Committee approves resolution language to allow donations to community grants but keeps 3% general-fund allocation

The finance committee voted to recommend a drafted amendment to the community funding grant resolution that explicitly allows community donations to be used as an additional funding source and, after debate, to retain the general-fund allocation at 3%.

Staff explained the amendment responds to tourism-department inquiries about accepting donations and would add language that “community donations may be utilized as an additional source of funding for the community funding grant,” giving staff a mechanism to accept donor money into the grant line. Staff also reviewed historical spending and recommended lowering the budget allocation to 2.5% because actual expenditures averaged closer to 2% of the general fund in prior years.

Committee members dug into the data. Assembly member Waddell expressed caution about changing the percentage based on only a few years of data and noted that nearly half of spending in recent years went to one large umbrella organization. Member Alex and others said they were not comfortable reducing the allocation prematurely because national trends in grant reductions could increase local demand. Deb said she supported lowering to 2.5% but conceded the data were limited.

The committee adopted an amendment to keep the 3% allocation in place while adding the donation language and approved forwarding the amended resolution to the assembly. Staff said they will check grant recipient eligibility paperwork for nonprofit status and report back if corrections are needed.

Next steps: the resolution and the related ordinance can be placed on the May 1 assembly agenda; staff will verify recipient eligibility criteria and prepare materials for public information.