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City manager announces Obelisk/Main Street grant, cautions on 501(c)(3) operations with city resources
Summary
City Manager Tyler told the council the city received an Obelisk/Main Street grant and discussed auditors' guidance that small-scale 501(c)(3) activity is manageable but larger operations using city staff would require separate funding and separate accounting.
City Manager Tyler used his communication time at the Dec. 2 council meeting to announce that the city had been awarded the Obelisk/Main Street grant. "We were told today that we've been awarded the Obelisk grant," Tyler said, and staff described plans to site the obelisk off the road as a downtown attraction.
Tyler and staff also discussed questions about the city's involvement with local 501(c)(3) organizations. Staff relayed advice from auditors and consultants, including Crawford and Associates, that using city resources on a small scale for a 501(c)(3) is manageable with separate accounts and careful tracking, but if an organization grows to the point where a full-time city employee would run it, the city would need a different funding model and separate administration. As staff summarized, "If this will be done, it would just need to be funded by something different than city money coming in."
Staff also introduced a new employee during the meeting and council members discussed design details and placement of a proposed veteran-style obelisk or 'spear' monument intended to note distances to other towns. The meeting was later continued into an executive session in the staff room for a related MIPFA matter.
