1 STAFF REPORT
DATE: February 15, 2022
TO: Justin Hess, City Manager
FROM: Marisa Garcia, Parks, Recreation and Community Services Director BY: Kristen Hauptli, Administrative Analyst II
SUBJECT: Request to Consider the Establishment of a Community Foundation to Supplement City Services
RECOMMENDATION
The City Council (Council) could note and file the report or direct staff to come back with a second step report to consider the establishment of a City of Burbank (City) Community Foundation to finance City related programs and capital projects.
BACKGROUND
At the July 13, 2021, Council meeting, Mayor Talamantes requested staff to bring back a first step report for Council consideration to establish a City endowment fund to support City related programs and/or capital projects. During a Joint -Board Meeting of the Park, Recreation and Community Services Board (Board) and Council on October 25, 2012, a First Step Report on this subject matter was presented for consideration and discussion regarding the viability of establishing a Park Endowment Fund to finance park related programs and capital projects (Attachment 1). Ultimately, Council unanimously voted 5-0 for staff to present a second step report to the Board with a more simplistic approach in developing alternative funding approaches.
On February 12, 2015, the Board received a Step 2 Report on the establishment of a Park Endowment. As directed by Council, staff presented information on existing funding mechanisms to finance park related programs and capital projects. S taff conducted an inventory of existing processes and presented this information to the Board. Subsequently, the Board note and filed the report.
DISCUSSION
A community foundation is a public 501(c)(3) nonprofit created by, and for, a community of people, supported by local donors, and governed by a volunteer board of private citizens working toward the greater good of the community. The purpose of a foundation is to grow an endowment that will benefit charitable activities and to serve those who donate by helping them accomplish their charitable goals.
PARKS AND
RECREATION
2 While a communi ty foundation does not specifically exist within the City of Burbank, in 2008 Community Foundation of the Verdugos expanded its partners to include the City of Burbank. Moreover, there are various other non- profits in the community such as the Burbank Arts and Education Foundation, Friends of the Burbank Public Library, and Volunteers of the Burbank Animal Shelter that solicit donations to fund community needs.
Following the Board’s direction , staff outlined the mechanisms that are in place to encourage and promote opportunities for individuals residing in Burbank to provide or receive financial support.
Burbank Program, Activity, and Service Subsidy (PASS)
Formerly known as the Scholarship Program , Council established Burbank PASS in Fiscal Year 2017-2018. Burbank PASS provides financial support and assistance to low- income and homeless Burbank individuals and families by expanding access to robust community programs, activities, and services. Per the program criteria, eligibility is based on the total gross family income and number of members in the household. Referencing the United States Department of Housing and Urban Development adjusted home income limits for Los Angeles County, the City established its own income limits for each eligible resident and/or family based on community needs. Approved applicants are eligible for $400 per person or up to $1,200 per household to be allocated towards eligible City programs, activities, or services.
Burbank PASS is funded by General Fund revenues generated through various fees for citywide services. Overall, Burbank PASS is an extremely successful program with a current total of 726 persons benefitting from the subsidy.
City Donations
It is not uncommon for community groups or individuals to fundraise and make a monetary contribution to City Departments, including but not limited to the Parks and Recreation Department (Department) and Library Services . Traditionally, m onetary contributions fund or support specific improvements or enhancements. In particular, the Department has several opportunities for groups and individuals to make donations to support Department activities, facilities, and amenities. A formal approach is to work through t he Burbank Athletic Foundation (BAF) to identify unfunded needs and collect the funding to facilitate the improvements or amenity purchases. Specifically, BAF was a key partner in the improvements and establishment of the Pickleball Court at Larry L. Maxam Park in May 2018. More recently, at the November 18, 2021 Board meeting, a Burbank youth resident presented a check for $2,500 for park playground improvements in the upcoming Fiscal Year 2022- 2023. Additionally, individuals and community groups can also fund park benches and tre es through the Department’s Commemorative Tree and Bench Program.
Sponsorship Program
The Department continues to pursue the development of a business -to-business program, but has made significant progress in forming partnerships with local businesses through recreation programming. In particular , the Residents Inspiring Service and Empower (RISE) Program has been instrumental in developing partnerships with local businesses who have supported RISE volunteer projects with monetary and tangible 3 contributions. More recently, the Department received a private sponsorship donation for the development of the City’s first off- leash dog park which will be known as the Dick Clark Dog Park . A generous donation of $150,000 from the Kari and Dick Clark Foundation will make a dog park in Burbank a reality. Staff continues to forge relationships and seek opportunities to minimize impacts to the General Fund.
FISCAL IMPACT
There is no fiscal impact associated with this report. However, should Council pursue creating and implementing a Foundation, staff estimates a minimum of two full-time employees will be needed to effectively create and administer this new program, including supporting a board of directors.
CONCLUSION
While a community foundation can be a valuable resource to administer local grants and provide additional financial resources that otherwise would not be available, staff has been able to leverage its capacity to receive and accept personal and private donations to support Department services, facilities, and amenities. Staff is always seeking ventures that will maximize funding or produce a funding source to provide recreation programming, aide Burbank residents, and enhance or improve facilities and amenities.
In light of the existing successful Community Foundation of the Verdugos and other community non- profits, starting or creating a new community foundation may be challenging. One of the foreseeable challenges is that this new f oundation could inadvertently create direct competition with fundraising efforts by other existing Foundations or non-profits, essentially competing for the same money from the same pool of donors. As an alternative, the City can strengthen its role and partnership with the Community Foundation of the Verdugos to create funding, specifically earmarked for the City of Burbank. Staff respectfully requests Council’s direction on this item.
ATTACHMENT
Attachment 1 – February 12, 2015 Parks, Recreation and Community Services Board Report