Ritzville Blues Fest ends, committee votes to fund music scholarship, plans future financial contributions

A Ritzville event has celebrated its last hurrah after 18 years of bringing top-notch, national blues music to the downtown area.

The Ritzville Blues, Brews and BBQs committee voted to discontinue the event after about seven hours of discussion on July 31 at the annual exit meeting.

It was a difficult conclusion for committee members to arrive at, especially when most have been involved with the event for more than 10 years, but in the end it was a decision based on the current situation of funding sources getting fewer and costs rising.

“Sunday’s decision was a painful, agonizing experience for the all-volunteer committee,” said Stephen McFadden, who has served as event chairman for the last two years. None of us are happy about the outcome. All of us were aware that the event has suffered declining attendance and revenue as a result. We have worked hard to turn that around. Based on the downward trend, none of us are willing to risk going into debt to produce another festival. The risks are too high.”

Virginia Jones, who has dedicated 12 years to the festival, echoed McFadden’s statement.

“The decision to end the festival was difficult and emotional. Blues Fest was a great way to invite visitors to our community to see what this small town has to offer.

“First of all, the amount of volunteers involved is amazing and the committee has always appreciated their hard work and dedication to help make the event a big success. The fest gave visitors a chance to shop the local stores, eat in the restaurants, see that we have a nice bowling alley, theater, beautiful park, pool and golf course.

“It was also a day for visitors to see the beautiful museums and art center that are once again taken care of by a wonderful group of volunteers. Those who camped, or spent time at the Friday night Dance in the Grass were able to see a great group of hard working people who provide a nice fair/rodeo every year for the community.”

She added, “It was a great sense of accomplishment to have strangers walk up to me and say ‘thank you for all of your hard work for putting on such a great festival! We’ll be back next year.’ Just one thank you made the hard work all worth it.”

For John Munroe, a 15-year committee veteran, said he will miss the personal satisfaction of producing the event.

“I gained great satisfaction from working with such capable friends to put on such a brilliant show, great teamwork is highly satisfying for everyone,” he said.

“I will truly feel reduced as a person to not be able to have this satisfying experience. Sure it is hard work and long hours for me, but it made everyone involved and attending the show to feel very happy. It put Ritzville on the map, and boosted the economy immeasurably.”

The signature blues festival is well respected and renowned throughout the blues industry, drawing visitors from across the nation and its borders.

Kellie Ottmar, a committee veteran of more than 10 years, said, “This event brings so many people to the community. I could be anywhere wearing my blues fest shirt and have someone come up to me and tell me what a great time they had. The one comment that always proved to me that it was a great event was, ‘I was so surprised when I saw there was such a cute little downtown area, I had no idea. We always just stopped at the gas stations by the freeway.’ I loved knowing that people were able to come and see the heart of Ritzville, and not just the businesses by the freeway.”

Valerie Maier, who started with the event in 2002, was amazed at how the city came alive in the days before the annual shindig.

“I am saddened by the decision we had to make to end the festival. What was special for me was watching the town come alive, one or even two days, before the event with visitors to our town and the excitement they had for our festival.

“Each year these people were here they spent money in the community buying gas, meals, shopping, staying in local hotels or the fairgrounds, using the pool and other recreation.

“We even had people coming from as far as Florida and other states as well as many regulars from Canada,” she added. “I know of people who bought homes in Ritzville after attending the festival.”

Ritzville’s lineup historically has featured some of the best names in blues, including Bo Diddley, Charlie Musselwhite, Taj Mahal, James Cotton, Junior Wells and Roomful of Blues. The 2011 event was no different.

“We had a first-class line up of entertainers,” McFadden said. “That is evidenced by the Facebook comments we received from our fans and the written reviews already published by the Inland Empire Blues Society and the Washington Blues Society.”

Both organizations have bestowed top recognition year after year to the Ritzville event.

