Purchase of Services Budget Process_Braig CorrespondenceTO: City Council Members, City Manager
FROM: Karla Braig
RE: Purchase of Service Agreements in budget process
Oct. 6, 2011
As you all know by now, I think that there may be a better way to use our budgeting time in the
spring rather than spending almost an entire evening for "purchase of service" appeals. I have spent
some time going over the proposed budget documents from last spring, and I would like to ask your
support to make the following changes:
1. Separate out all the "purchase of services" agreements that give money to 501(c)(3) (not -
for- profit) organizations. These are direct "human services." (Figures are from this fiscal year,
except for HEART, which is proposed for next fiscal year):
Hills and Dales Senior Center
Opening Doors
Project Concern - Child Care
Project Concern - Information and Referral
St. Mark's
Helping Services of Northeast Iowa
Operation: New View
Project Concern - Foster Grandparents
Proudly Accessible Dubuque
Retired Senior Volunteer Program
SASC
Every Child/Every Promise
DuRide
HEART (Four Mounds)
Funding stream
20,800.00 (CDGB)
13,320.00 (CDBG - 8,3200 /taxes - 5,000)
7,570.00 (CBBG)
21,483.00 (CDBG)
15,000.00 (taxes)
2,147.00 (taxes)
18,805.00 (taxes)
6,113.00 (taxes)
10,000.00 (taxes)
7,341.00 (taxes
14,013.00 (taxes)
25,000.00 (taxes)
15,000.00 (taxes)
30,000.00 (taxes)
2. Move the following organizations the city "purchases services" from to the budget under the
city department that actually uses them (some of them are already in these budgets):
Project HOPE
Chamber of Commerce
Dubuque Area Labor/Mgmt
Dubuque Main Street
GDDC
Washington Neighborhood Dev.
America's River
Burlington Trailways
Humane Society
70,708.
814,222.
30,000.
74,276.
276,613.
80,000.
10,000.
Economic Development
Economic Development
Economic Development
Economic Development
Economic Development
Economic Development
Economic Development
9,600. Transit
122,822. Health Services
Washington Tool Library 12,896. Housing
3. During the last council meeting in November, or the first one in December, when the City
Council approves the "Budget Guidelines" for the next fiscal year, formally propose a change in
those guidelines for the budgeting process. This new guideline would create an account for
purchase of human services (ones that provide direct action to citizens) for a lump -sum of money.
Using the figures above, in the 501(c)(3) purchase of services, $63,173. comes from CDBG and
$148,419. comes from the general fund (taxes), for a total of $211,592. Our entire city operating
budget for this fiscal year is approximately 104 million dollars, and the amount for purchase of
human services comes to 1 /20t of 1% of that budget.
For the council meeting, during the action item where we vote on the guidelines, Jennifer Larson
would make the changes in the budget policy guidelines to set up this new account, Mike would
review the way the purchase of services are split up (into 501(c)(3)'s and various city budgets), he
would recommend (or maybe not) both changes to the council, and we would vote on it and all the
rest of the budget guidelines in one motion.
If the council approves the motion, then the council (or a smaller committee of council members)
would begin the process of forming an advisory commission (like the Arts and Cultural Affairs
Commission) to allocate the funds in the one lump sum. Since four of the proposed not - for - profits
get their funding from CDBG and not from taxes, this committee would have to work with the
Community Development Block Grant Commission which is already set up to allocate CDBG funds.
The details of this new commission would be hammered out and brought back to the council for
final approval.
Since many organizations have already sent in their letters of application to be considered for
funding in the next fiscal year, those letters would be filed, and any new applicants would have 30
days from the meeting where we approve the budget policy guidelines to submit a request to the city
for some of the money in the 501(c)(3) pot. The letters of application would not change, just the
way the money is allocated would change.
In summary, the only things that would have to be approved by the full council would be the small
change in the "budget guidelines" at our December meeting and the creation of a new advisory
commission (this could be on the agenda in 2012, before the new fiscal year). Of course, this
whole memo is based on the assumption that the council actually wants to fund not - for - profits.
That's all I've got, folks! If you have any questions or suggestions, call me. I hope you will help
me get this process changed. The purchase of services allocations and the way people apply have
been driving me nuts since the first budget hearing I participated in during my first year on the
council. I think this might be the way to go. I am open to your comments.
Thank you.
Kam.
(563)582 -04334
karla.braig @msn.com
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