despite his misgivings, because in the end Herbrand and Koziol “made a large impact on council.”
“They stated they’re going to deliver what they promised and when you get right down to it this is their decision, at the end of the day if this doesn’t work out they will be back at council and they’ll have to answer to council but they have convinced council that this is what’s needed in the community,” Fedeli said.
"Scared the heck out of me" At the same time, Fedeli said, the festival risked putting council's credibility at risk by submitting three options.
"We’ve been critical of past councils and we take great pride and have a lot of fun doing that," Fedeli said.
"But I don’t want to be sitting here next year and having someone else say to us 'my God you knew the numbers going in.' I’m very very worried about that. I’m not trying to be negative or bring you negative publicity, but you’ve scared the heck out of me now."
Not a good idea The entertainment line-up should be unveiled within a month, Herbrand said.
With this year’s festival budget just about wrapped up—council will vote on it next Monday—deputy mayor Peter Chirico had some advice for Herbrand and Koziol for next year.
“Don’t give council options,” he said, “don’t give us options, that’s not a good idea. Give us a realistic, proper approach.”
