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Allegan approves $41,000 transfer to Positively Allegan after sponsorship shortfalls
Summary
The council approved a $41,000 transfer (proposed $25,000 DDA / $15,000 general fund) to Positively Allegan to cover shortfalls in 2025 downtown events. Staff cited sponsor declines and insurance costs and said council will revisit event funding for 2026.
Council voted Aug. 11 to transfer $41,000 to Positively Allegan to keep downtown events running through 2025 after organizers reported lower-than-expected sponsorship revenue and rising insurance costs.
Staff presentation: City staff and Positively Allegan representatives reviewed the 2025 events calendar and detailed sponsorship income and expenses. Staff said the events program began the calendar year with $19,013.71 in the Positively Allegan account and that BridgeFest produced a net loss of $14,028 after expenses; Rolling on the River was self-supporting but most other events failed to produce sufficient sponsorship revenue. Speaker 2 summarized the funding shortfall and told council, "To continue the events through the remainder of the year, we are going to have to do this transfer." (Transcript attribution: Speaker 2.)
Requested transfer and rationale: The request was for a $41,000 transfer to be split $25,000 from the Downtown Development Authority and $15,000 from the general fund. Staff said insurance costs were a major driver of the shortfall and that historically the city has transferred $15,000 (general fund) and $26,000 (DDA) in prior years. Staff also said that for calendar year 2026 they will return to council to discuss how the city should support or fund downtown events going forward.
Sponsorship detail: Presenters listed sponsors that contributed to specific events (examples: Allegan Credit Union, Allegan True Value, Gordon Funeral Residence, Tibbets Financial Consulting, Ryckhart Realtors Platinum Group and Millbacher and Sons). Staff noted one-off and recurring sponsors and said fundraising channels such as Givebutter are being used more actively.
Council action and next steps: Council moved, supported and approved the transfer by voice vote. Staff will track expenses related to the transfer and prepare a 2026 funding discussion for council consideration after New Year's Eve and into early 2026.
