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HomeMy WebLinkAbout03-09-2017 - City Arts Commission - Government Relations Ad Hoc Subcommittee ReportGovernment Relations Ad Hoc Sub Committee Finance Ad Hoc Sub Committee Report from Vice Chair Mike Kerr Over the past few weeks, I have met with 5 council members, to discuss how they would like the NBCAC to function. The members of the Arts Commissions serve at the pleasure of the Council, so it seems reasonable to ask what their vision is for Arts in Newport Beach, and what role they would like the Council, and the Arts Commission, to play in supporting local arts. The talks were very constructive. I am pleased to report that every member of council with whom I spoke believes in the importance of public arts and supports the work of the NBCAC. To help focus the conversations, I prepared a Discussion Draft Budget. The draft budget was a foundation for discussing sources and uses of arts funding in the City. The draft budget has changed numerous times based upon suggestions from council members. You have the most recent version. Let me walk you through the draft budget. The budget for the NBCAC (excluding sculpture garden) for the current year is about $187,000. The sources and uses of these funds are specified. In my discussions about a draft 2017-2018 budget, I suggested a number of funding policies: 1. The Commission should be spending the money that is allocated to it each year. The allocation totals $275,000, comprised of $150,000 from VNB, and $125,000 from the General Fund. 2. The Commission needs to spend the money in the Balboa Theater trust fund, with a preference for programming in the Balboa area. I proposed spending it over a 4-year period, at the rate of about $43,000 per year ($175,000/4 = $43,750). 3. The Commission should solicit private support, creating public/private partnerships to fund growth in the arts in NB. I suggested that the Commission would establish an annual target for private support of $23,000, which is what we raised this year. We would endeavor to raise more than this amount, but I want a realistic figure in the 2017-2018 budget. 4. There is a $90,000 reserve in the Commission’s VNB account, because in the current year we are only spending $60,000 out of the $150,000 that was allocated to us. I suggested maintaining a reserve of $50,000, and spending the balance of the reserve funds, $40,000, over a 2-year period, at the rate of $20,000 per year. 5. There is a $23,000 reserve in the Commission’s private support account. This amount was raised to help fund the Pacific Symphony in this current year, but because of timing issues it was not used. I suggest this money should be applied towards next year's Pacific Symphony expenses. The private support to be raised next year (FY17/18) should also be applied towards the symphony, unless it is specifically directed elsewhere by a donor. The total of all of these funds is $384,000. Important note: In the draft budget, I did not make provision for payment of the second installment of the Phase 3/4 sculpture garden expenses, approximately $134,000, due in 2017-2018. Depending upon the decision of the council, this amount may be funded from I-13 funds. If the second installment of the sculpture garden is not covered by I-13 funds, it will have to be taken out of the Commission budget. Funding is one half of the story – use of the funds is the other half. In my discussions with Council members, I stressed that the Commissioners understand our fiduciary obligations to the Council and the community, to be responsible, prudent, creative and thoughtful in how we spend money. I believe the Council members are generally pleased with the current and past programming recommendations of the Commission. Going into next year’s budget, we have questions to consider: 1. Look at the proposed increases in each of our existing budgeted categories. a. Should we increase our community grant making from $40,000 to $70,000? i. My take: I think so. I think there are lots of great programs we can bring to our community. I think we need greater outreach next year to a wider audience of potential grant recipients. We should be proactive in contacting art organizations that would be great for NB. I support grant making generally, because it lets us leverage our small amount of funds by supporting larger organizations. We get the benefit of their big budgets (and extensive private funding). b. Should we increase our funding of art shows and library exhibits? i. My take: I don't know this answer - I would like to hear from other commissioners. c. Should we increase our funding of pops concerts from $18,000 to $30,000? i. My take: yes. We can hire better acts and add another summer concert. 2. The draft budget includes a list of New Programming ideas. These are for illustration only. The commission and subcommittees will need to propose new initiatives. There is $64,000 allocated to New Programming. I believe we can easily spend these funds - our challenge will be to choose from among many great alternatives. Culinary arts? The Di Suvero sculpture? More music, dance and visual art? Programming for families? Support for arts in local schools? And so on. 3. The draft budget includes $75,000 for an administrative position. The position will need to be housed in the Foundation, as the City does not want to add to its employment headcount. This position requires discussion. Does he work for the Commission, doing arts administration and fundraising? Or is he admin support for the Foundation, to support their growth and fundraising mission?