TO: Board of Supervisors
FROM: David Morrison, Interim County Executive Officer
REPORT BY: Jesus Tijero, BOS - Staff Assistant II
SUBJECT: Community Investment Fund - FY 2023-24 Arts & Culture Grant Award Recommendations
RECOMMENDATION
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Interim County Executive Officer, on behalf of the Napa County Arts & Culture Advisory Committee (Committee), requests discussion and action on the Committee’s arts and culture grant award recommendations as part of the Community Investment Fund for Fiscal Year 2023-24:
1. Award $139,474 in available funds from the Tourism Arts & Culture Category; and
2. Award $166,442 in available funds from the General Arts & Culture Category.
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EXECUTIVE SUMMARY
At its regular meeting on April 24, 2023, the Napa County Arts & Culture Advisory Committee (Committee) discussed and scored 31 grant applications (proposals) received from 23 arts and culture non-profit organizations for the FY 2023-24 grant cycle.
The process resulted in the Committee recommending 20 proposals for full funding and 2 proposals for partial funding. Since the total amount requested by applicants ($405,264) exceeded the total amount available ($305,916), it was not possible to recommend funding all the proposals. Staff is now presenting the Committee’s funding recommendations to the Board for consideration and possible approval. A detailed table with the Committee’s recommendations is attached.
PROCEDURAL REQUIREMENTS:
1. Staff reports
2. Public Comments
3. Motion, second, discussion and vote on the items
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Community Investment Fund |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The Community Investment Fund and the funding of arts and culture grants are not required by law, but have been identified as a priority by the Board. The award of these grants is in accordance with the Board’s direction to staff relating to the allocation of the Community Investment Fund. The total amount available in Fiscal Year 2023-24 is $305,916. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Funding is available through the Community Investment Fund and will be budgeted accordingly in future years and distributed based on the direction provided by the Board of Supervisors. |
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Consequences if not approved: |
If these recommendations are not approved, the Board will need to determine alternative grant recipients or arts grant funding from the Community Investment Fund will not be distributed for Fiscal Year 2023-24. |
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County Strategic Plan pillar addressed: |
Collaborative and Engaged Community |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
BACKGROUND AND DISCUSSION
COMMUNITY INVESTMENT FUND CREATION AND BACKGROUND
In November 2004, Napa County voters approved an increase in the Transient Occupancy Tax (TOT) rate charged to visitors renting hotel and motel rooms in the unincorporated area. The increase, from 10.5% to 12% took effect on January 1, 2005, and was not dedicated to any specific purpose, thus requiring only a majority vote to pass. Although the revenue generated by the additional 1.5% TOT is fully discretionary, the Board determined that the receipt of additional discretionary revenue provided an opportunity to consider County investments in projects or programs that were a Board priority. To that end, as part of the FY 2005-06 County budget process, the Board established the Special Projects Fund (SPF) to finance programs or projects in two areas: (1) visitor management and (2) parks and open space.
On January 23, 2018, the Board discussed the SPF, including reauthorizing a new SPF funding cycle through FY 2022-23 and amending the SPF allocation formula:
• 60% - Parks and Open Space
• 20% - Affordable Housing Programs for hospitality workers
• 20% - Arts and Culture Programs or Services
In April 2023, with the SPF cycle expiring at the end of FY 2022-23, the Board amended the SPF allocation procedures. The amendment renamed the fund to the “Community Investment Fund” (CIF) to better capture the purpose of the fund and eliminated the 20% allocation towards affordable housing and assigned it to parks and open space. Napa County voters approved an additional 1% TOT dedicated to workforce housing in 2018 and it will replace the previous SPF allocation. Elements for the affordable housing spending plan will be included in the upcoming annual budget request process for consideration and approval. The amended CIF allocation formula is as follows:
• 80% - Parks and Open Space
• 20% - Arts and Culture Programs or Services
Of the 20% arts and culture allocation, 20% of that amount is annually allocated to Arts Council Napa Valley for operating expenses, and the remaining 80% annually distributed through a competitive grant process to arts and culture organizations in Napa County.
BOARD-APPROVED ARTS & CULTURE GRANT GUIDELINES
The purpose of the Arts & Culture Advisory Committee (Committee) is to conduct and oversee a grant program and make recommendations to the Board of Supervisors regarding grant awards made to non-profit arts and cultural organizations in Napa County. The goal is to grow and promote arts and cultural offerings in Napa County for residents and visitors, include more diversity of cultures and voices in the arts, and foster more collaboration among Napa’s arts groups.
The Committee met on October 24, 2022, to discuss amendments to the Arts & Culture Grant Guidelines for the FY 2023-24 grant cycle and the guidelines were approved by the Board on November 2022. The amended guidelines are attached to this agenda item.
The guidelines include two main funding categories and eligible organizations may submit grant requests for two subcategories:
• Main Category 1 - Tourism Generating Arts and Culture Organization. This category is for organizations that earn at least 20 percent of their income or patronage from visitors and can submit data that demonstrates its impact/use by visitors from outside of Napa County. It includes the following sub-categories:
1. Capacity Building
2. Special Programs & Projects
3. Capital Improvement
• Main Category 2 - General Arts and Culture Organization. This category is for organizations that do not receive 20 percent of their income or patronage from visitors outside of Napa County and primarily focus on arts and culture activities for residents of Napa County. It includes the following sub-categories:
1. Capacity Building
2. Special Programs & Projects
3. Capital Improvement
Leadership and Professional Development:
This subcategory is intended to provide support for nonprofit staff and boards in governance and management training, skills, development, and professional coaching. Both Tourism Generating and General Arts and Culture organizations may apply in addition to their two subcategory requests.
Maximum Grant Requests:
The maximum grant amounts are based on an organization’s annual operating budget:
• Small operating budget: up to $100,000 - $7,500 maximum award amount
• Mid-sized operating budget: greater than $100,000 but less than $500,000 - $17,500 maximum award amount
• Large operating budget: above $500,000 - $27,500 maximum award amount
The maximum grant award for Leadership & Professional Development grants is $2,500, regardless of budget size. The award is not counted toward the above caps on awards.
Collaborative Grant Requests:
Two or more organizations may partner on a Special Programs & Projects request in addition to their individual grant requests and Leadership & Professional Development request. The maximum award amount is $20,000, regardless of budget size and no more than $10,000 per participating organization.
RECOMMENDED GRANT AWARDS
The Arts and Culture Advisory Committee (Committee) met on Monday, April 24, 2023, to review and score 31 grant applications (proposals) received from 23 arts and culture non-profit organizations. The details of the recommended awards are included in the attached spreadsheets.
The Committee has recommended to award $139,474, in the Tourism Generating Arts & Culture Category and $166,442 in the General Arts & Culture Category. If the grant recommendations are approved, a total of $305,916 in grant funds will be awarded with 20 proposals receiving full funding and 2 proposals receiving partial funding.