Council Seeks to Reduce Festival Fees

Beset by accusations of mismanagement and a significant decline in revenue over the past four years, the Long Beach Lesbian & Gay Pride Parade & Festival may receive some financial assistance from the City of Long Beach this year in the form of reduced fees and other cost-saving measures.

The City Council at its meeting on March 20 voted unanimously to explore ways to reduce city and staffing fees pertaining to the annual event, which operates as a nonprofit organization run by volunteers in its 35th year and provides community grants. City staff is expected to report back on the item in the next few months.

Second District Councilmember Jeannine Pearce, who brought the agenda item forward, noted in a presentation that the nonprofit organization Long Beach Lesbian & Gay Pride, Inc. (LBLGP, Inc.) has seen a net loss of $96,687 in annual revenue since 2014. She attributed the revenue losses to lower ticket sales, increased performance costs and rising city fees related to an “expanded process” of following the state’s Alcohol Beverage Control (ABC) regulations. 

She suggested that the city replicate practices of West Hollywood, which has fully supported its annual LA Pride event by: waiving permit fees; providing a park and surrounding streets for the festival and parade; and paying for the L.A. County Sheriff’s Department presence.

Pearce requested that the City of Long Beach support Pride as a city-sponsored event, similar to the Martin Luther King (MLK) Day Parade and Veterans Day Parade, by reducing costs for the nonprofit organization. She also requested that LBLGP, Inc. work with the city’s Special Events and Economic Development Departments to identify cost-saving measures, such as changing parking plans, shrinking the event’s footprint or shortening days, as well as looking into advertising opportunities.

In addition, Pearce called on the city auditor to recommend best practices for the event and nonprofit organization to continue to grow and thrive financially.

“It really is a great opportunity, especially when every year we have different hate crimes that happen in our community,” Pearce said. “I find that this is really the moment we get to rally around with all the events that come with pride.”

Long Beach Lesbian & Gay Pride and its attendees, she noted, have contributed an estimated $12.3 million annually to the city’s economy and $23.4 million to the regional economy. Pride has also helped make Long Beach one of the top gay-friendly cities in the United States, drawing thousands of new residents and sustaining the city’s culturally diverse status, Pearce said.

While LBLGP, Inc. has been able to provide grants to more than 50 community organizations annually with money raised from the festival, funds have dwindled since 2015 due to revenue losses and requirements, according to the event’s organizers. Last year, LBLGP, Inc.’s board of directors voted to temporarily freeze all grants to ensure the event would be funded in 2018.

Denise Newman, who has served as LBLGP, Inc. president during the event’s financial downturn, said she “stepped into an organization that was completely influx,” adding that the organization was “out of alignment with the city and ABC guidelines” primarily since it has been supported by all volunteers. In addition, Newman said the event’s all-volunteer staff required the organization hire professional consultants.

Despite the drop in revenue, relationships between the city and the festival have since improved, she said.

“We now have a very flourishing relationship with special events and filming,” Newman said. “We have an excellent relationship with the Long Beach Police Department and Fire Department. We went from a meeting where people glared at you to a meeting where we can now hug.”

Still, Leslie Smith, a trial attorney and chair of the nonprofit California Families in Focus, expressed opposition to recent practices of LBLGP, Inc.’s leadership, stating that the current regime, including Newman, have misappropriated charitable funds, grossly mismanaged the organization, failed to perform proper background checks of volunteers and violated codes of ethics.

“The City of Long Beach has been unfairly blamed for Pride’s inability to provide community grants and scholarships,” she said. “It’s no coincidence that Pride’s net revenue has fallen the same number of years this current regime has been leading the organization.”

Smith called on the city to demand an independent audit of LBLGP, Inc.’s financial records before agreeing to any concessions.

Third District Councilmember Suzie Price stated that the organization has gone through many changes over the years and a true partnership with the city would be a “great opportunity” to make efficiencies for years to come.

She cautioned, however, that subsidizing one event over another would be a “slippery slope” the city should avoid.

“The city hosts and assists with so many special events,” Price said. “Every single one of them is incredibly important and special to our city.”

This year’s event takes place May 19 and 20 and will feture a headlining performance by Sheila E.

sean@beachcomber.news