The purpose of this work session is to consider an appropriation of in-kind support to local not-for-profit-profit organizations in respect to community special events. As you are aware, not-for-profit organizations whom host fundraising events in the city request in-kind support for their special events on an annual basis.  In addition, as you are well aware of, the amount of in-kind support requested by the event organizers typically exceeds the amount of funding available.  In the case of the current fiscal year, a total of $86,022.50 was requested and the City budgeted an appropriation of $55,522.50.  Therefore, it is necessary to bring the requests in-line with the amount of funding available in the budget.

In order to do so several factors were considered as follows:

• Other forms of subsidy that the city provides to the event organizer

• The use of the net profit of the event being applied to achieve appropriate community results

• The economic impact of the event to the local business community

• Whether the theme of the event supports a family-friendly environment

• The past performance of the event organizer i.e.- administration of event- clean up, adherence to safety standards, schedule maintained and fees paid etc.

In addition to the factors stated above, consideration has also been given to the amount of funding that has been provided to the special events in previous years as a percentage of total city costs.  The percentages range from 90% to 25% and they are noted on the attached recommendation matrix.

Based on the direction that you provided at your December 5, 2017 meeting, I am by way of this communication providing a two-year recommendation. The advantages of a two-year funding recommendation is twofold.  First, it serves as appropriate notice to not-for-profits of their expected future year's funding. Secondly it establishes benchmarks for the City in regards to budgeting purposes. 

Incidentally, I have attached a chart that indicates the amount of funding the City has designated to support special events over the last three years as well as a matrix which identifies the current year requests.  If the recommendations presented to you meet with your approval, this item will be placed on your February 6, 2018 regular meeting agenda for formal approval.