City of Gonzales
CITY MANAGER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: May 6, 2024
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2024-14 Withdraw Funding Donated for the Community Center
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2024-14, A Resolution of the City Council of the City of Gonzales Authorizing the City Manager to withdraw the funding donated for the Dennis and Janice Caprara Community Center Complex from the Community Foundation Account.
BACKGROUND
The City embarked on a capital campaign in 2021 in support of the development of the Gonzales Community Center knowing that the project was going to take an outstanding amount of funding, but that there were generous people out there that believed in the community’s vision and wanted to support the development of the center.
An initial step for the Capital Campaign was to set up an account that could provide potential donors assurance that their donations would indeed go to the development of the center. For that, we had to identify a trusted partner that could provide that assurance and that believed in the project just as much as we did.
The Community Foundation for Monterey County is the go-to for setting up disaster funds, and they manage many other community funds and although they don’t typically do capital campaigns, they were gracious enough to work with us and establish a fund in which our Center’s donations could be held.
In November 2023, the City drew down $5.292 million, and currently have another $326,458.44 siting in the account. Although we are waiting on other funds to come in, it is important for us to draw these funds down as they are part of our commitment to finance the USDA loan.
AGENDA
ITEM
7 REVIEW & ANALYSIS
The funds in the account have been generously donated from members that support our community and that come from all walks of life. We have received donations ranging from $5 dollars to $5 million, showing that people from all sides of the economic spectrum believe in the project and want to support it.
We are fortunate to receive every single one of them, and every single donation makes a difference.
Now that the design development process is complete, we need to access all the cash we have as things are going to move fast and we will need to have the funding available to finance the USDA loan.
Explain Recommendation and How it Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: As we move into construction, we need to draw down the funding that has been made available to us.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes __No __NA
Explain: Please see explanation above for the Mission.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes No X N/A
• Housing Yes No X N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: Please see explanation above for the Vision.
ALTERNATIVES
If we don’t withdraw the funds and put them into our bank account, we may be delaying the USDA loan as USDA needs to see that we have the financing to back up the loan.
BUDGET IMPACT
The Community Center Construction fund balance will grow in revenue by $326,458.44 requiring a budget amendment to reflect the new amount.
CONCLUSION
It is recommended that the City Council adopt Resolution No. 2024-14, A Resolution of the City Council of the City of Gonzales Authorizing the City Manager to withdraw the funding donated for the Dennis and Janice Caprara Community Center Complex from the Community Foundation Account.
Attachments:
1. Resolution No. 2024-14