As a member of the Hollister Independence Rally Committee Board
of Directors, I admit that I have a vested interest in the annual
rally taking place this year.
As a member of the Hollister Independence Rally Committee Board of Directors, I admit that I have a vested interest in the annual rally taking place this year. My interest is in preserving the event, and in maintaining the tradition of donating all the proceeds to local youth and family-oriented nonprofit organizations. Before I go any further, I need to point out the views expressed in this letter are mine, and do not necessarily reflect those of the Hollister Independence Rally Committee.
I would like to clear up a few misconceptions that have been floating around concerning the financial cost to the city of Hollister. It is my personal belief that the city should not be subsidizing the rally. I know that this next statement might surprise some, but the rally does not cost the city money. Please keep reading, and I’ll explain what I mean.
Records provided by the California Board of Equalization indicate that the rally has provided tremendous tax return to both the city of Hollister and the state of California. During the six years prior to the 1997 rally, Hollister’s annual tax based shrunk despite a population increase of approximately 19.5 percent. Sales tax revenue returned by the state had decreased by an average of almost $184,000 annually. Since the rally’s return, the city’s population has changed by approximately 17 percent, and the city’s annual return from the state has increased by an average of almost $149,000 per year.
Motorcycle enthusiasts who attend the rally support local stores, gasoline stations, restaurants, hotels and a significant number of other businesses. They shop all over town and on their way into town. Many of the motorcyclists who come into town also support other communities, as you have to eat, can only go so far with a five-gallon gas tank.
To be fair, I have not included local tax revenue sources such as apparel stores, home furnishings, auto dealers, auto parts stores and building material businesses as their taxes do not directly impact the rally.
The city of Hollister (and the state of California) receives more than enough money to pay for their rally-related costs. The city of Hollister has been averaging almost $180,000 per year in additional tax revenue because of the rally. It’s frustrating to me as an individual when City Manager Dale Shaddox implies that we aren’t paying our own way, or mentions city employee layoffs in the same newspaper article concerning the city’s “subsidization” of the rally. I can’t make this any clearer: The city does not subsidize the rally.
When told by the local media about the closure of the Hollister Harley Davidson dealership, the response from Mr. Shaddox was “really?” The city of Hollister cannot afford to lose any more local business, or the tax base that those businesses provide. Every business (or rally) that leaves town is lost tax revenue for the city and will lead to a further cutting in the city’s budget.
Mr. Shaddox is not a full-time resident of the city of Hollister or of the state of California. He has no (to the best of my knowledge) emotional ties to the rally or to the good that it provides in the way of tax base to the city or donations to local nonprofits within this community. In fact, at a recent meeting with law enforcement, he stated that the topic of the good it did local agencies was “irrelevant” to the discussions. Without this rally, the city government and businesses stand to lose a lot more than just a rally. We lose a mystique that brings in tourists all year long. We lose the largest and best-organized motorcycle rally in the western United States. We lose a huge tax base that pays for city services and the city payroll. We stand to lose a lot.
Readers of the Free Lance can do something about this. Please join me and other local business owners and community members in making your desires known. Please contact your local City Council member directly and tell them where you stand (even if you’re still opposed to the rally). I would also encourage readers to contact Shaddox at City Hall. He needs to know how you feel. Please tell those you contact that the rally generates enough tax revenue to cover its cost, and that’s how you would like to see them spend the money.
John Loyd,
HIRC treasurer,
Hollister