This year’s event has garnered accolades from Ted Todd, founding member of the IEBS (Inland Empire Blues Society) who stated in the August 2011 issue of “Inside Blues” published by the organization, “The 18th annual Ritzville Blues Festival was an awesome show this year, with temperate weather and an incredible line-up of talent both on the main stage and in the clubs.”

Jerry Peterson, vice president of the IEBS, wrote in the August 2011 issue of “Bluesletter” published by the WBS (Washington Blues Society), “This was another exceptional Ritzville Blues Festival, and I’m grateful to organizer Stephen McFadden for an outstanding 2011 festival, and I’m already looking forward to next year!”

But a steady decline in revenues and a loss for the last five years overshadows the high praises.

Paid attendance dropped dramatically this year – coupled with a tough economy and higher fuel prices – the 2011 event lost about $30,000, which is only slightly higher than the 2010 loss of $29,596.

The festival’s peak attendance was in 2006 when 1,985 people purchased tickets. The paid attendance for 2011 was 1,365 – a difference of 620 ticket buyers. Based on $30 for advance ticket sales, that’s a loss of $18,600.

Advance ticket sales in 2011 were $29,660 compared to $31,561 in 2005. Sales on the day of the event have dropped from $26,420 in 2005 to $14,346 this year.

A significant increase in accommodation costs impacted the event’s budget severely due to changes in booking requirements.

“One of the major expenses that has grown dramatically in the past four or five years has been hotel expenses. The hotels now require that we book the rooms for our entertainers for two nights,” McFadden said. “This year we needed 45 hotel rooms. The cost was $10,919.82, meaning we paid an average room rate of $121.

“Of the 45 rooms we paid for on Friday, July 8, only 10 of those rooms were actually occupied by the entertainers they were held for. The majority of the performers were coming in from a location 200 miles or more away, having performed at that location on Friday night.”

The event ended this year $10,000 over budget, and of that $3,900 was for hotel rooms. Last year, the committee spent $8,339 for accommodations. In 2005, accommodation expenses totaled $5,207.04.

“We attempted to obtain significantly lower rates than what we paid in 2010. Late last year we budgeted $7,000 for hotel rooms for the 2011 event,” McFadden said. “Our only other option would have been to go against our effort to bring business to Ritzville, by housing our entertainers in Moses Lake and Spokane.”

The committee chose to remain true to the mission of the Ritzville Area Chamber of Commerce, which the event has functioned under for the majority of its 18 years, and kept business local.

Ultimately, other financial matters contributed to the decision.

“The cost of producing the same festival goes up every year. In 2005 that cost was $76,559 with a profit of $7,000. In 2009 the event cost $100,423 to produce and we posted a loss of $15,000. The 2010 show cost $103,620 and we lost $29,596.”

For five consecutive years the event has lost money – a total of $79,928 – with $60,303 of that loss in 2010 and 2011. The committee has balanced the annual event budget using the festival’s reserves.

The 2011 budget was set at $81,000 and as of July 27, expenditures totaled $90,706.02. The event realized a hit in revenues, only collecting $59,999 as of the same date. That was a $21,151 drop in revenues from what the committee budgeted.

According to the financial documents, the event realized a loss in all revenue areas except vendors’ fees, t-shirts and fencing rentals. The event maintained its budgeted level for sponsorships.

But, as Maier points out, although the committee has actively reduced its budget in the last few years to offset the losses, there are some expenses that were required.

“I don’t know if people realize the expense involved in putting on a festival of this caliber,” she said. “We have been cutting our budget for the last several years to make up for the losses, but there are some costs that are required and cannot be cut or have been rising, such as local hotel costs for the talent, sound and lights, fencing, security, portable toilets, advertising, the list goes on and on. The main cuts that we would have to make are in talent and would compromise the quality of the festival, resulting in further attendance decline.”

The entertainer cost, just for 20 bands and professional sound and light production, has ranged from $35,500 in 2008 to $44,962 in 2010, which doesn’t include advertising, security or any of the other ancillary expenses necessary to produce the show.

