Kempenfest needs to fix its current finances and a future plan to balance the Barrie waterfront festival’s annual budget.
City councillors heard from Kempenfest officials last night that the current shortfall is $50,000. Kempenfest has a $600,000 operating budget this year.
Kempenfest chairman Bob Stones told councillors that while the arts and crafts festival attracts roughly 150,000 people on the Civic Holiday weekend, its finances have been a challenge.
“Like many other businesses, festivals and events, Kempenfest is still struggling with the combined impact of COVID and the loss of revenue for the event for two years,” he said. “There was one year we had to get loans from some of the (service) clubs to cover the deficit for that year.”
Stones said the provincial government grants that helped balance the books after COVID have since dried up.
“Our goal … is to be self-sufficient and not have to apply for funding and not have to come to city council to ask for money, but we’re not there yet,” he said.
Stones asked councillors, sitting as the infrastructure and community investment committee, to consider granting Kempenfest $50,000 from the municipal accommodations tax (MAT) and hiring a researcher to do a comprehensive analysis of Kempenfest 2024, gathering data on its true size and impact on the local economy and to local tourism.
MAT is a four per cent levy on room rates at hotels, motels and AirBnBs. Tourism Barrie is the collection agent, on behalf of the City of Barrie, as the municipality’s ‘tourism entity’ and receives 50 per cent of the MAT. The city gets the remainder.
Stones said Kempenfest officials have other ways to find the $50,000 shortfall, if necessary.
This could involve eliminating the shuttle bus service, which is $14,000, as well as the second or family stage, which features local talent and is free to the public, but costs at least $10,000. They could also look at reducing the number of hospitality tents and seating in those tents, which are placed throughout Kempenfest to provide shelter to the public from weather, looking at reducing the number of washrooms, and finding ways to reduce the event’s waste disposal costs.
Dawn McAlpine, Barrie’s general manager of community and corporate services, said the city does provide help to Kempenfest, including direct staff support, site services co-ordination and administrative support, as well as from a number of city departments, including transit.
“The current estimate of the value of that specific support, that is beyond what is provided to other events, is around $21,000 to $22,000,” she said. “That’s in recognition of the importance of this event to the community and many of our local charities.”
Committee approved a motion Wednesday night that city staff work with Kempenfest organizers, alongside Tourism Barrie, on both the $50,000 costs outlined and the study into what can be done in future years to improve Kempenfest’s financial situation, along with feedback from event patrons, and what can be done better, and report back, as well as determine the costs of a study.
“Until you have accurate data, you really don’t know what the economic impacts are,” said Coun. Gary Harvey, council’s representative on Tourism Barrie.
It’s not if the city should help Kempenfest, councillors said, it’s how.
“I think Kempenfest is the city’s signature event and has put the city on the map,” said Coun. Bryn Hamilton.
“Our goal for Kempenfest … is to make the event better, not bigger,” Stones said. “We recognize there is a footprint at the waterfront. We can’t really get any bigger than what we are. The goal is to make the event better for the people who come to it, not bigger.
“For 2024, that is the goal, but it’s been a struggle.”
The committee motion passed last night still requires approval at general committee, then at city council.
