SR-04-24-2012-8CCity Council Meeting: April 24, 2012
Agenda Item: 8-'C-
To: Mayor and City Council
From: Gigi Decavalles- Hughes, Finance Director
Subject: Funding for the Education Foundation of Santa Monica - Malibu
Recommended Action
Staff recommends that the Council:
1) Authorize the City Manager to negotiate and execute an agreement with the
Santa Monica - Malibu Education Foundation in the amount of $250,000 to
leverage and expand its general fundraising efforts; and
2) Authorize the budget changes as outlined in the Financial Impacts and Budget
Actions section of this report.
Executive Summary
The Education Foundation recently requested the release of a $250,000 designation
originally authorized by the Council in 2001. The funds represent the remaining half of
a $500,000 designation to support arts education. Once released as a one -time lump
sum, the funds will be used by the Education Foundation to leverage and expand its
general district -wide fundraising efforts.
Background
On February 27, 2001 Council pledged $500,000 to the Santa Monica - Malibu Education
Foundation (Foundation) endowment for music and arts. The pledge was approved on
June 19, 2001. An initial $250,000 was to be released at the discretion of the City
Manager to enhance marketing and fundraising for the "For the Arts" campaign as well
as assist an annual arts award program. The remaining $250,000 would be given to
support arts education when the Foundation reached a $5,000,000 fundraising goal for
the endowment.
Per Council's authorization, the City Manager released the initial $250,000 to the
Foundation for use to support fundraising for arts education in FY 2007 -08 and FY
2009 -10. A pledge balance of $250,000 still remains.
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Discussion
Through the "For the Arts" campaign, the Foundation raised $2,500,000 in endowment
funds to support music, visual arts, dance and drama programs in schools throughout
the Santa Monica - Malibu Unified School District ( SMMUSD). The economic downturn,
as well as limited staff resources, negatively impacted the momentum of the fundraising
campaign in the past four years. In November 2011, the SMMUSD Board of Education
voted to designate the Foundation as the lead organization tasked with fundraising for
personnel and professional development for the school district. This new role will take
effect in FY 2013 -2014, at which point the Education Foundation will be tasked with
raising $4,000,000 per year.
Staff has met with representatives of the Foundation to discuss fundraising objectives in
the next few years, as well as the proposed use of the remaining $250,000 of the
$500,000 pledge. Despite concerted efforts during adverse economic conditions of
recent years, the Foundation has been unable to reach the $5,000,000 threshold
requirement to receive the remaining $250,000 designation. Staff recommends
modifying this requirement for the release of the one -time lump sum payment to
leverage and expand school district -wide fundraising efforts. Thereafter, no other
designations exist in the City's fund balance for the Foundation.
Financial Impacts & Budget Actions
The General Fund balance includes $250,000 in a Committed Assignment. Staff
requests that Council appropriate $250,000 to account 01274.566830 and release the
assignment in account 1.370329.
Prepared by: Matt Mornick, Principal Analyst
Approved: Forwarded to Council:
iRod Gould
Finance Director City Manager
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Reference Contract No.
9579 (CCS).