Transparency: A Key Ingredient When Voting – Buz Blog

“Transparency increases credibility and accountability.” – Park Won-soon

First, let me state unequivocally, that I love the Prescott Rodeo. My wife, Judi and I have gone every year since we moved here in 2004. When I saw the latest edition of Prescott Living magazine with the cover showing a cowboy on a bucking bronco, I snatched up a copy. While it didn’t have much about the rodeo itself in the magazine, it did have a short article and a short interview about one of the biggest promoters of our annual cowboy event, former Prescott Mayor Greg Mengarelli. He is currently running for County Supervisor in the 1st Supervisory District.

In the article, Mengarelli states that he is “a strong advocate of faith, family and freedom and private property rights…a strong supporter of the Constitution and the Second Amendment.” Who can argue with that? However, in a radio ad, one of Mengarelli’s opponents states that the former mayor has not disclosed the terms of his contract as Business Development Manager with the Prescott Frontier Days (PFD). For the sake of transparency, Candidate Mengarelli should make that contract public. There may be the appearance of a conflict of interest in that contract, but open and honest answers to any impression of a conflict would quiet any accusations.

The article and interview bring up other questions that needs to be addressed by Candidate Mengarelli. In the interview he states that “I manage the Buckle Club, which raises funds for critical capital improvements to our historic, treasured rodeo grounds.” Now as I understand it, the 1888 Buckle Club is registered with the IRS as a 501(c)3 NONPROFIT organization. According to the IRS code a 501(c)3 is a nonprofit organization for religious, charitable, scientific and other educational purposes. Donations to a 501(c)3 are tax deductible.

On the other hand the Prescott Frontier Days is registered as a 501 (c)4 which is considered to be a social welfare group and donations to a 501(c)4 organization are NOT tax deductible. Everyone knows that the IRS regulations stack a mile high and are confusing and often contradictory. In this case it doesn’t appear that it is legal for the nonprofit 1888 Buckle Club, to raise and give money to the Prescott Frontier Days which is a for profit group. Since the city of Prescott owns the Fairgrounds, is the 1888 Buckle Club going to give the money it raises to the city to make the capital improvements?

A couple of other items need to be addressed. The Arizona Corporate Commission requires an annual report to be filed every year in April, yet the 1888 Buckle Club has not filed one for 2024. What is the cause of the delay? Most start up companies don’t make money the first year or so but Prescott Frontier Days has been around for quite awhile. If last two years it received $1.3 million in donations, what caused it to lose over $300,000? As the Business Development Manager of PFD, Mengarelli should be able to answer that question.

The Buckle Club raised $50,000 in 2023. Where did that money come from and how was it or is it to be distributed? The main queries that Greg Mengarelli needs to answer if he wants to be elected as District 1 County Supervisor are: is he going to keep his jobs as the Business Development Manager for Prescott Frontier Days and the manager of the 1888 Buckle Club? If he does, how much time will he be able to devote to the Supervisor job? How will he handle any conflicts of interest that may arise between Yavapai County and Prescott Frontier Days and/or the 1888 Buckle Club? If Candidate Mengarelli does not disclose the donors to the Rodeo through the Buckle Club or directly to Prescott Frontier Days how will the voters in District 1 even know if there is a conflict. Transparency requires that he answer these questions because as the quote above illustrates, “Transparency increases credibility and accountability.”