Mitchell — It’s time for city leaders to decide how grants will be distributed to the more than 10 Mitchell nonprofits that have requested funding in 2023.
Adding to the challenge this year is the growing cash endowment held by a small number of nonprofits. A Mitchell City Council-led committee recommended cutting about $146,000 of the $682,250 requested in grant applications submitted to the city this year, largely because some nonprofits have invested heavily in their financial resources. I pointed out that I had cash.
Several of the nonprofits that sought the city’s grant funds this year have cash fund balances that have increased by more than $1 million in recent years. For example, according to financial information provided to the city, the Dakota Counseling Institute increased its cash fund balance by $1.9 million from 2019 to 2020, and the Convention and Visitor Bureau (CVB) increased his over $700,000. did.
Despite the financial situation of some of the nonprofits seeking grants, some leaders of the organizations stressed on Monday the importance of grants and reiterated that they are put to good use.
Mitchell Area Development Corporation (MADC) President Tim Botham addressed the city council on Monday on behalf of the entire Chamber of Commerce and Convention and Visitors Bureau, reiterating subsidy cuts to two nonprofits. I asked the city council to look into it. Promote Mitchell and aim for industrial and commercial adoption.
“In addition to the rent increase at the Corn Palace (gift shop), there is a proposal for a fairly substantial price cut. We do,” Bottom said during the budget work session. “Expand the event, raise the sales tax and make more money. That’s what we do.”
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The Mitchell Convention and Visitors Bureau (CVB), which is part of the Chamber of Commerce, is currently considering reducing the subsidy by $50,000. CVB serves as the city’s marketing arm, running tourism advertising campaigns to draw visitors to Mitchell.
Mr. Botham emphasized the “massive momentum” recently built by the MADC and Chamber of Commerce chapters. After his two leaders of the Chamber and his MADC abruptly resigned in his 2020, these organizations have appointed new leaders, including Geri Beck and Tiffany Batdorf, CEOs of the Chamber and his MADC. Welcomed.
CVB’s proposed subsidy reduction would reduce the requested $250,000 to $200,000. The commission also recommends lowering MADC’s $167,000 request to his $140,000, marking a $27,000 reduction.
“I think you’re a little disappointed because you think all the dollars you’re trying to cut can affect momentum,” said Bottomam. “I think we have achieved many goals to grow our community, improve housing, improve our workforce and improve quality of life.”
Another reason the commission recommended cutting $50,000 from the CVB was to make up for the job of the city’s newly created administrative coordinator, which mimics his position on the Chamber of Commerce that Mr. Bottomum criticized. .
In addition to the annual grants the City receives, MADC and the Chamber of Commerce generate income from companies that partner with the organization to help facilitate it. Another source of revenue that supports the organization’s operations is the seasonal Corn Palace Gift Shop, which opens during the summer months. City leaders had considered taking over the summer gift shop operations, but the city council chose to renew the Chamber of Commerce’s gift shop contract for another year and increase rents.
Bottom indicated that the balance of funds held by some chambers of commerce is underutilized due to concerns about potential cuts in city subsidies.
In response to Bottomum’s proposal to reconsider reducing the CVB and MADC subsidies, City Councilman Jeff Smith noted that an additional $75,000 in grant funds has been allocated to Mitchell Area Housing, Inc.
“One of our biggest concerns is human resource development, and that rolls directly into housing. Smith said.
The funds proposed to MAHI will be used for tipping fees at the Mitchell Landfill after demolition. As part of MAHI’s housing construction process, it plans to seek out lots of dilapidated housing (some of which are considered junk properties) and demolish them to make way for new, affordable housing. increase. According to the regulations attached to the subsidy fund, the funds will be released to MAHI when MAHI requests reimbursement of tipping costs after the demolition of the house.
Adam Surley / Mitchell Republic
Earlier this month, MAHI began construction on its first 1,200-square-foot home in Mitchell on Foster Street near Hitchcock Park. The organization is also playing a major role in the planned South Lake Estate housing development on land next to Lake Mitchell.
Nonprofits suggested to deny grant applications include Big Friend Little Friend, Mitchell Area Council for the Arts, and Davison County Juvenile Diversion Program. A council-led committee cited three organizations that had not requested city funding in the past few years as the main reasons for recommending that the request be denied.
Habitat for Humanity, a local organization that builds homes for families in need each year, has been recommended to cut $15,000 in subsidies. However, the city recently donated to Habitat his two lots in Mitchell, which provides land for the group to build their next home.
One of Mitchell’s main attractions, the Prehistoric Indian Village, is considering a $10,000 price cut from its $19,000 request. Indian Village executive her director Cindy Gregg highlighted at the council how the funding will help drive her marketing campaign for Indian Village.
City projects, sacrificing facility improvements
The need to sacrifice several city projects, combined with the costly capital demands of inflation-shooting projects, has led some council members on the commission to cut some of the grants from nonprofits. The move said setting aside a significant amount of reserve money would help the city maintain the facility. In the vault of 2023.
To achieve a structurally balanced budget, a small number of projects and city department capital requirements have been reduced from the 2023 budget.
City administrator Stephanie Elwein said the $2.3 million capital request has been dropped from the budget. Grants that nonprofits request each year influence these projects.
Nearly $1 million was cut from the budget in requested facility improvements. This means that these projects could be shelved for another year and face higher construction costs if inflation continues to pick up.
“Each year, we take $1.5 million to $2 million out of our budget on capital projects.