Munroe agreed. “Sure, the economy and gas prices reduced income, but it was not the lower ticket sales which of course would be expected, but the many fixed costs that could not be successfully negotiated to match the slower economy to continue to bring this benefit the community.”

Across the nation, the current economic condition is not pleasant and committee members know it has greatly affected the event.

Jones noted that, in her opinion, the economy, rising gas prices and hotel expenses were the primary factors in the event’s declining income.

Dawn Wolf, a 16-year volunteer for the show, agreed. “I truly believe the economy has been our nemesis. With unemployment rates so high, families have taken income hits from either unemployment or lesser paying jobs. With everyone’s budgets so tight, having fun and frivolous spending goes first.”

“Ultimately the nation’s horrible economic condition, including the high price of gasoline, has directly contributed to the dramatic decline in attendance during the past two years,” McFadden said. “For instance, according to AAA the national average price for regular gasoline in 2010 around the time of last year’s festival was $2.75. The average this year was more than $1 higher, hovering just below $4 per gallon. Consumer Reports puts the national average for regular unleaded at $2.46 in July of 2009.”

While some may argue that ending the event was not the best decision, committee members agree that financial concerns with producing another show and the quality of future shows weighed heavily on the decision.

“Our beginning fund balance prior to the start of this year’s event was $69,924,” McFadden explained. “On Sunday, when we conducted our annual exit meeting, our ending fund balance is $52,000. In order to produce one more show, we would have to cut $40,000 out of the 2011 expenditures.

“The result would be a festival event that would not resemble this event and the caliber of performances it has brought to Ritzville. Ritzville Blues Festival fans would recognize that immediately and likely even fewer would purchase tickets.”

With its reputation as the only blues event in the state to have multiple stages for one ticket price, reducing the number of bands or hiring regional instead of national acts would impact its stability.

“If we stopped bringing national acts to the event, or cut the total number of bands from 20 to 10 or 12, we would also be unable to charge the same ticket price,” McFadden said. “That would result in reduced revenue… No one on the committee was willing to take a risk of producing and event that may fail in such a manner that we are unable to pay our bills.”

Jones concurred. “It is best to end on a good note. The 2011 festival was good. We had terrific bands. We ended on a high note (no musical pun intended!). To produce a show of less than what the visitors have been use to would be a big mistake. The committee of today, past years and all of the volunteers can hold their heads high and be proud of the last 18 years of success.”

Ottmar echoed their statements. “It is too much of a gamble to try and produce the show with that much of a shortfall… In addition, our festival participants have come to expect a great show. When that line-up comes out, that is what draws the blues crowd here. We had an awesome line-up this year and if that didn’t draw enough people here, think of what would happen when we announced a less-than-great line-up. Even less would come.”

Munroe summed up the general discussion. “Ticket sales would drop too far to ever recover the capital outlay.”

While the decision was financially based, the committee is planning to ‘give back’ to the community with the balance of funds.

With the final event’s financial report nearing completion, the committee expects to have about $50,000 after all expenses are paid.

To date, all bills are paid in full and only a few have not been received. During the July 31 meeting, the committee elected to establish a scholarship at Ritzville High School.

Initially the committee has allocated $5,000 to be awarded in $500 increments for the next 10 years to a music student who plans to continue to study music after high school or pursue a career in the music field through vocational training, including as a sound engineer.

Discussions also included making significant investments in good causes and viable projects in the community at a later date.

“It’s better to go out with a little money to put back into our community than to end up in dire straits because we took too big a risk trying to do another show,” Wolf said. “The quality and caliber of show this event has put on over the years has been recognized several times over with awards within the blues community. It would have been disastrous to produce a less than quality event with so little funds than to use what monies are left to give back to a community who has supported its event over the past 18 years.”

