Beverly Hills Next Night Street Festival on Hiatus Amid Budget Deficits

Categories: CommunityEvents/What's HappeningFestivalsNews

The bustling atmosphere of the Beverly Hills Street Festival before its hiatus.

News Summary

The Beverly Hills City Council has placed the Next Night Street Festival on hiatus due to budget deficits discussed in a special Study Session. With projected deficits for upcoming fiscal years, city officials highlight the need for cost-reduction measures. Despite public support and a funding request of $230,000 for the event, council members raised concerns about the festival’s costs, prompting discussions on scaling back. A review of the budget proposals is scheduled, which will influence the festival’s future and the city’s financial direction.

Beverly Hills – The Beverly Hills City Council has announced that the Next Night Street Festival will be placed on hiatus due to budget deficits. This decision was made during a special Study Session held on June 5, where city officials discussed the proposed operating and capital improvement budgets for the fiscal year 2025-26.

During the session, the conversation centered around anticipated deficits in the city’s General Fund for the fiscal years 2026-27 through 2028-29. Projected deficits are expected to reach $18.5 million in 2026-27, $20.1 million in 2027-28, and $5.4 million in 2028-29. While the city expects a surplus of $1.7 million for fiscal year 2025-26, city staff indicated that economic factors such as inflation, tariffs, and labor negotiations are complicating financial planning moving forward.

City Manager Nancy Hunt-Coffey remarked on the increased uncertainty affecting the city’s finances compared to previous years. She emphasized the need for cost-reduction measures as they prepare for the upcoming fiscal periods.

Organizers of the Next Night Street Festival requested a funding total of $230,000 from the city to support the one-night event. Of this request, $80,000 was already budgeted, and an additional $150,000 was sought to match spending from the previous year. Public support for this funding initiative was strong, with various comments endorsing the festival from members of the Next Beverly Hills Committee. Committee Chair Ellen Labbé highlighted the festival’s significance as a cherished annual tradition in the community.

Despite this support, skepticism arose among several council members regarding the festival’s funding. Mayor Sharona Nazarian and Councilmember Craig Corman voiced concerns about the funding request’s magnitude, comparing the festival’s proposed budget to the $51,000 spent on 12 weeks of summer programming. Corman pointed out the significant growth of the festival over the years and expressed apprehension regarding its costs. Councilmember Mary Wells acknowledged the festival’s value in fostering community engagement but suggested that scaling back could be an option.

The Study Session also covered important topics, including the addition of community service officers for the La Cienega Metro Station and the funding for a nexus study on development impact fees. Mayor Nazarian urged city staff to ensure that future project budgets are aligned with community needs and rigorously justified to mitigate the risk of escalating deficits.

Looking ahead, a subsequent review of the operating and capital improvement budgets is scheduled for June 17, where the council will consider the final approval of the budget proposals. Decisions made during this review will play a pivotal role in defining the city’s financial direction and potentially influence the fate of events like the Next Night Street Festival in the coming years.