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PACE asks Pottawattamie County for operating support; supervisors seek legal opinion
Summary
PACE, the county’s arts organization, asked the Board of Supervisors for continued funding to support programming and operations; supervisors said they need a legal opinion from the Iowa auditor before deciding whether the county can provide operating support to a private nonprofit.
Diana Kim, chief executive officer of PACE (Potawatomi Arts, Culture and Entertainment), asked the Pottawattamie County Board of Supervisors to consider ongoing funding to support PACE’s programs, educational offerings and operations.
Kim told the board that PACE manages the Haugh Family Arts and Culture Center, programs more than 150 educational offerings annually, and reported more than 100,000 visitors to the center and 45,000 program participants in 2024. Kim said PACE-generated activity accounted for more than $3,000,000 in local economic activity in 2024 and that the organization earns roughly 30% of its income from earned revenue; she said PACE must fundraise about $1,300,000 each year through grants, donations, sponsorships and public support.
The request matters because supervisors must confirm whether providing operating support to a private nonprofit is legally permissible and fiscally appropriate for county government.
Board members questioned the legality of direct operating support after citing an advisory from Rob Sand, Iowa auditor of state. A supervisor told the room they had received an advisory stating “the government body cannot donate or make contributions to public funds to a private nonprofit organization,” and asked staff to obtain a formal legal opinion before the board considers funding. The supervisor said the advisory mentioned permissible uses such as purchasing advertising or funding tourism promotion, rather than underwriting programming and operations.
Kim said PACE previously received city funding and that some city council members encouraged the organization to reapply for support; she also asked the board to consider whether tourism funds (hotel–motel tax) might be a viable support route for exhibit promotion. Board members asked staff to obtain a legal opinion and to return with recommended funding approaches if the county can legally provide support.
No motion to fund PACE was taken at the meeting. Supervisors said they had not budgeted county funds for PACE in the current budget year and that legal clarity is required before any appropriation is considered.
