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Matthews commissioners debate outsourcing festivals and how tourism dollars flow as budget talks continue
Summary
During the May 27 budget hearing commissioners discussed a proposal to move special-event operations to an outside nonprofit funded by tourism dollars, and staff explained how tourism, special-events and parks revenues are currently accounted for and transferred into the general fund.
Commissioner Richard Tufano proposed on May 27 that Matthews direct tourism funds to a nonprofit that would run festivals independently and pay for event costs (security, utilities, rentals) with tourism funds. He said that model, used by his Ciao Italia event, could generate returned revenue to the town if the nonprofit kept event sales and then remitted surplus to the general fund.
Town staff explained how tourism and special-events accounting currently works. Special-events and community center revenues are tracked in the general fund but are effectively supported by the town'managed tourism transfer at year end; staff said those lines historically run a net deficit and are topped off from the tourism fund so that net cost to general fund property-tax dollars is zero. "The special events budget is not supported by tax dollars. It is self supporting through its own revenues and tourism dollars," staff said.
Finance staff warned the board the bookkeeping change Tufano proposed would not automatically free up general fund dollars. If the town outsourced event services and continued to pay the tourism funds to an outside group, tourism dollars could instead flow directly to that entity (for example, paying an external security provider), and the town would not necessarily receive a net financial benefit. "If they hired Mint Hill (officers), the money would just be going in one direction to Mint Hill... Either way, our tourism fund has spent a hundred and 30 thousand," staff said.
Opponents raised non-financial concerns: Commissioner Renee Garner and others argued festivals are community assets where residents interact with police, firefighters and civic leaders, and community value could be reduced if the events were fully privatized. Garner said such events support local nonprofits (sale proceeds and volunteer-run booths). Staff noted a pending internal change that will require previously outside, off-duty town employees to be paid through town payroll rather than directly by event promoters; that administrative shift changes how event overtime and related pension/retirement contributions are handled.
The board asked staff to run an apples-to-apples example comparing the current internal model to the proposed outsourced nonprofit model for one festival (for example, Matthews Alive); staff agreed to present a comparative scenario at a future meeting.
