By Kevin Boneske
Staff Writer
HOBART –A proposed event policy to establish a procedure and criteria for the village’s sponsorship of special events with non-profit organizations received the first of two readings Tuesday, March 3, by the Hobart village board.
Village Administrator Aaron Kramer said non-profit entities involved in events such as fundraisers, road events and food truck rallies could be sponsored by the village if they would fall under criteria drafted in the policy.
“The message we (as staff) had got (from the board) was we really don’t want to fork over (money to for-profit entities),” Kramer said. “Plus, there is a question of who’s in charge. Who’s responsible for doling out the cash when people come in?”
Kramer said other communities don’t use general fund dollars to fund special events, with room tax or sales tax revenue available to them.
“We don’t have that, nor do I see that on the horizon,” he said.
If a non-profit organization would ask the village to sponsor its event, Kramer said staff members in Hobart currently do not have a policy to approve or deny a request.
“I don’t know if we want to bring every single request to the board, where it gets vetted every time,” he said. “That’s why you have a staff to go through these things, so we have a checklist.”
Under that checklist, Kramer said non-profit organizations, which would be so defined by being designated as a 501(c)(3) organization under the federal tax code, would not be eligible to be co-sponsored by the village if they would fall under the restrictions in the policy.
“If they’re going to do something our code doesn’t allow, we can’t be a part of it,” he said. “If it’s involved in adult products, we really aren’t going to be involved in it. If it is an event that has a connection with alcohol at a youth-related event, we’re not going to be a party to that.”
Kramer said other restrictions where the village wouldn’t co-sponsor an event include when a group is involved in litigation against the village, a conflict of interest creating the appearance of impropriety or favoritism, a pending land-use approval and religious or political entities.
He said any non-profit organization which would meet the guidelines in the proposed event policy may receive a 50 percent reduction in fees or rentals.
“Fundraising can’t be the sole goal,” Kramer said. “We don’t want them to use the village or the village’s name as simply a vehicle to rake in more cash, even if it’s non-profit. There has to be some other component – (such as) education – some other thing other than here’s a bucket to put money in and the village has given us the blessing.”
Kramer said non-profit organizations would also need to have insurance, and a fee reduction for an athletic field would be limited to youth tournaments and events only.
“For example, one of our fields is rented by an entity for practices,” he said. “That wouldn’t be eligible for (reduced fees). That’s just general practice.”
At the discretion of the village administrator, Kramer said the village may further reduce or waive an outside organization’s permit or rental fees if it has a close association with Hobart’s core program goals and services, as well as provides the village with positive marketing exposure.
Under the proposed policy, he said the village could provide in-kind support, such as public works staff setting up tables, if a program or event:
• Would promote beneficial use of a park, facility or program.
• Would be free and open to the public.
• Would support the village core recreation programs, missions and goals.
• Would demonstrate community pride and involvement.
• Would not have a religious or political purpose.
• Would clearly recognize the village as a co-sponsor.
In addition, Kramer said the village would be able to display its banners at all co-sponsoring events.
Trustee Debbie Schumacher – who previously asked about the village sponsoring a band to perform at a truck rally, a request that led up to the policy being drafted – said having the village co-sponsor the event of a non-profit organization wouldn’t be the same as one the village organizes itself.
Kramer said the proposed policy is the first step, before the village would organize its own events.
“The next thing we would tackle is that the village is putting on an event,” he said.
Kramer said he advocated having two readings of the proposed policy related to village sponsorship of special events with non-profit organizations to give people who weren’t aware the board is considering it a chance to review it before final approval would be considered at the March 17 meeting.
“Maybe somebody has a better policy out there,” he said. “Maybe somebody has found something. We just really haven’t.”
No sewer rate change
In other action, the board agreed to keep the village’s current sewer rates through 2020.
Kramer urged board members to keep the rates stable, rather than a decrease of 3 cents per 1,000 gallons as based on a formula the village uses, usually in February, to determine if an adjustment is needed.
He said the sewer utility had experienced serious financial issues in 2016 and 2017 that resulted in more than $200,000 being transferred from the general fund reserves to the sewer fund, and that transfer is being paid back to the general fund over the next several years.
In addition, Kramer said an analysis of the sewer fund done late last year by the village’s financial consultants, PMA Securities, showed the fund will experience another series of shortfalls in the next few years, before returning to a more solvent status in 2024.
“Staff is concerned that any rate decrease at this time would exacerbate the financial stress on the horizon for the sewer fund and could lead to larger increases in the future, or additional financial relief from other village funds,” he said.
Truck purchases
Board members approved the purchase of two 2020 Dodge half-quarter-ton quad cab pickup trucks for the public works department for $52,906 from Ewald Automotive Group.
Public Works Director Jerry Lancelle said the village 2020 capital budget included $67,400 to replace a current department pickup and add an additional truck to the fleet.
Lancelle said the truck being replaced, a 2017 Chevrolet three-quarter-ton water utility vehicle, would be sold in accordance with the village’s capital disbursement policy.
Corrected contract
The board also approved an amended motion to award a contract for $773,605 to Northeast Asphalt for 2020 street drainage and improvements.
Kramer said an incorrect amount of $728,211 had been included in the motion the board approved Feb. 19.