Council debates limits on city funding after political content appeared in Main Street newsletter

A segment of the March 3 Batavia City Council meeting turned to whether the city should set clearer restrictions on how nonprofits use city support after a recent Batavia Main Street newsletter included political material that some council members said looked like campaign promotion.

Council Member Dr. Harris raised the issue after seeing two Main Street newsletter items: a business-submission-style listing and a separate graphic that some constituents interpreted as a direct campaign promotion. "I think that as a council that we need to have a discussion of when we are providing money to nonprofit organizations, what we're going to set around, as far as what is allowable and not allowable," Dr. Harris said. He asked that the council consider safeguards so city-funded or city-affiliated communications remain nonpartisan.

City Administrator Laura (last name not specified in the record) told the council she had discussed the matter with staff and expected Main Street leadership to present an updated submission policy at an upcoming meeting. City Attorney (name not specified in the record) cautioned that 501(c)(3) status is an Internal Revenue Service designation and that the city is not the IRS: "that's a IRS status we are not the IRS," he said, outlining that a technical determination of nonprofit political activity is beyond the council’s direct authority.

Several council members said they regarded the newsletter item as inappropriate for an organization that receives city support, with Alderman Sulfa (transcript spelling) calling the specific newsletter piece "a direct promotion of a candidate." Other members urged a measured response: ask Main Street to update its submission policy, require clearer disclaimers, and clarify which party or person submitted the item. One council member suggested adding a council liaison to organizations that receive city funds so the council has an internal point of contact.

Main Street board members in the audience said the item was a mistake and that the organization is drafting a policy to prevent similar occurrences. The board representative said Main Street commonly reposts business-submitted event notices and had no intent to endorse a candidate.

Why it matters: When the city provides grants, in-kind services or co-branding to local nonprofits, an explicit policy about political activity (and a practice for monitoring it) reduces legal risk and the appearance of municipal partisanship. Council discussion focused on clarifying expectations for recipients and on whether the city should require written assurances or board representation for organizations that receive municipal funding.

Follow-up: Staff said Main Street is expected to present an updated submissions policy soon. Council members recommended a written policy that clarifies what kinds of content Main Street will accept and how the organization will post and label external submissions.