HomeMy WebLinkAboutOrd 277-2006 Establishing Policy regarding Funding Request.pdfCITY OF ANNA, TEXAS
ORDINANCE NO. 277-2006
AN ORDINANCE OF THE Clrf COUNCIL OF ANNA, TEXAS,
ESTABLISHING A POLICY REGARDING FUNDING REQUESTS
RECEIVED BY NOT-FOR-PROFIT ORGANIZATIONS; PROVIDING
FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING A
SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the City of Anna, Texas annually receives requests for donations of public
funds for various purposes; and
WHEREAS, these requests for donations of public funds have impacts on the fiscal stability of
the City of Anna; and
WHEREAS, the Anna City Council wants to adopt a donation policy that provides public funds
in a fiscally responsible manner to appropriate, qualified not-for-profit organizations
providing services to the citizens of the City; and
WHEREAS, the Anna City Council wants to adopt a donation policy that provides guidance to
not-for-profit organizations on the procedures for requesting donations.
NOW, THEREFORE, BE IT ORDAINED BY THE: CITY COUNCIL OF THE CITY OF ANNA,
TEXAS:
Section 1. That the City Council hereby adopts a policy as it relates to funding requests
from not-for-profit organizations as detailed in Attachment"K.
Section 2. That all ordinances of the City in conflict with the provisions of this ordinance
be, and the same are hereby, repealed and all other ordinances of the City not in conflict
with the provisions of this ordinance shall remain in full force and effect.
Section 3. Should any paragraph, sentence, subdivision, clause, phase or section of this
ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect
the validity of this ordinance as a whole or any part or provision thereof, other than the part
so declared to be invalid, illegal or unconstitutional, and shall not affect the validity of the whole.
Section 4. This ordinance shall be in full force and effect from and after its adoption by the City
Council and publication of its caption as the law and the City Charter provide in such cases.
Section 5. This policy will become effective for the 2006-07 budget cycle and beyond
ORD NO. 277-2006 Ert*%Mg Pdby Re ding Nm-ProfilFu.g Rrq, 1 07-25-06
PASSED ON THIS THE 25TH DAY OF JULY, 2008
ATTEST:
City cfetary, Natha Wilkison
APPROVED:
ORD NO, 277-2006F lkhing Policy Regarding Nm-PmfR Fuvdwg Ral.W 2 07-25-06
Attachmna t"A"
Policy on Requests for the Donation of Public Funds
In Support of Not -For -Profit Organizations
Purpose:
The City of Anna is committed to providing financial assistance to not-for-profit organizations that
provide assistance to its citizens.
In funding not-for-profit organizations, the City cf Anna will:
1. Encourage the not -for -profs organizations to provide services that meet specific
needs of Anna citizens.
2. Provide'last resort" capital or operating budget support to not-for-profit organizations.
3. Supplement (not supplant) funding from other sources available to not-for-profit
organizations.
4. Provide limited funds to encourage the not-for-profit organizations to seek alternative
resources of funds, donated materials and volunteer labor.
5. Relate specifically to measurable levels of service provided to City citizens.
6. Promote accountability through reporting of services provided.
Procedures:
The presentation and consideration of requests for expenditures of public funds by the City
Council in support of not-for-profit organizations will be evaluated based on the following
guidelines and criteria:
1. Requests for the donation of public funds to not -for -profs organizations must be submitted
to the Anna City Manager's Office an or before May 1, of each year for consideration
in the operating budget process.
2. An emergency request may be submitted at anytime provided:
a. The request was not reasonably foreseeable on or before May 1, budget process
deadline, or
b. The essential function of the requesting not-for-profit organization would be
irreparably harmed'd delayed to the next budget process cycle.
3. Organizations requesting the donation of public funds from the City of Anna are
required to complete the City's Request Form (Exhibit "N').
4. Each not-for-profit organization's application for funds will be screened by the City
Manager's Office to ensure the guidelines and criteria are met.
B. Presentations of qualified applicant requests will be made at a City Council meeting
appropriate to the operating budget process, to include a Public Hearing.
6. Not-for-profit organizations whose requests do not meet the guidelines and criteria of
this policy will be so notified and if appropriate, invited to resubmit the request for the
next budget cycle.
