General manager explains State Fair’s finances
The Colorado State Fair is headed toward solid financial footing despite an annual audit showing a substantial deficit after the 2013 fair, the event’s general manager said Wednesday.
General manager Chris Wiseman said a newspaper report that the fair lost $3.3 million in 2013 is wrong and that the loss actually was $384,000 when adjusted for depreciation, and payments from the city of Pueblo and Pueblo County.
“I can see how a mistake was made,” Wiseman said. “It’s hard to discuss the accounting. I’ve been dealing with it for 18 years. I had to sit down with a former board member who has an extensive accounting background to understand (the audit).”
The fair has operated in the red in recent years but Wiseman said the 2013 deficit was higher than usual because of a controversial cashless payment system instituted there.
“People didn’t like it and stayed away because of it,” he said. “It also had a higher operating cost.”
The audit doesn’t include the 2014 fair, but Wiseman said that event had more revenue and lower operating costs than in 2013.
“Attendance was around 500,000,” he said. “Not a record, but that’s a pretty good number and a good start on reversing the loss trend.”
Wiseman said the fair’s operating costs are tied less to the fair itself and more to the $3 million year-round cost of maintaining the fairgrounds. He said fairs generally don’t have enough events through the year to produce significant revenue.
“A study found that moving the fair to another location would cost $500 million,” he said. “You need a certain infrastructure no matter where you have the fair. And as is true of most fairs, you have to be subsidized somehow. We haven’t received any allocations from the state in about 12 years.”
However, that will change this year, Wiseman said. The state will set aside a total of $950,000 for the fair — $550,000 for operating funds, and $400,000 to maintain youth 4-H and Future Farmers of America programs.
“That extra money, along with lower costs and more revenue, should mean a $1 million swing for us financially,” Wiseman said. “That would be a profit of about $700,000.”
People who live in the neighborhood surrounding the fair said they support the event but offered suggestions on how to increase attendance.
“We need more hip-hop concerts,” said Ismeal Fierro. “People would come from Colorado Springs and Denver for that.”
Debbie Fogel said parking at the fair remains a concern.
“There’s a whole bunch of traffic,” she said. “People get frustrated and can’t find a place to park. I’ve parked them in my yard for many years.”
Wiseman said state funding likely will be available only on a year-to-year basis.
“So we’ll keep doing what worked for us last year,” he said. “It gave people value and that will bring them back.”
