03-16-04 Item 23CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER - OFFICE MEMORANDUM
To: Honorable Mayor, Vice Mayor
and City Commission
From: Maria V. Davis L
City Manager
REQUEST
Date: March 16, 2004
Subject: Agenda Item # a 3
Commission Meeting
03/16/04
Re: Formation of a Not -for-
Profit Municipal Corporation
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY
MANAGER TO TAKE THE NECESSARY STEPS TO FORM A NOT -
FOR- PROFIT MUNICIPAL CORPORATION FOR THE SOLICITATION
OF OTHERWISE UNAVAILABLE FUNDS FOR PUBLIC NEEDS AND
PROGRAMS; PROVIDING AN EFFECTIVE DATE.
BACKGROUND AND ANALYSIS
The City of South Miami sponsors and supports a wide variety of programs to serve public
needs, in addition to the services supported by taxpayer dollars and for which a municipality is
routinely responsible. The amount of tax and user -fee based funding available to support these
programs and services is limited by law and by practicality. There are other sources of funding
(both public and private) available for social welfare projects and the wide variety of public
needs, including capital projects, expansion of police services, youth and educational programs,
Senior services, etc., for which a city does not qualify. The establishment of an IRS Code 501 c
(3) qualifying entity, which generally allows donations to be tax deductible, would allow the City
to pursue those other appropriate sources of funding and to distribute the money to those
programs it wishes to support.
The type of foundation which we are seeking permission to form would be a separate entity from
the City, but could be set up so that the Mayor and City Commission constitute its Board of
Directors (as is reflected in the proposed resolution). In addition, an advisory board of people
with expertise in grants - seeking and funding of non - profits can be set up along with an honorary
board of influential personalities to help the foundation achieve its goals. Those two boards
would be non - voting entities, leaving all the actual decision making to the Board of Directors and
the personnel selected to run the day -to -day operations of the foundation.
One of the primary funding tools utilized by a foundation is the establishment of endowment
funds to generate permanent dedicated sources of revenue to support the well- defined public
benefits for which they are formed.
The type of foundation proposed would be a valuable asset to the City of South Miami,
eventually enabling us to serve our residents' needs on a scale that is just not possible with
existing taxes and user -fees, through the other limited sources currently available to us.
RECOMMENDATION
Approval is recommended.
1 RESOLUTION NO.
2
3
4 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
5 THE CITY OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE
6 CITY MANAGER TO TAKE THE NECESSARY STEPS TO FORM A
7 NOT - FOR - PROFIT MUNICIPAL CORPORATION FOR THE
8 SOLICITATION OF OTHERWISE UNAVAILABLE FUNDS FOR
9 PUBLIC NEEDS AND PROGRAMS; PROVIDING AN EFFECTIVE
10 DATE.
11
12 WHEREAS, the Mayor and City Commission wish to promote and support public
13 purposes benefiting the residents of the City of South Miami, Florida including
14 continuation and /or initiation of education, recreation, law enforcement, social services,
15 arts, cultural, and economic development programs, construction and /or restoration of
16 public facilities, and capital and social expenses necessitated by damage caused by
17 hurricanes and /or other public emergencies as they may arise; and
18
19 WHEREAS, the Mayor and City Commission wish to establish an endowment
20 fund for the purpose of generating a permanent dedicated revenue source for generating
21 well defined public benefits and other similar purposes, generally supplementing or
22 complementing other resources available to the City, and /or accomplishing needed
23 projects which cannot be undertaken with other revenues or for which available revenues
24 are insufficient; and
25
26 WHEREAS, the Board of Directors of the not - for - profit corporation shall be
27 comprised of the duly elected Mayor and members of the City Commission of South
28 Miami, Florida, thus being representative of the community at large; and
29
30 WHEREAS, the Mayor and City Commission desire the City Manager to execute
31 the process of forming said not - for - profit municipal corporation, i.e. drafting the articles
32 of incorporation, by -laws, and preparation of necessary tax forms, etc.; and to present
33 those items to this body for approval prior to submission.
34
35 NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
36 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA;
37
38 Section 1. That the Mayor and City Commission authorize the City Manager
39 to take the necessary steps to prepare the documentation to form the South Miami
40 Foundation, a municipal not- for - profit corporation.
41
42 Section 2. That the City Manager is to present the completed documentation
43 to the Mayor and City Commission for approval prior to submission to the State and the
44 Internal Revenue Service.
45
46 Section 3. This resolution shall take effect immediately upon approval.
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PASSED AND ADOPTED this 16th day of March, 2004.
ATTEST:
CITY CLERK
READ AND APPROVED AS TO FORM:
CITY ATTORNEY
APPROVED:
u: •
COMMISSION VOTE:
Mayor Russell:
Vice Mayor Palmer:
Commissioner Wiscombe:
Commissioner Marie Birts- Cooper:
Commissioner Sherar:
J: \CBlazekon McGruffl \RESOLUTION Authorizing Formation of Not -for Profit Corp. FY2003
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