Shelbyville may not cut racino funds to not-for-profits

The city's proposed 2015 budget included a line item showing a decrease in racino allocations to the Blue River Community Foundation, from $150,000 in 2014 to $35,000 next year. The foundation operates an endowment which provides grants to local not-for-profit agencies, funded by racino monies.

"Back in 2009, 2010 when this was being discussed, we agreed to give 5 percent of the racino fund to an endowment, to grow for five years. At that point we thought the endowment would take over on its own and continue to meet the needs of not-for-profits," Council President Brian Asher said.

"During a recent meeting with the Blue River Foundation, and quite a few not-for-profits were there as well, we found out that there was a greater need for dollars by not-for-profits right now. I think not knowing that, there's been a bit of a disconnect with the not-for-profits here lately. We're going to change that. Some place, some form. Either we're going to be showing up at to some not-for-profits' meetings, emails back and forth to find out what the needs are. But we know they're greater right now."

Mayor Tom DeBaun said he and council members had discussed greater contributions to meet the needs of not-for-profit agencies in the community.

Asher proposed budgeting $100,000 in 2015 for not-for-profit funding.

"I'm one who wants to get more money to recognize the need also," Councilman David Carmony said. "But I'm not sure what our budget will allow, and I'm not sure what we can afford, and that's the exercise that we have to go first. I don't want to come across as against that proposal, but I'm not coming across that I'm for those exact numbers."

Council members earlier Wednesday expressed discontent with how the not-for-profit funding questions had distracted them from more pressing budget issues.

DeBaun noted that racino and EDIT monies are not subject to the same scrutiny and deadline as the rest of the city budget.

"There's been some concern that Oct. 6 is the firm deadline (for the budget)," DeBaun said. "The Oct. 6 deadline is the deadline for funds that are overseen by the DLGF. These funds are not regulated by DLGF. These are discretionary funds much like the EDIT funds, and quite frankly, racino and EDIT was never even in the budget until 2014. These were funds that were held in a different manner, distributed differently, and the budget that is passed on Oct. 6, general funds, parks operating, are set in stone to a degree.

"EDIT monies, racino monies, can be manipulated at any time throughout the year by action by the city council."

Greg Guerrettaz of Financial Solutions Group agreed that the council can change the allocation of funds to not-for-profits at a later date.

"What (Clerk-Treasurer) Frank (Zerr) and I need at this point in the juncture is a number to work with. It can be adjusted one way or the other in the future. I think you also need to give some specificity to your term, this is for '15 and future periods will be reviewed at future points in time. I think that number is manageable given what we've seen in the past," Guerrettaz said.

Representatives of not-for-profits who have received grants through the Blue River Community Foundation attended the meeting.

"Now that you know that the information you were fed originally was completely inaccurate, you know we're an extremely generous group of people up here, and the fact that we're willing to give more money directly to you from us, does that make you feel pretty good?" Councilman Rob Nolley asked them, drawing affirmative responses from the agency representatives.

A specific timetable for approving the racino allocations was not set, although DeBaun said plans would be finalized by the end of the year. The council's enhanced role in allocating grants to not-for-profits also must be determined.

Just how much responsibility should the city council play in funding not-for-profit agencies?

"It's kind of an economic development tool honestly," Asher said after the meeting. "When you have these good programs around town, you want to look at parks, schools, other programs, outside things, so when we're talking to other businesses outside (that consider relocating here), this is one of the benefits we can also offer."

Blue River Community Foundation Executive Director Amy Haacker said the foundation would be pleased to continue to oversee the endowment.

"I think as much as this (discussion) has been driven by passion, I really do appreciate the opportunity to provide some clarity on how the foundation works," she told the council.