Monday, June 9, 2008

Oro Valley Neighbor John Musolf Offers Facts About GOVAC

We received the following email from our neighbor John Musoff. It is worth your reading:

The Days Of Oro Valley Being A "Cash Cow" May Be Over

John Musolf

Oro Valley Resident and Taxpayer


OV Objective thinker states: “Please keep in mind that the term "Oro Valley being a Cash Cow" is an Art Segal term and should be afforded the same weight as his other personal opinions. There is no substance, no figures to support the claim, just his own empty rhetoric”.
OV Objective thinker needs to do a little research before making comments. Historical information On The Town of Oro Valley Contributions to GOVAC:
05-06: $180,000
06-07: $110,000
07-08: $110,000 plus $60,000 emergency funding
08-09: $210.000 proposed

There was an article “Arts in “dire” straits” published in the Explorer on December 31, 2007. President Satish Hiremarth commented that the Greater Oro Valley Arts Council (GOVAC) has supported the quality of life in arts and culture in Oro Valley for the last ten years. The article stated that “Corporate donations, which according to the group’s tax statements have been on the rise, make up another sizeable portion of the group’s budget”. However, one of the comments made by GOVAC at the Town of Oro Valley Council study session on December 12, 2007 was that deficits might grow larger because some corporate donations have recently been reduced because of economic conditions. For example, Wells Fargo had reduced their donation by 50% to a recent GOVAC “event”.

Does GOVAC mean to imply that the government and its taxpayers are not affected by economic conditions and can make up any GOVAC shortfalls? Oro Valley taxpayers are being asked to continue to increase their contributions as deficits grow. GOVAC is looking to Oro Valley to increase its contribution from $110,000 to $210,000.

It also became public at the December 12, 2007 study session that GOVAC had already received an advance draw for the third quarter and was asking for an advance on the 4th quarter. Instead of paying GOVAC executive directors up to $50,000 per year, the money would be better spent on some professional accounting and audit support to prudently learn how to budget and balance both revenue and expenses and live within reasonable parameters (a sound business basis).

According to GOVAC’s executive director, Kate Marquez, most events are planned with deficits expected! “We have so many programs that don’t generate revenue,” Marquez said.

Only about 20 percent of GOVAC’s 47 annual events earn money, according to Marquez. At the December 12, 2007 study session, the mayor Has GOVAC furnished this?

A Second Explorer News Article: “Arts Council Gets Emergency Funding” published in the Explorer, March 12, 2008 states: ”The Greater Oro Valley Arts Council will receive $60,000 in additional funding from the town on top of the $110,000 the group received for the fiscal year, which began last July 1.

The group had requested the emergency cash after releasing documents showing a $59,000 budget shortfall for the year.

Group leaders said that the financial troubles stemmed from increasingly adding new programs for the community, while not securing enough money for them”.

In my opinion, the “story” behind the story is that GOVAC had committed money in verbal or written contracts to group or individual performers and spent advertising dollars and bought materials for the new programs or events. If the programs or events had been cancelled GOVAC would be legally liable for the expended or committed money.

As I have stated in the past,instead of paying GOVAC executive directors up to $50,000 per year, the money would be better spent on some professional accounting and audit support to prudently learn how to budget and balance both revenue and expenses and live within reasonable parameters (a sound business basis). I would like to add that GOVAC should also seek professional support in the legal area to prevent potential liabilities and have to seek emergency funding.

Does GOVAC want the TOV government and its taxpayers to make up any GOVAC emergencies? With many citizens having to choose between food and gas in these recessionary times I believe a little belt-tightening is in order to lighten our tax burden.

At the OV meeting on September 12, 2007, President Satish stated that it might be possible that GOVAC would go deeper into deficit and may have to go into bankruptcy in January 2008 unless 4th quarter funds could be drawn in advance from the Oro Valley budget to continue operating. Evidently, the two commenters: "boobie-baby" and "OV Objective Thinker" would like the taxpayers to continue to support an organization teetering on the brink of bankruptcy (GOVAC words, not mine). GOVAC does not support sound budget business practices.

The Explorer in their newspaper on March 12,2008 there was a full page on page 11 touting the “ Comcast Southern Arizona Arts and Cultural Festival, March 29-30, at the Pima Community College Northwest Campus. One of the major sponsers was GOVAC. An Oro Valley resident has to wonder how much of their taxes were committed to that festival event which is not even held in the Town of Oro Valley? Lastly, in my personal opinion, if you want to comment on public articles you should have the courage to publish your names as I do on every letter or email that I send. It's easy to hide behind email names.

3 comments:

Ferlin said...

Very informative article, Mr. Musolf! Thank you! Most of us appreciate The Arts, but we have been noticing new fees every few months while the old gang at TOV gave away thousands and made it up out of our pockets!

We hope our "New Council" will practice the fiscal responsibility they promised...especially during our current economic downturn.

A wise person once said, "Keep your friends close and your enemies closer" hence, if my enemies don't know my name I can stay closer :)

travelling dancer said...

I truly appreciate Mr. Musoff's article When I was aluding to GOVAC being fiscally responsible, I had no idea the Directors were receiving SOOOO much money, no wonder they were going to the Golden Cow Altar. Now they have the hutspah to have their functions in Tucson at Pima College and La Encatada and they go to the OV Council and ask for money. There is something wrong with this picture. Now it is time since they want to broaden their scope, as boobie baby said "Go where the money is" then fine, go to the Tucson City Council and maybe the Pima County Board of Supervisors and ask for money.

GOVAC has been around a long time doing great things and it has only been in the last few years, as Mr. Musolf stated that they have been asking for HUGE sums of money. Last year $110.00 this year #200,000.00 I believe Mr. Musofl also stated that the individual in charge of finances has not provided an audit. Hmmmm that is very interesting. Hopefully, whomever this person is they don't plan on working for the Town of Oro Valley.

raindancer said...

Interesting article.

I feel as a taxpayer funding GOVAC;the money they take from OV should be spent on providing events in OV. If the entertainment costs more than the funding - charge a fee!

If they hold events in Pima county or Tucson or wherever; they should get funding for those events from the respective towns or counties.

Monies that come from Corporations,Business and Grants should fund events for all.

The TOV is not the savior. GOVAC needs to learn fiscal management.

We attended a SASO event this past weekend. Awesome! and it is run by volunteers, no paid help. Grants, ticket sales and contributions provide funds. Novel. No $50,000 manager.

I also think that with the amount of money GOVAC receives from OV, perhaps the Town should require an audit or request looking at the books themselves.

Arts and Music are important within a school system and should be funded as such. Arts and Music outside of school can be funded with grants,volunteers,fees and regional art and culture groups who may provide programs for a fee.(done that way on the East coast)

As a child who grew up in an inner city, my family was not wealthy however my family paid for private music lessons for three children, we attended symphonies, museums of art, etc. as a family.

Seems what is lacking today is young families putting their own money into culture and arts rather than video arcades and computer games. When they do have an interest they want the government to pay for all of it.

raindancer