Focus Area: External Affairs/Issues Management
Staff Contact: Tim Danneberg
Subject: Community Fund
________________________________________________________________________________
title:
title
Discussion on Olathe Community Fund.
Body
________________________________________________________________________________
Summary:
In 2018, the City Council established the Olathe Community Fund. Since that time, the fund has collected revenue, but has yet to be developed and used as envisioned. Staff will provide recommended steps to move the fund forward as intended.
Background: In 2016/17, the Council identified the need to have a fund in place that could support projects/initiatives that meaningfully improve our community but are outside traditional government scope. In addition, the Council felt the need to have a structure in place to accept donations from individuals, businesses or groups wanting to positively impact the community. In 2018, the City Council approved Chapter 2.34 <https://olathe.municipal.codes/Code/2.34> of the municipal code creating the Olathe Community Fund.
Per the ordinance, the Fund’s purpose is to: “provide financial resources for activities and projects within the City <https://olathe.municipal.codes/Code/1.01.050__1d428e6744019c2c8bb73be527c6cd74> that might not otherwise be provided through tax dollars, through solicitation of charitable contributions from individuals and businesses and expenditures of such contributions for the benefit of the community. Expenditures by or on behalf of the Olathe Community Fund are intended to complement, supplement, or enhance capital improvements and services provided by the City and will not compete with or duplicate capital improvements and services already provided by the City. The Olathe Community Fund will promote cultural, educational, recreational, artistic, charitable, and environmental activities that enrich the lives of the residents of the City <https://olathe.municipal.codes/Code/1.01.050__1d428e6744019c2c8bb73be527c6cd74>. The Olathe Community Fund, on behalf of the City, has the power to accept charitable donations of cash, goods, and services as are necessary or convenient to the transaction of the Olathe Community Fund’s business and the achievement of its purpose. (Ord. 20-03 § 1, 2020; Ord. 18-08 § 1, 2018.)”
It was amended in 2019. The ordinance anticipated Council appointment of a board to oversee and support the fund, but as there has not been action to create a board, the Council serves in that capacity.
Current Funding Sources: Per the city incentive policy <https://olathe.municipal.codes/CouncilPolicies/F-5>, businesses receiving an incentive are required to make an annual contribution of no less than $3,000 to the Community Fund during the terms of the development agreement. The fund has also accepted one one-time donation.
The fund was activated in November of 2019, and as of 9/23/2024, there is $136,480 in the account. That balance includes a one-time donation of $75,000, revenue from incentivized projects and investment earnings minus fees. The fund has been used for one purchase of $6,000 for the bronze bust of former Mayor Copeland in front of the downtown library. The money currently on hand is managed by the Greater Kansas City Community Foundation (GKCCF) per Council action. The City maintains some control over investment, and we rely on Columbia Capital for counsel. The return rate on investments is consistent with other city investment funds. The GKCCF charges a management fee for services. All Council Members have direct access to the account to view details including account history.
________________________________________________________________________________
Financial Impact:
None
________________________________________________________________________________
Action Needed:
To maximize the Community Fund’s overall impact envisioned by the Council, staff will present recommendations for Council consideration and feedback to successfully position the fund moving forward.
________________________________________________________________________________
Attachment(s):
Community Fund Statute