The Development of Authority pt. 4: Friday Night Lie

[XLFD]

Those who live near Ludington will often hear on the radio or read in the local paper about the fun to be had at Friday Night Live (FNL) with free admission and tons of fun free things to do. The Community Development Director, who also happens to lead the Downtown Development Authority, boasts about these events that take place on up to four Fridays each summer as:

This is a FREE event to the public. All Inflatable rides, Baby Badger rides, Entertainment, Games & Activities are provided at no cost…

http://www.ludington.mi.us/departments/community_development/friday...

I like free, and I like fun. In the past, I have enjoyed plenty of fun, free events put on by the local jaycees, chamber of commerce, and businesses. Parades, fireworks, festivals, etc. which were investments made by these organizations for the goodwill and patronage of the locals and our visitors.

One will note that FNL is primarily sponsored by the Downtown Ludington Board, which also functions as our Downtown Development Authority (DDA). We have noticed that the primary funding (around 90%) of the DDA is funded through taxpayer dollars via a DDA millage and ‘captured’ millage from city and county sources ( see pt 2 of this series).

If the DDA is divesting a lot of cash into FNL is it truly a free event to those who own property in this area and pay their taxes?  And is this money spent in a way that the DDA can recoup its expenses so as to be effectively revenue neutral?  I have the public records for the last three years, and the answer to both questions appear to be “no”. And it seems we are only investing more and more tax dollars each year, in something that could probably function better and have more to offer if it was privately funded.

Here’s what the financial records show for 2008:
Date     Description       Cost

7-14 FNL Performer (6) 1300.00
7-28 Basketball Free Throw Game 160.00
7-28 FNL Performer (3) 525.00
8-11 FNL Tees 1927.50
8-11 Inflatables-FNL (2) 2067.00
8-11 Buns- FNL 87.30
8-11 FNL Performer 200.00
8-11 Skate Park Banner-FNL 250.00
8-11 FNL Pop/Water 124.16
8-25 Inflatable-FNL 980.50
8-25 FNL Food 63.00
9-08 FNL Supplies 34.17
9-22 Inflatables- FNL 1033.50
Total:                  $8752.13



The totals for 2009 included costs of performers, inflatables, a photo booth, as well as for another sign and various reimbursements that totaled $9250.
The totals for 2010 included the usual costs along with:

07-12 Propane Refills 29.50
07-12 Advertising 745.48
07-20 Contractual Services 300.00
09-13 FNL Helpers 200.00

In 2010, the total costs to the DDA for FNL was $10,804.98

Between ’08 and ’09 the costs increased 5.6 %, but then it increased 16.8% between ’09 and ’10. They are scheduled on bringing up this year’s DDA events tonight at the City Council meeting, which include an extra Friday for FNL and an increased budgeted amount of $12,500—which of course could be raised.

Now how much money does the DDA take back? Well, they buy thousands of dollars worth of performers and inflatables, along with pop, propane, banners, $2000 worth of T-shirts, games, photo booths, etc. with tax dollars but there is not a cent of revenue they report back from it on the financial records. This can’t be, can it? Let’s take a look at the latest budget to make sure.

 

It’s true, they report nothing from FNL (just like the nothing they have gotten from the NYE Ball Drop, see pt. 3)—but they do plan on making $1500 in the future from it.

So the next time you hear that Friday Night Live is a free event where all manner of entertainment is provided at no cost, just remember last year all the property owners in Ludington helped pay the $4800 to the performers, $4000 for the inflatables, and $2000 for the other stuff even if you never attended a FNL.  And this isn’t even considering the hidden costs of administration and public employee time and overtime.  A substantial consideration when we consider that $20,000 jump in DDA administration costs.

DDA Financial Records January 2008- November 2010:

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[XLFD]

I agree on each and all of your statements, John. 

$10,000 of taxpayer money used for FNL is a lot more beneficial to the people of this town than $20,000 added on to the City Attorney (for civil issues) retainer/salary or for that (still unaccounted for) $20,000 increase of administration costs of the DDA this last year.  But...

 

If the business owners say it is their busiest sales days of the year, why don't they step up and run the event with private funds used instead of using taxpayer dollars?  That way we can actually determine what works best.  Right now, they can continue expanding this program, with all the hidden costs to the taxpayer, and if the DDA and businesses say it's doing great, how do we verify that? 

Right now, how can we argue with FNL?  It is marketed as free for those who come for fun, and the businesses are able to reap all the advantages of the free for all.  Like most any government program, however, it is loaded with wasteful spending, an amount of cronyism, and its actions are not based on open market principles. 

