Council weighs Cherry Festival sponsorship; staff recommends $135,000 budgeted support

Beaumont City Council discussed a sponsorship request from the Cherry Festival Association seeking $350,000 to underwrite the festival’s May program, while staff recommended authorizing the $135,000 already included in the city budget to fund one day of free admission and reduced ticket prices for other days.

Mary (city staff) presented the request and the association’s audited financials. The materials in the council packet show the Cherry Festival Association had net assets of $337,006 for the year ending Dec. 31, 2024, and that the audit reported a net loss of $225,930 but no reportable findings. Staff said the budgeted $100,000 is the amount set aside for entertainment and recommended the city cover $135,000 from the current budget (the packet lists a $100,000 budgeted amount plus $35,000 from the city manager’s contingency to avoid using fund balance if council approves the larger sponsorship).

Why it matters: Council members said they wanted to see clearer plans for the use of city funds and better alignment with the festival and parks district on rental and operating costs. One councilmember, the festival liaison, asked whether the parks district plans to continue hosting the event given a reported increase in park rent from $25,000 to $50,000; staff said those operational conversations should include the parks district and the festival association.

Council discussion highlights: - Staff recommended authorizing the budgeted amount of $135,000 (the packet included $100,000 already budgeted for entertainment and proposed $35,000 from contingency if council approved the larger sponsorship). If council preferred to commit the full $350,000, staff said a formal budget amendment would be required and would use fund balance. - Council members asked for a tighter breakdown of festival revenue and sponsorships and raised concerns about the proposed $65,000 line for community scholarships and donations in the festival’s request. - Councilmember and festival liaison asked to participate in discussions with the parks district and festival organizers to refine the agreement structure and ensure the city’s sponsorship yields the intended entertainment and economic benefits.

Ending: Staff will bring additional detail on festival finances and a refined sponsorship plan; the staff recommendation at the meeting was to authorize $135,000 from the current budget and, if council wants to increase to $350,000, to follow up with a budget amendment and additional council action.