Temecula officials are stepping back from one of the region’s most recognizable events, saying they will no longer support the Temecula Valley Balloon & Wine Festival until outstanding debts tied to last year’s event are paid.
In an open letter released Tuesday, the city said tens of thousands of dollars remain unpaid nearly a year after the 2025 festival, raising concerns about how vendors, public agencies and local partners were treated.
Among the unpaid balances is roughly $76,000 owed to Riverside County Parks for the use of Lake Skinner Recreation Area, where the festival has traditionally been held. County officials say repeated attempts to collect payment over the past 10 months have not led to a resolution.
The issue escalated this week when the Riverside County Board of Supervisors voted unanimously to terminate its agreement with the festival effective April 30, signaling a break in what has long been a close partnership.
City leaders said the situation has been especially troubling given the event’s decades-long history in Temecula.
“The City of Temecula has proudly supported the Balloon & Wine Festival for many years,” the letter states. “However, it is deeply concerning that essential services — including those provided by the Sheriff’s Department, school groups and small businesses — remain unpaid months after the event.”
Officials described the delay as unacceptable and said it undermines trust with the many local groups that help make the festival possible.
According to Riverside County Parks Director Kyla Brown, the final invoice for the 2025 event was issued in mid-August but never paid. The county followed up with multiple notices throughout the fall and into early 2026, culminating in a final demand earlier this year.
Despite those efforts, no payment plan had been formally established, and organizers had not secured a date for a 2026 event.
Festival representatives say they are working to resolve the situation. Spokesperson Lynn Shaver said remaining payments are expected to be completed by the end of April.
“We’re grateful for the patience of our local vendors and partners as we work through these final steps,” Shaver said, adding that the organization has faced financial and operational challenges following its transition to Events.com, which acquired the festival in 2025.
According to Shaver, Events.com has invested more than $3.4 million to stabilize operations during what she described as a difficult transition period.
Organizers are now exploring the possibility of bringing the festival back later this year, potentially shifting it to a fall date at Lake Skinner. However, county officials say any return would require a new agreement — and that won’t happen until all outstanding debts are cleared.
“If a new application is submitted, it would be considered, but only after all past obligations are resolved,” Brown said.
The financial issues extend beyond the county. The city noted that several service providers — including law enforcement and local organizations — are still waiting to be paid.
“The failure to meet these obligations jeopardizes long-standing relationships built over many years,” the city wrote.
For now, Temecula is holding firm on its decision to withdraw support, though officials expressed hope that the situation can still be resolved.
If the outstanding payments are addressed, the city indicated it would be open to rebuilding the partnership and restoring the festival as a staple community event.