[AQUAMAN]

I've only been to a couple of these events. The ONLY thing I found free was the entertainment. The bands are what I've liked, not so much private performers that are there for kiddie amusement. As for the Farmers Market, I asked, they all paid a premium to set up a booth there, and their pricing on most veggies is high at best, some are just over the top, but it's still there if you want some. If FNL is to continue, I would ask, why does it have to be right in the center of downtownd on Lud. Ave.? It creates a bottle-neck of traffic problems at the peak of summer, just what you don't need when traffic could not be worse! I'd also like a merchant reply on how well this event serves their stores in sales increases. I doubt it does much, as the ones going to dinner down there were already headed there anyhow, and the rest I'll bet don't get anything from spectators watching and partaking in the street action.

[AQUAMAN]

I wish Snide would take a part in this thread to answer, does his store get any real financial benefit from the FNL's?  Or does any of the neighboring stores he is near? Just curious. Talk is cheap, experience is reality.

[XLFD]

Great point, Aquaman.  This is only anecdotal as well, but I know more visitors to the area that are more vexed about FNL blocking the avenue and making them less likely to visit the downtown area on Friday night for shopping because of the event. 

Fact is, downtown Ludington used to have plenty of traffic and sales on summer Fridays without this event, this is when many tourists arrive and buy provisions and it would be interesting to find out the facts from someone who isn't on the DDA, and who has records over the years for sales figures. 

 

[AQUAMAN]

Just an observation, doesn't almost $5 grand sound like a lot of money for performers for just 4, count them, 4 Friday nights for just a couple of hours per night? Methinks this ALONE bespeaks of over the top spending by the DDA. Afterall, we're not talking Major Bands participating, just some lolly pops for the kids mostly. How can this BE?

[Dave]

It wouldn't hurt to get some sort of national touring act for at least 1 of the FNL events. Doesn't have to be a superstar or anything, or even a band that is all that current... there are plenty of bands from the 70's and the 80's out there that could be brought in for a night for a reasonable amount. Concessions sold at the sight of the show go back to help support the event including a portion of the bands shirt sales (venues always get a cut of the shirt sales). Get someone I heard of and I might even make it down to a event. The Scottville Clown Band gets a little old after awhile, no disrespect to them of course, but how many times can you really see a bunch of mostly guys, dressed mostly in women's clothing (at least the last time I saw them....I thought it was suppose to be a clown band, not a drag queen band) before you get tired of the same ole same ole?

[Max]

I'm sorry for getting this discussion side-tracked, but I have always wondered why the clown band, instead of dressing like clowns, dress in drag.  It is actually a little disgusting.  The music, however is great.  Dave, I'm glad someone else has also wondered.

[XLFD]

There are a lot of people who do volunteer their time and property to make FNL successful, and I think the business community and the Ludington label may receive a benefit from FNL.  

My major points in this article is to ask:

1)  why we use taxpayer dollars to buy buns, water, soda pop, t-shirts, etc. when the proceeds from the sale of those products do not go back into the program?  Where does the money go?  Full financial records shows it gets lost somewhere.

2)  why doesn't City Hall ever tell the public how much this event costs them, and yet publicizes it as a free event, when it is far from it?

3)  why can't we adapt a privately-funded FNL to replace this poorly-fiscally-managed public affair?  If FNL is managed by the Jaycees or similar all-private group, we will find whether this expense is worth it. 

[Willy]

I don't think that FNL should be funded by Ludington tax payers but if it is then the records of "money out" and "money in" should be accurately kept and open for inspection with NO FOIA required.

[AQUAMAN]

Totally agree X & RJE, but it's not gonna happen. Btw Dave, the Clown Band has been in existence for many decades, I've watched them since I was a little kid. Their members volunteer, and I believe the funds they raise go to maintenance of the their bus and charity. Plus the members are all local guys, and most all are very accomplished musicians. Dressing in "drag" is their calling card and trademark, along with Patriotic Music. Regarding their costumes, it's supposed to be a joke, but I can see how some cross-dressers nowadays could be either insulted or "turned on". LOL They were at the Waterfront Park in August or July last summer, the crowds were so big, that I sat in the truck and listened from 1/2 block away. They contribute an important American tradition in their music imho. No, they don't copy Alice Cooper's music, and never will. Har.

[Max]

The old town of Mesilla, just outside of Las Cruces, does it right.  They have an outdoor event every Saturday, with live performers and lots of crafts, food and beverages.  And it doesn't cost the taxpayers a dime.  They hold it in their plaza, and local performers play for tips.  Vendors come and set up tables selling fresh vegetables, fruit, bakery items, and southwester crafts without government management, or mismanagement.  We always have a lot of fun when we go.

[Edie Lindsey]

I've enjoyed FNL in the past, but I am surprised it costs so much to the taxpayers without a voice, and why there isn't any better management of the public dime.  I always thought the entertainment was 'free performances' and the inflatables were volunteered.  I know some have said they were in the past. 

Now that I know otherwise, I'm going elsewhere with the kids on Friday nights.  That is ridiculous.