The Town Council had a lengthy debate at its May 21 regular session over the value of fee waivers for some larger events held in Fountain Hills.

In 2016 the council voted to designate “legacy” status to several annual events due to their long-standing reputations as successful promotions for the town. Those include the two art fairs, the Fall Festival of Arts and Crafts and the Great Fair, and the Oktoberfest. The St. Patrick’s Day event was included in 2016, but has since been taken on as a town event. The art fairs are Chamber of Commerce-sponsored and date back prior to incorporation of the town.

According to the staff report prepared by Community Services Director Rachael Goodwin, the total value of the fee waivers for the three events is $26,000 per year.

Councilman David Spelich had asked for the discussion citing the town’s need to find revenue sources.

“With all respect to these [events], times have changed,” Spelich said. “We are asking residents to reach into their pockets for new fees and everyone needs to pay their fair share.”

He added that he had been unable to determine any significant financial benefit to the town in conjunction with the events.

Spelich cited the Concours auto show that has been staged in Fountain Park for six years as an example of the inequity of the legacy policy. He said the sponsor of that show is charged $7,000 and makes no money for himself, as it all goes to charity.

“That event brings thousands of people to town for the day,” Spelich said. He added he does not see it as a fair policy.

Former Mayor Sharon Morgan, who has been events producer for the Chamber for years, defended the waiver for the two art fairs.

“We have held 78 total art shows, with a conservative estimate of 5.8 million total visitors,” Morgan said. “We are already getting calls from people across the country and around the world wanting to know the dates for next year so they can make their travel plans.

“I can’t tell you the number of homes that have been sold to those visiting for the first time at a show. You should consider [benefits] before you [impose] fees; some benefits might go away.”

Morgan also cited sales tax collected by vendors, bed tax from hotel stays and restaurant business.

“Nothing else generates tourism revenue that the fairs provide,” she said.

Morgan added that the Town of Fountain Hills pays nothing related to the expenses that go with the events, including security, EMS presence or staging costs.

Spelich said that while he appreciated the position Morgan was taking, he does not believe that paying the use fees would impact the fairs in any way.

Vice Mayor Art Tolis challenged Spelich’s position on the issue.

“I compliment [Councilman Spelich] on his efforts regarding collecting fees due the town,” Tolis said. “In this case I believe it is ‘pennywise and pound foolish.’”

Tolis said the events bring tremendous value to the town and non-profit service clubs and organizations benefit greatly.

“We need to embrace tourism, even come up with more events,” Tolis said.

Mayor Ginny Dickey supported the waivers. She said the Chamber has been very helpful in getting the vendors town licenses and monitoring sales tax collection.

“I see the value in certain partnerships,” Dickey said. “I think it does pay, there are years of reputation to rely on.”

Councilmembers Sherry Leckrone and Mike Scharnow came away from the debate feeling there were good arguments on both sides but lacking information to see any resolution.

Councilman Dennis Brown suggested the town sit down with Chamber officials and discuss the issue.

“I don’t know how much the Chamber is making on these fairs,” Brown said. “[The town] may be collecting more in sales tax from the events.”

The issue was set aside as the town is awaiting a comprehensive fee study expected to be completed by the fall, and the Chamber is doing a search for a new president/CEO at the present time.