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<br />7A <br />Page 34 <br /> <br />,'-jco{Jil1# 8ruc1y I 28 <br /> <br />Funding Strategies <br /> <br />Overview <br /> <br />Economic conditions ar'f' ('hallf,n~ing for llor.h the puhllc and privatI' SPClor. As UH' City of Rf'dwood Cit.y considers the <br />replacement of several significant community facJlitip.s. capital funding is a conside.ration. TIle report that follDws identifir.s <br />\'arious Funr1ing mechani~ms a\'ailuhlr to the' City. It is r(~comnH'ndf:'d t.hat the City enRage the services of a funding consullant, <br />\\'ho can analY7.e t.he various options and (Jevelop a successful funding st.rategy, which is likely to include a variety of <br />mechanismR. including private sN'lor fundraising. <br /> <br />There al'e four cat.rgol'ies of funding mechanisms sllrnmarizedIJ('lo\\:. ThC'se brief description is follo\\'ed by a cletailed <br />e~pl(Hlalion of each funding type, <br /> <br />Private Sector Fundraising <br /> <br />Funding from the private sector is 8\'ailallle in many forms. <br />'mrne' of \\.'hic'h have' t1l<' pnl.r.nl iall.o prOVide' a "i~nifi(,Clnl ami <br />em-going rf:'venue source. <br /> <br />Components found in similar puhlic-private funding <br />programs include: <br /> <br />· Endowments <br /> <br />· Park & Recl'eation <br />Discretionary Endowment <br /> <br />· COl'porate Gifls and Sponsorships <br /> <br />· Private Foundation Grants and PRl's <br />(Program Related Investments) <br /> <br />· Individual Gifts and Sponsor'ships <br /> <br />~vter Initiatives <br /> <br />The capital costs to replace the existing senior celHer and <br />pool will most likely require some form of voter-approved <br />or lan<lowner-apPl'Ovr.d initiative such as a bond or I.aA <br />assessment, This is a good time to (levelop a funding <br />s\J'at.egy, select a preferred mechanism. and hegin t.he <br />planning process. anticipating an inevitable turnarounc! <br />in the voleI' mood for investment in community programs <br />and facilities. <br /> <br />Government Grant Funding <br /> <br />Gowrnmenlal grants have historically provided a substantial <br />source of capital for park and recreation agencies. A strong <br />~ranl-writing ane! grants managemenl program is critical t.o <br />idt>ntifying, making application, and sPcllI'ing gl'anl. funding, <br />An ongoing an(j effective program requil'es Uw assignment of <br />specific staff to these t.asks that can be a challenge in light of <br />staff reductions, <br /> <br />IJel'(~J'age Resolll'ces <br /> <br />Grant making organizations. helt.h publiC anel pI'ivate frequently <br />('('quirt' matching fun(!s, Examples of resulIrce Ic~vcraging <br />include School Dist.rict:- City partner'ships, puhlicJpl'i\'ate <br />partnerships, and \'olunLeerisIll. <br /> <br />FUNDING SOURCES <br /> <br />InU'oducUon <br /> <br />Like must municipalities, the Cit.y is experiencing fiscal <br />pressures. The impact of tIJe downtul'l1 in Lhe national <br />economy is e~xacerbatf'd in California hy declining home <br />sales. decreased transfer tax and sales tax. and reduced <br />income lax I'l've I1lWS , California's limit on property t<lX <br />continues to have a significant impact all city funding. <br />These economic conditions have resulted in sLate <br />cut hacks in local grant programs, The same cannot <br />he saW, however. for fe(1eral grant. pI'Ograms through <br />Recovcl'Y Acts ("stimulus") ane! allied cahinet initiatives. <br /> <br />The anility of local governments in California to <br />nIlCUll't~ puhlic illlprovelllellls has been incl'easlllgly <br />circumscribed over the last three decades, In June <br />1978. tht' vot,ers of California amended the state <br />constilut.ion Lo limit the ability of local governments <br />10 impose property Laxes, <br /> <br />Sinc(' Ihe passage of Proposition 1 :3, more than a dozen <br />oLher st.atewide pl'OposlUons have h('en passed that <br />I'est-riet how local revenues can he raised OI' spent.. <br /> <br />rD2010 Thf Sports A/anl.1gume.nt Group <br />