After mayor’s remarks, Geneva rethinking its support for chamber of commerce fests

In a rare showing of public ire, Geneva Mayor Kevin Burns last week accused the Geneva Chamber of Commerce of lying about its finances and questioned how — or if — the city should continue to provide funds for the organization’s festivals.

Burns set a special meeting for May 11 to discuss the city’s relationship with the chamber, with a possible vote coming on May 18.

During remarks

“The two most salient issues are answering the fundamental question of how and why the chamber of commerce had a negative (financial) swing of $463,000 between the years 2023 and 2024,” Burns said. “Second, we had a chamber representative stand up in this room and say — unequivocally — and I’ll paraphrase, ‘We received funding from the city in 2023 but nothing in 2024.’”

Burns said that assertion was false.

“The chamber’s own financial statements, as required by law to be filed with the Internal Revenue Service, showed that of $189,000 the city granted to the chamber as part of the hotel motel tax, $136,000 was transferred to (the) 2024 fiscal year,” Burns said. “In other words, they didn’t spend what they received. They transferred two-thirds-plus of that money to 2024.”

Chamber President Paula Schmidt responded to Burns’ criticisms in an email to Shaw Local.

“As these remarks were unexpected, we are taking the time to carefully review them and will follow up with a thoughtful, fact-based response in the near future,” Schmidt wrote. “The efforts of the Chamber will always reflect our continued investment in the success of our businesses and our commitment to fostering a strong, connected, and thriving community.”

Tensions have risen in recent months between the chamber and city officials about public funding for the organization’s events.

Chamber Treasurer Susan Huang criticized the city at the Jan. 20 council meeting, saying that if the city does not support the organization, it might cancel its Swedish Days festival. The chamber asked for $150,000 from the city for the event.

The chamber recently said it would cancel the festival’s parade, until a group of downtown business owners and chamber members stepped up to support a smaller event.

So far this year, the city has not pledged any funding for the chamber’s four festivals: Swedish Days in June; the Arts Fair in July; the Festival of the Vine in September; and Christmas Walk in December.

Burns said the city since 2019 has been trying to recalibrate its relationship with the chamber.

“The response has been twofold,” Burns said of the chamber. “‘It’s our money, give it to us. It’s always been our money, give it to us. That’s our money, you took it from us.’”

In January, the chamber circulated a letter to the nonprofits who depend on Swedish Days sales to fund their charities, spreading alarm that the festival could be canceled if the city does not give the chamber more funding, Burns said.

“They have to pay $1,000 to the chamber to have their booth on city property,” Burns said. “That’s our canvas.”