The Colusa City Council on Jan. 18 adopted a policy that will allow city staff to better document and distribute donations made by benefactors that help support city-sponsored events and recreation programs.
City officials said the policy would provide guidance for individuals, community groups, and businesses that wish to make donations to the city. The formal process also establishes standards for city employees and city officials regarding the acceptance of gifts during their performance of city business.
“Designated donations may only be accepted when they have a purpose consistent with the City’s goals and objectives, and are in the best interests of Colusa,” according to City Manager Jesse Cain, who developed the policy with the city attorney. “The City must always consider the public trust and comply with all applicable laws when accepting donations.”
The City Council set $15,000 as the limit the city manager can accept donation, after considering cutoff amounts between $5,000 and $30,000. The amount was found to be consistent with the largest individual donation the city received last year for fireworks for the Fourth of July celebration, Cain said.
The City Council approved, on a 4-0 vote, that any donation over $15,000 would require a written agreement between the donor and the city, and be accepted by the City Council. Councilman Greg Ponciano dissented, because he felt the cutoff amount should be lower. He had also proposed a more strict policy for the solicitation of donations.
However, the City Council ultimately decided that having a donation policy – with clear language regarding contributions – was sufficient to alleviate concerns raised last summer that city staff collected and spent large amounts of money from targeted benefactors for special events without public or council input.
The majority also wanted a policy that would not delay the collection of donations for events, nor make the process too cumbersome for both the staff and the public.
Councilman Daniel Vaca said it was unnecessary to tie the city manager’s hands now that all future large events would have a separate approval and budgeting process that allows for better oversight.
Vaca and Colusa Mayor Tom Reische, members of the city’s special events ad-hoc committee, said they met Jan. 11 and have determined the 2021 Fourth of July celebration (Watermelon Festival) was well received by the public and that it will be something they recommend the city continues in 2022.
“The Fourth of July has always been a big day for me, and we want to keep that tradition alive,” Reische said.
Colusa Finance Director Ishrat Aziz-Khan said designated donations will be deposited in the general fund accounts for which they are intended, typically the Recreation Department and Economic Development (Tourism) Department, which are two entirely separate accounts. Donations to the Fire Department and Police Department are typically given to their non-profit associations, which are separate from the city, officials said.
Undesignated donations, which are rare, would be deposited in a general fund miscellaneous account for community events and projects, Aziz-Khan said.
The new policy requires all donors to fill out a form stating their actual intent, which officials said will greatly reduce confusion over how the city designates and spends the money.
Last year’s large donor, Ed Hulbert, chief executive officer for Colusa Industrial Properties, said that he supports the city’s efforts to establish clear guidelines regarding donations, because his company, which has considerable business before the City Planning Commission and City Council, is very sensitive to public perception and the issues raised last summer.
Hulbert, who said the intent for his company’s donation, previously reported by city staff as a commitment to the Tourism Fund, was actually intended for youth recreation programs, and that it is appropriate for Colusa not only to have a donation form, but to have large donations vetted by the City Council.
“I have no problem filling out some paperwork,” Hulbert said.
City officials said donation acceptance forms are public records and subject to disclosure. Amounts under $15,000 will be accepted by the city manager and forwarded to the City Council as “information” as part of the agenda packet.
The city reserved the right to decline donations, typically non-tangible items, if they are determined not to be in the city’s best interest.
The policy, intended to aid transparency and accountability, was effective immediately, officials said. ■