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HomeMy WebLinkAboutItem 10b - 2024 Patriotic Festival Sponsorship DATE: February 6, 2024 TO: Honorable Mayor and City Council FROM: Dominic Lazzaretto, City Manager By: Justine Bruno, Deputy City Manager SUBJECT: RESOLUTION NO. 7544 AMENDING THE FISCAL YEAR 2023-24 OPERATING BUDGET AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION FOR THE SPONSORSHIP OF THE 2024 PATRIOTIC FESTIVAL IN THE AMOUNT OF $20,000, OFFSET BY A REDUCTION IN THE GENERAL FUND RESERVE; AND WAIVING EXPENSES RELATED TO POLICE, FIRE, AND PUBLIC WORKS SUPPORT FOR THE 2024 PATRIOTIC FESTIVAL CEQA: Not a Project Recommendation: Adopt SUMMARY The City Council has provided direction to sponsor the 2024 Patriotic Festival, in an amount totaling $20,000 as well as waiving staff costs to support the event. This resolution provides the necessary budget authorization to grant the sponsorship request and to waive expenses related to Police, Fire, and Public Works Services in support of the Patriotic Festival this year. It is recommended that the City Council adopt Resolution No. 7544 to amend the Fiscal Year 2023-24 Operating Budget and authorize a supplemental appropriation for the 2024 Patriotic Festival, in the amount of $20,000, offset by a reduction in the General Fund Reserve, and waiving expenses related to Police, Fire, and Public Works Services for the 2024 Patriotic Festival. BACKGROUND The Patriotic Festival has become a tradition in Arcadia, occurring on July Fourth weekend each year since 2015, and providing an opportunity for community members and visitors to celebrate the holiday locally. The Patriotic Festival is held in Downtown Arcadia and is a family-friendly event that presents local businesses and offerings, food vendors, music entertainment, giveaways, and a parade. In recent years, it has concluded with a fireworks show. Resolution No. 7544 Approving Sponsorship Request for 2024 Patriotic Festival February 6, 2024 Page 2 of 3 In early 2023, the Downtown Arcadia Improvement Association (“DAIA”) requested City sponsorship of its annual Patriotic Festival. In response to the sponsorship request, the City Council was presented with information on community events in Arcadia, which included events hosted by the DAIA like the annual Patriotic Festival. On May 16, 2023, the City Council adopted Resolution No. 7497 approving a $20,000 firework sponsorship and a waiver of public safety services in support of the 2023 Patriotic Festival. Shortly after the 2023 event, the DAIA issued another letter to the City Council requesting a $35,000 sponsorship for next year’s Patriotic Festival. The sponsorship request from the DAIA as well as information on other community events was presented at the September 5, 2023, Meeting. At the conclusion of the meeting, the City Council was unable to reach a consensus regarding the level of sponsorship to be offered for the 2024 Patriotic Festival, citing the need for more information and options from the DAIA. At the January 16, 2024, Meeting, the City Council was presented additional sponsorship options for the 2024 Patriotic Festival and provided consensus direction to offer the same financial sponsorship provided in 2023, but to uncouple it from directly funding the fireworks program. DISCUSSION Upon receiving the presentation on the 2024 Patriotic Festival at the January 16, 2024, Meeting, the City Council granted a $20,000 sponsorship and directed any affiliated City costs for the event to be waived as well. Because this expense was not anticipated in the Adopted Fiscal Year 2023-24 Budget, an adjustment is required. Resolution 7544 provides the necessary language to amend the adopted budget by $20,000 to cover the approved sponsorship costs. The staff costs that will be waived will be absorbed by each Department’s operating budget and included in the budget proposal for Fiscal Year 2024- 25. ENVIRONMENTAL ANALYSIS The proposed financial sponsorship and waiver of public safety costs does not constitute a project under the California Environmental Quality Act (“CEQA”) under Section 15061(b)(3) of the CEQA Guidelines, and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT The associated fiscal impact is a net reduction in the General Fund Reserve in the amount of $20,000 for Fiscal Year 2023-24 plus the waiver of costs for City services, which will total approximately $13,300. The City will issue a check for $20,000 to the DAIA directly and the costs for City services will be absorbed by the operating budgets of the Fire Department ($6,700), Police Department ($2,500), and Public Works Services Resolution No. 7544 Approving Sponsorship Request for 2024 Patriotic Festival February 6, 2024 Page 3 of 3 Department ($4,100) for Fiscal Year 2024-25. Between the direct sponsorship and the waiver of City services, Arcadia’s total sponsorship to the DAIA will be $33,300, or 44% of the total event budget of $80,600, for the 2024 Patriotic Festival. If the City Council is interested in continuing to waive City fees in support of outside community events (not hosted by Arcadia), a budget package should be considered in future years to fund the ongoing costs of providing this support. A budget package of this nature could be addressed through the creation of a Sponsorship and Donation Policy, which will be presented for City Council review in February 2024. RECOMMENDATION It is recommended that City Council determine that this action is not a project under California Environmental Quality Act (“CEQA”); and adopt Resolution No. 7544 amending the Fiscal Year 2023-24 Operating Budget authorizing a supplemental budget appropriation for the sponsorship of the 2024 Patriotic Festival in the amount of $20,000, offset by a reduction in the General Fund Reserve; and waiving expenses related to police, fire, and public works support for the 2024 Patriotic Festival. Attachment: Resolution No. 7544 RESOLUTION NO.7544 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, AMENDING THE FISCAL YEAR 2023-24 OPERATING BUDGET AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION FOR THE SPONSORSHIP OF THE 2024 PATRIOTIC FESTIVAL IN THE AMOUNT OF $20,000, OFFSET BY A REDUCTION IN THE GENERAL FUND RESERVE; AND WAIVING EXPENSES RELATED TO POLICE, FIRE, AND PUBLIC WORKS SUPPORT FOR THE 2024 PATRIOTIC FESTIVAL WHEREAS, the City of Arcadia values opportunities for community members to gather for entertainment, leisure, and celebratory purposes; and WHEREAS, the City has a long history of hosting special events and providing support to non-profit entities to offer more events for residents to partake in; and WHEREAS, the Downtown Arcadia Improvement Association is a non-profit organization that aims to support and promote downtown businesses by attracting visitors and commerce to downtown Arcadia; and WHEREAS, the Downtown Arcadia Improvement Association provides several free, family-friendly events for the community to enjoy; and WHEREAS, the Patriotic Festival is a long-standing event in Arcadia that is held on July Fourth each year to celebrate America's Independence with food, entertainment, a parade, and firework display; and WHEREAS, the inflationary impacts and rising costs of goods and services have increased the cost of community events; and WHEREAS, the City Council is authorized to grant monies for purposes that provide community benefit and meet a public purpose; and WHEREAS, the Downtown Arcadia Improvement Association has requested the 1