Photo: Parking map of Prescott Rodeo Grounds
In response to widespread public misunderstanding about a $15.3M legislative appropriation to fund improvements to the Prescott Rodeo, which is now tied up in a lawsuit, I would like to offer some background on how we got here. Recent efforts to “set the record straight” orchestrated by self-interested stake holders have only served to further mislead the public. We have now reached the point in our civic discourse where the effort to improve a valuable cultural asset has been caught up in political maneuvering and one-upmanship.
First, it should be noted that neither the Mayor of Prescott nor City Council Members had prior knowledge that our LD1 legislators had been secretly lobbied to seek a multi-million-dollar state appropriation for Prescott Frontier Days (PFD), the private entity that leases the rodeo grounds from the city. In 2023, I was present during a study session briefing on the Master Plan which included plans by Prescott Frontier Days to seek funding for improvements to the rodeo grounds. It was clearly stated that these funds would be sought from private donations. What the Mayor and City Council were not told is that Prescott Frontier Days planned to seek a legislative appropriation from the State of Arizona. They were kept in the dark until the public announcement by Prescott Frontier Days that they had obtained a $15.3M budget appropriation from the state. They learned about it on the radio.
As a former Mayor of Prescott, I am intimately familiar with the city’s ownership of the rodeo grounds and the need for improvements. During my term as mayor, the City Council approved and completed extensive repairs on the main grandstand building and arena lighting valued at almost $2M. The current council recognizes the need for additional improvements, but no funding is currently available to address these needs. The City Council desires to resolve the impasse with PFD regarding the $15.3M to implement many needed improvements.
As I see it, two actions must be completed to move forward. First, there has been no formal request by PFD for the City Council to approve its rodeo grounds improvement plan. By lease agreement, PFD must receive approval from the City Council prior to making property improvements. Therefore, PFD must provide their Master Plan and associated Business Plan, including a prioritized list of improvements, to the City Council for consideration. Without City approval no improvements can be made.
Secondly, PFD should formally request the City of Prescott to act as fiscal agent for the $15.3M appropriated funds (since governmental entities are not subject to the State’s Gift Clause.) The State Treasurer is holding payment of these funds due to a lawsuit by two local taxpayers concerned about a violation of the State’s Constitution regarding Gifts (Article 9, Section 7). There seems to be great reluctance by PFD for the City’s management of these funds, instead, hoping for a favorable court decision. Hopefully it is not too late to reach an agreement with the city to act as fiscal agent. Several factors complicate this issue: PFD could lose the court case before an agreement is reached; State appropriation language may prohibit assignment of the funds; or the Governor could reappropriate the funds to another purpose in the state budget. Any of these actions would jeopardize PFD’s use of these funds.
Regarding the current Gift Clause violation under litigation, there was an Arizona Supreme Court decision regarding the State’s Gift statute rendered in February 2021 (Shires vs Carlat). It decided that the Arizona Gift Clause prohibits the donation or grant of public funds to private individuals or entities unless (1) it is for a public purpose, and (2) the value to be received by the public is not “grossly disproportionate” to the consideration being paid by the public. (The average taxpayer must receive a direct benefit to meet this test.) The court decision explains that neither increased tax receipts nor general economic development can be considered as public services in the computation of direct value received by the taxpayer.
PFD’s Master Plan most likely meets the first requirement of benefitting a public purpose by improving City of Prescott assets (the rodeo grounds). However, the second requirement to provide a direct benefit to the taxpayer is not met since PFD is a private entity and the sole beneficiary of these public funds.
As I see it, the ball is fully in PFD’s court. Preserving this $15.3M appropriation requires PFD to reach agreement with the City to approve the PFD Rodeo Improvement Master Plan and allow it to become the fiscal agency to manage these funds for PFD. This agreement should be pursued immediately with the City of Prescott.
6 thoughts on “Saving the Rodeo Funding – Harry Oberg, Former Prescott Mayor”
15.3 million? For what? Even blacktopping the whole parking lot would cost less. Public (government) – private partnerships usually benefit the private part. As a PV councilman I voted “no” on the PV event center because 70% would be paid by the taxpayers by the wording of the agreement. Fain Signature Group, lied to the council 2 weeks before assuring all that it was only going to cost the taxpayers 1.5 million. Due to approval 6-1 even today its costing the PV taxpayers over3 Million a year due to the agreement. Let private fund private period.
unless you have looked at the detailed master plan then what you are saying makes no sense.
Mr. Oberg offers an excellent analysis. I do not live in Prescott but have spent time there regularly over 20 years. The rodeo has always been a puzzlement. It is said to benefit Prescott financially. That may be true for some downtown restaurants and retail businesses. But the rodeo itself, as I understand it, has always run in the red. Former Mayor Wilson tried to get written financial statements from the rodeo but could never get them. A former rodeo rider was nominal head of the rodeo but was frequently absent. He was well paid. Local volunteers worked without compensation. Board members represented businesses which benefited financially. There is nothing about the rodeo which should exempt if from the oversight that many such events receive in many American communities. The former mayor has enlightened us.
my understanding is that the approval process is in motion.
This is the best analysis I have seen with regards to the Rodeo Board, Managers and Staff in the last 30 years. I myself belonged for more than 20 years (attending monthly and semimonthly meetings and events). During this time, I worked the Rodeo’s and co-chaired the “Old Timers” luncheons for most of those years. Whenever financial records where requested we were told, “they were locked up in the office” and we had no access. One of the Board Members worked at a bank and until the last 3 or 4 years 100% of the monies were kept at her bank. When we tried to pass “new agendas” people who hadn’t been present for years would show up and vote to put a halt to them. The head of the organization, JC Trujillo (part time/full time) ran it for years. The accounting was done much by 2 different Accountants (volunteer’s) who did an excellent job with what information they were given. I have not been a Member of the Rodeo since former Mayor Greg Mengarelli was hired on. I thank you for enlightening us with this article, (you know how much I appreciate your decency, honesty and integrity).
Goligoski is hand in hand with Mengarelli. I don’t understand why we’re tolerating these shady politics. Listening to Goligoski’s talking points last election compared to his woke inclusive agenda now, it’s hard to remember it’s the same person!! If anyone knows his REAL political stance, I’d love to hear it, because I can’t find an answer. All buzzwords for whatever group he’s peddling to!!
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