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Council studies creation of a Fountain Valley scholarship program; staff outlines models
Summary
City attorney presented options for a city-managed scholarship or a city-funded grant administered by a third party; councilmembers asked for more detail and possible partners, including UCI Health or SCAG, before considering funding levels.
City Attorney Colin Burns briefed the council on May 20 about the legal framework for a municipal scholarship or subsidy program and presented Irvine’s model as an example. Burns said cities can operate programs that subsidize residents’ participation in community services (for example, registration discounts) without creating an unlawful gift of public funds if the program has a public purpose and the city retains control.
Burns described a second model — a city-funded grant administered by a partner organization — that would reduce staff workload by delegating application processing to an external entity. Mayor Buie and other council members suggested exploring partnerships with local institutions such as UCI Health and the Central Cities Navigation Center and examining existing programs (Irvine, SCAG) for selection processes and staff-time estimates.
Council members debated the perception of city funds used for scholarships. Some members said existing nonprofits already deliver scholarships and grants and recommended evaluating whether the city should supplement them rather than duplicate services; others were open to a pilot allocation. Staff was asked to return with more detail on program purpose, likely administrative costs and potential community partners before any allocation of general-fund dollars.
