THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Sunday, September 25, 1994 TAG: 9409260064
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY KAREN WEINTRAUB, STAFF WRITER
DATELINE: VIRGINIA BEACH LENGTH: Long : 106 lines
Virginia Beach Events Unlimited Inc. has mastered the art of creating fun in the sun.
The nonprofit agency ran all of this summer's beachfront festivities: pulling off a successful National Fireworks Competition, snagging the Virginia State Games, launching a promising music festival and hosting the 21st annual Neptune Festival, now under way.
The City Council, which soon must decide whether to renew Events Unlimited's contract, is clearly pleased the summer went so well. Many council members say they are happy enough to overlook financial problems that continue to pester the company.
Events Unlimited receives nearly $1 million a year from the city to sponsor oceanfront performances all summer long and major events over Memorial Day, Labor Day and July 4 weekends, among others.
Last year, the company was faulted for inviting people from as far away as Singapore to judge the National Fireworks Competition, which was $120,000 over budget. Events Unlimited's president, former Councilwoman Nancy Creech, also came under criticism for accepting an annual salary of more than $50,000.
This year, the firm submitted its most recent quarterly financial reports 70 days late and will have to borrow $100,000 from next year's events budget to pay for revenue shortfalls from Labor Day's American Music Festival.
After last year's problems came to light, the council increased fiscal controls and decided to review Events Unlimited's contract, which expires at the end of the year.
James Ricketts, director of the Department of Convention and Visitor Development, will begin that review process next week when he asks the council to solicit proposals for a new contract. The council is considering turning over management of beachfront activities to another company or to someone on the city's payroll.
But most of the council's concerns seem to have evaporated into the good feelings surrounding this summer's activities. Events Unlimited officials were warmly received at a recent council meeting they attended.
Councilman John D. Moss said he thinks the company, on balance, does a good job. He is not overly concerned about paperwork problems or the budget shortfall on the American Music Festival.
``Maybe it's a cheap price to pay to turn Labor Day around,'' Moss said.
Councilman W.W. ``Bill'' Harrison Jr. said he thinks the council should make up for the music festival shortfall and not hamstring next year's events.
``I'm not so much worried about the $98,000. We knew going in that they were taking some risks and nobody stopped them,'' he said.
R. Leon Edmondson, finance officer for the Department of Convention and Visitors, which oversees the Events Unlimited contract, said the company seems to have gotten more financially responsible over the past year. He characterized the continuing problems as ``not serious.''
Events Unlimited, which is required to submit quarterly financial reports to the city, took until Friday to provide most of the financial information that was due July 15, Edmondson said. Its annual audit, due Sept. 15, has not been submitted yet. Paperwork for the rest of the summer is due next month.
Ricketts said the reporting problems will be fixed no matter how the events are handled in the future. He said he believes the city maintains adequate oversight over Events Unlimited and defended the company's fiscal responsibility.
Money problems are to be expected for first-time events like the music festival, Ricketts said, and the council and resort-strip leaders knew beforehand that Events Unlimited might not make its budget for that event. Events Unlimited, or whoever takes over the event management next year, will have to either raise more private money or cut back on programs early in the summer to make up for the Labor Day shortfall, he said.
Creech and Events Unlimited Director Chris Casey said they are confident they can make ends meet next year if their contract is renewed.
There's a simple reason the financial reports have been late, Creech and Casey said: The city's demand for budget numbers comes during their busiest season, when staff members are already overworked. A better solution would be to require Events Unlimited to submit the paperwork at the end of every calendar, rather than fiscal year, they said.
Creech and Casey say that considering what they have to work with, they are doing a stellar job. They must manage a handful of major events and hundreds of smaller ones, coordinate 1,000 volunteers and please tourists, residents and hotel owners along the strip.
``Special events is not an exact science,'' Creech said. ``All these programs together (help make Virginia Beach) a great place to live, a great place to come for a vacation, a great place to have fun.'' ILLUSTRATION: Graphic
Virginia Beach Events Unlimited receives nearly $1 million a year
from the city to sponsor oceanfront events during the summer.
High points:
National Fireworks Competition
Virginia State Games
American Music Festival
Hosting Neptune Festival
Low points:
Last year: Invited people from as far away as Singapore to judge
National Fireworks Competition, which ran $120,000 over budget.
Agency's president criticized for accepting an annual salary of
more than $50,000.
This year: Submitted its most recent quarterly financial reports
70 days late.
Must borrow $100,000 from next year's budget to pay for revenue
shortfalls from American Music Festival.
by CNB