County to pursue interfund loan to cover temporary shortfall at Fairgrounds; directors cite concert losses and ticket sales rebound

County staff told the Klamath County finance board May 27 that the Fairgrounds operating budget is currently about $256,000 in deficit and the fair sub‑department is roughly $344,000 short. Derek Raleigh, speaking for the Fairgrounds, asked the board to allow an interfund loan to be brought forward to cover costs before June 30.

"The operating budget, which is currently at a deficit of 256,000...and the fair sub‑department I'm showing 344,000 higher expenses than revenues," Raleigh said. He recommended an interfund loan (possibly from risk management) that could be reversed in the next fiscal year once revenues such as the transient room tax and fair receipts arrive.

Commissioners discussed revenue timing and risks. Staff estimated two remaining transient room tax payments totaling roughly $620,000–$630,000; Raleigh said ticket sales for a headliner show had already generated about $90,000 and roughly 2,200 tickets sold. Several members noted prior years' concert guarantees can create large losses if ticket sales underperform, and they emphasized the county needs a short‑term cash plan to avoid service disruptions.

The board agreed staff should prepare an interfund loan resolution and return with specifics (source fund, repayment plan and timeline) before the end of the fiscal year. A motion to allow preparation of a loan and to proceed as needed received a second and was approved by voice vote.

Members also discussed longer‑term solutions including possible carryover, lottery funds that may increase to $225,000–$300,000 annually for the fair in future years, and Friends of the Fair Foundation fundraising efforts that had raised over $110,000 to date.

No final appropriation was recorded in the meeting transcript; the board asked for a loan proposal and specific repayment plan to be returned for formal action.