Background

It has been the practice of the City of Spearfish to allocate limited grant funding from the city’s General Fund (101), Hospitality Tax (202) and in-kind contributions to support a variety of highly successful and well-attended community-based programs and activities conducted by charitable/non-profit organizations.

Each organization receiving a grant will fit into one of three categories. Those categories are Social Welfare, Recreation, Arts and Seniors and Hospitality.

Grants to cover operational needs for the Social Welfare and Recreation, Arts and Seniors are funded directly from the general fund (101). Hospitality grants are funded from the BBB taxes (202). The 202 funds have very specific uses for marketing and attraction efforts for the City.

It is important to limit the use of the general fund as it is the primary source of revenue for all City operations, including public safety. A maximum overall amount of 2.5% of the proposed general fund budget revenue (excluding the use of reserves) will be considered available to provide support for grant requests and other similar budget allocations for organizational support.

Support provided through the Hospitality funds have specific uses that are established by South Dakota Codified Law. The overall amount is derived through the budget process and will be based on the anticipated amount of revenue available for any given year.

The City may also provide funding support for non-profits through its Community Development Block Grant (CDBG) funds. This policy shall not involve the utilization of those funds as the City employs a separate process to review and distribute CDBG funds.

In order to ensure a uniform process is followed in the appropriation of city General Funds or in-kind city support requests that are annually submitted to the city, the following guidelines will be followed.