AGENDA TITLE:
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Adopt a Resolution Establishing the Policy for the City Council Non-Profit Fund (CLK)
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MEETING DATE:
July 2, 2025
PREPARED BY:
Olivia Nashed, City Clerk
recommendation
RECOMMENDED ACTION:
Adopt a resolution establishing the Policy for the City Council Non-Profit Fund (“Non-Profit Fund”).
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BACKGROUND INFORMATION:
On June 4, 2025, as part of the Fiscal Year (“FY”) 2025-2026 annual budget, the City Council voted to add $100,000 to the City Council budget, to be distributed evenly across the five Council Members in the amount of $20,000 each. Council indicated they would like each Councilmember to use these funds to support non-profits that benefit the Lodi community. Council directed staff to prepare a policy that allows nonprofits to submit funding requests to the City Council, and then each Councilmember can consider those requests and determine the nonprofit that they would like to allocate their portion of the funds to.
To carry our Council’s direction, staff reviewed sample policies used by neighboring agencies and other California cities. In order to provide a uniform structure for the submission of requests and allocation of the Non-Profit Fund to local non-profits, the City staff prepared the proposed process to establish guidelines for the use for these funds.
Key elements of the recommended policy are as follows:
1. The City Manager, as part of the proposed budget each year, may allocate up to $20,000 for each Council District into the Non-Profit Fund. In years the City budget is not structurally balanced, there may be a reduced amount or no allocation into the Non-Profit Fund for this purpose.
2. The City Clerk will maintain and track the uses of the Non-Profit Fund by each Council District.
3. Unspent dollars in the Non-Profit Fund will not be carried forward in the following fiscal year. The City Clerk shall provide a Non-Profit Fund balance report at the beginning of third quarter of each fiscal year, to provide an opportunity for Council Members to make recommendations for allocations before the end of the fiscal year.
4. A Councilmember, upon review of the merits and needs of the proposed projects or activities, will direct the City Clerk to prepare recommendations for the Council’s review and consideration regarding the use of the Non-Profit Fund. Allocations from the Non-Profit Fund must be approved by a simple majority vote of the Council.
5. Council approval of Non-Profit allocations should be based on the following:
a. Funding requests must align with the City Council Strategic Vision and requests should describe how they comply with the Council’s Goals and City policies
b. Non-Profit Funds can be used as start-up funds for community programs or activities benefitting the community within the City of Lodi.
c. The recommended projects or activities will primarily result in public benefit within the City limits.
d. The recommended projects or activities will have a nexus to City operated or funded programs.
e. Funding for projects or activities is a one-time allocation and shall not be considered ongoing funding support.
f. Any organization receiving funding must agree to be audited or present progress reports to Council as required by the City.
g. Funds cannot be allocated on a retroactive basis.
h. Organizations receiving these funds must attest that they will not be used for political, discriminatory, or any unlawful purposes.
6. Council Members may identify projects or activities proposed to be funded by the Non-Profit Fund, to be included as part of the upcoming budget. Once identified, the City Manager will include these projects and/or activities as part of the proposed budget to be considered by the City Council during final budget hearings. If approved, these projects and/or activities will not require a separate Council review and will be implemented by appropriate City staff. Projects not in the annual adopted budget will require a separate Council item and be subject to a simple majority vote of the City Council.
STRATEGIC VISION:
8B. Public Well-Being: Partner with other entities to provide outreach, education and activities to engage diverse cultures and communities.
FISCAL IMPACT:
There no fiscal impact with the adoption of this policy. The allocation of the $100,000 ($20,000 for each Council District) was approved as part of the FY 2025-26 Budget at the June 4, 2025 City Council Regular Meeting.
FUNDING AVAILABLE:
10005001.72611 - District 1
10005001.72612 - District 2
10005001.72613 - District 3
10005001.72614 - District 4
10005001.72615 - District 5