The only consensus Tuesday was dissatisfaction at the events chosen — and passed over — by the City Council for funding in 2025 from Colorado Springs’ Lodgers and Automobile Rental Tax revenue. 

The roughly $10 million is tax revenue separate from the city’s general fund, generated by a 2% tax on lodging and a 1% tax on rental cars. LART funds are disbursed to events that fit the criteria of attracting visitors and enhancing the economy of Colorado Springs.

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The LART Committee acts in an advisory capacity to City Council concerning expenditures of revenue derived from the tax. Each September, city officials prepare a preliminary budget for the fund.

This year, far fewer events received funding than last, prompting enhanced scrutiny — and overt hostility, in the case of the Pikes Peak Pride festival — on those that did receive money. 

The city cut funding for events from about $2.4 million in 2024 to $1.6 million for 2025. Out of 87 applicants, only 18 were successful.

The majority of funded events from 2024 will receive nothing in 2025, including those recognized by resolution like the Colorado Springs Western Street Breakfast, the Festival of Lights Parade and the Pikes Peak or Bust Rodeo. 

“I did not like pitting one group against another,” said Council President Randy Helms at the meeting to approve the chosen list Tuesday. “I think that’s wrong.” 

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Councilman Dave Donelson opposed inclusion of the Pikes Peak Pride festival in the list of funded events.

“A big problem for me … is the ‘T’ in LGBTQ,” Donelson said. “Is that something that we want to spend tax dollars on?” 

Councilwoman Lynette Crow-Iverson joined Donelson in opposition to the funding allocations. Councilman David Leinweber recused himself, because the foundation his wife runs was a funding recipient.

The annual two-day downtown Pride festival received $60,000 this year, up from $40,000 in 2024. The parade aspect of the event did not receive funding. Donelson said the event does not reflect the community’s values and that other events better deserved funding. 

Donelson said he was opposed to promoting an event that celebrated transgender people, equating transgenderism to mental illness at several points. He also said he did not believe the event met economic criteria because other events that went unfunded generated more economic impact. 

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Multiple audience members disparaged the inclusion of the event and made generalized anti-transgender and homophobic remarks in a public comments section. 

Justin Burns, an organizer for the Pikes Peak Pride festival, said that the event was the second-busiest day last year for downtown Colorado Springs. He estimated a $1.7 million economic impact of the event based on a survey of participants. 

“I believe that this does speak to our community, who did show up,” he said. 

Councilwoman Yolanda Avila said the increase in funding for Pikes Peak Pride and other events reflected unavoidable increased costs associated with security. 

“The money they get is just pretty much going to go back to the city for police, fire and barricades,” she said. 

Charae McDaniel, chief financial officer for the city, said that the cost of security for public events is set by the city, not organizers, and may affect the amount of funding required. 

While Pikes Peak Pride faced a debate on its merits, organizers of other events said their events were being snubbed. 

The majority of the more than $10 million in LART revenue was allocated, as in years past, to fund the regional tourism office VisitCOS along with the Colorado Springs Chamber and EDC, and other organizations and entities. Those allocations are set by a multi-year contract with the city, and increased by more than $700,000 total from 2024 to 2025. 

Fiestas Patrias, a festival celebrating Hispanic heritage, had a funding reduction from more than $155,000 to $75,000. The city’s annual Juneteenth celebration was also cut in half from $150,000 to $75,000.

Cory Arcarese, an organizer for Fiestas Patrias, said that the events deserved equal footing with the Chamber and other contractually funded organizations. 

“Why is it the minority events are cut the most, when we represent 25% of the city?” she said. 

The vote came the same day Mayor Yemi Mobolade announced on City Hall steps that the pledged $28,700 from LART for the annual Veterans Day parade would still be going toward the new organizers of the now-revived event. 

It did not apply for or receive funding for 2025.