7. City Council donations to not -for -profs: organizations will be based on the benefit to
the public and the priorities of community outcomes.
(Ma NO.177-2MRa*lisningftli aWdiMNm.r fn FmdmEwgmu 3 0745 06
Eligibility Criteria:
At a minimum, the not-for-profit organizations will meet the following qualifying criteria to receive
public funds:
1. The organization will be a non-profit, tax exempt 501(c) (3) corporation, in good
standing with the State of Texas, aid must have an active Board of Directors in
compliance with IRS Section 501 (c) (3).
2. The organization will have been operating successfully for at least two years prior to
the application deadline.
3. The organization will have sufficient funding support to meet ongoing operating costs
and obligations.
4. The organization is not currently receiving other funding from the City of Anna.
5. If previously funded by the City of Anna, the organization must have successfully
fulfilled all prior contractual obligations, or explain reasons for non-compliance.
6. Services and programs are need -based, nondiscriminatory, and provided to the
citizens of the City of Anna.
7. Services and programs are provided through means that are more cost effective than
the City government could provide.
B. Services and programs supplement or extend the services and programs by the City.
9. Services and programs are able to fill gaps that may exist between those of the City
and the needs of the community.
10. The organizations are able to verify their not-for-profit status and submit detailed
financial documents for review by City, staff, including, but not limited to:
a. Federal tax identification number,
b. Copy of 501(c)(3) nonprofit status certification letter; and
C. Certificate of liability insurances.
Restrictons on the Use of Public Funds:
The City of Anna will not fund the following:
1. No more than 25% of the public funds request may be for salaries; however,
under unusual circumstances, exceptions may be approved by the City Council.
2. Social functions, parties, receptions, fund-raising benefits, refreshments, or
beverages.
3. Licensing fees of any kind.
4. Underwriting, investments, stocks, bonds, or any financial obligation.
5. Interest ardor depredation on loans, fines, penalties, or costs of litigation.
Accourdabliity:
Not-for-profit organizations requesting donations of public funds will adhere to general
accounting principles as set by law. Continued compliance with these standards is a criterion for
possible future donations. These standards include, but are not limited to:
1. Submission of a current list of the organization's Board of Directors, officers, and staff.
2. Submission of the organizations bylaws and mission statement.
3. Submission of the most recent audited financial statement and/or detailed budget
as part of the application process,
4. Submission of end -of -year financial report to the City after the donation is
granted.
OMNO.277-2006 E- Iiesing Policy ReWinBNon-ProftPo inghLM, 4 07-25-06
REQUEST FOR PUBLIC FUNDS FORM
Submit to: Office of the City Manager
P.O. Box 776
101 N. Powell Parkway, Anna, Texas 75409
972-924-2620(fax)
Name of Organization: _
Address of Organization: _
Telephone of Organization:
Name(s) of Contact Person:
Federal Tax ID:
Requested Donation Amount:
List of Attachments:
_ Copy of 501 (c) (3) Nonprofit Status Certification Letter.
_ Certificate of Liability Insurance.
Copy of Organization Bylaws and Mission Statement.
Current List of Board of Directors, Officers, and Staff.
Copy of the most recent Audited Financial Statement and/or Budget
Briefly describe the purpose, programs, and accomplishments of the organization:
How is the organization governed and managed?
ORD NO. 2r-2006 E5t*li"g Poliq Re din Nm -Profit FwWmg Requ 5 07-25-06
What is the geographic service area of the organization?
If the organization serves outside the City of Anna, please indicate the number or
percentage of Anna citizens served:
Has the organization previously applied for a donation of public funds from the City of
Anna? Yes No If "Yes" briefly describe the details and outcome of the request:
What is the intended use of the requested donation of public funds?
What benefit to the citizens of Anna (educational, economic, health, etc.) will result from
the requested donation of public funds?
ORD NO.2]]-2IX16 Finadi wg %Hl RzVWine Non -Profit Fn gRegv 6 0-25J
Explain how the organmation will evaluate the results of the use of this donation of public
funds:
The undersigned do hereby attest that the above information is true and correct to the beat
of our knowledge.
Signature Signature
Print Name
Print Name
Title Title
Date
ORD NO. 27-2(106 P.NadisNng Policy Rcgvding Nov-Pcfit Pw MRequeui 7 07-25-06