REPORT TO COUNCIL
SUBJECT
Title
Action on Donations to the City Policy and Related Budget Amendment
Report
BACKGROUND
At the September 11, 2017 Governance Committee meeting, the Committee recommended that the Gifts to the City Policy be updated to address gifts to elected and appointed officials, and that a separate Donations to the City Policy be drafted to address donations to the City as a whole; both policies were brought forward for City Council approval consideration at the September 11, 2018 City Council meeting.
After the Governance Committee recommendation, staff reviewed and amended the policies as discussed. In addition, staff added a streamlined appropriation process for monetary donations as discussed below, consistent with Charter Section 1305.
Section 1305 of the Charter of the City of Santa Clara (Attachment 1), entitled 'Budget - Appropriations,’ states that, from the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several departments, offices and agencies for the respective objects and purposes therein named; all appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered; and at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least five members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose, or to appropriate available revenue not included in the budget.
At the September 11, 2018 City Council meeting, both the Donations to the City policy and the Gifts to Elected and Appointed Officials policy were brought forward under one item for Council for approval; the City Council voted unanimously to defer taking action on the policies until the October 2, 2018 City Council meeting so that staff can notice the individual policies separately for full transparency.
DISCUSSION
The Donations to the City policy (Attachment 3) is a new policy that seeks to address donations made to the City of Santa Clara as a whole. This policy does not apply to the donation of tickets to events. As discussed in the Report to Council titled “Action on Gifts to Elected and Appointed Officials Policy,” staff acknowledges that, as part of a previous Council directive, the Council referred the development of a policy regarding the donation and distribution of tickets to the City Manager and that the policy development is pending completion.
The Donations to the City Policy provides the procedure and requirements for evaluation and acceptance of donations to the City, which can also act as useful guidelines for individuals, community groups, and businesses wishing to make donations to the City. The policy separates donations into two categories: designated and undesignated. Designated donations refer to donations in which donors specify the intended use by a particular City department, location, or purpose, whereas undesignated donations refer to donations that are given to the City as a whole for an unspecified use. The proposed policy further sets the procedure for accepting donations in three tiers: $0 to $999; $1000 to $99,999; and $100,000 or more. If a donation meets the evaluation criteria for acceptance, the proposed policy also provides guidelines to appropriately recognize donors for their generosity.
In an effort to streamline administrative processes under this policy and reduce the cost of processing these donations (which can exceed the value of the donation), the City Manager seeks authorization to make monetary donations available to departments for expenditure without further Council action for donations valued under $100,000. To comply with Charter Section 1305 and to streamline the acceptance of donations, the City Manager will include as part of the annual recommended budget, a revenue and expenditure appropriation of $100,000 in the General Fund. When a donation is received, the revenue appropriation will be credited and the donation allocated to the respective City service, if so designated. To make this streamlining effort effective with approval of this policy, this memorandum includes a budget amendment in the General Fund to receive and expend donated funds.
For a donation valued at or over $100,000, the City Manager will submit a Report to Council for Council acceptance of the donation and appropriation of funds for monetary donations. A report of all donations received will be presented to the City Council on a quarterly basis.
The City of Santa Clara’s General Fund received donations in the total amount of $30,065 for FY 2016/17 and $42,188 to date FY 2017/18. A breakdown by department is shown in the following table:
|
Department |
FY 2016/17 Donations |
FY 2017/18 Donations |
Designated Use |
|
Finance |
$1,367 |
$1,790 |
To assist customers in need of financial assistance with utility bills |
|
Fire |
$2,000 |
$5,000 |
Fire protection program |
|
Parks & Recreation |
$11,618 |
$33,196 |
Various parks, recreation, and senior programs |
|
Police |
- |
$1,899 |
Police investigation program |
|
Library |
$14,330 |
$3 |
Various Library programs |
|
Public Works |
$750 |
$300 |
Street program |
|
Total |
$30,065 |
$42,188 |
|
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
In order to appropriate anticipated donations in FY 2018/19, the budget amendment below recognizes donations revenue in the amount of $100,000 and appropriates these to a new donations Non-Departmental Expenses appropriation making the funds available to departments identified in the donation.
Budget Amendment
FY 2018/19
|
|
Current |
Increase/ (Decrease) |
Revised |
|
General Fund |
|
|
|
|
Revenues |
|
|
|
|
Other Revenue - 59650 (Donations) |
$0 |
$100,000 |
$100,000 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Non-Departmental - Program NEW (Donations) |
$0 |
$100,000 |
$100,000 |
It should be noted that unexpended donations received in prior years will be carried over to FY 2018/19 as part of the FY2017/18 close-out activities separately.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Adopt a resolution to approve the Donations to the City policy and approve related budget amendment
Staff
Reviewed by: Walter C. Rossmann, Chief Operating Officer
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Excerpt from Charter of the City of Santa Clara - Section 1305
2. Donations to the City (Redline)
3. Donations to the City (Clean)
4. Resolution to Adopt Donations to the City policy