More Mayor McCloud Misinformation

In an article in the May 31, 2007 issue of The Monterey County Herald entitled “Sunset Center director leaving,” the following was attributed to Mayor Sue McCloud:

“Carmel helps Sunset financially through yearly subsidies. It gave $713,000 this fiscal year, said Mayor Sue McCloud. The city planned to trim the contribution to $700,000 next year, but increased it to $750,000 so the concert hall could be outfitted with equipment to allow it to function as a movie theater.”

In the interest of accuracy, originally the fourth year (or the first year of the next 3 year “Renewal Term” contract period) was to be a city operating subsidy of $680,000, not $700,000.

Moreover, Mayor McCloud’s assertion that the increase to $750,000 was “so the concert hall could be outfitted with equipment to allow it to function as a movie theater” is also erroneous.

Note the Question and Response from the City’s Budget, as follows:

Q.9. E-12 What is the total projected expenditures for Sunset Cultural Center, including the enabling grant, debt service on bonds, and capital expenditures?

Response:
Fiscal Year 2007-08---------FY 2008-09--FY 2009-10
Enabling Grant: $750,000-----$700,000----$680,000
Debt Svc.: $568,847----------$567,015----$569,715
Capital Expenditures:$83,285-$30,600------$69,782
TOTALS: $1,402,132----------$1,297,615--$1,319,497

CITY OF CARMEL-BY-THE-SEA WORK PLAN
Sunset Cultural Center

Fall Arrest System 7/1/07 6/30/08 $ 18,000 Budgeted for FY 2007-08. (CAPITAL OUTLAY)

Sound system & exhaust for film events 7/1/07 6/30/08 $ 42,035 Budgeted for FY 2007-08. (CAPITAL OUTLAY)

Walkway Lights on East side adjacent to Carpenter Hall 7/1/07 6/30/08 $ 5,250 Budgeted for FY 2007-08. (CAPITAL OUTLAY)

Amount budgeted for FY 2007-08 = $18,000. Remaining amount budgeted thru FY 2011-12. (CAPITAL OUTLAY)

(Source: CITY OF CARMEL-BY-THE-SEA TRIENNIAL BUDGET FISCAL YEARS 2007/08 – 2009/10
BUDGET QUESTIONS & ANSWERS)

In short, Enabling Grants are the city’s subsidy to SCC for their operating budget to manage the Sunset Center, whereas Capital Expenditures are not related to the city’s subsidy to SCC, as operating expenditures are not capital expenditures. Therefore, for Fiscal Year 2007-08, the City’s Enabling Grant is $750,000 and the City’s Capital Expenditures for Sunset Center are approximately $85,000, of which $ 42,035 is equipment for film events.

Additionally, Q.8. E-12 is noteworthy with respect to the SCC’s requested annual city subsidies and the City’s proposed annual city subsidies to SCC, as follows:

Q.8. E-12 What are the City’s projections for the Sunset Center enabling grant as compared to the Sunset Cultural Center Inc.’s (SCC) requested amounts? What was previously approved by the City in last year’s triennial budget?

Response:
Fiscal Year 2007-08------FY 2008-09--FY 2009-10
City Proposed: $750,000---$700,000---$680,000
SCC Requested: $750,000-$780,000---$811,200

Note the City’s decreasing city subsidies over the triennial period and SCC’s increasing city subsidies over the triennial period. It is anticipated that a new contract for the next three year “Renewal Term” contract period will be finalized prior to July 1, 2007, when the first “Renewal Term” begins.

QUESTION: Will the new Agreement between the City of Carmel-by-the-Sea and Sunset Cultural Center, Inc. for the Renewal Period (Fiscal Years 2007-2010) have the City’s proposed amounts or SCC’s requested amounts as city subsidies to Sunset Cultural Center, Inc.?