Uneasy Larkspur council grants $20K to business association

The Larkspur City Council has granted the Chamber of Commerce another $20,000 to cover expenses amid concerns about the organization’s fundraising strategies.

The allocation on Jan. 7 is for the first half of 2026. It brings the city’s contributions to $50,000 for the fiscal year ending in July. The money is coming out of the city’s transient occupancy tax fund.

The business group said it will return in April to ask for an additional $50,000 for its 2026-27 budget. The association, a nonprofit, said the additional funding will be used for expenses and reserves.

Councilmember Scot Candell expressed reservations.

“The city’s responsibility in trying to figure out how to use our resources is to cover your expenses, not to give you a surplus,” Candell said.

Julie Richards, the association’s treasurer, said, “If we didn’t plan for some surplus we wouldn’t be running a well-run business. No not-for-profit plans to have a zero bottom line.”

Councilmember Sarah Margulies also raised concerns about one of the group’s main revenue sources, the Wine Stroll along Magnolia Avenue, following complaints from business owners.

“What I’m hearing from vendors downtown on Magnolia is that that is not actually generating business for them — in fact, it’s causing them problems,” Margulies said. “It’s just a concern for me that the largest event, which is how you raise your money to run your operation, is not necessarily aligned with our vendors downtown.”

Marty Murphy, executive director of the organization, said she had not heard such complaints from business owners. Murphy said the association needs to run events to ensure it can fund its operations, and said it is polling businesses this month to ask what they want to see from the organization.

Mayor Stephanie Andre, the council liaison for the organization, said it needs both the fundraising opportunities and the city’s allocations.

“The money that the city contributes cannot be used to pay the executive director,” Andre said. “The $50,000 is about a third of their overall budget. We can’t really expect them to not have fundraising, and then we want to cut the city’s contribution. That really puts them in a really difficult position.”

The organization faces additional opposition from a new group called the Downtown Merchants Association. Jay Holland, a business owner and former chamber board member, asked the council for funding for alternative operations.

“Chamber funds continue to be spent on initiatives that do not directly benefit downtown Magnolia or North Magnolia businesses,” Holland wrote in a letter to the city.

Holland said the last Wine Stroll hurt downtown businesses because of disruptions like thefts and fights.

The council could not consider the funding request because it was not on the agenda, but Holland’s comments sparked additional concerns among some councilmembers.

Candell and Margulies said they would approve the $20,000, but added they would be hesitant to approve more city funding unless the chamber can better address concerns from the broader business community.

“I’m not going to do this again unless this problem is resolved,” Candell said.

Andre and Councilmember Catherine Way also voted yes. Councilmember Gabe Paulson abstained, saying he had some “real concerns” and was “pretty uneasy” but that $20,000 was not a lot.