As Sedona City Council begins budget discussions in May, subsidies to outside agencies may be cut or eliminated.
In January, council directed staff to protect the reserve fund, protect existing employees, preserve the subsidies and come up with realistic revenue projections, Interim City Manager Alison Zelms said.
“There may be adjustments that need to be made,” Zelms said of the subsidies in order to reach council’s other goals. “But that’s a pretty big decision. We’ve been supporting the agencies for a while.”
In fiscal year 2008-09, the city invested $786,515 with the Sedona-Oak Creek Chamber of Commerce, $431,833 with the Sedona Public Library, $150,000 with the Sedona Community Center and $71,686 to the Sedona Main Street Program.
According to Main Street Direc-tor Holly Epright, due to national and state program requirements, cities are mandated to financially support Arizona Main Street programs.
Last year, the city’s funding made up 59 percent of SMSP’s budget and went toward operations, Epright said.
Also under national and state requirements, all Arizona Main Street programs must have a paid director and represent all stakeholders in the defined district regardless of whether or not they’re paying members.
SMSP’s goal is to make the Main Street District economically strong and vibrant.
“Our program strives to be a partner in identifying, preserving and promoting the cultural traditions of Sedona within the geographic district,” she said.
According to Epright, since the state requires cities to support their Main Street programs, if SMSP didn’t receive city funding, it would cease to exist in its current status with access to Arizona Department of Commerce grants.
That would also mean the loss of Arizona Main Street technical support and assistance and the capability to act as a liaison with and for district stakeholders, she said.
Also at a loss would be the benefit of thousands of hours of volunteer work on city-related projects from SMSP volunteers.
Besides the city, the program receives funding from membership dues, benefactors, event and enhancement project sponsors and competitive grants.
Last year, the program received $13,527 in grants, Epright said, and thousands of volunteer hours for enhancement projects and events.
The program’s district is the core of Sedona’s tax base, Epright said, so residents enjoy a sales tax based economy, which allows the city to provide municipal services without taxing residents.
SMSP also plans special events with various partners and sponsors such as the St. Patrick’s Day Parade & Festival, Moonlight Madness Street Festival & Sidewalk Sale, Uptown Safe & Fun Trick or Treat and holiday tree lighting and Santa Claus visit.
“Residents also get to enjoy the enhanced amenities within the Main Street District that are encouraged and supported by the SMSP, and help to create a vital and vibrant downtown,” Epright said.
Having a Main Street District and the honors bestowed on it and its volunteers helps attract patrons, visitors and sound businesses to the area, she said.
