PURPOSE:

The purpose of this report is to outline a proposed policy and code change to the City�s current procedure of accepting small monetary contributions from the public.  The modification in policy would streamline the existing process that is inefficient while at the same time still encourage public donations of all amounts to the City.

BACKGROUND:

Under the current City policy, departments receiving donations must initiate an appropriation request for every monetary donation for its expenditure.  As a result, each item needs to be placed on the Council agenda for approval.  Staff feels that the current process is not efficient, because, in addition to the time necessary to appropriately place each item on the Council agenda, there are indirect costs involved in preparing reports and resolutions for each of the items.  In some cases, the cost of preparing the appropriate materials for Council exceeds the donation.

NEW POLICY AND CODE CHANGE:

Staff proposes a code change to the current Burbank Municipal Code (BMC) to provide automatic appropriation authority for contributions less than $1,000.  This change will grant departments administrative authority to accept and appropriate donations of less than $1,000.  These monies would still be used for the donor�s intended purpose; however, no formal Council motion would be required.  Staff believes this would streamline the current process by making it less burdensome and more efficient for staff to process small monetary donations.  Also, staff hopes that this new process would encourage individual donations of any amount that the public would like to make.

Once money donations of less than $1,000 are made, it will still be the responsibility of the receiving department to memorialize receipt of the donation and send a thank you letter to the donor.  The receiving department must also make certain that the donation is used only for its intended official City use.  Providing budget authority to departments for contributions below $1,000 will place an additional burden on departments by having them make sure that contributions are appropriated (and tracked) for their intended use; however, staff believes this change will facilitate a more efficient process and allow for an expedited way for monetary donations from the public to be used appropriately.

FISCAL IMPACT:

There is no negative fiscal impact should this new policy go into effect.  On the contrary, staff believes this new streamlined approach will eliminate indirect costs associated with processing small monetary contributions and allow for a process that is more user-friendly for the public to make individual donations of any amount.

RECOMMENDATION:

Staff requests adoption of an ordinance to modify the Burbank Municipal Code (BMC) to provide receiving departments budget authority for contributions less than $1,000.

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