Cara Broeckel, an event volunteer for three years, said, “I would like to see the remaining funds go toward infrastructure that will boost tourism or help bring in new business to downtown Ritzville. I think that it is important to find new ways to encourage tourists to visit the community so that the local businesses that depend on the income generated from Blues Festival will not suffer after the festival is gone.”

The committee also discussed distributing funds to the chamber of commerce.

“A portion of the money needs to go to the chamber to help them with funding to promote tourism,” Maier explained.

Munroe said his first choice for the monies is to fund a trust account, with the interest going to the chamber of commerce proposals every year.

According to McFadden, the committee will not spend any of the remaining funds for a minimum of 120 days to officially close out the books.

In the near future, the committee will begin discussions with the chamber’s board of directors before the remaining dollars are allocated.

Although the remaining dollars are not specifically allocated, Wolf mentioned that the committee discussed purchasing instruments for the music department at Ritzville schools and possibly upgrading its music system as well as a public restroom downtown that will benefit the mass public and tourists.

Jones added her thoughts of possible uses.

“I want to see the funds be used for our community and school. I would like to see a music scholarship developed for a graduating senior that is interested in the music field, possibly help update music equipment, things of that nature. I had thought it would be nice to help the parks/recreation district to purchase items for the pool, or to donate some new park equipment. These are just some of the ideas that we could possibly help donate to. There are a lot of organizations that we could help out. I am wishing for items that will last in our community for years to come, that our town, students and visitors can enjoy.”

The committee’s decision to end the Ritzville Blues Fest will also have an impact on several businesses financially, from retail businesses to eating establishments.

Jones admitted this was one aspect that the committee discussed at length.

“Besides the fact of not having the adequate funds to put on another good show for 2012, the financial impact this will have on the businesses was a great concern of the committee,” she said. “We didn’t make the decision lightly. It was heavy on all our hearts,” Wolf added. “We understand that, for a few businesses, the loss of added income during Blues Fest weekend will bring an economic hardship. But, as we all know with the downturn of the economy, you can’t spend what you don’t have. Many of us have had sleepless nights wrestling with this decision. With so many businesses counting on the income from the out-of town-guests that weekend, it wasn’t a fun or easy decision for any of us.”

Ottmar said, “I do feel for the businesses that will be impacted by the event’s demise. I know all the businesses in town had some type of increase in volume. Perhaps the businesses can get more involved with finding ways to attract people to our great little town. This festival was a lot of work for a handful of people. Imagine what we could accomplish if we all worked together. I am sure there are some great ideas in our community and I would love to help out in any way I can!”

Munroe has a similar perspective.

“Some might be struggling learning how to cooperate on powerful community projects like economic development,” he said. “Others may not have responded with certainty when called upon to help. Most embraced the opportunity and helped make the event happen, and can see the effort that went in to it resulted in exponential benefits for all. An event of this magnitude requires 100 percent cooperation of the entire community for it to work at all.”

In addition to financial concerns, another factor was considered when making this decision – availability of venues to host bands.

As Maier notes, “No one on the committee is happy with the impact it will have on many of the local businesses and some of the organizations such as the fair. There were other issues involved besides financial which led to the decision, one being the uncertainty of the number of venues we will have downtown next year.

She specifically pointed out, “There was already a lot of negative feedback regarding a decrease in venues this year. Ultimately we need to put on a show that is unique and with the distinction that we have for all these years in order to draw people from out of town and out of state as we have in the past. Why come to Ritzville if they can see the same thing in their own back yard, so to speak?”

One benefit of the blues festival is the infrastructure developed for the event, several events and organizations have access to at no charge.

“We have spent more than $10,000 over the years developing an intricate amount of electrical infrastructure that is not otherwise available in the downtown,” McFadden said. “The power is necessary for the main stage and the vendors (we collected $4,300 in vendor fees this year). In the week before the event we were forced to spend $1,000 on repairs and upgrades to that electrical distribution system...

“We own a tremendous amount of equipment that we loan free of charge every year to several events and organizations. That equipment will live on and be available via the chamber of commerce for many years to come.”