San Diego Gets Back $2.8 Million of $3 Million Spent on Arts Festival

The city of San Diego recouped almost $2.8 million of its $3-million investment in last year’s Soviet arts festival, and Mayor Maureen O’Connor, as chairwoman of the festival’s board of directors, returned the investment in dramatic fashion Thursday.

At a City Hall meeting of the festival board, O’Connor presented City Manager John Lockwood with $2,799,696 in cash for deposit in the city treasury.

“I promised Mr. Lockwood that we would return $1 million, and this shows that we not only kept, but surpassed, our promise,” said O’Connor, who added she will recommend to her council colleagues that the city continue to support the festival, conceived as a triennial event.

But, despite the apparent financial success, the festival’s future is uncertain because of the city’s financial crisis--an expected $60-million shortfall for the 1991 fiscal year.

“Before I’m willing to fund any arts festival, I want to make sure we’ve taken care of things that are on the list to be cut,” said Councilman Ron Roberts, who acknowledged being surprised at the financial showing. “We’re talking about closing libraries, and I don’t see libraries playing second fiddle to an arts festival.

“It’s a question of priorities. I supported the idea of the festival, and I’m delighted we got the money back, but I’m going to be hesitant until we’ve assured money for libraries, parks and other things that are part of this city.”

The city’s investment came from an increase in the city’s transient occupancy tax. When the mayor lobbied her council colleagues in 1988 to approve the festival expenditures, she promised that the city would recoup much of its investment. O’Connor said Thursday she hopes the City Council will keep its word and dedicate the funds to children’s and arts programs, including $1 million for the after-school recreation program.

Thursday’s meeting was called for the festival board to receive a final report from Bruce Herring, who was the festival’s executive director. Herring recapped the highlights and finished with a recommendation that the board approve the concept of another festival in 1992 and begin planning as soon as possible.

Herring’s financial report showed just slightly over $5 million in expenditures and slightly over $7.8 million in revenue--including $400,000 in interest revenue and $542,174 in an insurance settlement as a result of the last-minute cancellation of an exhibit of Russian icons.

Herring said there was no estimate for the expenditures in city staff time that was spent on the festival.

Besides Herring, who is the city’s labor negotiator, several city staff members spent considerable time on the event. City Manager Lockwood, City Atty. John Witt and City Controller and Treasurer Ed Ryan served with O’Connor on the festival board of directors, and Sal Giametta, the mayor’s assistant for cultural affairs, worked extensively on the event. Herring said the estimate of time spent by city employees may be part of the final festival audit.

O’Connor said she thinks the city should continue to have a direct role in the festival, but Roberts disagreed.

“With the problems facing this city, I’d hate to have a similar amount of time by the mayor and her staff devoted to a future festival,” he said. “There were a lot of things that didn’t get the attention they could have. The mayor and her staff spent a lot of time, and it’s a diversion of the attention to the primary political force in this city that would raise some concern.”

Before making the presentation of funds, O’Connor acknowledged the city has “problems” but said it is important to pursue cultural affairs.