Roswell approves $102K UFO Festival sponsorship and authorizes up to $150K for 250th celebration amid budget concerns

Roswell — The City Council voted Feb. 12 to support two major tourism sponsorships but not without contentious debate about the city’s finances and liability exposure for fireworks.

Item 26: Main Street/UFO Festival

On a roll-call vote, council approved a Main Street sponsorship for the UFO Festival totaling roughly $102,056, comprised in council discussion as $56,000 from the Lodgers Tax and $46,000 from the general fund. Finance committee leaders warned the general fund faces a shortfall in the millions and urged caution; proponents said the festival drives hotel stays, downtown spending and longer-term tourism revenue. The motion passed by a 7–2 roll call.

Item 27: American 250 and fireworks funding

Council then debated a $150,000 sponsorship request for the city’s American 250 celebration, intended to pay for a large fireworks show and related activities. Councilors raised two primary concerns: (1) the general fund shortfall and the advisability of drawing down reserves for events; and (2) liability and insurance exposure when the city — or a city-designated fiduciary — handles large fireworks events. Main Street asked to be the fiduciary to accept sponsorships and disburse payments.

After extended discussion the council adopted an amendment to the motion that (a) authorized the city manager and city attorney to negotiate a contract up to $150,000, and (b) included a clawback/reversion clause that would return sponsor funds to the city if private donations later covered some or all of the expense. The amended motion passed on a 5–4 roll call.

Budget resolution

Council later adopted Resolution 26‑09, the budget adjustment for fiscal year ending June 30, 2026, which incorporated these sponsorship allocations. Finance chair and other councilors reiterated that the city is operating with a structural deficit and that using general-fund dollars for events will further reduce reserves; other council members said the festival and anniversary events bring measurable hotel and retail revenue that partially offset the outlay.

What happens next: The city manager and city attorney will negotiate the American 250 sponsorship contract with clawback language; staff will include any negotiated terms in subsequent budget reports. The finance committee will continue mid‑year budget reviews, and council asked staff for more granular explanations of budget adjustments and reserve levels.