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HomeMy WebLinkAbout6.m. Donation Policy Update EXECUTIVE SUMMARY City Council Regular Meeting: January 31, 2022 AGENDA ITEM: Donation Policy Update AGENDA SECTION: Consent PREPARED BY: Teah Malecha, Finance Director AGENDA NO. 6.m. ATTACHMENTS: Draft Donation Policy APPROVED BY: LJM RECOMMENDED ACTION: Motion to approve amended Donation Policy BACKGROUND The City’s current Donation Policy was last amended on November 20, 2001. The policy establishes the guidelines for accepting donations that the City receives from various individuals, businesses, and organizations. Each donation must meet the following criteria: a. The donation must have a purpose consistent with those of the City. b. The donation must be offered by a source acceptable to the City. c. All designated donations of funds shall be utilized in accordance with the accompanying designation. d. The donation shall not result in ongoing costs that the City Council would be unwilling to fund when the donations are exhausted, unless specific prior authorization to the contrary is given by the City Council at the time the donation is accepted. If prior authorization is not given, sufficient donations to meet all anticipated staff and material costs must be in hand before City commitment is made to personnel and/or materials. e. The donation shall not bring undesirable or hidden costs to the City. f. The donation shall not be inappropriate or harmful to the residents of the City. g. The acceptance of a donation shall not imply City endorsement of any product or service nor shall it implicitly or explicitly obligate the City to act in any way favorable to the donor. h. The donation cannot be used for religious or sectarian purposes. i. The donation shall not be in conflict with any provision of federal, state or municipal law. The City Council must accept each donation and donor’s terms by resolution or decline the donation and direct it to be returned. Acceptance of each donation by resolution ensures that the City recognizes the donor and the receipt of the gift. Each donation received is appreciated as it may improve the efficiency and effectiveness of City services and enhance the quality of life for residents. The Procedures – Expenditures section and Donation Revenue Worksheet have been removed from the policy. The donations that are received are placed is designated donation accounts and are tracked by the receiving department to ensure that the donor’s terms and policy are followed. Therefore, a formal Council action to expend the funds is an unnecessary step. RECOMMENDATION Staff recommends approval of the amended Donation Policy. CITY OF ROSEMOUNT POLICY TITLE: DONATION POLICY EFFECTIVE DATE: NOVEMBER 19, 1991 PROPOSED BY: FINANCE DATE APPROVED BY COUNCIL: NOVEMBER 19, 1991 (AMENDED NOVEMBER 20, 2001) (AMENDED JANUARY 31, 2022) PURPOSE The City of Rosemount appreciates donations as they help to enhance the quality of life in the City and to improve the efficiency and effectiveness of City services. Donations may be in-kind gifts, that is, The City may accept a grant or gifts of real or personal property, including money. (not cash) or cash donations. Each year, residents, civic organizations, private businesses, etc., make donations to the City. Donations are sometimes given for a specific purpose (i.e.: park equipment, fire equipment, police equipment, D.A.R.E.) and sometimes the funds are given without stipulation. The purpose of this policy is to set up procedures and criteria for donations. for receipt of donations to the City and for the expenditure of these donations. PROCEDURES – RECEIPT a. All potential donors are urged to consult with the City Administrator or his/her designee(s) before proceeding with plans to ensure maximum utilization of in-kind gifts and cash any donations. b. No employee, volunteer or elected or appointed official of the City may solicit donations without first receiving permission from the City Administrator, acting under the authorization of the City Council. Departments may receive a single authorization to solicit donations for the entire year for a specific program or programs. Major changes in funding of these programs and new programs must receive specific authorization from the City Administrator. This policy applies to all departments. c. All departments that receive donations must report the receipt of the donation to the City Council. At the time the donation is received, staff is encouraged to have the donating individual or organization designate a specific purpose, activity, equipment purchase, etc. for the donation. If a designation is chosen, written documentation of the designation should accompany the donation. The documentation should be in the form of a memorandum or letter, on the individual’s or organization’s letterhead if at all possible. If the donation does not have a specific designation other than to a specific department it will be received into the designated department’s donation account. Each department that receives donations will have a special donation account(s) to receive and maintain donations. Each department will be responsible for the record keeping of its account(s). d. The City Council shall make the final determination on the acceptability of an in-kind gift or cash donations at the Council meeting following the receipt of the donation. A gift of real or personal property must be accepted by the City Council by A resolution accepting the donation and donor’s terms and must be approved by a two-thirds majority of the City Council. A cash donation must be acknowledged and accepted by motion with a simple majority. If the Council were to decline an in-kind gift or cash donation, the Council would direct staff to return theat in-kind gift or cash donation to the individual or organization as soon as possible. e. After acceptance by the City Council, donated funds that are not designated to a specific purpose or department shall be placed in a generic donation revenue account that becomes miscellaneous revenue of the City in that specific year. f. All donations become City property under the complete jurisdiction of the City Council and any unused balance of designated funds from a program that has been completed, cancelled, etc., shall become part of the donation account of the receiving department. g. Recognition shall be given to the individuals or groups providing donations to the City, unless otherwise stipulated by the donor. h. The donation must meet City criteria in order to be accepted. (See following) CRITERIA a. The donation must have a purpose consistent with those of the City. b. The donation must be offered by a source acceptable to the City. c. All designated donations of funds shall be utilized in accordance with the accompanying designation. d. The donation shall not result in ongoing costs that the City Council would be unwilling to fund when the donations are exhausted, unless specific prior authorization to the contrary is given by the City Council at the time the donation is accepted. If prior authorization is not given, sufficient donations to meet all anticipated staff and material costs must be in hand before City commitment is made to personnel and/or materials. e. The donation shall not bring undesirable or hidden costs to the City. f. The donation shall not be inappropriate or harmful to the residents of the City. g. The acceptance of a donation shall not imply City endorsement of any product or service nor shall it implicitly or explicitly obligate the City to act in any way favorable to the donor. g.h. The donation cannot be used for religious or sectarian purposes. h.i. The donation shall not be in conflict with any provision of federal, state or municipal law. PROCEDURES – EXPENDITURE a. When donations are received, a special donation account will receive the funds and the applicable department will be responsible for the future expenditures from that account. b. After the expenditure is made, staff will bring to the Council a form (attached) that will amend the revenue and expenditure budgets by the amount of the donation received. Because amending the budget must be done by resolution, the form that the Council approves allows for timely handling of donations while the actual resolution approving all of the budget amendments will be done on a quarterly basis. DONATION REVENUE WORKSHEET RECEIPT OF DONATION Donation Received On: ___________________________________________________ Amount Received: $_____________________________________________________ Purpose of Donation: ____________________________________________________ Account # for Donation: __________________________________________________ (Must be Liability # Assigned for Each Individual Department) EXPENDITURE OF DONATION Amount to be Spent: $____________________________________________________ To be Spent from Account #:_______________________________________________ (Must be Expenditure # Corresponding to Individual Department) Purpose of Expenditure: __________________________________________________ AMENDMENT OF BUDGETS Amend Donation Revenue Account #101-36230.00: $________________________ Amend Expenditure Account #____________________:$________________________ (The Two Dollar Amounts Must be the Same) GENERAL JOURNAL ENTRY TO ADJUST DONATION LIABILITY # Debit: ____________________ (Donation Liability #) $________________________ Credit: 101-36230.00 $________________________ Journal entry to reduce deferred donation revenue account and increase donation revenue account to actual per City Council action on: ___________________________.