Arts Center of the Ozarks working its way from under deficit cloud

Five years after recording a budget surplus, the Arts Center of the Ozarks in Springdale is making changes in response to financial problems.
Five years after recording a budget surplus, the Arts Center of the Ozarks in Springdale is making changes in response to financial problems.

SPRINGDALE -- The Arts Center of the Ozarks took in almost a half-million dollars more in 2011 than it spent, but by 2014 it was operating at a deficit, according to its federal tax forms.

photo

Tyler Volz of Bella Vista auditions for the part of Curly May 10 in a production of the musical Oklahoma! during the first of two days of auditions at the Arts Center of the Ozarks in Springdale.

photo

Marriah Geels of Springdale auditions May 10 for a part in a production of the musical Oklahoma! during the first of two days of auditions at the Arts Center of the Ozarks in Springdale.

The deficit played a role in the decision last month to restructure the center for performing and visual arts, said Tareneh Manning, president of the center's board. The goal is to expand offerings and evaluate the center's operations, officials said. The process will include planning and professional consulting.

The changes come as the center prepares for its 50th season, which begins in July.

The center took in $493,782 more in 2011 than it spent, according to its Form 990, a federal tax document required of most nonprofit groups. By 2014, it reported a deficit of $96,019.

"There are so many factors to why this occurred and when this occurred," Manning said.

The center's 990s are filed for a tax year beginning July 1 and ending June 30, according to Derek Gibson, board treasurer. Center officials won't file the 2015 form until after June 30.

The center lost less money from 2014 to 2015, Manning said. However, she said she didn't know how much revenue increased or if the center will show a deficit for 2015.

Manning said Bernice Jones, wife of Jones Truck Lines founder Harvey Jones, used to be a center donor, but that money stopped when she died in 2003.

"Her support went away, and it was significant," she said.

Contributions and grants to the center declined from 2011 to 2014, according to the 990 forms. The center received $826,078 in contributions and grants in 2011. That dropped to $161,365 in 2014.

The Walton Family Foundation has given the center $821,250, including a $478,250 grant, since 2000, said Luis Gonzalez, senior communications officer for the foundation's home region. The two-year matching grant was given in 2011 as part of the center's fundraising for renovations, he said.

The renovations were to include a new facade, seating, light and sound equipment, flooring and stage curtains. The facade was never done, Manning said. The roof had structural problems and had to be replaced, she said. The roof problems affected some of the renovations that had been finished, requiring that work to be redone.

"I mean, we had to keep the building up," she said.

The Mid-America Arts Alliance has given the center $13,388 since 1979, said Margaret Keough, director of marketing and communications. The last grant the alliance gave the center was in 2012.

The Arkansas Arts Council also gives money to the center, according to data provided by the council. The council gave the center more than $20,000 each year from 2001 to 2007. Amounts given from 2008 to 2010 are more than $17,000 for each year. The amount decreases to $12,226 in 2015.

Brazier Watts, grants administrator for the Arts Council, said numerous variables are considered when awarding grants. The Legislature determines the annual amount the council has to give, and it depends on what kind of grant the organization seeks.

The Arts Center restructuring had other triggers that weren't money-related, Manning said. Harry and Kathi Blundell's announcement of their retirement partly prompted it, she said.

Harry Blundell was the center's director of theater, and Kathi Blundell was the center's administrative director. The two had worked at the center for more than 40 years.

No one has been fired or laid off, but the restructuring could eliminate some positions, officials said in April. One employee resigned after the restructuring was announced, Gibson said.

Some positions had hours cut to save money and because hours changed at the center, Manning said. It is no longer open on Mondays.

"We are absolutely not shutting the doors," Manning said in April.

A board member is managing operations at the center, she said. Other board members and volunteers also are helping.

"The amount of people that have been willing to step up has been amazing," she said.

The board plans to look at leadership positions, as well as craft new policies and new programming, Manning said. It also plans to create a new mission and vision.

The center mostly has shows that are produced in-house, Manning said.

Officials have not yet decided which direction the center will go regarding in-house productions and those that come in from elsewhere, Manning said.

"Our legacy has been community theater," she said.

Officials will look at how the center can contribute to the arts in downtown Springdale and the region, Manning said. She said she thinks the process will include at least one public forum to gain input.

"If we're going to be a community art center, it needs to be the community's art center," she said.

Downtown revitalization also is pushing the restructuring, Manning has said. The Downtown Springdale Master Plan, approved by the City Council in December, outlines those revitalization efforts.

The center is the ringleader for arts in downtown, said Misty Murphy, executive director of the Downtown Springdale Alliance. If it closes, downtown wouldn't have a venue to display and view art.

"Every community needs a center for the arts," she said.

The Springdale Advertising and Promotions Commission gave $3,500 to the center in 2015 and 2016 to sponsor an event, said Perry Webb, president of the Springdale Chamber of Commerce. The commission has a contract with the chamber to perform administrative duties.

Manning said she was afraid in the past that the center might close but she doesn't have that fear anymore because people are stepping up to help.

"All I see is opportunity for the Arts Center, period," she said.

Metro on 05/30/2016

Upcoming Events