ACTION REQUESTED:
Title
Communication from the City Manager and Community Development Director for DIRECTION Related to the Unexpended Balance of Funds from the 2013 Regional Neighborhood Network Conference.
Body
BACKGROUND: Peoria hosted a very successful RNNC in 2013. The event was successful based on the attendance, courses offered, feedback from the attendees, and fundraising efforts.
The vast majority of the fundraising donations came from the outreach by Councilmen Turner and Spain. The financial balance was healthy enough that all costs were covered and a substantial balance remained in the RNNC account after the event concluded and all outstanding bills were paid.
After all bills were paid, the $8,000 in seed money was transferred to the 2014 host city and the $25,000 in seed money from the City and the Tourism Reserve Fund was repaid, there remained a balance of $32,255.80.
This balance was moved from an account at the Community Foundation to the City earlier in 2014. The agreement prior to the 2013 event was that any remaining funds be committed to future RNNC costs (travel and tuition for neighborhood attendees, etc.)
The question for the Council is not about what the funds should be used for, but where the funds should be held, and what level of control the City should have over the use of the funds. Following are two options for the Council to consider. The Council may choose either of these options, none of the options, or decide upon another course.
1. The funds remain in a City account and the City reimburses the annual costs related to neighborhood resident attendance at future RNNC events until all funds are exhausted.
· This option provides the City with control over the use and release of the funds. However, is also requires the City to track the fund usage and would make the funds part of the annual City fiscal audit.
· This option would require an agreement between the City and the Neighborhood Alliance that would outline the appropriate uses of the remaining funds.
2. Transfer the funds back to the Community Foundation for deposit into a special account that the Neighborhood Alliance would have control over.
· This option removes the City from any management or tracking of the funds. The Community Foundation would charge a fee to hold and administer the funds, which would result in less funds being available for RNNC usage.
· This option would require an agreement among the City, the Neighborhood Alliance, and the Community Foundation that would outline the appropriate uses of the remaining funds.
In either case, an agreement would be entered into between the City and the Neighborhood Alliance outlining the specific uses of the funds. The general uses are listed below; specific language will be included in the agreement.
· The funds shall be used for the cost of a charter bus, driver, and associated expenses in order to transport neighborhood residents to the annual RNNC event.
· The funds shall be used to cover the usual and customary expenses for two (2) Neighborhood Alliance Steering Committee members to attend all RNNC Committee meetings.
· The funds shall be used to cover the usual and customary expenses for attendees at the RNNC as follows:
o Two (2) members from each active (voting) neighborhood association, plus Friends of the Alliance who attend at least six (6) meetings in a calendar year, shall have all reasonable and customary costs paid for attendance at the annual RNNC event, after they pay a $100 deductable.
o All other attendees shall pay a $200 deductable, with the RNNC funds paying the balance of all reasonable and customary costs for attending the annual RNNC event.
· The Neighborhood Alliance shall provide the City will a complete accounting of who attends each event and what costs are associated with each person.
· The Neighborhood Alliance will be responsible for the organization and scheduling of all items related to the RNNC events (bus transportation, hotel registration, conference registration, etc.)
· The City shall have no responsibility to mediate or resolve any issues or complaints related to the various RNNC events.
· Once the RNNC 2013 funds have been exhausted, the City shall have no responsibility to fund the RNNC events going forward.
FINANCIAL IMPACT: Financial Impact would vary depending upon the role of the City. If the funds remain with the City, there would be a negative financial impact due to the operational cost of managing the funds and paying for an annual audit. If the funds were transferred out of City control, there would be no direct financial impact on the City.
NEIGHBORHOOD CONCERNS: The Neighborhood Alliance agrees that the funds should be committed to future RNNC events.
IMPACT IF APPROVED: The selected option would be implemented.
IMPACT IF DENIED: If no option is selected, the funds would remain in a City project until a decision is made.
ALTERNATIVES: NA
EEO CERTIFICATION NUMBER: NA
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
2. Attractive Neighborhoods with Character: Safe and Livable
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
2. Keep taxes and fees competitive.
3. Have an efficient government.
DEPARTMENT: Community Development