Allied Solutions Center leaders urge council to hold arts funding as budget talks proceed

Jeff McDermott, president and CEO of the Allied Solutions Center for the Performing Arts, told the Carmel Common Council on Aug. 18 that the campus contributes both culturally and economically to the city and asked the council and administration to maintain current funding levels as they craft the upcoming budget.

McDermott said the center’s operating budget is about $10 million, that the organization employs nearly 100 people, and that the campus — including the Great American Songbook Foundation and six resident companies — is responsible for roughly $23 million of the $42–$43 million annual economic impact attributed to nonprofit arts organizations in Carmel. He said the center receives a city management fee, has grown contributed revenue and offsetting support from naming partners, and frequently provides rent-free rehearsal and performance space to resident companies.

Why it matters: Council members and the mayor are preparing the 2026 city budget amid constraints identified by earlier state legislation; McDermott framed arts funding as an economic-development and branding investment and asked the administration to present a budget that maintains current levels for the center and its resident organizations.

Details and context

McDermott outlined three funding and management details for the council. First, the center receives a city management fee that has been “flat” at $2,250,000 for several years; second, the campus processes reimbursable building maintenance and repair expenses that are currently about $1.7 million annually and are passed through by the center and reimbursed by the city; third, contributed revenue (donations, sponsorships, naming partners) has grown and now represents roughly 31–32% of the center’s budget, up from about 25–26% in 2024.

“Those reimbursables are not income to us,” McDermott said. “We just handle that for the city.” He also cited a Hunden Partners review the center commissioned that described the campus as “very competitive” with peers nationwide and operating more efficiently than most comparable venues. McDermott said Hunden reported the center operates at approximately $581 less per seat than peer averages and that its contributed income would likely decline if a municipality or for-profit operator ran the venues.

Council reaction and debate

Councillors asked for clarity about how the center’s funding is recorded in the city budget and where support for resident companies originates. Several council members expressed support for the campus’s role in downtown economic activity: Councilor Joe Worrell and Councilor Matt Snyder cited nearby hotel and restaurant demand generated by center events. Councilors, including Councilor Tony Locke and Councilor Jessica Menard, asked for a clearer, concise public-facing summary that explains the center’s finances and long-term asset-management plan.

McDermott said the center and the city have been pursuing named sponsorships and legacy giving, and he recounted that a naming partner signed after the pandemic and that the center had seen a rebound in attendance. Council members urged the center and administration to present clear options and documentation during upcoming budget workshops.

Discussion vs. decision

The council did not take formal action on the center’s funding during the Aug. 18 meeting. McDermott’s presentation was a statement to inform budget deliberations; he urged the mayor and finance staff to include current funding levels in any budget recommendation and urged the council to be prepared to support that recommendation during appropriation votes.

Ending

McDermott thanked the council and said he would be available during the budget process to answer questions. Council members who voiced support said they expect further, targeted briefings and a public-friendly summary ahead of formal budget hearings.