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OC Watchdog ~ Your tax dollars at work.

OC Fair rolling in green stuff, but raising prices

August 5th, 2008, 3:00 am · 40 Comments · posted by Teri Sforza, Register staff writer

piglets-at-fair.jpgWouldn’t it be luxurious to have as much money sitting safely in the bank as you spend in an entire year?

Ahhhhh. A cushion equal to 100 percent of your operating costs. Let’s do lunch! Oink!

This, er, is not quite the case in my household, and probably not in yours. And it’s certainly not the case for many local governments in California:

  • Cities often scrape to set a teeny 5 percent aside for a rainy day,
  • and schools struggle to set aside a measly 2 to 3 percent. Sink or swim, kiddies!

But the venerable Orange County Fair, which just concluded another spectacular run, is predicting a cold hard cash reserve of 85.8 percent this fiscal year.

That’s probably a bit conservative, as last year’s cash reserve turned out to be 90 percent of ferris-wheel.jpgoperating costs (originally predicted to be just 81 percent).

Ninety percent! For pig races and blooming onions and needlework competitions and baby chicks and demonstrations of the latest greatest mop on Planet Earth.

GIMME MORE

The Orange County Fair, a division of the California Department of Food and Agriculture, is what some might call “loaded.” Despite this institutional wealth, the Fair:

  • will hike adult ticket prices by 11 percent next year, from $9 to $10.
  • will hike vendor rental rates about 6 percent next year.
  • will hike food concession rental rates another 1 percent next year.

All the while, kids paid $3 to enter their popsicle stick collections (et al) into competition, while adult wanna-be photographers (and the like) paid $5 to enter their creations, and pros paid fair-fun.jpg$10.

When The Watchdog last visited the fair’s financials - 10 years ago - its reserves were already fat. In 1998, the fair had $7.1 million in the bank for a rainy day (57 percent of what it spent annually).

By last year, reserves had more than tripled, to $23.7 million (90 percent of what it spent annually). Sky’s the limit; there’s no cap on how much can be accumulated.

Sweet.

Does the fair need more money?

FISCAL PRUDENCE

The coming price hikes, the fair’s senior vice president Steven Beazley has said, will help  finance $55 million in new construction over the next decade (including a new administration building and a 30,000-square-foot exhibit hall).

But the fair could essentially reach into its pocket tomorrow and pay for almost half of that new construction in cash, no?

fair-fun2.jpgSays the fair’s Dena Heathman, vice president of finance and administration (by email, through a spokesman): “While we have cash reserves of approximately $25 million, this is short of the $55 million capital expenditures that are planned and since we do not receive any financial assistance from the State, we rely upon our own revenue streams. Any price increases are given serious consideration, but due to the fact that the OC Fair is below market in admission, parking, and concessionaire costs compared to the other major California fairs, we feel confident that we are still offering a great value to our customers while improving the facility for the public benefit.”

OR NOT….

One could argue that fiscal prudence has not exactly been a hallmark of all the fair’s operations. Suffice to say that my colleague Tony Saavedra found that the nine-member, politically-appointed fair board has taken $988,000 worth of freebies in the last five years.

That includes nearly $400,000 in elegantly catered meals (top sirloin with cabernet wild mushroom sauce, roasted lobster tail and rosemary stuffed prime rib) and $377,000 in free concert tickets at the fair-owned Pacific Amphitheater (in the last two years alone).

The fair board is starting to cut back on this possible law-breaking gift of public funds. That’s nice to know, since the $1 ticket price hike alone stands to gain the fair another half-million or so in revenue.

Meanwhile, I’m still trying to figure out how I spent $100 at the fair on Friday night… $7.50 for the chicken kabob, $9 for the Diet Cokes, $6 for the strawberries, the rest of the treasury on funnel cakes…? It won’t be any cheaper next year. Hey! If anyone found a few Andrew Jacksons on the ground near the funnel cake stand, they must be mine….

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Posted in: OC Fair
 
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