Event fees spark stormy Council session

By Jack Elder

A week ago, City Council approved a permit for the Mayor’s Cup 5K foot race and the Kids Fun Run. Both events were scheduled to precede the Coffin Races the morning of Oct. 27. The race permit application asked that the requirement for the race organizers to collect and remit the excise tax on entry fees be waived. The organizers have donated all of the entry fees to the Mineral Springs Foundation, a sum of approximately $3,000, for the past several years. The organizers did not attend last week’s meeting due to a mis-communication on the City’s part.

There are legal requirements for the exemption from excise tax payments as well as philosophical issues felt by some members of Council concerning waiving not only taxes, but also fees for special events in general. The permit was approved with the excise tax requirement in place but with the cancellation of $200 of the roughly $1,500 in fees to reimburse the city for services needed in support of the race. The excise tax was estimated to be about $180.

Council met Tuesday to re-visit the issue, with race organizer Jonathan Veteto taking part in the discussion.

City Finance Director Mike Leslie told Council that the race organization is a qualifying non-profit and that the tax could be waived.

Veteto told Council that fund raising for the pair of events is difficult since the City’s Mineral Springs Foundation is the beneficiary of the event but the City provides no sponsorship. Veteto added that the City should have a policy for event sponsorship.

Councilwoman Liz Feder agreed with Veteto, adding that the city should have already established a policy for event sponsorship. Feder apologized for the fact that the issue had generated tension.

Feder and Councilmen Shannon Solomon and Marc Snyder had been empanelled by then Mayor Marcy Morrison as a sub-committee to explore event sponsorship and propose a policy following the trio’s support of waiving fees for the 2005 Carnivale Parade.

Veteto thanked Feder for her comments but noted that the issue had caused a “45 minute discussion’ every time the group applied for the race permit. Veteto added that if the City didn’t want the donated entry fees, then the race “didn’t need to happen.”

Councilwoman Donna Ford then suggested waiving $450 in fees, but not the excise tax, whereupon Veteto said that he would cancel the race and left the meeting.

Solomon asked his colleagues. “What’s going on? They give us the money, what’s the issue?"

Matt Carpenter, organizer of the Pikes Peak Ascent and Marathon, told Council that Veteto felt insulted and pointed out, “This race gives you every penny.”

Dave Wolverton, president of the Mineral Springs Foundation — the direct beneficiary of the donated $3,000 entry fees — then addressed Council.

Wolverton noted that Council had previously ceased waiving fees for the Wine Festival and that that action had deprived the MSF of $3,000 in donations too. “There goes another $3,000,” Wolverton said.

Wolverton noted that the volunteer groups that organize special events profit nothing from their efforts and that Council’s failure to support their special events sends a “very bad message” to those who might want to volunteer for such events.

“There’s not the teamwork that needs to happen between the City Council and the noil-profits,” Wolverton said. “We’re trying to make the city a better place and we don’t have the city on board.”

Solomon moved to approve the race permit with all fees and the excise tax waived. Feder seconded the motion and in the ensuing discussion said, “We are practicing bad public policy because we have no policy.”

Councilman Eric Drummond urged that the issue of event fees appear on a work session agenda so that future discussions can “avoid personalities.”

Ford noted that the City once had a policy in place. It had been noted in earlier discussions of the fee issue that city sponsorship of special events had once been a line item in the City budget, with the figure of $25,000 being recalled by some. Each event’s waiver request was then considered on a case-by-case basis. Then “bad economic times” began to occur, Ford said.

“We haven’t tried to be evil or nasty to anyone,” Ford said.

Councilwoman Nancy Barnes said, “I feel bad that this situation happened,” and also lamented the “amount of money the city gives away” to special events. Barnes said that she is not convinced that special events provide a return on the city’s investment in them.

Solomon’s motion passed unanimously.

The race fee issue was the only item on Council’s Special Meeting agenda Tuesday.

Mayor’s Cup 5K, Kids Fun Run cancelled

The Bulletin learned just before press time that the organizers of the Mayor’s Cup 5K race and the Kids Fun Run have decided to cancel this year’s races in the wake of Tuesday’s Special Meeting of City Council. Matt Carpenter, following a conversation with race organizer Jonathan Veteto said, in part, that the organizer will wait and see “if the city will come up with a system that’s more straightforward.” Issues of fairness to and respect for the city’s volunteer groups was also mentioned.