GILROY—In an abrupt and unexpected about face, Mayor Don Gage has reversed his stand to strip the Gilroy Welcome Center of $200,000 in city funding.
Instead, he will propose at the June 1 council budget hearing to keep intact the tourism-generating organization’s funding for the coming budget cycle, he told the Dispatch Friday afternoon. After that, however, cuts are fair game.
“I’ve got to man up and be the one to say ‘I made a mistake.’ I realize I jumped into this a little too quickly,” Gage said, of his motion at the May 11 meeting to cut $100,000 per year for each of the next two years from the center’s support.
His idea was supported by a 4-3 vote and, if approved in the final budget document still to be adopted, would have redirected the $200,000 to the general fund to pay for increased activities for at-risk youth.
“I really appreciate that the mayor was willing to reconsider,” said Howard, beaming with positive energy.
Welcome Center Executive Director Jane Howard and Gage met Friday and she said she believes what ultimately swayed the mayor was a hard look at the amount of transient occupancy tax revenue Gilroy is on track to receive over the next few years—money the Welcome Center helps to generate.
Howard said she demonstrated in the meeting that the organization is on track to “far surpass” city projections for TOT revenue. That money, she said, directly benefits the city and helps fill its coffers.
The Welcome Center has helped generate an increasing amount of TOT receipts since 2009. In 2014, the city took in more than $1.2 million in TOT—the most in 20 years, a review of city data shows.
“I think that gave the mayor a comfort level to say, ‘as these dollars from the TOT come in, those are the dollars I’m looking for to help at-risk youth,’” Howard said.
Council Members Dion Bracco, Cat Tucker and Roland Velasco had opposed Gage’s move to partially defund the welcome center, formerly the Gilroy Visitor’s Bureau. Council Members Perry Woodward, Terri Aulman and Peter Leroe-Munoz voted with Gage to cut center funding.
“I just didn’t think it was appropriate for us to be stripping essentially one-third of their city contribution away from them,” Velasco said. “I don’t think it was appropriate, as far as the process is concerned, to surprise (Howard) and her board by taking that away.”
“If you’re going to be a mayor in a small town like Gilroy and have established relationships with individuals, you shouldn’t be catching them off guard like that,” he added.
Aulman agreed that Howard wasn’t given ample opportunity to explore alternative funding sources, and after meeting with the executive director, said she will support the motion Gage plans on making June 1. On the other hand, the councilwoman said Gilroy needs to invest more into its at-risk youth.
“I think this is the fair resolution for now. It gives them (Welcome Center) an opportunity to look at new options for funding sources,” Aulman added. “I don’t want anybody to think this was in any way comment on their performance; they’re doing a wonderful job for the city. But these are the times when we have difficult decisions and in this case, I think in coming back to it and really looking at it and working with her (Howard), we’ve got a very good solution.”
Gage said he decided to maintain current funding levels for the next two years due to the upcoming Gilroy Garlic Festival, Super Bowl at Levi’s Stadium and other events that will help generate additional tax revenue. After that, however, a reduction in city funding the Welcome Center receives will be on the table, Gage said Friday.
“I changed my position even though I know the votes are there,” he added.
That was unclear, however; Woodward shortly after the initial vote told the Dispatch that he wanted more information before making a final decision on center funding.
Councilwoman Cat Tucker, in particular, said she questioned the mayor’s motivations in surprising the Welcome Center with funding cuts when the balanced budget put before them included that very funding.
The city of Gilroy was party to a $1.5 million CalGrip grant that includes funding for the cities of Morgan Hill and San Martin, which will help with local gang suppression. But Gage said the council needs to look to the future to ensure kids don’t wind up in a life of crime because of a lack of healthy activities.
“That’s (grant money) going to go away in two years but the problems will still be there,” he added.
Aulman concurred, saying the city has a “very tight budget” and that during the next budget cycle, fiscal years 2017-2018, Gilroy should chalk up more funding to help its at-risk youth.
The council budget session will take place at 6 p.m. June 1 in council chambers oat City Hall on Rosanna St.
