Council members discuss Civic Center shortfalls, fee enforcement

Cathy Spaulding, Muskogee Phoenix, Okla.
·3 min read

May 2—Muskogee Civic Center revenue continually falls short of expenses, partly because users haven't always paid fees, city officials say.

"There's quite a bit of difference between what we're bringing in the door and what we're spending to operate," assistant Muskogee City Manager Roger Kolman said at a City Council retreat held Tuesday.

Civic Center operating expenses were far larger than revenues over the past five fiscal years, as well as so far for the 2024 fiscal year, according to graphs Kolman showed. In FY 2023, civic center operating expenses topped $800,000, while slightly less than $300,000 was collected in revenue. For the 2024 fiscal year to date, expenses were about $400,000, but revenue was about $100,000.

Kolman said the civic center is a city enterprise fund.

"In theory an enterprise fund generates revenue necessary to cover all the operating expenses," he said. "That has not been the case."

The city also subsidizes the civic center each year. City subsidies have been about $400,000 so far for FY 2024 and were a little more than $300,000 for FY 2023.

Muskogee city council adopted a civic center fee schedule in 2018.

"One thing I discovered was that we weren't always following this, so we were leasing out space for less than what we were supposed to be leasing out space for," Kolman said. "It costs the city about $1,000 a day to run the civic center above and beyond what it is able to bring in."

Muskogee City Manager Mike Miller said some groups, including non-profits holding fundraisers, had not paid fees for civic center use.

Justin O'Neal, a new assistant parks director for exposition and facilities, has started enforcing fees with such groups, Miller said. Some groups expressed dismay at being charged this year, he said.

"They say 'I had this room last year and I didn't have to pay anything,'" Miller said. "One reason we're in the hole is that we were not charging."

Miller said the room rates are subsidized by the city.

"Those rates are giving you a break," Miller said.

Many educational programs use the civic center. Muskogee City Communications Director Tera Shows said organizers for the Education Consortium's recent Math and Engineering Competition and for the recent VEX Robotics state championship paid their civic center fees. Hilldale School Superintendent Erik Puckett said the district pays civic center fees when it uses it for high school graduation.

Ward III council member Derrick Reed said he faces similar issues as director of Dr. Martin Luther King Jr. Community Center.

"I'm in this business as well, when they can't afford the civic center, they come to the King center, and we hear these same stories," Reed said. "I don't think we're delivering a message of what's actually going on."

Ward III council member Melody Cranford said civic center fees should be publicized better.

"It would be hard for me to pay $500 for something I used six months ago for free," Cranford said.