Edgewood Attorney: Town Can Fund Events, Festivals Without Violating Anti-Donation Clause
by John Weckerle
At the July 2, 2008 Edgewood Town Council Meeting, Town attorney Marcus Rael provided insight into whether the Town can legally contribute to such events as the Wildlife West Music Festival; Run, Rally, and Rock; and other smaller events held throughout the year.
According to Mr. Rael, the Town may fund, or partner with, other entities, nonprofit or otherwise, to produce such events for economic benefit or other purposes. He indicated that a detailed scope of work and accounting of the expenditures of the Town’s contribution are critical to avoiding anti-donation clause violations. Mr. Rael emphasized the importance of documenting the potential benefits (for example, increased gross receipts tax revenues from people purchasing gas, groceries, etc. on the day of the event) of contributing to such events. He also indicated that it would be appropriate for the Town to issue an RFP for managing events. Mr. Rael did not offer any specific recommendations on how to fund the events, which some understood to be the intended purpose of his discussion.
Town Councilor John Abrams expressed the opinion that the Town should only contribute to such events when the increased revenue is greater than the contribution. However, in subsequent discussion, Mr. Rael made it clear that this was not a prerequisite for avoiding violations of the anti-donation clause; rather, the council could also consider benefits to the business community and other less tangible factors. Councilor Brad Hill expressed confusion regarding this issue, stating that it 
made him feel cautious and suggesting that the decision should be based entirely on economic issues. Councilor Glenn Felton once again raised the issue of complimentary tickets given to musicians, their families, and Park sponsors – an issue of which we disposed in a previous article. He suggested that event funding be the subject of a special meeting of the Town Council, effectively guaranteeing that the Town will not make a decision in time to support this year’s music festival.
Town Councilor Rita Loy Simmons made the suggestion that, especially given the greater-than-expected gross receipts tax revenue the Town is enjoying, the Town should examine whether there was a way to ease the burden placed on Wildlife West by the Town’s decision to suspend funding for the event. She noted that flyers and brochures for the festival did, in fact, bear the Town logo. Mayor Bob Stearley expressed the opinion that there were other priorities that might be more deserving, and that the issue should be discussed in the context of the overall budget.
One Response “Edgewood Attorney: Town Can Fund Events, Festivals Without Violating Anti-Donation Clause”
I find it odd that I find a sign near Yale and Gibson in Abq promoting Wildlife West, when the town of Edgewood seems to all but ignore this splendid animal park and its value as a town asset.
Kudos to Mr. Alink, who lives up to his obligations!
Sure wish the town council would be more supportive!
Wake up Edgewood!