Bill Type and Number: Ordinance 2007-105

 

Sponsor: Council Member Hyde

 

Date of Introduction: January 23, 2007

 

Committee(s) of Reference: F

 

Date of Analysis: January 26, 2007

 

Type of Action: Ordinance Code amendment

 

Bill Summary: The bill amends Ordinance Code Chapter 118 – Miscellaneous Appropriations – to establish specific criteria establishing the eligibility for applicants to receive Public Service Grant (PSG) appropriations from the City, and establishing a category of funding for economic development activities that is separate from public service grants to social service and community improvement recipients.  The eligibility criteria are:

  • Applicants must operate programs that tangibly benefit specific priority populations, which the City shall determine and advertise bi-annually; any exceptions to the “priority populations” policy must be approved by 2/3 majority vote of the Council;
  • Except for appropriations for annual events or to serve needs deemed by the Council to be of an on-going nature and which meet a Priority Population need, a program should be funded for no more than 3 consecutive years;
  • Unless the Council determines that the program performs an essential function otherwise required to be performed by the City, a PSG cannot account for more than 24% of the operating budget of the program;
  • No PSG shall be awarded to a recipient which has been operating for less than three years;
  • PSG recipients shall be required to be registered as a §501(c)(3) organization or a Florida not-for-profit corporation;
  • In addition to the Human Services Council application, every applicant for a PSG shall prepare an abstract for the  use of the Finance Committee that includes a general description of the work to be performed and the outcomes desired, a list of specific activities to be undertaken, the organization’s structure and capacity to do the work, the measures to be used to track performance and measure outcomes, and an explanation of the entity’s finances and plans for sustaining its work beyond the receipt of the PSG

 

The ordinance establishes several new general policies relating to public service grants:

  • Raises the funding threshold below which a financial report rather than a simple audit is required of a recipient from $50,000 to $100,000, and requires that audits be based on the City’s fiscal year;
  • Provides that funding in any year from multiple city agencies shall be cumulative for purposes of determining whether an agency needs to file a financial report or an audit;

 

  • Specifies that equipment, property or tangible personal property purchased by a PSG recipient with City funds must be non-consumable and shall be classified as a capital purchase based on current City capitalization standards;
  • Provides that the City’s grant monitor department, rather than the grant recipient, shall report mid-year changes in PSG uses to the Council Auditor’s Office.
  • Shifts oversight responsibility for Cultural Service Grants from the Parks and Recreation Dept. to the Community Services Dept. or other department as assigned by the Mayor;

 

The bill creates a new category of Funding for Economic Development Activities separate from the public service grant process for entities performing direct economic development activities on behalf of the City.  These grants are to be funded by an allocation of revenue received from the occupational license tax annually in the budget ordinance.  Recipients of these economic development allocations shall not be eligible to participate in the PSG process.  The bill states that the intention of this section is to be revenue-neutral, and that the amount of the annual PSG funding pool shall be reduced by the amount allocated to economic development activity grants from occupational license revenues.

 

Background Information: Revisions to Chapter 118 have been the subject of reviews over the past 2 years by the Community Services Department, the Finance Committee, the Council Auditor’s Office and the TRUE Commission.  This bill incorporates the numerous findings and recommendations into a comprehensive reform of the chapter.

 

Policy Impact Area: Public Service Grants; economic development contractual services funding

 

Fiscal Impact: Intended to be revenue-neutral from the current funding level

 

Analyst: Clements